Skopje, 27 December 2023 (MIA) – The National Bank Council convened on December 21 and 27, where it adopted report on the risks in the banking sector for the third quarter of 2023. Additionally, the Council made a decision to raise the countercyclical capital buffer, emphasizing preventive measures and enhancing the resilience of banks.

The National Bank informs that, according to the report on the risks in the banking sector for the third quarter of 2023, risk exposure indicators in the banking sector remain stable and exhibit additional improvement. Stress tests indicate a strong capacity to withstand potential shocks.

“Banks operate in an environment characterized by the gradual stabilization of price growth and a favourable foreign exchange market. Despite this, there are ongoing risks and uncertainties, mainly influenced by external factors. Therefore, the report emphasizes the need for ongoing careful monitoring of risks both by banks and by the National Bank, with the possibility of taking measures if deemed necessary. Despite a certain slowdown in credit and deposit activities, banks smoothly carry out their banking operations in such conditions, with the growth remaining solid. Favourable changes are noted in currency and deposit maturities,” the National Bank said in a press release.

The solvency of the banking system improved. The capital adequacy ratio reached its highest level in the last seventeen years, of 18%. The quality of the banks' loan portfolio was maintained. Total non-performing loans continued to decrease, whereby their share in total loans is at a historically lowest level of 2.8%.

In order to further strengthen the resilience of the banking sector, the National Bank Council adopted a macro-prudential measure for increasing the rate of the countercyclical capital buffer for the exposures of domestic banks by 0.25 percentage points, from the previously determined 1.25% to 1.5%, with the start of application in the first quarter of 2025.

In response to the ongoing stability and solid profitability of banks, and in the absence of materialized risks in their balance sheets, the National Bank has raised the level of the countercyclical capital buffer layer multiple times throughout 2023, according to the press release.

The National Bank Council discussed several other issues related to the operations and current activities of the central bank.

Photo: National Bank