Skopje, 22 May 2024 (MIA) - At the 23rd BIS Working Party on Monetary Policy in Central and Eastern Europe, National Bank vice-governor Ana Mitreska said on Wednesday that the National Bank's measures for dealing with inflation further strengthened the resilience of the banking sector.

"Macroprudential measures were used to increase the resilience of the banking system, as well as the tightening of monetary policies in the fight against inflation. The counter-cyclical protective layer of banks' capital increased on several occasions, and macro prudent instruments were introduced for measuring the quality of credit demand from individuals. Data shows that many countries implemented macro prudent measures, not only to maintain financial stability, but in support of monetary policies. For example, from 2020 until now, the counter-cyclical protective layer of capital in Europe has increased from 0,25 to 2,5," Mitreska said.

According to the National Bank, the vice-governor pointed out that the cycle of tight monetary policy was accompanied by a series of macro prudent measures, preventing the creation of financial stress. She added that stress-test results on the effects of the increase in interest rates on the portfolio of the domestic banking sector showed that the banks are well-prepared to overcome possible challenges, and that risks have not materialized so far. However, according to Mitreska, due to constant uncertainty, both central banks and the banking system as a whole should be more careful and prepared in the case of new shocks. ssh/sk/

Photo: National Bank