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Financial Stability Committee: Banking system is safe and stable

After the National Bank of North Macedonia revoked the founding and operating licence of Eurostandard Bank AD Skopje, the citizens should rest assured - the banking system is stable and safe, the Financial Stability Committee says Friday.

Skopje, 14 August 2020 (MIA) – After the National Bank of North Macedonia revoked the founding and operating licence of Eurostandard Bank AD Skopje, the citizens should rest assured – the banking system is stable and safe, the Financial Stability Committee says Friday.

All other banks, including savings banks, are stable and safe, it added.

“Financial stability is constantly being enhanced with the contribution of the banking system being stable and safe being the key. It is one of the strongest backbones of the Macedonian economy, which the citizens and the companies – the economy in general – can rely on,” the Financial Stability Committee concluded at today’s session.

Revoking the Eurostandard Bank’s licence, it said, is a step toward maintaining the stability of the banking system and financial stability as a whole.

The bank, the Committee reiterated, held just 1.3% of the system’s total assets, 1.7% of deposits and 1.6% of loans all the while affecting the system’s nonfunctional loans.

“Revoking of Eurostandard Bank’s licence does not affect the stability of any segment of the financial system,” the Financial Stability Committee concluded.

According to it, the banking system has improved by the end of the first half of 2020 compared to March data, when the Macedonian economy was still not significantly affected by the coronavirus crisis.

“Of great significance for strengthening financial stability is the fact that the banking system’s solvency has peaked to a historic maximum. Most of the banks’ profits has been reinvested in line with the National Bank recommendation. High liquidity of the banking system as well as its solvency are the main indicators confirming the system is highly resilient to shocks and has the capacity to offer loan support to the real sector,” the Financial Stability Committee stated.

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