Skopje, 31 October 2025 (MIA) - Under conditions of accelerated domestic economic growth and slowing inflation, the banking system maintained its stability, solvency improved, and the capital adequacy ratio reached 19.6 percent which is the highest since 2006, the National Bank Council concluded on Friday, adopting the Report on Risks in the Banking System of the Republic of North Macedonia in the Second Quarter of 2025.

The central bank said the banking system’s liquidity remained at a satisfactory level, with liquid assets covering a significant portion of short-term liabilities and household deposits.

According to the bank, the quality of the credit portfolio also improved in Q2 2025, with the rate of non-performing loans dropping to a historic low of 2.4 percent.

“In an environment of eased credit standards and increased credit demand, strengthened solvency supported faster growth in lending to households and businesses, which stands at 3.1 percent and 4.3 percent respectively on a quarterly basis. Deposits also grew more rapidly in the second quarter of 2025, with continued favorable trends in terms of currency and maturity,” the National Bank said.

The National Bank said it would continue to exercise caution in conducting monetary and macroprudential policy, noting that external and domestic uncertainties remain pronounced. It stressed the need for caution and continuous monitoring of risks to maintain the stability of the banking sector in the coming period.

Photo: National Bank