Skopje, 7 March 2023 (MIA) – The financial system in North Macedonia is stable despite the ongoing geopolitical tensions resulting from the Russian invasion on Ukraine, as well as the global challenges related to the energy crisis and the high rate of inflation, states the Annual Report on the work of the Committee for Financial Stability in 2022, adopted at a session on Monday.

The conditions of increased uncertainty, states the report, further stress the need for a fundamental assessment of risks, appropriate risk management and further creation of capital in order to ensure that financial institutions have a greater capacity to absorb risks.

The entry into force of the Law on Financial Stability, stresses the report, established the legal framework for the implementation of macro-prudential policy in the country. Consequently, the Committee for Financial Stability is established as an inter-institutional body responsible for monitoring of the implementation of macro-prudential policy in the country and coordination of activities identifying and tracking systemic risks in the various segments of the financial system when undertaking macro-prudential measures and preparing to manage the financial crisis.

The Committee consists of all regulatory financial systems in the country, i.e., the National Bank, the Ministry of Finance, the Securities and Exchange Commission, the Insurance Supervision Agency. The National Bank Governor chairs the Committee, with the Finance Minister holding the ability to chair the Committee during a financial crisis upon a decision by the Governor and the Minister. ad/ik/

Photo: National Bank