Recent discussions between the central bank governors of North Macedonia and Slovenia have underscored their confidence in the robustness of their financial systems, reinforced by several macroprudential strategies.
Key initiatives, such as the countercyclical capital buffer, have been crucial in enhancing the resilience of banking structures against economic adversities while preserving stability in an increasingly uncertain global landscape. This was the focus of the post-meeting statement released by the National Bank of North Macedonia following the convergence in Skopje.
National Bank Governor Angelovska Bezhoska highlighted, "The capital adequacy ratio, a principal indicator of banking system stability, has reached approximately 19 percent, marking the highest level in 16 years. This, together with solid liquidity and high-quality credit portfolios, signifies the system's capacity to underpin economic growth, particularly in investment sectors."
Echoing these sentiments, Bank of Slovenia Governor Boštjan Vasle noted, "Banks within the eurozone, including those in Slovenia, have recently embraced high profitability rates comparable to North Macedonian banks, alongside historically robust asset quality indicators. Generally, banks are well-capitalized and uphold strong liquidity positions."
Vasle further attributed the favorable standing of banks to the harmonization and fortification of banking regulations and supervision across the Eurozone, advancements in macroprudential policy frameworks, and substantial support from fiscal and monetary policies during the recent pandemic and energy crisis.
Nevertheless, Vasle cautioned that European banks face enduring challenges, particularly in terms of evolving business models, digital transformation, and mounting competition from non-bank entities.
Both central bankers acknowledged ongoing risks mainly tied to external factors, including geopolitical instability and economic fragmentation. They affirmed that central banks are exercising prudence in applying macroprudential policies to bolster financial stability in the foreseeable future.
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