People’s Bank: European Commission assesses banking sector resilience and progress on financial stability

The European Commission’s 2026 report describes North Macedonia’s banking sector as resilient, with strong capital, a high-quality loan portfolio and profitability, according to a statement from the People’s Bank of North Macedonia.

According to the institution, the report also highlights the National Bank’s measures to strengthen financial stability and align with European standards.

The European Commission notes that the National Bank continues to conduct monetary policy aimed at maintaining price stability while strengthening macroprudential tools and supervision. The report cites steps to improve liquidity management, refine its monetary policy instrument and monitor climate risks. To align with EU rules, it recommends strengthening the National Bank’s financial independence.

In response to the rapid growth of housing and construction loans, as well as rising property prices, the National Bank has tightened macroprudential lending measures. These include measures concerning loans secured by real estate, changes to reserve requirements and an increase in the countercyclical capital buffer rate. According to the Bank, the aim is to limit risks and preserve the banking sector’s resilience.

The report also finds progress in aligning with European rules. The Bank Intervention Law, which follows the EU framework for intervention and the strengthening of credit institutions, entered into force in June 2026 and was assessed as an important step. A new methodology for managing interest rate risk in the banking book was also adopted in July.

Progress has also been made in payments: the country has been operationally ready to join the SEPA schemes since October 2025. Meanwhile, in July 2026, the National Bank signed an agreement with the European Payments Council to join the SEPA Instant Credit Transfer scheme.

The National Bank says the European Commission’s assessment demonstrates the resilience of the domestic banking sector and continued progress in strengthening financial stability. It will continue working to maintain price and financial stability and to further align with European regulations.