Memorandum of Understanding between NB and MAPAS – Greater Efficiency in Financial Stability Maintenance

Skopje, 18 January 2022

The strengthening of the cooperation between the National Bank and the Agency for Supervision of Fully Funded Pension Insurance (MAPAS), contributes to greater efficiency of regulators in the analysis and assessment of financial stability. This was emphasized at today's meeting between the Governor of the National Bank, Anita Angelovska Bezhoska and the President of the Council of MAPAS Experts, Maksud Ali, during the signing of a Memorandum of Understanding between the two institutions.

The improvement in the cooperation between the National Bank and MAPAS is of great importance, having in mind the connection of the banking system with the pension companies, both on the basis of the ownership connection, and on providing property custody services for the pension funds. This close connection of the two segments of the financial system is a factor for closer coordination and cooperation of the National Bank and MAPAS, for better management, dealing with possible risks and maintaining the stability of the financial sector.

The Memorandum envisages cooperation between the National Bank and MAPAS through several groups of activities. Thus, the Memorandum defines the necessary data that the institutions will exchange - it is foreseen that regularly, on a quarterly basis, MAPAS receives data on the banks from the National Bank, which the agency will use in performing its supervisory role on pension funds, and to protect the interests of the insured. The exchange of data is also aimed at providing information needed for analysis and assessment of financial stability and reporting for statistical purposes.

The Memorandum envisages organizing joint controls of the entities of common interest of the two regulators, when the need for such controls is determined. At the same time, mutual cooperation is envisaged in the preparation of bylaws that refer to the entities that are subject to common interest, as well as during the preparation of the draft legal acts related to banks and pension funds.

Financial stability is mutualpriority and requirement of financial regulators. In that regard, the National Bank last year renewed the Memoranda of Understanding with both the Securities and Exchange Commission and the Insurance Supervision Agency, in order to strengthen the mechanisms protecting the financial stability in the system.