Session of the National Bank Council: In the second quarter of 2025, the rate of the countercyclical capital buffer will remain 1.5%

Skopje, 29 March 2024

The National Bank Council, at its regular session held on 28 March 2024, based on regular quarterly systemic risk assessment, adopted a decision on maintaining the countercyclical capital buffer rate for the bank exposure in the Republic of North Macedonia of 1.5%, which will be relevant also in the second quarter of 2025. The decision is based on the assessments for the gradual stabilization of the upward cyclical systemic risks and enduring stability of the banking system. It also takes into account the conditions of the environment, which is still uncertain and accompanied by risks, which is the reason for the cautious implementation of macroprudential measures in order to further strengthen the resilience of the banking sector. By maintaining the rate of the countercyclical capital buffer, it contributes to the prevention and reduction of possible risks.

The National Bank will continue to closely monitor systemic risks and will reassess the level of the countercyclical capital buffer rate on a regular quarterly basis. At the same time, taking into account the nature of the countercyclical capital buffer and the guidelines of the relevant European institutions, the National Bank can assess the need to elevate the rate, amid the increase in the risks and uncertainties coming from the environment, in conditions of favorable performance of the banks. In the case of a significant risk materialization in the banks' balance sheets, the need for partial or complete release of this capital buffer can be evaluated, as a support in the bank operations in possible unfavorable scenarios.

At the session, the National Bank Council discussed also other materials related to the operations of the central bank.