Anita Angelovska Bezhoska: Strengthening of the institutional
capacity of the NBRNM in the process of its accession to the ESCB
Speech by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of
North Macedonia, at the opening conference of the Twinning Project "Strengthening of the
institutional capacity of the NBRNM in the process of its accession to the ESCB", Skopje, 30
October 2019.
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Your Excellency Gerberich, dear Mr. Janmaat, Secretary Vučić, representatives of the central
banks of Germany and Croatia, ladies and gentlemen,
It is my great pleasure to address you at today's event to mark the launch of a particularly
important project that we expect to contribute to our further profiling as a modern central bank,
with strong capacity and readiness to join the European family of central banks.
The European Union has been important institutional, economic and political benchmark
for us from the outset of the transition process. The EU pre-accession process itself
provides key tools that support and reinforce the reform process in a country aspiring to full
membership, thereby strengthening its institutional capacity and economic foundations. Faster
institutional and economic convergence, including faster convergence to the European central
bank values, will also mean faster integration into the European family.
That is why we, at the National Bank, have been strengthening our capacity through
various modalities, often with direct EU support using the available tools. Active use of
TAEX programs and direct bilateral cooperation with EU central banks are just some of the
modalities used to strengthen our infrastructure in various operating segments. In this light, I think
it is worth recalling the 2012 IPA project whose primary purpose was a detailed screening of our
compliance with the European legislation and practices and a clear identification of gaps. I am
pleased that today, thanks to the commitment of my colleagues, many of the gaps identified
during the project have already been filled. In today's dynamic environment, however, where
European legislation is undergoing major changes, harmonization with European standards is an
ongoing process that implies permanent strengthening of the institutions' capacities.
On behalf of the National Bank, I sincerely thank the EU for standing behind us and our
efforts for further alignment of the rules, policies and operations with the European
standards, with a view to further strengthening macroeconomic and financial stability. By
supporting this project, we have been given confidence that we will undoubtedly justify by
delivering concrete results. Project activities encompass four central banking areas. And it is
particularly important that in the aftermath of the global economic crisis, these areas underwent
major changes globally which pose new challenges for central banks.
The first component includes payment services and payment systems - an area where
the frequency of financial innovations is the greatest, which makes the challenges
extremely high. The activities will be largely focused on drafting of the new law and the new
bylaws on payment services and payment systems - in cooperation with the Ministry of Finance.
The new regulation will entail transposing the latest European legislation in this area and setting
grounds for significant changes to our payment landscape. Opening the door to fintech
companies will provide opportunities to strengthen competition in the payment services market,
and thus to enrich the offer of new, innovative and easily accessible products at a competitive
price.
Reflecting on the scope of this project, we have had in mind that, inter alia, the recent global
economic crisis has clearly demonstrated that macroeconomic stability does not necessarily
ensure financial stability. It acknowledged though that financial instability has long-term adverse
effects on economic growth and macroeconomic stability. This explains the large step taken by
the EU - a banking union set up on two pillars: the single supervisory mechanism and the single
resolution mechanism. Undeniably, countries heading towards the EU and the European
Monetary Union will have to work hard to harmonize the supervisory setup as well as other
institutional and structural elements relevant for the smooth financial sector functioning.
Therefore, the second component addresses the banking regulation and supervision
and aims to improve our supervisory capacities. Upon significant alignment with the
European capital requirements, the focus will now be on the process of managing liquidity, but
also on strengthening risk management in general, especially credit risk, which given the
structure of banking activities is the most significant risk in the banking book. Project activities
are in line with the latest Joint Conclusions of the economic and financial dialogue with the EU
and among other things are aimed to further reduce non-performing loans, i.e. improve the
quality of banks' balance sheets, which is important prerequisite for stronger credit support.
I am pleased that this project validates our strategic goal of providing quality statistical
data, fully compliant with international and European statistical standards. Specifically, the
third project component focuses on the further development of financial account statistics, which
is key to identifying cross-sectoral linkages within an economy and thereby identifying any
possibility of spillover of shocks from one sector into another. Recently, we have taken a number
of activities in this segment. Almost two years ago, we made our first data transfer of the annual
accounts - stock to Eurostat, and in April last year, we prepared detailed data on the flow of
assets and liabilities for the government sector, which is one of the key components in compiling
spreadsheets for the excessive deficit procedure (EDP). The project activities will be aimed to
further improving of the quality of this statistics, especially given that its first release is scheduled
for next year.
For us at the National Bank, the achievement in the fourth component - research,
knowledge and skills in policy analysis - will be of immense importance. Emphasis will be
on assessing the relationship between real and financial cycles and identifying the implications of
financial factors for the economic fluctuations in the Macedonian economy. This topic has been
particularly relevant since the outbreak of the global economic crisis, and undoubtedly, analyzing
it will improve the recommendations of decision makers.
Distinguished guests,
It is a great pleasure for us to partner with the central banks of Germany and Croatia in delivering
such a large and significant project. I thank them for being part of this project and for supporting
us in the process of European integration.
I also thank the central banks of Belgium, Lithuania, Portugal, Romania and the Netherlands who
have also accepted to support our way towards European values. I believe in the not too distant
future we will be partners not only in implementing projects, but also equal partners in the
creation of European standards in central banking.
Finally, let us remember what Robert Schuman said in the 1950 Declaration, "Europe will not be
made all at once, or according to a single plan. It will be built through concrete achievements
which first create a de facto solidarity." I hope that the achievements we make during the project
delivery will reaffirm our readiness to be active and beneficial participants in the further
construction of Europe.
Thank you for your attention.