Vice Governor Nacevska: The high confidence of citizens in domestic banks was reflected in the growth of savings deposits by 35 percents

Skopje, 1 November 2024

"From the beginning of the pandemic until now, household deposits in Macedonian banks grew by about 35% and they currently make up around 60% of their financial assets. It is even more important that the share of denar deposits in total household savings already exceeds 50%, thus continuing the trend of denarization. The confidence in the banking system was also reflected in the growth of long-term deposits with double-digit growth rates, the highest in the last decade, whereby in August the share of long-term deposits reached 30%", said the Vice Governor of the National Bank, Emilija Nacevska, in her address on the occasion of the World Savings Day - 31 October, at the traditional event organized by the Macedonian Banking Association (MBA).

Nacevska said that with its proactivity, the National Bank makes a significant contribution to the strengthening of the resilience of the banking system, adjusting properly the set of measures it has been undertaking in recent years. The banking sector actively monitors these signals of the central bank, offering appropriate deposit products at more attractive interest rates.

"One of the key prerequisites for encouraging the savings in domestic banks is maintaining the stability of the financial system. Although banks have faced several consecutive crises, their capital and liquidity positions have been strengthened. The banking sector increased its resilience, which is clearly evident from several indicators. Capital adequacy has significantly increased to 19%, which is the highest level in the past two decades. Banks' liquidity is at a high level. The quality of the loan portfolio has improved compared to the pre-pandemic period, with a share of non-performing loans in total loans of about 3%. These data show that the banking sector passed the resilience test, largely supported by the timely and appropriate macro-prudential measures undertaken by the National Bank in the past period", said the Vice Governor Nacevska, emphasizing the need for constant vigilance and adjustability of all stakeholders, in order to protect against possible new shocks that could retest the resilience of the banking system in the future.

On the Savings Day, the Vice Governor Nacevska said that the positive trends are undoubtedly related to the level of financial education of the population - a strategic goal on which the National Bank is working devotedly. The Macedonian Banking Association and commercial banks also undertake their own initiatives for financial education of the population, within their strategies for social responsibility, which have been increasing in recent years.

"We expect that in the next period we will invest even more in the projects for raising the financial literacy of citizens, in order to contribute to the building of a more inclusive financial system, where everyone will have the necessary knowledge and skills to make the right financial decisions based on information", Nacevska said.

The Vice Governor pointed out that electronic and mobile banking applications are more prevalent worldwide, and lately also the financial tools operated by artificial intelligence that enable management and monitoring of savings in real time. The banking sector will have to contribute to strengthening these trends in our country as well, through increased investments in its digital infrastructure.