2008年-世界发展银行全球_FYR_Macedonia___Financial_Sector_Assessment_22页_314kb

Financial Sector Assessment of FYR Macedonia (November 2008)

Core Content

This Financial Sector Assessment (FSA) outlines the findings and recommendations of the joint IMF-World Bank FSAP Update team that visited FYR Macedonia from March 26 to April 8, 2008. The assessment evaluates the financial system's vulnerability to macroeconomic and financial shocks, highlights progress since the 2003 FSAP, and identifies ongoing challenges and key recommendations for improvement.

Main Findings

• Financial System Stability: The financial system in FYR Macedonia is not particularly vulnerable to immediate shocks. The banking sector has seen positive evolution, supported by improved macroeconomic conditions.

• Banking Sector:

  • Total assets of the banking sector amounted to 66.3% of GDP by the end of 2007.
  • Credit growth has been rapid, averaging over 20% per annum since 2004.
  • The banking sector is dominated by foreign-owned institutions, with the top three banks (all foreign-owned) accounting for 67% of total assets.
  • Credit growth is primarily funded by domestic deposits, and the de-facto peg of the currency is crucial for financial stability.
  • While the risk-weighted capital adequacy ratio (CAR) remains above the statutory minimum, it has been declining due to credit expansion.
  • Large banks are more vulnerable to shocks than smaller ones, as indicated by stress tests.

• Securities Sector:

  • The securities market is small and illiquid.
  • The Macedonian Securities Exchange (MSE) is the only exchange, with a limited number of listed companies.
  • The equity market experienced significant growth during the bull market but has since corrected sharply.
  • The government bond market is underdeveloped, and a yield curve is needed to support secondary market development.

• Insurance Sector:

  • The insurance sector is small and growing modestly.
  • MTPL insurance dominates the market, accounting for 50% of the insurance market.
  • There is a lack of effective regulatory and supervisory authority, with a delay in establishing the new Insurance Supervisory Agency.
  • The framework for setting MTPL premiums is not functioning, and there is no clear guidance for non-material damages.

• Pension Sector:

  • The second pillar of the pension system, introduced in 2006, has seen significant participation.
  • However, low participation remains a key issue, as many employers fail to register employees and make contributions.
  • Pension funds need to improve investment and risk management practices to achieve returns above wage inflation.
  • The supervisory agency (MAPAS) has reduced fees, but further cost reductions are necessary.

• Financial Infrastructure:

  • Payment systems have improved, with the RTGS system being modernized.
  • Credit risk registries and a credit bureau are being developed to enhance credit risk management.
  • Accounting and auditing reforms are progressing, with IFRS implementation expected in 2009.

Key Challenges

• Banking Supervision: While the regulatory framework has improved, the implementation of new regulations and the monitoring of credit growth, especially in large banks, remain critical.
• Insurance Supervision: A regulatory vacuum exists due to the delay in establishing the new supervisory authority. Interim measures are needed to maintain oversight.
• Securities Market Development: The market needs better infrastructure and more regional integration.
• Pension Fund Participation: Low participation in both pillars of the pension system is a major social challenge.
• Payment Infrastructure: Ensuring the integrity and oversight of e-payment instruments and improving the efficiency of payment systems is essential.

Key Recommendations

Banking Supervision

• Upgrade risk management policies and processes in line with regulations.
• Implement IFRS-based reporting formats by 2009.
• Strengthen stress testing, particularly for credit risk.
• Improve coordination with monetary policy in cash and debt management.

Financial Safety Nets

• Develop contingency plans for crisis management, both domestically and cross-border.
• Improve the lender-of-last-resort process through internal simulations and clear instructions on collateral.
• Invest in high-quality foreign instruments to diversify and maximize returns for the Deposit Insurance Fund (DIF).

Capital Markets

• Develop government bond markets to support other bond products.
• Establish a yield curve with benchmark issues.
• Strengthen MSEC supervision and enforcement.
• Improve cooperation between NBRM and MSEC, especially in OTC markets and bank-based brokerage functions.

Insurance Supervision

• Establish the new Insurance Supervisory Agency or proceed with unified supervision.
• Temporarily restore supervisory capacity at the Ministry of Finance (MOF).
• Implement standards for technical provisions and MTPL premiums.
• Create a nationwide insurance association for product standards, consumer protection, and dispute resolution.
• Improve financial reporting and accounting standards for insurance companies.

Pension Supervision

• Re-evaluate investment limits to allow for higher returns.
• Allow banks to provide custodian services to reduce costs.
• Continue efforts to reduce fees and improve efficiency.

Payment Systems

• Complete remote back-up facilities for the RTGS.
• Establish more effective reporting links for RTGS oversight.
• Introduce collateral or loss coverage agreements for KIBS.
• Develop a national net settlement service for card payments in domestic currency.
• Set standards for national e-payment infrastructure.

Conclusion

The financial sector in FYR Macedonia has made substantial progress since the 2003 FSAP, particularly in the banking sector. However, significant challenges remain in nonbank financial sectors, especially insurance and pension. Strengthening regulatory and supervisory frameworks, improving financial safety nets, and developing more efficient and liquid capital markets are essential for long-term stability and growth.