Former Yugoslav Republic of Macedonia Banking Soundness and Recent Lessons

Publication Date:

August 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

After several years of transition, major weaknesses in the banking and enterprise sectors remain the root cause of low growth. A large share of nonperforming assets in the portfolio of large banks, stemming from losses in the enterprise sector, has been a key impediment to financial sector development. The banking system has been crippled with low levels of intermediation, high cost of capital, severe lack of financial discipline, and poor allocation of credit. Reforms aimed at strengthening lending practices, encouraging foreign bank participation, improving bank supervision and, above all, a consolidation process that breaks away from the past are helping pave the path to economic recovery.

Series:

Working Paper No. 2000/145

Subject:

Bank deposits Bank supervision Banking Commercial banks Credit Financial institutions Financial regulation and supervision Financial services Foreign exchange Money

English

Publication Date:

August 1, 2000

ISBN/ISSN:

9781451856538/1018-5941

Stock No:

WPIEA1452000

Pages:

33

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