MONETARY POLICY TIGHTENING IN THE REPUBLIC OF NORTH MACEDONIA SEEN THROUGH THE FINANCING OF HOUSEHOLDS AND NON-FINANCIAL COMPANIES AND BANK PROFITABILITY
MONETARY POLICY TIGHTENING IN THE REPUBLIC OF NORTH MACEDONIA SEEN THROUGH THE FINANCING OF HOUSEHOLDS AND NON-FINANCIAL COMPANIES AND BANK PROFITABILITY

Summary/Abstract: These are difficult times for central bankers. The surge of global inflation in 2021 has caught many central banks by surprise. This paper analyzes the implications of the effects of the conduct of monetary policy in the RN Macedonia on the financing conditions faced by households and non-financial companies compared to the profitability of other financial institutions. The findings of the research show a stagnation in the borrowing of households and non-financial companies, as well as an increase in savings primarily as a result of caution. Furthermore, the research reveals that the rest of the financial institutions, despite such a situation and negative volume effect, record an increase in profitability. This is mainly due to the structure of the Macedonian banking system, where placements in treasury bills and deposits in NBRNM dominate, and the realized interest income from non-resident financial companies, where placements in foreign banks dominate, also has an impact. The inflation is decreasing, but it is still at a high level and far from the target inflation, and the uncertainty from the external environment still exists. High inflation makes things worse for everyone, so it is necessary to assess the risks of it becoming embedded

• Details
• Contents