THE IMPACT OF PANDEMIC CRISIS ON THE FINANCIAL STABILITY OF THE BANKING SECTOR IN REPUBLIC OF NORTH MACEDONIA

The pandemic crisis, even though primarily is a health crisis, of course it affected the whole economy and especially it impacted the banking sector. This shock to the banking industry and the economy came as a result of a combination of several factors, the pandemic and the governmental and social responses to it. More specifically, the research is concerned on how the pandemic crisis affected the financial stability of the banking sector in North Macedonia by analyzing four financial indicators, capital adequacy ratios, non-performing loan ratios, return on average equity and liquidity indicators and by comparing these with the financial indicators in Italy, being one of the countries which was hit the hardest during the beginning of the crisis. It further focuses on the measures undertaken by the National Bank of North Macedonia and whether these measures have had an impact on remaining financial stability, as well as, whet the role of the banking sector in the recovery of the economy is.

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