Page 58 - Ekonomija i Biznis_oktomvri 2016.indd

BРУAБNРKИINКGА

Kristina Pogachnik
Kostovska

Master in Economics

Increased bank
capital –
what do banks
and the econ-
omy get and
lose?

I n the past few years, es- the trust of the creditors and minimum adequacy rate of cap-
pecially after the World the depositors in the banks. An- ital of 8%. Although this rate
Financial Crisis from other function of capital, which with Basel 3 remained formally
2007, the issues about is becoming current after the unchanged, still due to the in-
the level of bank capital last financial crisis, is the in- troduction of two additional
and the need of an appropriate crease of stability of the inter- sources of capital (increased
regulation are becoming more national banking system and its equity and countercyclical capi-
important. This arises from resistance to negative economic tal), the capital adequacy ratio
the role that capital has in the shocks. Consequently, the finan- would realistically increase by
preservation of solvency of the cial crisis also imposed a need 2.5% to 5%. Same as in the inter-
banks, more cautious risk man- of changes in the Basel Capital national regulations, the mini-
agement in a manner which will Accord (Basel 3) in the direc- mum adequacy capital ratio in
be best in terms of protection of tion of further increase of the the banks in the Republic of
the interests of the sharehold- regulatory requirements for the Macedonia should be 8%. How-
ers, as well as strengthening of capital level in an unchanged ever, in the banking system in

Same as in the international regulations, the minimum adequacy capital
ratio in the banks in the Republic of Macedonia should be 8%. However, in
the banking system in this country, this rate is continuously higher than the
prescribed minimum, whereby in the past few years it is approximately 16%

58 October 2016