IMPACT OF COVID-19 ON THE PERFORMANCE OF BANKING SECTOR AND THE SET OF MEASURES UNDERTAKEN IN THE REPUBLIC OF NORTH MACEDONIA

Abstract

The current crisis caused by Covid-19 pandemic has dam aged the global economy, causing significant changes to every aspect of the global banking system, and Republic of North Macedonia is no exception. Since the banks are the main source of liquidity insurance for economies and they perform a very important intermediation role it is very important to study the impact of Covid-19 pandemic on the performance of the banking sector in the RNM. Because of that, the first aim of this paper is to analyze the defense function though a set of measures constructed in a direction of the support of the banking sector in the Republic of North Macedonia. The second aim of this paper is to analyze the impact on the banking sector in the Republic of North Macedonia caused by the Covid-19 pandemic. From the results obtained, we concluded that although the banks in the RNM faced a lot of challenges caused by the Covid-19 pandemic, they managed to maintain their profitability and stability and even to contribute in the process of mitigation of the consequenc es of the pandemic in the RNM.