Liquidity risk in Macedonian banking system

Abstract

The subject of research of this paper presents the liquidity risk in the banking system of the Republic of Macedonia. The purpose of the research of this paper is to show whether there is liquidity risk in the banks in the Republic of Macedonia or the country has a good management policy for controlling the risk in banking operations. The first part is an introduction which explains the topic of the research, while the second part focuses on the methodology for liquidity risk management in Macedonian banks which explains the Decision on managing banks’ liquidity risk, that is adopted by the National Bank of the Republic of Macedonia. The third part of the paper explains the indicators and the results from successful management of this kind of risk in our banks. Finally, the fourth part of the paper is the conclusion.