Papers by Vesna Micajkova
Research Journal of Finance and Accounting, 2013
The purpose of this paper is to estimate the efficiency of the banking sector of Republic of Mace... more The purpose of this paper is to estimate the efficiency of the banking sector of Republic of Macedonia for the period 2008-2011. Technical, pure technical and scale efficiency of 15 Macedonian banks have been measured using Data Envelopment Analysis (DEA), both CCR and BCC model. Intermediation approach has been applied in order of measuring banks efficiency in transforming the deposits into investments and credits with intermediation of labor. The results from the analysis indicate an increase of the average efficiency from 2008 to 2010 and an efficiency decrease in 2011. The scale efficiency follows the same trend. The study implies that the main source of inefficiency is due to scale inefficiencies. Regarding group of banks, the group of large banks has a highest pure efficiency scores but the greatest scale inefficiency. The group of small banks is technically the least efficient.
The purpose of this paper is to estimate the efficiency of the insurance sector of Republic of Ma... more The purpose of this paper is to estimate the efficiency of the insurance sector of Republic of Macedonia for the period 2009-2013. Technical, pure technical and scale efficiency of 11 Macedonian insurance companies have been measured using Data Envelopment Analysis (DEA), both CCR and BCC output-oriented model. The results from the analysis indicate an increase of the average efficiency during the almost whole observed period. The scale efficiency follows the same trend. When estimating the BCC model, the number of efficient insurance companies and the average efficiency for the sector is higher than in the CCR case, implying that the main source of inefficiency is due to scale inefficiencies. The average technical efficiency score of Republic of Macedonia in 2013 of 0.84387 indicates relatively high efficiency of the insurance sector. The efficiency problem of each insurance company has been specified particularly.
The purpose of this paper is to determinate the influence of risk management on efficiency of Mac... more The purpose of this paper is to determinate the influence of risk management on efficiency of Macedonian banks. A regression models have been created where technical, pure technical and scale efficiency estimates are used as dependent variables. The efficiency estimates have been made using data envelopment analysis. Indicators from four different classes of risk (profitability, capital adequacy, assets quality and liquidity) for period 2008-2011 have been used as independent variables. The models’ results indicate that a hypothesis about existence of significant relationship between banks’ efficiency and profitability can be rejected. Significant relationship between banks’ efficiency and capital adequacy and assets quality has been detected. The relationship is negative in both cases. The strongest statistical correlation has been detected in case of banks’ efficiency and banks’ liquidity. This correlation is also negative, meaning that a rise in liquidity will lead to an efficiency decrease and vice versa.
In many countries of the world income inequalities have signifi cantly increased
in the past deca... more In many countries of the world income inequalities have signifi cantly increased
in the past decades. Higher income disparities lead to lower economic growth,
increase in violence, poorer educational achievement and higher mortality rates.
The aim of this paper is to present the dynamics of the income inequalities of the
countries in the world with a special emphasis on the Republic of Macedonia. The
income inequality in the Republic Macedonia presented trough its Gini index shows
dynamic growth in the period from 1998 to 2008. The Macedonian Gini index is
signifi cantly higher than the OECD average and the Gini indexes of the countries
in the region. The government of the Republic of Macedonia has undertaken all
recommended measures for inequality reduction, and therefore a decrease in
inequality in the following period is to be expected. The introduction of progressive
income taxes should be taken into consideration as an additional measure for
inequality reduction.
A key function of a deposit insurance system is to give depositors prompt access to their insured... more A key function of a deposit insurance system is to give depositors prompt access to their insured deposits when a bank is closed. A deposit insurer’s effectiveness in providing prompt reimbursement to depositors is critical for maintaining confidence in the banking system and financial stability. In order of providing its key function, every deposit insurance system should have an effective funding. In deposit insurance systems that use ex-ante funding, funds are most commonly collected through premium assessment from the financial institutions – members of the deposit insurance system. The height of the deposit insurance premium is very important issue. If a deposit insurance premium is set to low, the fund may not collect enough means for depositors’ reimbursement. On the other site, too high deposit insurance premium will be unjustified burden to the financial institutions.
The purpose of this paper is to investigate the adequacy of the deposit insurance premium of Republic of Macedonia. The premium adequacy is analyzed through comparative analysis with the deposit insurance premium of other countries and from the target reserve ratio point of view. The comparative analysis shows that Macedonian deposit insurance premium rate is among the highest premium rates not only among the European countries but on the world level as well. The analysis from the target reserve ratio point of view shows that the target level of the Deposit Insurance Fund Skopje has been achieved since 2010, so the premium rate should be set on a level that will allow maintaining of the achieved target reserve ratio. Because of the dynamic growth of the households’ deposits maintaining the target reserve ratio of the Macedonian deposit insurance fund requires only a little lower premium rate than the regular i.e. the deposit insurance premium rate of Republic of Macedonia can be reduced to 0.65%.
R&D activities are one of the two cross-cutting policies contributing to the knowledge society. T... more R&D activities are one of the two cross-cutting policies contributing to the knowledge society. The importance of R&D in the 20th century resulted to a respective need for measurements and indicators. The R&D indicators give a perspective of the level of knowledge in one society. The purpose of this scientific paper is to measure and interpret the research and development (R&D) indicators, the percentage of Gross Domestic Expenditure on R&D (GERD) on Gross Domestic Product (GDP) and number of researchers as percentage of total employment, of the knowledge-based economy of Republic of Macedonia. The results indicate very low investment in R&D activities in Republic of Macedonia, concentrated mainly in the government sector. The indicator of human resources invested in R&D doesn’t show big differences from the value of the same indicator in the developed countries.
The sufficiency of the deposit insurance fund (DIF) is а very important issue for countries that ... more The sufficiency of the deposit insurance fund (DIF) is а very important issue for countries that use ex-ante method of funding. The deposit insurance fund should have enough means for prompt reimbursement of the deponents in case of a collapse of the financial institution-member of the deposit insurance system. On the other side, maintaining too large deposit insurance fund will mean unjustified burdening of the financial institutions, since they are major financier of the fund through premium payment. Some countries determine the amount of resources that the deposit insurance fund should have, by setting a target reserve ratio.
The target reserve ratio of the Deposit Insurance Fund of the Republic of Macedonia is 4% of the insurable deposits. Achieving and maintaining this target level requires high assessment from the financial institutions – members, which is provided through high deposit insurance premium rate of 0.7%. Members of the banking industry of Republic of Macedonia express their dissatisfaction with the premium rate height, but the extreme target level supplemented with high rate of insurable deposits growth doesn’t allow deposit insurance premium reduction.
The purpose of this paper is to evaluate the adequacy of the target reserve ratio of the Macedonian deposit insurance fund. The current target ratio of the Deposit Insurance Fund of Republic of Macedonia is evaluated using Historical Intervention Analysis, Coverage Ratio Analysis and Robustness Indicator Analysis. The results of all methods aplied indicate that the target reserve ratio of the Deposit Insurance Fund of Republic of Macedonia is set too high and that there is an economic justification for its reduction.
The purpose of this paper is to estimate the efficiency of the banking sector of Republic of Mace... more The purpose of this paper is to estimate the efficiency of the banking sector of Republic of Macedonia for the period 2008-2011. Technical, pure technical and scale efficiency of 15 Macedonian banks have been measured using Data Envelopment Analysis (DEA), both CCR and BCC model. Intermediation approach has been applied in order of measuring banks efficiency in transforming the deposits into investments and credits with intermediation of labor. The results from the analysis indicate an increase of the average efficiency from 2008 to 2010 and an efficiency decrease in 2011. The scale efficiency follows the same trend. The study implies that the main source of inefficiency is due to scale inefficiencies. Regarding group of banks, the group of large banks have a highest pure efficiency scores but the greatest scale inefficiency. The group of small banks is technically the least efficient.
The global fi nancial crisis of 2007/08 was an important factor for the European
debt crisis. th... more The global fi nancial crisis of 2007/08 was an important factor for the European
debt crisis. the Republic of Cyprus was among the EU countries that could not
handle its public debt without a help from third parties. The purpose of this text is
to give an overview of the Cyprus crisis, to explain the causes, possible solutions,
the Eurogroup proposal and its global implications. The help package that Cyprus
received from the big Troika included a scandalous measure of introduction of a
levy on the bank deposits. It has destroyed the total economic model of Cyprus,
jeopardized the credibility of the deposit insurance and initiated a risk of panic
reaction among deponents from other EU countries. Obviously, the EU’s intention
was to destroy Cyprus as tax heaven and money laundry in Europe, and regarding
the small size of the Cypriot economy, contagious effects on the rest of Europe
were not expected. Considering the EU’s intention, Cyprus case must be seen as
a sui generis problem and the deponents from other countries should not worry
about the security of their deposits. But, the European Union should worry about
the raising discontent of the member countries because of the unequal treatment
regarding the solutions for the fi nancial problems.
The ongoing European sovereign debt crisis continues to shake fi nancial markets
and the Euro zon... more The ongoing European sovereign debt crisis continues to shake fi nancial markets
and the Euro zone. The question about the future of the Euro is the main topic of
scientifi c interest. This text explores the hypotheses about what might happen if
certain countries dropped out of the Euro zone or if the entire currency collapses.
A break-up of the 17-member state Euro Area, even a partial one involving the exit
of one or more fi scally and competitively weak countries will lead to fi nancial and
political chaos not only for the ejecting country, but for the remaining countries
as well. Exit by Germany or the other fi scally and competitively strong countries
would be possibly even more disruptive. The future of the Euro lies in the hands
of its members, especially Germany – the richest and strongest member of the
Euro zone. The predictions indicate that it would be much cheaper for Germany
to bail out all troubled Euro zone countries than to exit the monetary union. The
maintenance of the Euro through some sort of fi scal integration (meaning taxpayers
from the stronger economies repaying the troubled countries’ debt) seems as a less
painful option for every member state than partial or full currency collapse.
The process of monetary independence began after the political independence of
the Republic of M... more The process of monetary independence began after the political independence of
the Republic of Macedonia, and has been taking place in diffi cult circumstances.
The purpose of this text is to describe that process, as well as the monetary
measures taken and the monetary goals achieved over the past 20 years. After
the independence, the monetary authorities of the Republic of Macedonia managed
to decline the four-digit hyperinfl ation on an annual basis to one digit level and to
maintain the price stability over the years with small defl ation tendencies. The goals
of the monetary policy were achieved, as well as the monetary stability. But the
effects of the monetary policy on the real sector are not satisfactory. In most cases,
since the independence to the present, the GDP has shown annual growth, but
that growth is apparently not enough to absorb the free production’s factors, which
is demonstrated by the permanently high rate of unemployment. The monetary
strategy of the Republic of Macedonia is a subject of criticism, and therefore
possible changes should be reconsidered. The changes will be justifi ed if they bring
economic benefi t with no threat to the macroeconomic stability.
The role of deposit insurance and the design features of deposit insurance systems are undergoing... more The role of deposit insurance and the design features of deposit insurance systems are undergoing important changes in light of the 2008/9 global crisis. Changes were made in order of restoring the public confidence in the banking system, stopping widespread bank runs during the crisis and increasing the stability of the financial system. The purpose of this paper is to present the changes of the deposit insurance among the countries in the world as a result of the financial crisis of 2008. Three main changes will be observed: the raise in the maximum level of deposit insurance coverage, the elimination of the coinsurance and changes in the speed of depositor’s payout. Effects of these changes will be analyzed, and special emphasis will be given on the deposit insurance system of Republic of Macedonia.
The changes in deposit insurance can affect the moral hazard problem, the premium assessment base and the potential financial commitment of the deposit insurance institution. Changes in the deposit insurance regulative of Republic of Macedonia did not affect the premium assessment base, but the potential financial obligation of the deposit insurance institution was increased. Regarding the moral hazard problem mitigation, Deposit Insurance Fund - Skopje should consider risk-based premium introduction.
При осигурување депозити, како и при сите други видови осигурување, можат да се јават три основни... more При осигурување депозити, како и при сите други видови осигурување, можат да се јават три основни проблеми: морален хазард, негативна селекција и агентски проблем. Целта на овој труд е да изврши анализа на елементите на македонскиот систем за осигурување депозити, од аспект на проблемите во депозитното осигурување, и да ги утврди потенцијалните слабости на системот. Резултатите од анализата укажуваат дека потенцијални слабости во системот за осигурување депозити на Република Македонија се високото осигурително покритие и отсуството на систем за пресметка на премии, диференцирани во согласност со ризичноста на банките.
Cost to income koeficientot e pokazatel na efikasnosta na raboteweto na organizaciite. Vo slu~aj ... more Cost to income koeficientot e pokazatel na efikasnosta na raboteweto na organizaciite. Vo slu~aj na bankite toj pretstavuva izraz na odnosot me|u vkupnite operativni tro{oci i vkupnite redovni prihodi. Vkupnite redovni prihodi se presmetuvaat kako zbir od neto kamatnite prihodi, neto prihodite od provizii, ostanatite neto finansiski prihodi i drugite redovni prihodi. Cost to income pokazatelot e inverzen koeficient: povisokiot koeficient uka`uva na poniska efikasnost, a poniskiot uka`uva na povisoka efikasnost. Me|u bankarite e prifateno deka idealna vrednost na cost to income pokazatelot e od 30% do 40%, vrednosta od 40% do 50% se smeta istotaka za dobra i zadovolitelna, i kaj najgolem broj od bankite koeficientot iznesuva okolu 50%. Cost to income koeficientot so vrednost od 60% i pove}e, uka`uva na potreba za prezemawe na merki za podobruvawe na efikasnosta na raboteweto, ili za nekoi specijalni promeni vo okru`uvaweto.
Vrednostite na cost to income pokazatelot vo svetski razmeri uka`uvaat na poniska efikasnost vo raboteweto na bankarskiot sektor vo razvienite zemji. Japonija e zemja so najvisok cost to income pokazatel. Cost to income pokazatelot na bankite vo SAD i EU e povisok od toj na bankite vo Latinska Amerika i Isto~na Evropa. Sredniot istok e region so najgolema efikasnost na bankarskiot sektor, odnosno so najniska vrednost na cost to income pokazatelot, koja vo poslednite godini se dvi`i okolu 40%.
Cost to income pokazatelot na nivo na bankarskiot sektor na Republika Makedonija od 2002 do 2007 godina poka`uva trend na permanenten porast. Vo 2008 i 2009 godina efikasnosta na makedonskite banki se namaluva, za vo 2010 da dojde do povtoren porast i ostvaren cost to income pokazatelot od 66,40%. Komparacijata na dvi`eweto na pokazatelot na efikasnost so pokazatelite na profitabilnost ROAA i ROAE na nivo na bankarski sektor, uka`uva na negativna korelacija me|u pokazatelite t.e. pozitivna korelacija me|u profitabilnosta i efikasnosta. Najgolema efikasnost e zabele`ana kaj grupata na golemi banki koi vo 2010 godina ostvaruvaaat vrednost na cost to income pokazatelot od 55,10%. Ovaa vrednosta na cost to income pokazatelot se smeta za prifatliva i uka`uva na povisoka efikasnost od prosekot na SAD i Evropskata Unija, no sepak poniska od prosekot na Isto~na Evropa. Grupata na mali i grupata na sredni banki vo analiziraniot period imaat postojani oscilacii vo raboteweto i prili~no visoki vrednosti na cost to income pokazatelot {to uka`uva na potreba za prezemawe na merki za podobruvawe na nivnata efikasnost.
Republic of Macedonia can improve its deposit insurance system by introduction of risk based depo... more Republic of Macedonia can improve its deposit insurance system by introduction of risk based deposit insurance premium system. The purpose of this research is to provide a preliminary quantitative assessment of the impact that the introduction of two risk-based models proposed by European Commission (Single Indicator Model and Multiple Indicators Model) would have on the contributions of the banks in Republic of Macedonia. Results for the Single Indicator Model show that the selection of a single ratio would ignore valuable information on the risk profile of the bank, since the impact on contributions is very different, depending on the indicator selected. The Multiple Indicators Model overcomes the main drawbacks of the Single Indicator Model. First, by considering information from different classes, the aggregated risk coefficient is better at capturing a bank’s overall risk; secondly, numerical experiments show that the variability of the impact on contributions is significantly reduced.
The purpose of this research is to evaluate the compliance of the Macedonian deposit insurance s... more The purpose of this research is to evaluate the compliance of the Macedonian deposit insurance system with the Core Principles for Effective Deposit Insurance Systems. The results of the evaluation show that the system fully complies with 11 principles, partially complains with 2 and is non-compliant with 4 principles, while it is not possible to determine compliance with one of the 18 core principles. The deposit insurance system is not compliant with principle 1 – Public policy objectives, principle 7 – Cross border issues, principle 13 – Legal protection and principle 14 – Dealing with parties at fault in a bank failure. The principle 2 – Mitigating moral hazard and the principle 12 – Public awareness have been partially compliant and the principle 10 – Transitioning from a blanket guarantee to a limited coverage deposit insurance system is the one which compliance is not possible to determine. After the evaluation analyses this paper presents recommendation in order to improve the compliance and the efficiency of the deposit insurance system of Republic of Macedonia.
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Papers by Vesna Micajkova
in the past decades. Higher income disparities lead to lower economic growth,
increase in violence, poorer educational achievement and higher mortality rates.
The aim of this paper is to present the dynamics of the income inequalities of the
countries in the world with a special emphasis on the Republic of Macedonia. The
income inequality in the Republic Macedonia presented trough its Gini index shows
dynamic growth in the period from 1998 to 2008. The Macedonian Gini index is
signifi cantly higher than the OECD average and the Gini indexes of the countries
in the region. The government of the Republic of Macedonia has undertaken all
recommended measures for inequality reduction, and therefore a decrease in
inequality in the following period is to be expected. The introduction of progressive
income taxes should be taken into consideration as an additional measure for
inequality reduction.
The purpose of this paper is to investigate the adequacy of the deposit insurance premium of Republic of Macedonia. The premium adequacy is analyzed through comparative analysis with the deposit insurance premium of other countries and from the target reserve ratio point of view. The comparative analysis shows that Macedonian deposit insurance premium rate is among the highest premium rates not only among the European countries but on the world level as well. The analysis from the target reserve ratio point of view shows that the target level of the Deposit Insurance Fund Skopje has been achieved since 2010, so the premium rate should be set on a level that will allow maintaining of the achieved target reserve ratio. Because of the dynamic growth of the households’ deposits maintaining the target reserve ratio of the Macedonian deposit insurance fund requires only a little lower premium rate than the regular i.e. the deposit insurance premium rate of Republic of Macedonia can be reduced to 0.65%.
The target reserve ratio of the Deposit Insurance Fund of the Republic of Macedonia is 4% of the insurable deposits. Achieving and maintaining this target level requires high assessment from the financial institutions – members, which is provided through high deposit insurance premium rate of 0.7%. Members of the banking industry of Republic of Macedonia express their dissatisfaction with the premium rate height, but the extreme target level supplemented with high rate of insurable deposits growth doesn’t allow deposit insurance premium reduction.
The purpose of this paper is to evaluate the adequacy of the target reserve ratio of the Macedonian deposit insurance fund. The current target ratio of the Deposit Insurance Fund of Republic of Macedonia is evaluated using Historical Intervention Analysis, Coverage Ratio Analysis and Robustness Indicator Analysis. The results of all methods aplied indicate that the target reserve ratio of the Deposit Insurance Fund of Republic of Macedonia is set too high and that there is an economic justification for its reduction.
debt crisis. the Republic of Cyprus was among the EU countries that could not
handle its public debt without a help from third parties. The purpose of this text is
to give an overview of the Cyprus crisis, to explain the causes, possible solutions,
the Eurogroup proposal and its global implications. The help package that Cyprus
received from the big Troika included a scandalous measure of introduction of a
levy on the bank deposits. It has destroyed the total economic model of Cyprus,
jeopardized the credibility of the deposit insurance and initiated a risk of panic
reaction among deponents from other EU countries. Obviously, the EU’s intention
was to destroy Cyprus as tax heaven and money laundry in Europe, and regarding
the small size of the Cypriot economy, contagious effects on the rest of Europe
were not expected. Considering the EU’s intention, Cyprus case must be seen as
a sui generis problem and the deponents from other countries should not worry
about the security of their deposits. But, the European Union should worry about
the raising discontent of the member countries because of the unequal treatment
regarding the solutions for the fi nancial problems.
and the Euro zone. The question about the future of the Euro is the main topic of
scientifi c interest. This text explores the hypotheses about what might happen if
certain countries dropped out of the Euro zone or if the entire currency collapses.
A break-up of the 17-member state Euro Area, even a partial one involving the exit
of one or more fi scally and competitively weak countries will lead to fi nancial and
political chaos not only for the ejecting country, but for the remaining countries
as well. Exit by Germany or the other fi scally and competitively strong countries
would be possibly even more disruptive. The future of the Euro lies in the hands
of its members, especially Germany – the richest and strongest member of the
Euro zone. The predictions indicate that it would be much cheaper for Germany
to bail out all troubled Euro zone countries than to exit the monetary union. The
maintenance of the Euro through some sort of fi scal integration (meaning taxpayers
from the stronger economies repaying the troubled countries’ debt) seems as a less
painful option for every member state than partial or full currency collapse.
the Republic of Macedonia, and has been taking place in diffi cult circumstances.
The purpose of this text is to describe that process, as well as the monetary
measures taken and the monetary goals achieved over the past 20 years. After
the independence, the monetary authorities of the Republic of Macedonia managed
to decline the four-digit hyperinfl ation on an annual basis to one digit level and to
maintain the price stability over the years with small defl ation tendencies. The goals
of the monetary policy were achieved, as well as the monetary stability. But the
effects of the monetary policy on the real sector are not satisfactory. In most cases,
since the independence to the present, the GDP has shown annual growth, but
that growth is apparently not enough to absorb the free production’s factors, which
is demonstrated by the permanently high rate of unemployment. The monetary
strategy of the Republic of Macedonia is a subject of criticism, and therefore
possible changes should be reconsidered. The changes will be justifi ed if they bring
economic benefi t with no threat to the macroeconomic stability.
The changes in deposit insurance can affect the moral hazard problem, the premium assessment base and the potential financial commitment of the deposit insurance institution. Changes in the deposit insurance regulative of Republic of Macedonia did not affect the premium assessment base, but the potential financial obligation of the deposit insurance institution was increased. Regarding the moral hazard problem mitigation, Deposit Insurance Fund - Skopje should consider risk-based premium introduction.
Vrednostite na cost to income pokazatelot vo svetski razmeri uka`uvaat na poniska efikasnost vo raboteweto na bankarskiot sektor vo razvienite zemji. Japonija e zemja so najvisok cost to income pokazatel. Cost to income pokazatelot na bankite vo SAD i EU e povisok od toj na bankite vo Latinska Amerika i Isto~na Evropa. Sredniot istok e region so najgolema efikasnost na bankarskiot sektor, odnosno so najniska vrednost na cost to income pokazatelot, koja vo poslednite godini se dvi`i okolu 40%.
Cost to income pokazatelot na nivo na bankarskiot sektor na Republika Makedonija od 2002 do 2007 godina poka`uva trend na permanenten porast. Vo 2008 i 2009 godina efikasnosta na makedonskite banki se namaluva, za vo 2010 da dojde do povtoren porast i ostvaren cost to income pokazatelot od 66,40%. Komparacijata na dvi`eweto na pokazatelot na efikasnost so pokazatelite na profitabilnost ROAA i ROAE na nivo na bankarski sektor, uka`uva na negativna korelacija me|u pokazatelite t.e. pozitivna korelacija me|u profitabilnosta i efikasnosta. Najgolema efikasnost e zabele`ana kaj grupata na golemi banki koi vo 2010 godina ostvaruvaaat vrednost na cost to income pokazatelot od 55,10%. Ovaa vrednosta na cost to income pokazatelot se smeta za prifatliva i uka`uva na povisoka efikasnost od prosekot na SAD i Evropskata Unija, no sepak poniska od prosekot na Isto~na Evropa. Grupata na mali i grupata na sredni banki vo analiziraniot period imaat postojani oscilacii vo raboteweto i prili~no visoki vrednosti na cost to income pokazatelot {to uka`uva na potreba za prezemawe na merki za podobruvawe na nivnata efikasnost.
in the past decades. Higher income disparities lead to lower economic growth,
increase in violence, poorer educational achievement and higher mortality rates.
The aim of this paper is to present the dynamics of the income inequalities of the
countries in the world with a special emphasis on the Republic of Macedonia. The
income inequality in the Republic Macedonia presented trough its Gini index shows
dynamic growth in the period from 1998 to 2008. The Macedonian Gini index is
signifi cantly higher than the OECD average and the Gini indexes of the countries
in the region. The government of the Republic of Macedonia has undertaken all
recommended measures for inequality reduction, and therefore a decrease in
inequality in the following period is to be expected. The introduction of progressive
income taxes should be taken into consideration as an additional measure for
inequality reduction.
The purpose of this paper is to investigate the adequacy of the deposit insurance premium of Republic of Macedonia. The premium adequacy is analyzed through comparative analysis with the deposit insurance premium of other countries and from the target reserve ratio point of view. The comparative analysis shows that Macedonian deposit insurance premium rate is among the highest premium rates not only among the European countries but on the world level as well. The analysis from the target reserve ratio point of view shows that the target level of the Deposit Insurance Fund Skopje has been achieved since 2010, so the premium rate should be set on a level that will allow maintaining of the achieved target reserve ratio. Because of the dynamic growth of the households’ deposits maintaining the target reserve ratio of the Macedonian deposit insurance fund requires only a little lower premium rate than the regular i.e. the deposit insurance premium rate of Republic of Macedonia can be reduced to 0.65%.
The target reserve ratio of the Deposit Insurance Fund of the Republic of Macedonia is 4% of the insurable deposits. Achieving and maintaining this target level requires high assessment from the financial institutions – members, which is provided through high deposit insurance premium rate of 0.7%. Members of the banking industry of Republic of Macedonia express their dissatisfaction with the premium rate height, but the extreme target level supplemented with high rate of insurable deposits growth doesn’t allow deposit insurance premium reduction.
The purpose of this paper is to evaluate the adequacy of the target reserve ratio of the Macedonian deposit insurance fund. The current target ratio of the Deposit Insurance Fund of Republic of Macedonia is evaluated using Historical Intervention Analysis, Coverage Ratio Analysis and Robustness Indicator Analysis. The results of all methods aplied indicate that the target reserve ratio of the Deposit Insurance Fund of Republic of Macedonia is set too high and that there is an economic justification for its reduction.
debt crisis. the Republic of Cyprus was among the EU countries that could not
handle its public debt without a help from third parties. The purpose of this text is
to give an overview of the Cyprus crisis, to explain the causes, possible solutions,
the Eurogroup proposal and its global implications. The help package that Cyprus
received from the big Troika included a scandalous measure of introduction of a
levy on the bank deposits. It has destroyed the total economic model of Cyprus,
jeopardized the credibility of the deposit insurance and initiated a risk of panic
reaction among deponents from other EU countries. Obviously, the EU’s intention
was to destroy Cyprus as tax heaven and money laundry in Europe, and regarding
the small size of the Cypriot economy, contagious effects on the rest of Europe
were not expected. Considering the EU’s intention, Cyprus case must be seen as
a sui generis problem and the deponents from other countries should not worry
about the security of their deposits. But, the European Union should worry about
the raising discontent of the member countries because of the unequal treatment
regarding the solutions for the fi nancial problems.
and the Euro zone. The question about the future of the Euro is the main topic of
scientifi c interest. This text explores the hypotheses about what might happen if
certain countries dropped out of the Euro zone or if the entire currency collapses.
A break-up of the 17-member state Euro Area, even a partial one involving the exit
of one or more fi scally and competitively weak countries will lead to fi nancial and
political chaos not only for the ejecting country, but for the remaining countries
as well. Exit by Germany or the other fi scally and competitively strong countries
would be possibly even more disruptive. The future of the Euro lies in the hands
of its members, especially Germany – the richest and strongest member of the
Euro zone. The predictions indicate that it would be much cheaper for Germany
to bail out all troubled Euro zone countries than to exit the monetary union. The
maintenance of the Euro through some sort of fi scal integration (meaning taxpayers
from the stronger economies repaying the troubled countries’ debt) seems as a less
painful option for every member state than partial or full currency collapse.
the Republic of Macedonia, and has been taking place in diffi cult circumstances.
The purpose of this text is to describe that process, as well as the monetary
measures taken and the monetary goals achieved over the past 20 years. After
the independence, the monetary authorities of the Republic of Macedonia managed
to decline the four-digit hyperinfl ation on an annual basis to one digit level and to
maintain the price stability over the years with small defl ation tendencies. The goals
of the monetary policy were achieved, as well as the monetary stability. But the
effects of the monetary policy on the real sector are not satisfactory. In most cases,
since the independence to the present, the GDP has shown annual growth, but
that growth is apparently not enough to absorb the free production’s factors, which
is demonstrated by the permanently high rate of unemployment. The monetary
strategy of the Republic of Macedonia is a subject of criticism, and therefore
possible changes should be reconsidered. The changes will be justifi ed if they bring
economic benefi t with no threat to the macroeconomic stability.
The changes in deposit insurance can affect the moral hazard problem, the premium assessment base and the potential financial commitment of the deposit insurance institution. Changes in the deposit insurance regulative of Republic of Macedonia did not affect the premium assessment base, but the potential financial obligation of the deposit insurance institution was increased. Regarding the moral hazard problem mitigation, Deposit Insurance Fund - Skopje should consider risk-based premium introduction.
Vrednostite na cost to income pokazatelot vo svetski razmeri uka`uvaat na poniska efikasnost vo raboteweto na bankarskiot sektor vo razvienite zemji. Japonija e zemja so najvisok cost to income pokazatel. Cost to income pokazatelot na bankite vo SAD i EU e povisok od toj na bankite vo Latinska Amerika i Isto~na Evropa. Sredniot istok e region so najgolema efikasnost na bankarskiot sektor, odnosno so najniska vrednost na cost to income pokazatelot, koja vo poslednite godini se dvi`i okolu 40%.
Cost to income pokazatelot na nivo na bankarskiot sektor na Republika Makedonija od 2002 do 2007 godina poka`uva trend na permanenten porast. Vo 2008 i 2009 godina efikasnosta na makedonskite banki se namaluva, za vo 2010 da dojde do povtoren porast i ostvaren cost to income pokazatelot od 66,40%. Komparacijata na dvi`eweto na pokazatelot na efikasnost so pokazatelite na profitabilnost ROAA i ROAE na nivo na bankarski sektor, uka`uva na negativna korelacija me|u pokazatelite t.e. pozitivna korelacija me|u profitabilnosta i efikasnosta. Najgolema efikasnost e zabele`ana kaj grupata na golemi banki koi vo 2010 godina ostvaruvaaat vrednost na cost to income pokazatelot od 55,10%. Ovaa vrednosta na cost to income pokazatelot se smeta za prifatliva i uka`uva na povisoka efikasnost od prosekot na SAD i Evropskata Unija, no sepak poniska od prosekot na Isto~na Evropa. Grupata na mali i grupata na sredni banki vo analiziraniot period imaat postojani oscilacii vo raboteweto i prili~no visoki vrednosti na cost to income pokazatelot {to uka`uva na potreba za prezemawe na merki za podobruvawe na nivnata efikasnost.