LEGAL AND INSTITUTIONAL FRAMEWORK OF THE DEPOSIT INSURANCE SYSTEM IN THE REPUBLIC OF MACEDONIA

Abstract

The main purpose of this paper is to analyze the Macedonian legal
and institutional framework on the deposit insurance system. The paper
consists of the following five sections:
1.Introduction;
2.Institutional structure of the Deposit Insurance Fund of the
Republic of Macedonia;
3.International legislation – Deposit Guarantee Schemes
Directive of the European Union;
4.Legal framework of the deposits in the Republic of Macedonia
vis a vis Deposit Guarantee Schemes Directive of the European Union;
and
5.Conclusion.
In the introduction, we define the term “risk” according to the
Banking Law of the Republic of Macedonia and the Decision on risk
management, established by the National Bank of the Republic of
Macedonia (NBRM). We also explain the reasons that produce the
systemic risk.
In the second part “Institutional structure of the Deposit
Insurance Fund of the Republic of Macedonia”, we explain the reasons
for the creation of this Fund, as well as its organizational structure
today.
In the third part “International legislation – Deposit Guarantee
Schemes Directive of the European Union”, we analyze in detail the
legal framework of the European Union that regulates the issue of the
deposit insurance system in its Member States - the Deposit Guarantee
Schemes Directive of the European Union.
In the fourth part “Legal framework of the deposits in the
Republic of Macedonia vis a vis Deposit Guarantee Schemes Directive
of the European Union”, we analyze the legal framework regulating the
deposit insurance system in our country. It is compared with the
Directive of the European Union for Deposit Guarantee Schemes, in
order to see what we have implemented of this Directive. In addition, we
suggest what measures should be taken in future in order to harmonize
the Macedonian legal framework of deposit insurance system to the law
of the European Union.
In the fifth part: "Conclusion", we provide the basic conclusions
resulting from our paper.
We expect this paper to allow the drawing of a clear picture of
the position of the current Macedonian legal system for managing
systemic risk in the banking sector, as well as the deposit insurance system. We also offer specific guidance on the direction in which it
should develop in future.