TAIEX Expert Mission on the topic of risk management framework for financial stability and macroprudential policy

Within the framework of the planned activities towards the fulfillment of the strategic goal – Improving the capacity in the direction of strengthening its supervisory and regulatory role in capital-funded pension insurance, a project – an expert mission through the instrument of the European Union (EU) – TAIEX was carried out in the Agency for Supervision of Fully Funded Pension Insurance  (MAPAS).

The main objective of the expert mission is to establish a framework for risk management for financial stability and macroprudential policy that will provide a methodology for measuring the systemic risks for financial stability related to capital-funded pension insurance in the Republic of North Macedonia. The timely and efficient identification of systemic risks and the undertaking of activities in order to prevent and reduce their impact on the financial system are new competences of MAPAS, which derive from the Law on Financial Stability and from the Strategy for the Implementation of the Macroprudential Policy in the Republic of North Macedonia.  

The expert mission was carried out from March 11 to March 15 2024 by experts Ivana Herceg, Head of the Systemic Risks and Consumer Protection Division and Mario Bambulović, Head of the Systemic Risks Department in the Croatian Financial Services Supervisory Agency (HANFA). The expert mission was followed by a total of 13 participants, employees of MAPAS.

During the expert mission, the participants got acquainted with the overall context of macroprudential policy in the EU, the importance of timely identification, assessment and monitoring of systemic risks through various indicators and analytical concepts and instruments and tools designed for adequate and effective prevention and mitigation of systemic risks. After getting acquainted with the concept of systemic risks and the evolution of the macroprudential policy framework in the EU, the participants got to know the different sources of risks that can threaten the stability of the financial system by understanding and constructing different risk indicators. Then, different aggregation tools and metrics were presented to measure exposure to systemic risks arising from different sources along with a stress testing tool that measures the resilience of the financial system to different shocks. The macroprudential policy framework was also presented with the probable macroprudential instruments and the design of tools to prevent and mitigate systemic risks.

In the following years, MAPAS will work on building its capacity to implement activities in the direction of implementing macroprudential policy, determining macroprudential instruments and undertaking macroprudential measures towards the entities over which it carries out supervisions.