Balance sheet analysis of the Central Bank of Republic of Macedonia in the European Union harmonization process

Republic of Macedonia has passed through two important processes since 1991 when officially declared its independence. The fırst of these processes is the tough process which includes the reforms made for foundation of a new and independent country. In order to create new currency, independent monetary policy, new external economic relations, exchange rate policy and judicial system have been conducted several works. The second important process is European Uniıon harmonization process, commencing in 2005 when Republic of Macedonia became candidate country. Regardless to its struggle for independent monetary system and monetary policy in the previous period, Republic of Macedonia in the harmonization process has made reforms in many fields particularly in its judicial, accounting and financial system. Obviously National Bank of Republic of Macedonia which is the central bank of the country played active role in both processes. In this thesis it is analyzed the balance sheet of the National Bank of the Republic of Macedonia, using the ratios derived from balance sheet and analyical balance sheet of the national bank. Currency risk ratio, net foreign assets/ net domestic assets ratio, emission/ total balance sheet ratio, reserve money/ total balance sheet ratio, monetary base/ total balance sheet ratio and net foreign liabilities/ total balance sheet ratio were calculated for the period of 2015- 2016. It is crucial to state that the National Bank of the Republic of Macedonia maintained its asset quality in spite of the crisis experienced but the low emission/ total balance sheet ratio during the period shows that the bank was not very successful in creating its own money and implementing efficient monetary policy. The increasing central bank money / total balance sheet ratio at the end of the period shows achieving the control of the bank over monetary policy implementations. Keywords: National Bank of the Republic of Macedonia, European Uniıon harmonization process, balance sheet, analytical balance sheet, ratio analysis, monetary policy implementations