Effects of the financial crisis on the lending activity of banks in the Republic of Macedonia
Effects of the financial crisis on the lending activity of banks in the Republic of Macedonia

Summary/Abstract: Macedonian banking is basically traditional banking, therefore loans are the main sources of the banks for provision of funds. Given that the analysis of lending is very complex, the paper makes reference only to certain aspects of the lending activity of banks in the past: structure of assets in the banking sector, dynamics of lending activity and lending structure by sectors (corporate and household sector).The analysis based on all previously mentioned aspects is done for the period before and after the global financial crisis in order to see the effects of its impact on the credit activity of banks. There is an evident fact that slowing economic activity in the real sector, and tightening credit conditions by banks after 2008 conditions the existence of downward trend in the lending activity, which is evident trough the reduction of the share of loans in the assets of the banking sector, the rate of growth of gross loans, and the rate of growth of loans in the corporate and household sector.

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