The Alternative Financial Services Association of North Macedonia
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Annual analysis of the non-banking financial sector in North Macedonia

2020 analysis

Skopje, August 27, 2021 – According to the statistics of the National Bank of North Macedonia, within the financial system of North Macedonia, the total assets of other (non-banking) financial institutions in 2020 recorded an annual growth of 12.8%.

The assets of non-banking financial companies have an annual growth of 14.1%. At the end of 2020, the total assets of financial companies are about 5 billion denars, and most of them or 89% relate to receivables from the private sector. Loans granted to households at the end of 2020 are about 3.5 billion denars, while loans granted to companies are about 980 million denars.

To illustrate, according to the data from the last Financial Stability Report 2019 of the National Bank of North Macedonia, banks participate with 81.4% in the total assets of the financial system, and evidently in the last few years, the share of non-banking financial companies is growing, and up to 0.6% of the total assets of the financial system.

The number of financial companies historically since 2015 has increased 3 times, from 10 registered financial companies in 2015 to 32 financial companies in 2021.

Hence, the growing credit support of households and companies by financial companies, which are complementary to traditional lenders – banks and savings houses, indicates that there is a need to increase the level of financial intermediation and financial inclusion in the domestic economy. Their role is particularly pronounced in the segment of consumer loans, but there is also the support of micro and small companies.

The essence of non-banking financial companies is to meet the short-term financial needs of citizens for financial services in a fast, efficient and simple way, by applying advanced and innovative technology to all channels that consumers prefer, with an emphasis on digital channels. Financial companies in their services use modern technological solutions that can easily, from a computer or mobile phone, complete all application procedures, quickly check the creditworthiness of the applicant and in a short time to get a response and the required funds to account, if the application is approved. Non-bank financial companies have provided and, most importantly, will continue to provide access to finance for citizens and small businesses who have difficulty accessing funds in any other way, very quickly and easily, online or through a branch, which directly affects the quality of life of service users.


The analyzes made within the Association of Financial Companies show that non-banking financial companies on an annual basis, calculated for 2020, have an economic impact of about 853 million denars, which includes all material costs, service costs, employees and public duties. Compared to 2019, when financial companies spent about 804 million denars, the growth is evident.



Additionally, the contribution of the NBFI to the state treasury is growing and amounts to about 167 million denars on an annual basis calculated for 2020, while in 2019 it amounted to 138 million denars.

The industry of non-banking financial companies employs mostly young staff, and the annual costs for employees in this industry, according to the data for 2019 amounted to about 245 million denars, and in 2020 increased to nearly 300 million denars.

The role of financial companies is significant in terms of increasing the degree of financial intermediation. Despite the still low share in the total lending activity, the rapid growth of loans to financial companies in recent years indicates high credit demand, ie the need for higher financial inclusion of certain segments of the population and small businesses.

On the other hand, the global pandemic and the economic situation affect the financial capacities of the Macedonian society, and that is why it is crucial for all stakeholders to recognize the opportunities, but also the risks in these circumstances. Competent institutions should promote the financial inclusion of all members of society, as well as provide access to finance through the development and support of alternative financing channels, as highlighted in the reports of international financial institutions, such as the OECD. On the other hand, citizens should be aware of their short-term and long-term financial capacity by choosing an appropriate source of funding such as traditional financial institutions or non-banking financial companies. Financial institutions must act with the highest level of ethics and responsibility, applying a more focused evaluation of their clients’ creditworthiness in order for them to meet the short-term financial needs of their clients, and to adequately meet their obligations.


* Source: Survey of the Association of Financial Companies of the Republic of North Macedonia and the NBRM.

More information about the Association of Financial Companies of North Macedonia is available on the website