Title:
“The Effects of Liquidity Risk Management on the Profitability of the Banking System in the Republic of North Macedonia”

Authors:
Mevlan EJUPI, Lindita MUAREMI, Macedonia, the former Yugoslav Republic of

Abstract:

The financial crisis highlighted the damage that an entire economy can suffer from the insecurity of banks, which clearly demonstrates the importance of the liquidity of banks in particular and the banking system in general. Banking systems around the world have suffered major financial crises as a result of mismanagement of liquidity risk, and based on this, banks have always made continuous efforts to avoid, through various strategies and instruments, the decline of banking liquidity below the mandatory levels set by the National Bank, without negatively affecting their profitability.

 The realization of this scientific research aims to describe, analyze and compare the effects of liquidity risk management on the profitability of the banking system in the Republic of North Macedonia, through the measurement of indicators related to liquidity and profitability.

Through the analysis and assessment of the banking system, through the annual and quarterly reports of the BPRMV, the financial situation of this system has emerged, from which it can be concluded that banks in our country have a stable level of liquidity, as a result of the interventions of the Central Bank through its monetary policy, namely the required reserve ratio.

DOI: http://dx.doi.org/10.51505/ijaemr.2026.11301