Decision on contributions to the Bank Resolution Fund

Pursuant to Article 47 paragraph 1 item 6 of the Law on the National Bank of the Republic of North Macedonia (Official Gazette of the Republic of Macedonia No. 158/10, 123/12, 43/14, 153/15, 6/16 and 83/18 and Official Gazette of the Republic of North Macedonia No. 110/21, 74/24 and 16/25) and Articles 76 paragraph 4 and 77 paragraph 6 of the Bank Resolution Law (Official Gazette of the Republic of North Macedonia No. 209/23), the National Bank of the Republic of North Macedonia Council has adopted the following DECISION on contributions to the Bank Resolution Fund (Official Gazette of the Republic of North Macedonia No. 71/25)
I. GENERAL PROVISIONS

1. This Decision shall prescribe:

• the method of calculating the annual contributions to the Bank Resolution Fund
  (hereinafter: the Fund);
• the method of payment of the contributions and the notification on the
  payments made, and
• the conditions for delaying the payment of additional contributions to the Fund.

2. Certain terms used in this Decision shall have the following meaning:
   2.1. "Annual contribution" shall be the amount that each bank should pay into the
   Fund for the respective year under normal conditions of operation of the bank;
   2.2. "Deferral period" shall be the period for which the National Bank of the Republic
   of North Macedonia (hereinafter: the National Bank) has approved a partial or complete postponement of the payment of the additional contribution to the Fund. The meaning determined by the Bank Resolution Law (hereinafter: the Law), the Banking Law and the by-laws adopted on the basis of these laws shall be applied to the rest of the terms used in this Decision.
   II. METHOD OF CALCULATION OF THE ANNUAL CONTRIBUTIONS TO THE FUND
3. The National Bank, as the competent resolution authority, shall determine the
   annual contribution that each bank should pay into the Fund, in accordance with the methodology specified in Annex 1 to this Decision.
4. The National Bank shall calculate the annual contributions for each bank based on
   the following data:
   4.1. The amount of liabilities and own funds at the level of the banking system and at
   the level of an individual bank determined on the basis of the annual financial statements of the banks as of 31 December in the year preceding the year in which the contribution is paid;
   4.2. The average amount of covered deposits at the level of the banking system and
   at the level of an individual bank for the previous two years before the year in which the

contribution is paid, determined as a quarterly average of the balance of covered deposits at the end of each quarter of the corresponding year;
4.3. The amount of the Fund's assets as of 31 December in the year preceding the
year in which the contribution is paid;
4.4. The supervisory assessment for the individual bank for the year in which the
contribution is paid, made in accordance with item 9 of the Decision on the manner of conducting supervision and inspection;
4.5. The sub-category of systemic importance in which each bank is allocated and the
amount of capital buffer for systemically important banks that should be met by systemically important banks in the year in which the contribution is paid, determined in accordance with the regulation of the National Bank on the methodology for identifying systemically important banks.
5. The Deposit Protection Agency shall be obliged to submit to the National Bank the
data referred to in item 4sub-items 4.2and 4.3of this Decision, no later than 28 February of the year in which the contribution is paid. As an exception to paragraph 1 of this item, at request of the National Bank, the banks shall be obliged to submit the data referred to in item 4 sub-item 4.2 of this Decision, within the deadline set by the National Bank.
6. For a bank that was founded and started operating during the year preceding the
year in which the contribution is paid, the National Bank shall determine a partial annual contribution that is determined according to the number of months in the previous year in which the bank operated, in accordance with the methodology from Annex 1 to this Decision.
III. METHOD OF PAYING THE CONTRIBUTIONS AND NOTIFICATION OF THE
PAYMENTS
7. Not later than 30 June of the year in which the contribution is paid, the National
Bank shall notify each bank at least on the following:

• the amount of the annual contribution to be paid by the bank;
• the deadline for payment of the annual contribution, which cannot be longer than
  31 December in the year in which the contribution is paid, including the installments according to which the annual contribution can be paid. The National Bank shall submit the notifications from paragraph 1 of this item to the Deposit Protection Agency.

8. As an exception to item 7of this Decision, the National Bank, taking into account
   the stage of the business cycle and the impact that the annual contributions may have on the banks' financial condition, may change the amount, deadlines and installments of the payment of the annual contributions.
9. The Deposit Protection Agency shall immediately notify the National Bank on the
   payments of the annual contributions of each bank, including installment payments, but not later than five working days after the payment has been made. The Deposit Protection Agency shall notify the National Bank of the banks that have

not made the payments in accordance with the notification referred to in item 7of this Decision within five working days after the expiration of the deadline set by the National Bank in the notification referred to in item 7of this Decision.
IV. CONDITIONS FOR DEFERRING PAYMENT OF ADDITIONAL CONTRIBUTIONS
TO THE FUND
10. At the request of the bank, the National Bank may approve a partial or complete
postponement of the obligation to pay an additional contribution to the Fund in accordance with the assessment referred to in Article 77 paragraph 4 of the Law.
11. For the purposes of item 10of this Decision, it is considered that the payment of
the additional contribution to the Fund would threaten the bank’s liquidity if it is likely that the bank will not be able to maintain the prescribed liquidity coverage ratio in the next six months or to maintain the special liquidity requirements, prescribed in accordance with the Banking Law. For the purposes of paragraph 1 of this item, the National Bank shall assume an outflow of funds equal to the obligation to pay the additional contribution by the bank on the date when such obligation falls due.
12. For the purposes of item 10of this Decision, it is considered that the payment of
the additional contribution to the Fund would threaten the bank's solvency if it is likely that the bank will not be able in the next six months, to maintain the capital adequacy ratio, the Common Equity Tier 1 capital ratio or the Tier 1 capital ratio, prescribed by the Banking Law. For the purposes of paragraph 1 of this item, the National Bank shall reduce the amount of the bank's own funds by the amount of the obligation to pay the additional contribution by the bank.
13. In cases where the bank is the parent entity or a member of a banking group, the
assessment referred to in item 10of this Decision shall take into account the impact of the payment of the additional contribution to the Fund on the liquidity or solvency of the banking group.
14. The National Bank shall limit the length of the deferral period according to the time
needed to avoid the risks to the financial condition of the bank or banking group.
15. The National Bank shall regularly monitor whether the conditions referred to in
items 11 and 1213are still met.
16. The National Bank shall extend the period of delaying the payment of the obligation
in accordance with Article 77 paragraph (4) of the Law, if it considers that the conditions referred to in items 12and 13of this Decision are still met.
V. TRANSITIONAL AND CLOSING PROVISIONS
17. The Deposit Protection Agency shall prepare the first data referred to in item 4sub￾items 4.2and 4.3of this Decision, as of 31 December 2025 and shall submit them to the
National Bank not later than 28 February 2026.

The banks shall be obliged to submit the data reffered to in item 4 sub-item 4.2 of this Decision as of 31 December 2025 to the National Bank not later than 28 February 2026.
18. This Decision shall enter into force on the eighth day from the day of publication
in the Official Gazette of the Republic of North Macedonia, and shall apply from 13 October 2025. D. No. 02-10864/5 Anita Angelovska-Bezhoska 27 March 2025 Governor and Chairman Skopje of the Council of the National Bank of the Republic of North Macedonia

Annex 1
Methodology for determining the annual contributions The amount of the annual contribution to be paid by each bank shall be determined by applying the following steps:

1. Determination of the total amount of the annual contribution for all banks
   (GDBS), according to the following formula:
   GDBS =
   Required level ∗ GPD − FRB
   T − т + 1 whereby:
   Required level shall be the required level of assets that the Fund should have at its disposal. It is determined as the product of the sum of the covered deposits of all banks and 1%. FRB shall be the amount of the Fund's assets as of 31 December in the year preceding the year in which the contribution is paid. t shall be the year in which the contribution is paid. T shall be the year in which the required level should be reached. T is determined as follows:

• until reaching the required level for the first time, T is equal to 2035 or 2039,
  if the exception from Article 86 paragraph 3 of the Law is applied,
• if the Fund's assets decrease after reaching the required level, T is determined
  by the National Bank. If the Fund's assets decrease below two-thirds of the required level, T is determined according to the following formula:
  T = А + 5
  A shall be the first calendar year in which the annual contributions will begin to be paid. If the Fund’s assets decrease, but are higher than two thirds of the required level, T is determined according to the following formula:
  Т = А + n n shall be the value between 0 and 4, determined by the National Bank depending on the need to ensure the most even possible distribution of the banks' annual contributions over time. GPD is the coefficient for adjustment to annual changes in the amount of covered deposits, which is determined according to the following formula:
  𝐺𝑃𝐷 =
  PDт−1
  PDт−2
  PD t-1 shall be the quarterly average of the balance of covered deposits at the level of the banking system at the end of each quarter in the year preceding the year in which the contribution is paid.

PD t- 2 shall be the quarterly average of the balance of covered deposits at the level of the banking system at the end of each quarter of the year which is two years before the year in which the contribution is paid. In the cases when in the previous two years there was a change in the methodology for determining the covered deposits and/or in the calculation of the premiums in the deposit protection system, when determining the GPD, the data on the covered deposits in the last two consecutive years when the same methodology was applied, shall be used.
2. Determining the share of each bank (GDBi ) in the total amount of the annual
contribution for all banks (GDBS), following the following six steps:
2.1. Determination of the total liabilities for each bank (VOi) which is equal to the total
amount of the bank's liabilities, excluding own funds and covered deposits:
VOi = VPi − SS i − PDi whereby:
VPi shall be the amount of the bank's total liabilities.
SSi shall be the amount of the bank's own assets.
PDi shall be the amount of covered deposits of the bank.
2.2. Determination of the weighted share of the total liabilities for each bank in the total
liabilities of all banks that pay contributions to the Fund (TVOi), expressed as:
TVOi =
VOi ∗ Mi
∑(VOi ∗ Mi
) whereby:
Mi shall be the number of full months in which the bank was founded and operated during the year preceding the year in which the contribution is paid.
2.3. Calculation of the final risk profile index for each bank (KIi) based on: (1) the bank’s
supervisory rating indicator (SOi) and (2) the bank’s systemic importance indicator (SZi). The final KIi index shall be determined by applying the following stages:
2.3.1. Setting the indicator for the supervisory assessment of the bank (RSOi) and the
indicator for the systemic importance of the bank (RSZi):
𝑅𝑆𝑂i =
SOi − MINso
MAXso − MINso
∗ (1000 − 1) + 1
RSZi =
SZi − MINsz
MAXsz − MINsz
∗ (1000 − 1) + 1 whereby:
"1000" and "1" shall be the maximum and minimum possible values of the indicators. SOi shall be the value of the indicator for the supervisory assessment of the bank, determined in accordance with item 4 sub-item 4.4 of this Decision. SZi shall be the bank's systemic importance subcategory. For a bank that is not identified as a systemically important bank, 0 shall be entered. MAXSo, MINSo shall be the value of the indicator for the supervisory rating of the bank with the highest and the bank with the lowest value of this indicator.

MAXsz, MINsz shall be the subcategory of systemic importance of the bank with the highest and the bank with the lowest amount of the capital buffer for systemically important banks.
2.3.2. Adjustment of the set indicators for the supervisory assessment of the bank
(TSOi) and for the systemic importance of the bank (TSZi):
TSOi = 1001 − RSOi
TSZi = 1001 − RSZi
2.3.3. Calculation of the index (Ii ) for each bank:
Ii = TSOi
0.7
∗ TSZi
0.3
2.3.4. Calculation of the final index (KIi ) for each bank:
KIi = 1000 − Ii
2.4. Calculation of the adjusted final index for each bank (PKIi):
PKIi = (1.5 − 0.8) ∗
KIi − KImin
KImax − KImin

• 0.8
  whereby:
  "1.5" and "0.8" shall be the maximum and minimum values of the adjusted final index. KImax, KImin shall be the value of the final index of the bank with the highest and the bank with the lowest value of this index, determined in accordance with sub-item 2.3of this item.
  2.5. Calculation of the weighted value of the final index for each bank (PPKIi) as a product
  of the weighted share of total liabilities for each bank determined in accordance with sub-item 2.2of this item and the adjusted final index for each bank determined in accordance with sub￾item 2.4of this item. PPKIi = TVOi ∗ PKIi
  2.6. Determination of the share of the weighted value of the final index (TPPKIi), as a ratio
  of the weighted value of the adjusted final index of the bank referred to in sub-item 2.5of this item and the weighted value of the final index for all banks that pay contributions to the Fund. TPPKIi = PPKIi ∑(PPKIi )

3. Calculation of the amount of the annual contribution for each bank (GDBi) as a
   product of the share of the weighted value of the final index of the bank referred to in item 2of this Annex and the total amount of the annual contribution for all banks (GDBS) referred to in item 1of this Annex. GDBi = TPPKIi ∗ GDBS