Decision on Supervision Method and Procedure for Banks and Savings Houses Regarding Consumer Protection in Consumer Loan Agreements

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NATIONAL BANK OF THE REPUBLIC OF MACEDONIA Pursuant to Article 47 paragraph 1 item 6 of the Law on the National Bank of the Republic of Macedonia ("Official Gazette of the Republic of Macedonia" no. 158/2010) and Article 32 paragraph 1 of the Law on Consumer Protection in Case of Consumer Loan Agreements ("Official Gazette of the Republic of Macedonia" no. 51/2011), the National Bank of the Republic of Macedonia Council adopted the following DECISION on the method and procedure for conducting supervision of banks and savings houses related to consumer protection in case of consumer loan agreements ("Official Gazette of the Republic of Macedonia" no. 91/2011)
I. GENERAL PROVISIONS
1. This Decision sets forth the method and procedure for conducting
supervision of the enforcement of the Law on Consumer Protection In Case of Consumer Loan Agreements and regulations adopted on the basis of this Law developed by creditors subject to supervision and inspection by the National Bank of the Republic of Macedonia (hereinafter: National Bank). For the purposes of this Decision, creditors subject to National Bank supervision and inspection shall include banks and savings houses licensed by the Governor of the National Bank (hereinafter: lenders).
II. SUPERVISION METHOD AND PROCEDURE
1. The National Bank shall supervise the creditors through:
Onsite supervision and
Offsite supervision, by collecting and analyzing reports and data submitted by creditors. The method and procedure for onsite and offsite supervision of creditors are specified by the Banking Law and respective bylaws.
2. The supervision referred to in item 2 of this Decision shall identify and
evaluate:
The compliance of creditors operations with the Law on Consumer Protection In Case of Consumer Loan Agreements and The enforcement of regulations adopted on the basis of this Law.

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3. The National Bank may also conduct onsite supervision of the credit
intermediaries of the creditors.
4. The creditor's Internal Audit Department shall, at least once a year, audit
the creditor's activities with credit intermediaries and the fulfillment of credit intermediation contracts. The audit report shall contain at least data on the type and scope of activities of each credit intermediary in the audit period. The creditor shall submit to the National Bank the audit reports referred to in paragraph 1 of this item, within 30 days upon the audit.
III. TRANSITIONAL AND CLOSING PROVISIONS
6. Provisions of this Decision shall also apply to foreign bank branches
operating in the Republic of Macedonia, under the Banking Law.
7. This Decision shall supersede the Decision on the method and procedure
for conducting supervision of the banks and savings houses related to consumer protection in case of consumer loan agreements ("Official Gazette of the Republic of Macedonia" no. 105/2007 and 42/2011).
8. This Decision shall enter into force on the eighth day of the date of its
publication in the "Official Gazette of the Republic of Macedonia" and shall start being applied on October 1, 2011. D. no. 02-15/VII-4/2011 30.06.2011 Skopje Dimitar Bogov Governor Chairman of the National Bank of the Republic of Macedonia Council