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AGREEMENT Between the Central Bank of the Russian Federation (Bank of Russia) and the National Bank of Macedonia on Co-operation in Supervising the Activities of Credit Organizations

The Central Bank of the Russian Federation (Bank of Russia) and the National Bank of Macedonia hereinafter referred to as “Parties”, expressing their mutual interest in establishing and promoting bilateral ties in banking supervision and wishing to achieve mutual understanding on issues related to banking regulation and co-operation in supervising the activities of credit organizations, registered on the territories of the Parties, have agreed as follows:

1. The Parties express the readiness regularly to exchange information on the state and development of each other’s banking system.

2. The Parties shall provide, on a reciprocal basis, information on the applicable banking supervisory standards and requirements and any major changes in them.

3. The Parties agree to hold, if necessary, meetings between the heads of the banking supervisory agencies (units) and/or between experts to discuss questions of mutual interest, including the ways to improve proper supervision over the activities of credit organizations with a view to maintaining reliability and effectiveness of the national banking systems of the Parties.

4. The Parties agree to take joint actions and delineate functions in supervising the self-contained units (representative offices and branches) and subsidiaries of the non-resident credit organizations, i.e. credit organizations situated on the territory of one of the Parties and which are non-residents in relation to another Party, and also in exercising control over the resident credit organizations’ participation in the authorized capital of the non-resident credit organizations,


4.1. In the process of licensing banking activities the Parties agree as follows:

4.1.1. should a non-resident credit organization approach a Party for granting permission (license) for establishing self-contained units and subsidiaries and also for participation in the authorized capital of a resident credit organization, the Party reviews such application on receiving consent in writing of another Party, representing the home country of the credit organization, in those cases when such consent is required by law of the home country, or after coming to the conclusion about the superfluity of such consent within a reasonable time-limit accepted in international banking practice. The Parties may, by mutual consent, provide statements on financial condition of a credit organization wishing to open a self-contained unit or subsidiary and/or participating in the authorized capital of credit organizations situated on the territories of the Parties;

4.1.2. in the course of reviewing an application of a non-resident credit organization to establish a self-contained unit or subsidiary and to participate in the authorized capital of a resident credit organization, the Parties are prepared to provide each other with additional information required for taking a final decision;

4.1.3. in the course of decision-making on granting permission (license) to open a self-contained unit or subsidiary of a non-resident credit organization and/or to participate in the authorized capital of a resident credit organization, the Parties are guided by the provision of the national legislation and take into account the information received from the banking supervision authorities of the applicant Party;

4.1.4. the Parties shall inform each other in writing about the taken decision to grant permission (license) to open a self-contained unit or subsidiary of a non-resident credit organization and to participate in the authorized capital of a resident credit organization.

4.2. In implementing prudential supervision or auditing reports and accounts submitted by operating branches or subsidiaries of the non-resident credit organizations, the Parties agree as follows:

4.2.1. the banking supervision authorities of the home country of a non-resident credit organization shall exercise documentary control over the activities of branches on the basis of regular reports received from branches of a non-resident credit organization as well as from credit organization itself in accordance with banking regulation laws of the home country;

4.2.2. the host country supervision authorities shall exercise documentary control over the activities of branches of the non-resident credit organizations in accordance with banking regulation laws of the host country;

4.2.3. the host country supervision authorities shall exercise documentary control over the activities of subsidiaries of a non-resident credit organization in accordance with banking regulation laws of the host country;

4.2.4. the host country supervision authorities shall not prevent subsidiaries of a non-resident credit organization from submitting reports and accounts to the parent credit organization required for its consolidated account in line with the rules and regulations of the home country of subsidiaries, nor shall they prevent from submitting reports and accounts at the request of the home country banking supervision authorities;

4.2.5. the banking supervision authorities of the host country where subsidiaries of a non-resident credit organization are located, may provide, at the request of the banking supervision authorities of the home country of the parent credit organization, an additional information required for exercising supervision over the activities of the parent credit organization on the consolidated basis.

4.3. In the course of conducting on-site inspection by the Parties:

4.3.1. the banking supervision authorities of the host country, where self-contained units or subsidiaries of a non-resident credit organizations are located, shall not prevent and, if necessary, shall assist the banking supervision authorities of the home country of the self-contained units or subsidiaries of the non-resident credit organization in arranging and conducting inspections of the above-said self-contained units or subsidiaries;

4.3.2. the banking supervision authorities of the host country, where branches of a credit organization are located, in case of their inspection planned beforehand, inform the home country banking supervision authorities about the subject of the inspection. Such planned inspections are conducted by the host country supervisors independently or jointly with home country supervisors. If inspections are carried out independently, the host country supervision authorities provide home country supervision authorities with the received supervisory information.

4.4. In monitoring compliance by credit organizations, located on the territories of the Parties, with the instructions on removing faults uncovered in their activities, the Parties

4.4.1. shall provide on a reciprocal basis information on major changes pertaining to a resident credit organization that has self-contained units and subsidiaries, and participates in the authorized capital of a non-resident credit organization on the territory of either of the Parties, and notably in case of: change of the principal shareholder, restriction of the range of banking operations, license withdrawal, appointment of provisional administration, restructuring or liquidation of the credit organization;

4.4.2. shall not prevent the access of representatives of the banking supervision authorities of the home country of branches of a non-resident credit organization, with the aim of inspection and verification of compliance with instructions of the banking supervision authorities of the home country.

5. All information about credit organizations and their self-contained units and subsidiaries received by the Parties from each other as a result of implementation of their supervisory functions, is deemed strictly confidential and shall not be passed to third parties, and shall be used by the banking supervision authorities for implementing their supervisory functions only.

6. The Parties shall not make claim against each other for liabilities of credit organizations, unless a Party accepts them voluntarily.

7. All disputes arising between the Parties in the course of implementation of this Agreement shall be settled through mutual consultations and/or bilateral negotiations.

8. The Parties agree to a possibility of introducing approved changes and additions to the text of the Agreement to bring it in line with the national banking legislation.

This Agreement shall enter into force as of its signing by both the Parties and shall be effective until December 31, 1998.

The term of this Agreement shall be considered automatically extended for each subsequent calendar year if neither Party submits a notice of its termination by November 1 of the current year.

Done by exchange of letters in four copies in Russian, four copies in Macedonian and four copies in English, all three texts of each copy being equally authentic. Should any discrepancy occur in the translation of the texts, English shall be considered the main language.

March 25 , 1998

On Behalf of the Central Bank
of the Russian Federation
On Behalf of the National Bank
of the Republic of Macedonia
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Last updated on: 29/10/2018