Financial Crime World

Macedonia’s Regulatory Requirements for Banking: Enhancing Corporate Governance

In recent years, Macedonia has been working to strengthen its corporate governance framework and protect investors’ interests. The World Bank’s Report on the Observance of Standards and Codes (ROSC) Corporate Governance Country Assessment released in 2005 provides key recommendations aimed at improving corporate governance regulation.

Disclosure Framework Overhaul

One of the main areas of focus is the disclosure framework, which should be overhauled as part of the ongoing revision of the Securities Law. This includes:

  • Requiring Shareholder Disclosure: Shareholders must disclose all direct and indirect ownership.
  • Enhancing MSEC Authority: The Macedonian Securities and Exchange Commission (MSEC) should be granted increased authority to impose sanctions and develop a strategy to use its new powers to improve corporate governance and shareholder rights.

Corporate Governance Code

The report also emphasizes the need for the Macedonian Stock Exchange (MSE) to complete the process of drafting a corporate governance code. The exchange should:

  • Revise Listing Rules: Revise listing rules in line with the Code and the new Securities Law.
  • Develop Corporate Governance Tier: Consider developing a “corporate governance tier” by MSE.
  • Implement Electronic Information Dissemination: Fully implement a system of electronic information dissemination.

Benefits of Implementing Recommendations

By implementing these regulatory requirements, Macedonia can:

  • Enhance transparency and accountability in the banking sector
  • Protect investors’ interests
  • Strengthen its corporate governance framework
  • Promote economic development

Key Recommendations

  • Overhaul the disclosure framework as part of the Securities Law revision
  • Require shareholders to disclose all direct and indirect ownership
  • Grant increased authority to MSEC to impose sanctions and develop a strategy for improving corporate governance and shareholder rights
  • Complete the process of drafting a corporate governance code by MSE
  • Revise listing rules in line with the Code and new Securities Law
  • Develop a “corporate governance tier” by MSE
  • Fully implement electronic information dissemination system

By implementing these recommendations, Macedonia can improve its corporate governance framework and promote economic development.