SHARE OF LOANS TO HOUSEHOLDS IN NON-PERFORMING LOANS OF THE BANKS IN MACEDONIA.

Banks as key financial institutions have the greatest importance in the financial system, its main function is the transformation of deposits in funding. Activities pursued by modern banks often include both banking and non-banking services. For sound monetary policy is necessary to takeover key reforms and restructuring of the banking system. The banking system in the Republic Macedonia has possibilities for increasing and improving the efficiency of the banks, since the index of household loans / GDP according to we are among the last countries in transition countries. Unlike the banking systems of transition economies, the performance of the Macedonian banking system has been a trend in the improvement of banking processes and procedures. Depending on all types of loans contained in the range of products offered by banks and their functionality depends on the growth and profits of banks since the credit activity is one of the basic functions and carries the greatest profitability for banks. Borrowers apply for a loan may have various purposes. Banks create products to meet the different needs of different users. [ABSTRACT FROM AUTHOR]