Capital market analysis
The creation of a viable and sound financial system in Republic of Macedonia has been a fundamental aspect of the transition to a market economy. Building such a system has proven to be very difficult and challenging. Various studies and assessment reports have confirmed the view that in the beginning of the transition process the financial sector was weak, underdeveloped and shallow. The economy in Macedonia used to operate on a cash basis with a small and highly centralized banking sector and no functioning capital markets.