Characteristics of the financial system of Kosovo
| Author | Drita Shaqiri - Sherif Gashi |
| Position | College of International Management 'Globus' Prishtinë |
| Pages | 103-112 |
Vo
l.
6
N
o
. 2
Jul
y
, 2020
ISS
N 2410-391
8
A
cces on
l
ine at www.ii
p
cc
l
.or
g
1
03
A
cademic Journal o
f
Business,
A
dministration, Law and Social Sciences
II
PCCL Publishin
g
, Graz-
A
ustria
C
haracteristics of the fi nancial s
y
stem of Kosov
o
Dr. Drita Sha
q
iri
Dr. Sh
e
r
i
f G
a
sh
i
C
ollege o
f
I
nternational Management “Globus” Prishtinë
Abs
tr
ac
t
T
he fi nancial system in Kosovo since the post-war period and until the present has consistently
i
ncreased in most of its values, which shows that fi nancial institutions in Kosovo have
e
stablished sound operation foundations by providing security and trust to clients. Banks
a
re the only institution for injecting money into the economy. They are the key indicator in
e
stablishment o
f
working places, in the increase o
f
productivity and innovation
.
T
his has made the fi nancial system in Kosovo to constantly contribute to the economic
d
evelopment o
f
the country through the lending process
f
rom credit (loan) providing
i
nstitutions (throu
g
h commercial banks and microfi nance institutions), but also throu
g
h the
s
ervices provided by insurance companies
.
T
he e ciency and reform acceleration of the fi nancial system is of great importance for the
transformation process, as the e ciency and reform acceleration in this sector has a decisive
i
nfl uence on the speed of the transformation process of other sectors of the economy.
T
he present paper aims to present the structure of the fi nancial system, segmentation o
f
the banking system, the structure o
f
assets and resources o
f
the banking system, the role o
f
the banking system in the economic development of the country, operational creditors risk
m
anagement in the banking system o
f
Kosovo.
Ke
y
word
s
:
Kosovo, fi nancial system, bank, fi nancial auxiliaries, deposits, credit (loan).
I
ntr
oduc
t
io
n
K
osovo came out devastated
f
rom the last war
,
inherited a devastated economic
s
y
stem, a
f
unctioning s
y
stem that was com
p
letel
y
out o
f
f
unction, a destruction o
f
social, individual wealth, loss o
f
man
y
human lives, etc
.
I
n the
f
ormer
Y
ugoslavia, the
fi
nancial s
y
stem has been at a high level o
f
develo
p
ment.
K
osovo as an integral
p
art o
f
the
f
ormer
Y
ugoslavia also had a well-develo
p
ed banking
s
y
stem.
I
n 1989, with major economic changes made under the leadershi
p
o
f
A
nte
Markovi
q
, the socialist econom
y
began to ra
p
idl
y
be re
p
laced b
y
a market econom
y
and a com
p
etitive econom
y
. The
fi
nancial sector started licensing
p
rivate
fi
nancial
i
nterme
d
iaries w
h
o enric
h
e
d
t
h
e s
y
stem an
d
at t
h
e same time create
d
a com
p
etition
i
n th
e
fi
n
a
nc
ia
l m
a
rk
e
t.
P
ost-war economic develo
p
ment o
f
Kosovo went through two
p
hases. The emergenc
y
ph
ase an
d
t
h
e transition
ph
ase. T
h
e
b
an
k
ing sector
d
uring t
h
e emergenc
y
ph
ase
w
hich lasted
f
rom 1999 to 2004 encountered man
y
di
culties.
O
n November 1
5
t
h
,
1
999, was
f
ormed the Banking and Pa
y
ments
A
uthorit
y
o
f
Kosovo (BP
A
K), a date
w
hich indicates the beginning o
f
the establishment o
f
the
fi
nancial s
y
stem.
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