Characteristics of the financial system of Kosovo

Author:Drita Shaqiri - Sherif Gashi
Position:College of International Management 'Globus' Prishtinë
Pages:103-112
SUMMARY

The financial system in Kosovo since the post-war period and until the present has consistently increased in most of its values, which shows that financial institutions in Kosovo have established sound operation foundations by providing security and trust to clients. Banks are the only institution for injecting money into the economy. They are the key indicator in establishment of working places, ... (see full summary)

 
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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
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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 nancial s
y
stem of Kosov
o
Dr. Drita Sha
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 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 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 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 micro nance institutions), but also throu
g
h the
s
ervices provided by insurance companies
.
T
he e ciency and reform acceleration of the nancial system is of great importance for the
transformation process, as the e ciency and reform acceleration in this sector has a decisive
i
n 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 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, nancial system, bank, 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
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
nancial sector started licensing
p
rivate
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
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
nancial s
y
stem.

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