Presently, the banking system comprises 8 banks:
Banking System in Kosovo (2010)
Source: Central Bank of the Republic of Kosovo
Analysis and Comments: Open Data Albania
The entire banking system is privatized and the biggest part of capital is owned by foreign entities (6 out of 8). The number of foreign banks has increased especially during 2008, when 2 additional banks were formed. Furthermore banks with foreign capital have also the largest part of the banking system assets (about 90%), whereas banks with domestic capital only make up 10%. The total value of banking system assets at the end of 2009 is estimated at 2.2 billion euro. Based on this data, it is estimated that the assets of the banking system make up about 56.5 % of the GDP.
This is how the assets of the banking sytem have changed over the years:
Banking System Assets (in million Eur)
*Data as of June 2010
Source: Central Bank of the Republic of Kosovo
Analysis and Comments: Open Data Albania
Loans make up the core of the banking system assets (58.5%). Meanwhile on the liability side, deposits is the most important category (79%), whereas shareholder’s equity is about 9.3% of the total liabilities. Compared to 2009, total deposits have grown by 21%.
Konkretisht vlera e depozitave në sistemin bankar në Kosovë paraqitet sipas tabelës:
Banking System Deposits (in million Eur)
*Data as of June 2010
Source: Central Bank of the Republic of Kosovo
Analysis and Comments: Open Data Albania
Deposits have constantly grown, even during the crises of 2008-2009.
Graphically, the value of deposits and assets during the last years is shown below:
*Data as of June 2010
Source: Central Bank of the Republic of Kosovo
Analysis and Comments: Open Data Albania
One of the potential problems of the Kosovo banking system is the concentration of assets in two banks, Procredit Bank and Raiffeisen Bank Kosovo, which together own about 65% of the total assets, which negatively impacts competition in the market.
Contributed by: R.E