Abstract

Developing a sustainable banking system is a prerequisite for developing an economy. The purpose of this paper is to extract all the important factors in the nature of banks and their direct role in economic development. This market study aims to analyze the banking system in Kosovo by determining and then analyzing its structure, the degree of concentration of commercial banks in the banking market, their behavior towards price, number of participants, banks operating in this market, types Of the products and services they provide, in order to assess the level of competition of this sector, in accordance with the right of competition. For this purpose, the study describes the functioning of the banking system as a whole and its special segments, regulatory supervisory instruments and their role not only in the functioning of the banking system but also in effective competition. Since the beginning of the operation of commercial banks, which is over 16 years old, the market still dominates high interest rates on loans, which, to some extent, is a burden on economic entities, and thus the economy as a whole.

Highlights

  • The banking system in Kosovo is quite new, system operation began one year after the end of the war, respectively in 2000

  • Based on the characteristics and importance of the credit system in the economic development of the country, banks' loans or commercial loans, having high interest rates, have contributed in a way and to some extent to the development of economic processes and to the development of this system. This system of operation has increased the number of credits and the amount of allowed funds, these loans are issued to a large extent for the various businesses that have invested in the development of their businesses and in some way in the economic development of the country, this indirectly determining the role of banks in the economic development of the country

  • ILIRIA International Review – Vol 7, No 1 (2017) © Felix–Verlag, Holzkirchen, Germany and Iliria College, Pristina, Kosovo we came to the conclusion that the banking sector in Kosovo has had good performance in recent years

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Summary

Introduction

The banking system in Kosovo is quite new, system operation began one year after the end of the war, respectively in 2000. Based on the characteristics and importance of the credit system in the economic development of the country, banks' loans or commercial loans, having high interest rates, have contributed in a way and to some extent to the development of economic processes and to the development of this system This system of operation has increased the number of credits and the amount of allowed funds, these loans are issued to a large extent for the various businesses that have invested in the development of their businesses and in some way in the economic development of the country, this indirectly determining the role of banks in the economic development of the country

Banks and their role
Credit system in function of economic development
High interest rates and bad loans
Product market Above banking products and services are grouped into
Interest rates
Interest rates on deposits
Banking Sector Performance
Findings
Conclusion and Recommendations
Full Text
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