Banks In Kosovo Research Articles

The Impact of the Internal Audit in Reducing Credit Risk in Commercial Banks in Kosovo

Credit risk represents the vast majority of the risk in the context of estimating the capacity of the transfer of risk from commercial banks. Any commercial bank operating, in Kosovo, must have a system for managing credit risk. An important and essential process, such as the management of the credit risk, cannot be carried out without the aid of internal audit. From the survey results, it was concluded that the process of auditing the banks recommended the implementation of policies for managing credit risk of the respective commercial bank’s policy. This also include the policy of credit risk management of the Central Bank of the Republic of Kosovo, implementation of procedures, regulations and rules for credit exposure, loan portfolio diversification, training of staff of the credit risk involved in completing the loan files, etc.

The Influence of Macroeconomic Factors in the Failure of Returning the Bank Credits in Kosovo

The possibility of non- returning the credits is a challenge faced by all banks. Giving back the taken credits is an important issue for the efficient operation of the banking system. Lending is one of the main uncertainties of the banking system, as the paying of credits rarely can be completely guaranteed. Very often these questions are asked: Which are the factors that have an impact in the failure of bank credit repayment? What policies should be pursued to stimulate the return of bank loans? The research aimed to analyze the impact of macroeconomic factors (gross domestic product, interest rates, unemployment, inflation) and credit policies (the time of maturity and grace period), in the failure of returning the credits in the banking sector. The results of the research are processed on 242 questionnaires; these data were processed with the help of SPSS v 21 program. By growing the gross domestic product, maturity interval, and application of grace period there might be a decrease of non-performing loans, whereas increasing interest rate, inflation and unemployment norms increases the rate of non-performing credits in relation to total credits in Kosovo. This study argues what is needed for Kosovo's banking system and presents the ideas of sustainable development of the banking sector in relation to non-performing loans, and credit policy re-orientation. DOI: 10.5901/mjss.2016.v7n1p320

THE VARIANCE AND TREND OF INTEREST RATE – CASE OF COMMERCIAL BANKS IN KOSOVO

Today’s debate on the interest rate is characterized by three key issues: the interest rate as a phenomenon, the interest rate as a product of factors (dependent variable), and the interest rate as a policy instrument (independent variable). In this article, the variance in interest rates, as the dependent variable, comes in two statistical sizes: the variance and trend. The interest rates include the price of loans and deposits. The analysis of interest rates on deposits and loan is conducted for non-financial corporation and family economy. This study looks into a statistical analysis, to highlight the variance and trends of interest rates for the period 2004-2013, for deposits and loans in commercial banks in Kosovo. The interest rate is observed at various levels. Is it high, medium or low? Does it explain growth trends, keep constant, or reduce? The trend is observed whether commercial banks maintain, reduce, or increase the interest rate in response to the policy that follows the Central Bank of Kosovo. The data obtained will help to determine the impact of interest rate in the service sector, investment, consumption, and unemployment.

Harmonization of Information Systems in the Case of Electronic Banking Payments in South East European Countries

The research paper Harmonization and standardization of information systems in the case of electronic banking payments in SEE in itself includes a current problem, because it deals with electronic payments that is every day becoming more current. The e-payment system includes the system of electronic instruments, procedures and infrastructure for transfer of money. It is important for all economic entities, since it is designed to allow quick and efficient execution of national and international payments. Central Bank is responsible for the National payment system, which manages accounts and bank depository of the institutions. In the Payment System of countries of SEE (South East Europe), Central bank has an operating function, and is responsible for development and oversight functioning of other payment systems in the country. In the following level are banks, that are responsible for the accounts of physical and legal persons. Each bank is decentralized to manage its customer accounts. This research deals with the comparisons of the management of electronic payments of different banks in Kosovo and other countries of SEE Region. The research in the paper is carried out to see and prove that economy and technology are becoming almost inseparable from one another. Electronic payments that are carried out in the financial institutions of the Republic of SEE, are managed in various ways, ranging from banks that have received great momentum in its implementation, to those institutions which do not exercise it at all. The research was conducted with several methods taking into account the method of comparison as the final approach to present achievements and conclusions. During the performing of research, we held interviews with some bank clerks, with the aim to realize and to explain System of electronic payments in the Country. The findings of the paper are that clients of banks in the Republic of Kosovo and other countries of SEE Region have just begun to realize the benefits of electronic payments, therefore this has reinvigorated their interest, to apply them. As we expected the results were positive, with the exception of some banks that do have more complicated procedures, so they have multiple levels of procedures for implementation of e-payment. The final conclusion of the paper consists on the fact that with solving of the problem of electronic payments,it will benefit both: customers, as well as financial institutions. DOI: 10.5901/ajis.2015.v4n2s1p112

The Predictive Value of Job Satisfaction and Relevant Factors in Predicting of Commitment in the Workplace, Job Involvement and Job Opportunity of Bank Employees

Human resource management involves multiple areas of integration of management and employees. But the most important segment of quality and comprehensive report remains reliable employee who is satisfied by the work, willing to progress and learn. The last decades with complete certainty, it can be stated that job satisfaction and similar phenomena appears in the role of the most important explanatory constructions, as in the field of empirical research, psychometric measurement, as well as in the applicative. The purpose of this research corresponds with intent to verify the predictive value of job satisfaction (including its structural components), as well as relevant factors in explaining the commitment, involvement and job opportunities for bank employees. Research results claimed linear interaction even the predictive value of tested models. Model which includes job satisfaction and its structural components, together explains 38.9% of criterion variables (18.8% of the criterion variable commitment in the workplace, 14.2% of the criterion variable job opportunities, and 5.9% of the criterion variable job involvement). On the other hand the relevant factors together explain about 13% of the variances of criterion variables (13% for job involvement, 2.4% for commitment in the workplace and 1% for the job opportunity). The research was conducted on a sample of 104 subjects (age 25 and 62 years) of all employed in regular employment in the four largest commercial banks in Kosovo. DOI: 10.5901/ajis.2015.v4n2s1p168

The impact of E-Marketing in the positioning of Kosovo Banks

The following thesis will present the results of a study on the impact of electronic marketing in bank positioning in Kosovo. As a case study we have selected ProCredit Bank and Raiffeisen Bank which are operating in Kosovo for several years now.Development of information technology has brought changes in every day work offering various opportunities to the clients and its activities in particular to financial institutionsIn this study we have surveyed customers of the banks that operate in Kosovo. For data collection an electronic questionnaire has been used, which was sent to the clients of both banks which are subject of study.The purpose of this paper is to reveal how these banks apply electronic systems for the provision of services and how this service has impact on their position in the banking market in Kosovo.Findings from this study have enabled us to understand that the banking sector still suffers deficiencies regarding Internet usage by customers to perform banking transactions.

Agile Software Development Process at Financial Institution in Kosovo

Due to the business requirement and having request very often to change the products in order to be more competitive in the market the main questions for this paper is: does the Financial Institution in Kosovo have adopted any SDLC (Software Development Life Cycle) Methodology to full fill requirement of business, respectively outside customers and which is this methodology they are using. Additionally this paper is to begin filling this gap by systematically reviewing the existing literature on agile software development methodologies and review the standard for software development life cycle implemented in Kosovo Banks by gathering requirement as a minimum standard from other networks banks in group and see how this framework helps us as Financial Institution in Kosovo.

Performance of Foreign Banks Operating in Kosovo – ProCredit Bank Kosovo - Raiffeisen Bank Kosovo & NLB Prishtina

In this paper we analysed the indicators of performance of banks with foreign capital operating in Kosovo. According to many theses of different authors worldwide, more accurate measurement of bank performance is based on application of main financial coefficients of banks such as: Return on Assets – ROA, Return on Equity – ROE and Cost/Income Ratio - C/I. This thesis describes the analyses of financial indicators for 2006-2007-2008-2009-2010-2011 and 2012 periods. The thesis contents five parts (chapters), the second part provides a literature review on the performance of banks in other countries. Third part provides a general analysis of the banking sector in Kosovo. Fourth part presents the results of financial coefficients analyzed. While fifth part presents financial analysis and provides the main conclusions. As sample for realizing this thesis are obtained the financial coefficients of three main commercial banks in Kosovo with foreign capital shareholders: Procredit Bank (former -MEB – Micro Enterprise Bank), Raiffeisen Bank (former - American Bank of Kosova) and Nova Ljublanska Banka, NLB Prishtina (established with the acquisition of two earlier banks Kasa Banka and New Bank of Kosova-BRK). DOI: 10.5901/ajis.2014.v3n2p57

Intermediation Efficiency of Banks in South-East Europe

By employing non-parametric methods, namely Data Envelopment Analysis and Malmquist Index, this paper investigates efficiency of banks using a database of almost all banks in four countries in South-East Europe. The superior efficiency of foreignowned banks in intermediation is supported. It is argued that the improvement in efficiency of banks originated from the change in technology rather than scale and technical efficiency, and banks on average have not been able to catch-up with best-performers, thus widening the efficiency gap. The largest sources of inefficiency are found to be cost and scale inefficiencies and lending shortfalls. Because of its peculiarities, Kosovo banking sector is assessed relative to other economies. Findings suggest that despite some improvements, the banking system in Kosovo remained less efficient. A number of policy implications emanate from the findings, aiming at enhancing the intermediation efficiency of banks in the context of South-East European transition.