The Impact of Global Financial Crisis on the level of non-performing loans in commercial banks in Kosovo Cover Image

The Impact of Global Financial Crisis on the level of non-performing loans in commercial banks in Kosovo
The Impact of Global Financial Crisis on the level of non-performing loans in commercial banks in Kosovo

Author(s): Arta Hoti, Gazmend Luboteni
Subject(s): Economy, National Economy, Supranational / Global Economy, Economic policy, Evaluation research, Financial Markets
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: ROA – Return on Assets; ROE – Return on Equity; C/I – Cost to Income; performance; profit;

Summary/Abstract: This research evaluates the performance of commercial banks in Kosovo, including the structure of nonperforming loans in the Kosovo banking system. The main findings in this paper come from the three largest banks in Kosovo, indicating no significant statistical difference between them. The other findings come from two smaller banks in Kosovo, indicating that their situation has started deteriorating after the global financial crisis. The research is based on financial indicators of commercial banks. These indicators results are available in their financial statements published annualy on banks websites from 2006 to 2012. The loan portfolio in Kosovo commercial banks is identified as highly important – the main source of income in the sector. However, the loan portfolio is also the main source of financial risk and bank’s reputation. The paper is organized around five sections. – Section 2 provides literature review on the performance of banks in other countries, – Section 3 provides an analysis of the banking sector in Kosovo and the macroeconomic indicators during theperiod analyzed, – Section 4 presents the results of analyzing the financial ratios, – Section 5 presents financial analysis and provides key conclusions – Section 6 presents an overview of the research and provides the main conclusions.

  • Issue Year: 2017
  • Issue No: 14
  • Page Range: 9-25
  • Page Count: 17
  • Language: English