Kosovo’s banking system still not consolidated

Kosovo’s banking system still not consolidated

Pristina, August 4, 2014/Independent Balkan News Agency

By Elton Tota

Kosovo’s banking system is still not consolidated. Its mainly consists on the foreign banks’ branches, says an analysis issued by Open Data Albania.

The Economic Bank is the only one with 100% domestic capital, while the Business Bank’s domestic capital is 43%. Meanwhile, other banks are foreign banks’ branches.

Open Data Albania has conducted a study on the number of financial subjects licensed by the Central Bank of Kosovo from 2010 until 2013.

Financial subjects which are licensed by this bank are commercial banks, pension funds, insurance companies, micro-financial institutions, non banking financial institutions, money transfer bureaus, etc.

Kosovo has nine banks: ProCedit Bank, Raiffeisen Bank Kosovo J.S.C., NLB Prishtina, Business Bank, Economic Bank, TEB, National Commercial Bank-Kosovo branch, Komercijalna Banka-Mitrovica branch, Turkiye Is bankasi-Prishtina branch.

According to ODA analysis, the banking market in Kosovo is characterized by the activity of foreign banks and is not a consolidated market.

The Central Bank has shown to be conservative in licensing domestic banks, even if they have foreign capital. Commercial banks that operate in Kosovo are banks which have a license to exert their activity in other Balkan countries too.

Based on the 2013 Open Data Albania, Central Bank has licensed 33 subjects, which include bureaus d’echanges, 14 micro-financial institutions and 13 insurance companies.

During this year, Central Bank of Kosovo has approved 96 demands for the opening of new bank branches, insurance companies and other financial institutions. /ibna/