financial stability report - Banka Qendrore e Republikës së Kosovës
financial stability report - Banka Qendrore e Republikës së Kosovës
financial stability report - Banka Qendrore e Republikës së Kosovës
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Financial Stability Report<br />
Number 3<br />
Until June 2012, six trading auctions were held. The offered amount by the Kosovo Government for<br />
each auction was Euro 10 million, whereas the demand for the purchase of securities has constantly<br />
exceeded the offered amount (Figure 21). The highest bid was recorded in June 2012, where for the<br />
offered amount of Euro 10 million, the primary dealers’ demand wasEuro 35.7 million. The average<br />
annual interest rate during this period was 3.3 percent (Figure 22). The highest interest rate was<br />
recorded in the March auction (4.0 percent), whereas the lowest interest rate level resulted in the<br />
auction of June (2.9 percent). The maturity period for the auctions duringthe period of January –<br />
June was 91 days. The treasury bills market in Kosovo has a positive impact on the overall <strong>financial</strong><br />
<strong>stability</strong>, promoting the enhancement of efficiency in the <strong>financial</strong> intermediary process and<br />
establishing the grounds for the development of capital market in the country.<br />
6.2.2 Loans<br />
Commercial banks lending activity<br />
continues to represent one of the<br />
key financing for consumption and<br />
investments in the country.<br />
Despite the uncertainties in the<br />
global <strong>financial</strong> markets, banks’<br />
perceptions for a relatively stable<br />
economic environment in Kosovo<br />
led to the continuation of lending<br />
growth in Kosovo. However, the<br />
lending activity during this period<br />
has slowed down. The value of<br />
total loans issued by the banking<br />
Figure 23. Annual growth rates of loans by sector, in<br />
percent<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
June 2009 June 2010 June 2011 June 2012<br />
Growth rate of total loans<br />
Growth rate of loans to enterprises<br />
Growth rate of loans to households<br />
Source: CBK (2012)<br />
system of Kosovo, in June 2012, reached at euro 1.77 billion (36.2 percent of GDP), which<br />
represents an annual growth rate of 9.3 percent (15.7 percent in June 2011), (Figure 23).<br />
The slowdown of the growth rate of total loans is mainly a consequence of the slowdown in<br />
the growth of the loans to enterprises (14.1 percent in June 2011; 5.2 percent in June 2012).<br />
Based on the outcome of the CBK survey conducted with banks operating in Kosovo, in the<br />
second quarter of 2012, banks<br />
<strong>report</strong>ed increased credit demand Figure 24. Structure of loans, in percent<br />
from medium and small<br />
100%<br />
enterprises, and a lower demand 90%<br />
24.3%<br />
29.4%<br />
29.7%<br />
from large enterprises. In spite of<br />
80%<br />
30.7%<br />
70%<br />
the increase in the loan demand<br />
60%<br />
from enterprises, banks also 50%<br />
<strong>report</strong>ed tightened credit standards 40%<br />
75.7%<br />
69.9% 69.0% 67.0%<br />
30%<br />
and criteria during the loan<br />
20%<br />
application approval process. 10%<br />
According to the survey responses, 0%<br />
June 2009 June 2010 June 2011 June 2012<br />
the main factors that led to the<br />
Enterprises Households Other<br />
credit tightening were the negative<br />
perceptions of the banks regarding Source: CBK (2012)<br />
the overall economic situation and<br />
some particular industries, and the risk related to the execution of collateral.<br />
The structure of total loans is continuously dominated by the loans issued to enterprises. In<br />
June 2012, the share of loans to enterprises in the total loans was 67 percent. However, as<br />
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