financial stability report - Banka Qendrore e Republikës së Kosovës

Financial Stability Report
Number 3
loans with maturity from five up to
ten years (24.7 percent of total
loans, 20.7 percent in June 2011).
On the other hand, loans with
maturity from one up to two years
decreased their share to total
loans, i.e. from 7.9 percent in June
2011 to 7.2 percent in June 2012.
6.2.3 Liabilities
Figure 28. Growth trend of loans by maturity, in
160%
140%
120%
100%
80%
60%
40%
20%
0%
-20%
-40%
-60%
June 2009 June 2010 June 2011 June 2012
The financial activity of the
Up to 1 year Over 1 year up to 2 years Over 2 years
banking system in Kosovo
Source: CBK (2012)
continues to be financed by
domestic sources of finance, namely the Kosovo citizens’ deposits. Thus, Kosovo’s banking
system deposits represent a dominating category within the banking system liabilities, with
a share of 79.5 percent (Table 6). During the first half of 2012, almost all categories within
the banking system liabilities were characterized with a lower growth rate. During this
period, the value of deposits reached at euro 2.1 billion, recording an annual growth of 7.7
percent (11.8 percent in June 2011). Own resources, which also represent an important
financing source for banks, recorded an annual growth of 6.6 percent (7 percent in June
2011), amounting at euro 255.8 million.
Table 6. Structure of banking system liabilities
Description
June 2009 June 2010 June 2011
June 2012
In millions of euro In percent In millions of euro In percent In millions of euro In percent In millions of euro In percent
Balance from other banks
41.8
2.2
65.1
2.9
86.6
3.5
21.3
0.8
Deposits
1,512.7
78.5
1,751.5
78.9
1,957.8
78.3
2,108.5
79.5
Other borrow ings
0.0
0.0
0.0
0.0
0.0
0.0
26.8
1.0
Other liabilities
152.1
7.9
152.4
6.9
183.0
7.3
205.8
7.8
Subordinated debt
16.9
0.9
24.4
1.1
33.5
1.3
31.0
1.2
Ow n resources
203.3
10.5
224.3
10.1
239.9
9.6
255.8
9.6
Total liabilities
1,927.1
100.0
2,218.8
100.0
2,501.0
100.0
2,652.3
100.0
Source: CBK (2012)
The growth of own resources was mainly driven by the rapid growth of shareholders capital
by 6.3 percent (3.7 percent in June 2011), whereas the slowdown of the growth rate of the
retained profit in June 2012 (from 30.8 percent in June 2011 to 20.9 percent) had a
negative impact on the growth of own resources.
The continuous slowdown in the growth rate of the Kosovo citizens’ deposits during the last
years, pushed commercial banks operating in Kosovo increase the utilization of other funds,
such as foreign financing. For example, after a period without other borrowings (which are
mainly funds from abroad), in 2012 commercial commercial banks again started utilizing
these financing resources that in June 2012 reached at euro 26.8 million. Non-resident
borrowings mainly include borrowings issued by the parent banks, together with the
maturity agreements to increase liquidity buffers. Increase has been noticed also in the
other liabilities that recorded an annual growth rate of 12.5 percent. Two other important
categories within the banking liabilities are also the subordinated debt and the balances
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