Annual Report 2010 03 August 2011 - Banka Qendrore e ...

Annual Report 2010
CBK
3.3. Financial Sector
3.3.1 General Characteristics
Kosovo’s financial sector was
characterized with a slower growth
during 2010. The total value of
financial sector assets (without
considering CBK) reached at euro
3.2 billion in 2010, which
represents an annual growth of
13.7 percent (24.2 percent in 2009).
Commercial banks and pension
funds remain the key players in
the financial sector, managing 77
and 15.5 percent of total financial
sector assets, respectively (Figure
Figure 5. Structure of financial system assets by
sectors
4.7%
0.2%
13.6%
2.9%
December 2009
Commercial banks
Insurance companies
Pension funds
Financial intermediaries
Microfinance institutions
Source: CBK (2011)
5). The remaining part of assets is shared between microfinance institutions (4.3 percent),
insurance companies (3.1 percent) and financial auxiliaries (0.2 percent).
The number of financial institutions operating in Kosovo’s financial market in 2010 was
similar to the previous year (Table 2). A slight change was noted however in the number of
financial auxiliaries, which mainly operate as currency exchange bureaus.
78.6%
0.2%
15.5%
3.1%
December 2010
4.3%
77.0%
Commercial banks
Insurance companies
Pension funds
Financial intermediaries
Microfinance institutions
Table 2. Number of financial institutions
Description 2007 2008 2009 2010
Commercial banks
Insurance companies
Pension funds
Fin. auxilliaries and microfinancial inst.
7 8 8 8
10 11 11 11
2 2 2 2
46 45 46 49
Source: CBK (2011)
The financial corporations’ survey (including CBK) indicates a higher growth of Net
Foreign Assets (NFA) in 2010 compared to 2009 (Figure 6). In December 2010, the value of
NFA was around euro 2 billion, which represents an annual growth of 17.3 percent (6.7
percent in 2009). The total value of claims to the external sector in 2010 was euro 2.4
billion, the largest share of which was invested in deposits (52.7 percent) and securities
(22.0 percent). Deposits and securities are mainly invested by the CBK (59.2 percent),
commercial banks (32.4 percent) and pension funds (8.4 percent).
On the other hand, liabilities to the external sector reached at euro 392.5 million in 2010,
an annual growth of 17 percent. These liabilities consist mainly of non-resident deposits in
commercial banks in Kosovo (22.2 percent) and foreign loans to financial institutions
operating in Kosovo (42.8 percent). The receivers of these loans are mainly commercial
banks and microfinance institutions. The other part of liabilities is mainly related to
Special Drawing Rights (SDR) and the IMF quota.
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