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

CBK
Annual Report 2010
Regarding the maturity, the
structure of loans issued by the
banking system remains
dominated by longer maturity
loans. In 2010, loans with maturity
of over two years and up to five
years represented 43.5 percent of
total loans, followed by loans with
maturity of over five years, which
represented 25.4 percent of total
loans. Loans with maturity of over
two years represented 73.1 percent
of total loans in the banking
system (Figure 12). Loans with
maturity of up to one year also
have a considerable share in total
banking sector loans, composing
20.6 percent of total loans. The
remainder is shared among loans
with maturity from one to two
years (6.3 percent) and over ten
years (4.3 percent). In 2010, it has
been noticed a decline in loans
with maturity from one to two
years. Amounting at euro 91.2
million, loans with maturity from
one to two years recorded an
annual decline of 37.1 percent. As a consequence, the share of loans with maturity from one
to two years to total loans decreased by around 5.0 pp.
iii. Liabilities
Figure 11. Structure of loans by economic activity, in
percentage
100%
80%
60%
40%
20%
0%
Figure 12. Structure of loans by maturity, in
percentage
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
17.1%
13.8% 11.3% 6.3%
22.2% 18.0% 18.9% 20.6%
The structure of banking system liabilities during 2010 was dominated by deposits collected
within the domestic economy, which represent the main source of finance for commercial
banks in Kosovo. In 2010, deposits represented 78.9 percent of the total liabilities of the
banking system (Table 5). The trend of deposit growth in 2010 was slower compared to year
2009. Amounting at euro 1.93 billion, deposits in the banking system recorded an annual
growth of 11.0 percent in 2010, which was lower compared to the growth rate of 20.8
percent in 2009. The slowdown of the deposit growth in 2010 mainly reflects the
withdrawal of government deposits from commercial banks.
Another important source of finance for commercial banks in Kosovo consists of own
resources, which in 2010 composed 9.4 percent of total liabilities in the banking system.
Own resources marked an annual increase of 12.7 percent, mainly due to the increase of
shareholders capital, which comprises around 73.9 percent of total own resources. In 2010,
banking sector liabilities to the external sector in the form of subordinated debt reached at
euro 33.5 million (euro 24.4 million in 2009). Nevertheless, the share of the subordinated
debt to total liabilities continues to be low at only 1.4 percent. The continuous increase of
the subordinated debt and placements from commercial banks that operate in the external
markets indicates a tendency of increasing the use of external funding by commercial banks
operating in Kosovo.
60.7%
68.2% 69.8% 73.1%
2007 2008 2009 2010
Over 2 years Over 1 year up to 2 years Up to 1 year
Source: CBK (2011)
2007 2008 2009 2010
Other services Trade Construction Manufacturing Mining Agriculture
Source: CBK (2011)
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