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

CBK
Annual Report 2010
Table 7. Liquidity risk, results
After the first day
After the second day
After the third day
After the fourth day
After the fifth day
Description Number of banks 1/
1/ Number of banks in need of additional liquid assets
Necessary additional liquid assets (in
thousands of euro)
0 0
0 0
1 1,510
4 5,907
4 24,074
In general, it can be considered that, following such a conservative scenario, Kosovo’s
banking system appears to have quite good liquidity position. The problems encountered,
based on this hypothetic scenario, are isolated in individual banks. The satisfactory ratio
between liquid assets and total assets makes the baking system sustainable against a
considerable withdrawal of deposits.
Comparing these outcomes with those of June 2010, under the same scenario (withdrawal
rate of deposits 8 percent in daily basis for a period of five days), the situation appears to be
quite similar. Using June 2010 data, the assumed rate of deposits withdrawal would have
an impact in one of the banks after the third day, posing the need for additional liquid
assets amounting at euro 2.2 million. After the fourth day, the total amount of required
additional liquid assets would be euro 5.8 million, but concentrated in only one bank, while,
following the application of the scenario in December 2010 data, the amount of additional
liquid assets (almost the same) is distributed in four banks (Table 7).
3.3.3. Insurance Companies
The sector of insurance
companies in Kosovo continued
to expand its activity in 2010.
Nevertheless, the share of this
sector in total financial sector
assets remains relatively small.
The number of insurance
companies operating in Kosovo
at the end of 2010 was 11, of
which 10 companies exercise
their activity in the non-life
insurance services, whereas one
company offers life insurance
services. Regarding the
Figure 26. Structure of assets of insurance
companies
16%
2%
ownership structure, eight insurance companies are foreign owned, whereas three other
insurance companies are domestically owned, which is similar to the previous year.
Concerning the composition of assets in terms of ownership, 77.4 percent of total insurance
companies assets are foreign owned, whereas 22.6 percent are domestically owned. During
2010, the insurance company “Dukagjini”, which was previously partly foreign owned, in
2010, incurred some changes in its ownership structure, with the Slovenian company
”SAVA re” purchasing 100 percent of its shares.
Total assets of the insurance companies in 2010 amounted at euro 97.2 million, which
represents an annual growth rate of 9.3 percent. The largest share of insurance companies’
assets consists of deposits, comprising 51.5 percent of total assets (Figure 26). Regarding
19%
63%
Deposits Capital Non-financial assets Other assets
Source: CBK (2011)
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