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

Annual Report 2010
CBK
through the decline of the
concentration ratio of the assets of
the three largest MFI in the
country (Figure 30). The decrease
of market concentration ratio in
this industry can be an indication
of the intensification of
competition between microfinance
institutions.
Figure 30. MFI Assets , in millions of euro
140
120
100
80
60
40
20
18%
82%
The MFI activity continues to be 0
concentrated in crediting the
2007 2008 2009 2010
small businesses and households.
The number of loans issued by
Three largest MFI
Source: CBK (2011)
Other MFI
these institutions in the end of 2010 reached at 62,683, which represents an annual growth
rate of 9 percent. In 2010, the value of loan portfolio issued by MFI reached at euro 116
million, marking an annual growth rate of 6.5 percent. The share of loans issued by MFI to
total loans issued by Kosovo’s financial sector in 2010 was 7.4 percent, which represents a
similar level compared to the year 2009. The average value of a loan issued by MFI in 2010
was euro 1,852, compared to the average value of a loan issued in 2009, that was euro 1,405
in 2009.
In 2010, the MFI system marked a decrease of performance, compared to the performance
of the MFI in 2009 (loss of around euro 2.0 million). Consequently, the performance
indicators, such as return on average assets (ROAA) and return on average equity (ROAE)
declined during 2010. ROAA in 2010 was -1.6 percent, compared to 1.4 percent in the year
2009, whereas ROAE indicator was -5.5 percent, compared to 4.3 percent in the year 2009.
Financial auxiliaries in Kosovo are composed of Exchange Bureaus and Money Transfer
Agencies (MTA). The amount of transfers through MTA during 2010 reached at euro 231.8
million, which is an increase of 2.1 percent compared to year 2009. Out of this amount, 92.1
percent were incoming transfers to Kosovo. Transfers through MTA represent 4.2 percent of
total international transfers, whereas the largest part of international transfers is realized
through commercial banks (around 78 percent of total transfers)
23%
77%
27% 35%
73%
65%
3.4. External Sector
Kosovo’s economy continued to have a high level of current account deficit also during 2010.
This year, mainly due to the increase of the negative balance in the goods account and the
decrease of the positive balance in services account, the current account deficit recorded an
annual growth of 12.4 percent. While Kosovo exports in 2009 recorded a decline, the
recuperation of demand in the global economy led to a considerably high growth of exports.
Even though the growth rate of exports was higher compared to the growth rate of imports,
yet the high weight that imports have in the structure of Kosovo’s trade continued to offset
the growth effect of exports. As a consequence, trade deficit of Kosovo in 2010 a growth rate
of 9.4 percent compared to the previous year. Income and current transfers account
continued to contribute positively to the decrease of the current account deficit. The positive
balances of income and current transfers account recorded an annual growth of 50.7
percent and 2.6 percent, respectively. At the same time, the capital and financial account
recorded a positive balance of euro 448.9 million. The annual decline of 17.3 percent was
mainly driven by the decrease of the capital account balance in this period.
48 |