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

Annual Report 2010
CBK
5.3. Asset Management
Asset Management and CBK Investment Policy
Pursuant to its Law (Article 1, paragraph 1.6), CBK is authorized to act as a fiscal agent of
the Government, whereas pursuant to Law on Public Finance Management and
Responsibilities (Article 7), CBK is authorized to invest the Government assets. This form
of financial investments enables the return on investments, generating assets paid from
interest, which are then collected in Kosovo Consolidated Budget.
In practice, deposited funds mainly belong to Government institutions, Ministry of
Economy and Finance (budget revenues), Privatization Agency of Kosovo (PAK) as well as
financial institutions (mandatory liquidity reserves).
Management of Treasury
investments is done by CBK in
cooperation with Treasury through
Liquidity Committee which meets
on regular monthly basis. PAK
started time bank deposits with
maturity up to one year as of
August 2010. These investments
are carried out in accordance with
Investment Policy and Interest
Rate Policy approved by the CBK
Board. CBK is also in charge of
management of funds deposited by
public agencies, financial
institutions and donor organizations.
Figure 69. CBK investment report
60%
50%
40%
30%
20%
10%
0%
19.38%
Securities
Source: CBK (2011)
53.50%
Investments with central
banks
27.12%
Investments with
commercial banks
Investment Policy approved by the CBK Board is followed by the Management, and under
its control, is implemented by Asset Management Directorate. Since a large part of funds
under management are assets of public funds, or can be returned with a short period of
time, a particular concentration was given to security, liquidity, and finally the return to
investments.
All assets are invested in central
and commercial banks which are
in the EU countries. Among these
three central banks of these
countries with which CBK
cooperates are: Central Bank of
German (Deutsche Bundesbank),
Bank of France (Banque de
France) and Central Bank of
Luxembourg (Banque Centrale du
Luxembourg) which have a
minimal credit risk and six
commercial banks of the EU
Figure 70. Monthly average ratio provided by
corresponding banks to CBK portfolio
0.600%
0.500%
0.400%
0.300%
0.200%
0.100%
0.000%
0.21% 0.22% 0.21% 0.21% 0.21% 0.22% 0.33%
0.30%
0.26%
0.55% 0.53%
0.47%
01-10 02-10 03-10 04-10 05-10 06-10 07-10 08-10 09-10 10-10 11-10 12-10
Source: CBK (2011)
member states. Investment by the end of 2010 was carried on in financial instrument and
bank deposits.
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