Financial Stability Report No1 20 December 2010 - Banka Qendrore ...

Number 1Financial Stability Reportpercent in June 2010.In June 2010, shareholders capital amounted at euro 164.4 million or 10 percent highercompared to June 2009. Whereas the profit for the current period and reserve fundsincreased to euro 59.4 million in June 2010 from euro 54.4 million in June 2009. Intangibleassets and goodwill, which are deducted from Tier I capital according to CBK rules,increased to euro 3.28 million in June 2010, from euro 820 thousands in June 2009.Regulatory capitalKosovo’s banking sector hascontinuously maintained a capital levelwell beyond the required capital by theCentral Bank. In June 2010, therequired regulatory capital was euro166.1 million, while the totalregulatory capital held by the bankingsector was euro 259.3 million, with anexcessive capital amounting at euro93.3 million (Figure 43). The excessivecapital held by banks comprises around56.1 percent of the required regulatorycapital, which is an increase of 10.9ppcompared to June 2009 (Figure 40).Figure 43. Total capital and regulatory capital300.00250.00200.00150.00100.0050.000.00June 2007 June 2008 June 2009 June 2010Regulatory capitalCapitalSource: CBK (2010)Risk-weighted assetsThe RWA of Kosovo banking sector reached euro 1.38 billion in June 2010. However, theshare of assets with 100 percent riskweight in June 2010 declined to 69percent of total RWA, compared to72.8 percent in June 2009 (Figure 44).The decline in the share of thiscategory of RWA is mainly a result ofthe slowdown in the growth rate ofloans, which represent the maincomponent of assets with 100 percentrisk weight.Figure 44. Structure of RWA by risk weight100%90%80%70%60%50%40%30%20%10%0%72.8% 69.0%22.0% 24.2%3.8% 1.4% 0.4%6.4%2008 2009The category of assets with 75 percentrisk weight recorded an annual Weight 0 % Weight 20% Weight 50 % Weight 75% Weight 100 %increase of 14.4 percent, reaching avalue of euro 334.9 million in June Source: CBK (2010)2010. This category consists of loans secured by first mortgage on real estate with less than30 days past due. The category of assets with 50 percent 7 risk weight experienced the most7 This category consists of claims with maturity of 1 year or less at banks operating in countries of the OECD. These claims are not classified or are classifiedby Standard & Poor's with B or lower or Moody's with P-3 or lower.48 |