Banks face increased loan requirements

Banks in Kosovo during the first half of 2017 have marked increased credit requirements compared to the same period last year.

From the Central Bank report in Kosovo to the second three months of 2017, the banking sector is said to have been characterised with accelerated credit activity 10.0 per cent, mainly as a result of easing credit conditions and increasing credit demand.

To cover credit requirements, according to this report, increasing these requirements continue to be financed steadily by deposits collected within the country's economy, which in this period marked an annual increase of 7.2 per cent, compared to the second quarter of last year.

In addition to increasing loan requirements, the average interest rate in loans has been reduced to 6.8 per cent, since the average interest rate in deposits has marked slight growth to 1.1 per cent.

Meanwhile, the rate of informal loans has continued to convey the drop trend, dropping to 3.9 per cent by June 2017, while the report speaks of satisfactory levels of financial health indicators.

The Central Bank report released with increased activity and other segments of the financial system, such as the pension sector, the insurance sector and the microfinance sector.

As far as performance is concerned, it is the pension sector that achieved returns from visible investments higher than the same period in the preceding year.

The microfinance sector and the insurance sector were also characterised with increased profit in June 2017 over the same period in the preceding year.