7 hours agoUS State Department praises financial sector in Kosovo high
Periskopi(6 years ago)
(6 years ago)The US State Department has released the report on the 2020 investment climate for Kosovo, where high appreciation for the country's financial system has been provided. The report emphasises the fact that Kosovo has an open market economy, and the market defines interest rates. The report stresses that the regulatory system coincides with EU directives [...]
The US State Department has released the report on the 2020 investment climate for Kosovo, where high appreciation for the country's financial system has been provided. The report emphasises the fact that Kosovo has an open market economy, and the market defines interest rates.
The report stresses that the regulatory system complys with EU directives and international standards, there are no restrictions beyond normal regulatory requirements regarding capital source, adaptability and investor capacity, and that the CEC has taken all measures required to improve the free flow policies of financial resources.
The report also highlighted the sustainability of the banking sector, which remains well capitalised and profitable. The difficult economic conditions, poor implementation of the contract, and vague behaviour of risks have limited bank lending activities, though apparent improvement occurred in recent years.
In February 2020, the rate of informal loans was 2.5 per cent -- the lowest level in the last ten years. Interest rates have dropped significantly in recent years, from an average of about 12.7 per cent in 2012 to an average of 6.3 per cent in 2020. The slower credit is evident in the northern part of Kosovo due to a weak judiciary, business informal activities and less qualified borrowers.
The CEC is responsible for promoting the development of competitive, sound and transparent practices in the banking and financial sector. The BEC supervises and regulates Kosovo's banking sector, insurance industry, pension funds and microfinance institutions. The CEC also performed other standard tasks of the central bank, including cash management, transfers, cleaning, managing funds deposited by the Ministry of Finance and other public institutions, collecting financial data and managing the Credit Record.
The report stresses that foreign banks and branches can conduct operations in the country, subjecting themselves to the same demand and licensing regulations as domestic banks. The country has not lost any corporate banking relations in the past three years, and no such relationship is currently at stake. There are no restrictions on opening bank accounts by foreigners; they can do so with the delivery of valid identification documentation.
The Central Bank of the Republic of Kosovo expresses the highest appreciation for its financial sector report and expresses the most sincere thanks for the US State Department for the real assessment of the financial sector in Kosovo and the American Embassy in Kosovo, for its continued support from the beginning, and continues to give the CEC in further development of this sector.
