Banks in Kosovo won millions of euros from tariffs, commissions for only one month

The 105m euros in tax revenues and commissions have collected banks during the month of December last year, according to data published by the Central Bank of Kosovo.

These tools are collected from services that banks offer to their clients, such as accounting maintenance, tariffs during withdrawals to ATMs, etc.

According to economics professor Albulen Kastrati, the price for providing services from banks operating in the country is high.

“Tarifat and provisions that banks in Kosovo charge are regarded as relatively high, especially considering the fact that these rates are higher than those of banks operating in developed European countries”, Kastrati has said.

During the past year, banks earned 665.7m euros gross from tariffs and commissions.

According to the CEC, net revenues from these tariffs account for about 15.6% of the total operating revenues of the banking sector and are apparently lower than in Europe.

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The CEC has accepted in total 30 complaints from commercial banks over the application of commissions to bank account management in the past year.

In January of this year, there were 2.5 million active bank accounts in Kosovo, out of them 2.1 current accounts where banks apply between 50 euro and 5 euro monthly maintenance fees.

Also in the hands of Kosovars are 1.6 million bank cards, for some of which the maintenance fee applies, but also for attracting vehicles from the ATM.

But in this institution they say they have no mechanisms to directly intervene in their reduction.

The Central Bank of the Republic of Kosovo does not approve the prices of products and financial services offered by banks in Kosovo. They are the price of free market and competition, while required to be transparent and expand in the right way. Initiatives that boost competition and stimulate competitive financial services have been undertaken, which, in addition to those mentioned at the first point, are linked to the platform for comparing interest rates”, the CEC's response reported.

According to Professor Kastrati, the CEC does not have instruments to lower bank services rates, but, however, can exercise its influence in that direction.

It is true that the banking sector in Kosovo operates within a free market economy, so even the regulator, respectively, cannot intervene and set tariffs to commercial banks. However, the governor of the Central Bank may, at least, declaratively when he holds meetings with the executive virtues of commercial banks, to ask you to ease tariffs for their clients”, Kastrati has said.

From data provided by KOHA, it turns out that most banks in Germany do not apply at all monthly maintenance fees, and others only on account of more than 1500 euros a month.

Regarding tariffs for services and commissions, KOHA has also sent questions to the Kosovo Banks Association, but has not accepted answers.