BANKA QENDRORE E REPUBLIKES SË KOSOVËS
CENTRALNA BANKA REPUBLIKE KOSOVA
CENTRAL BANK OF THE REPUBLIC OF KOSOVO
Financial Stability
Report
Number
July
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|2015
CBK Working Paper no. 4
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Efficiency of Banks in South-East Europe: With Special Reference to Kosovo
Financial Stability Report
Number 7
BANKA QENDRORE E REPUBLIKËS SË KOSOVËS
CENTRALNA BANKA REPUBLIKE KOSOVA
CENTRAL BANK OF THE REPUBLIC OF KOSOVO
Financial Stability Report
Number 7
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Number 7
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Financial Stability Report
Financial Stability Report
Number 7
PUBLISHER© Central Bank of the Republic of Kosovo
Economic Analysis and Financial Stability Department
33 Garibaldi, Prishtina 10 000
Tel: ++381 38 222 055
Fax: ++381 38 243 763
Website
www.bqk-kos.org
E-mail [email protected]
EDITOR-IN-CHIEF
EDITOR
AUTHORS
Arben MUSTAFA
Albulena XHELILI
Krenare MALOKU
Hana GAFURRI
Taulant SYLA
Zana GJOCAJ
Bejtush KIÇMARI
TECHNICAL EDITOR
Butrint BOJAJ
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Financial Stability Report
Financial Stability Report
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ABBREVIATIONS:
ATM
Automated Teller Machines
CAR
Capital Adequacy Ratio
CBK
Central Bank of the Republic of Kosovo
CEE
Central and Eastern Europe
CIS
Commonwealth of Independent States
EBRD
European Bank for Reconstruction and Development
ECB
European Central Bank
FDI
Foreign Direct Investments
GDP
Gross Domestic Product
HHI
Herfindahl-Hirschman Index
IMF
International Monetary Fund
KAS
Kosovo Agency of Statistics
KPST
Kosovo Pension Savings Trust
MF
Ministry of Finances
MFI
Micro-Finance Institutions
MTA
Money Transfer Agencies
NFA
Net Foreign Assets
NIM
Net Interest Margin
NPISH
Non-Profitable Institutions Serving Households
NPL
Non-Performing Loans
ODC
Other Depository Corporations
OECD
Organization for Economic Cooperation and Development
POS
Point of Sales
pp
Percentage Points
PTK
Post and Telecommunication of Kosovo
RLI
Rule of Law Index
ROAA
Return on Average Assets
ROAE
Return on Average Equity
ROE
Return on Equity
RWA
Risk Weighted Assets
SDR
Special Drawing Rights
SEE
South-Eastern Europe
TPL
Third Party Liabilities
VAT
Value-Added Tax
Note:
Users of the data are required to cite the source.
Suggested citation: Central Bank of the Republic of Kosovo (2015),
Financial Stability Report No. 7, Prishtina: CBK.
Any required correction will be made in the electronic version.
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CONTENT:
1. Governor’s foreword -------------------------------------------------------------------------------- 11
2. Summary ---------------------------------------------------------------------------------------------- 13
3. External economic environment ----------------------------------------------------------------- 15
4. Kosovo’s Economy ---------------------------------------------------------------------------------- 21
5. Financial System in Kosovo----------------------------------------------------------------------- 23
5.1. General Characteristics ---------------------------------------------------------------------------------- 23
5.2 Exposure towards external sector ---------------------------------------------------------------------- 25
6. Kosovo’s Banking Sector -------------------------------------------------------------------------- 27
6.1 Banking Sector Structure --------------------------------------------------------------------------------- 27
6.2. Banking Sector Activities -------------------------------------------------------------------------------- 28
6.3. Performance of the Banking Sector ------------------------------------------------------------------- 40
6.4 Banking Sector Risks-------------------------------------------------------------------------------------- 45
6.4.2 Credit risk ---------------------------------------------------------------------------------------- 48
6.5. Stress-Test Analysis -------------------------------------------------------------------------------------- 58
6.6. Financial Infrastructure in Kosovo --------------------------------------------------------------------- 63
7. Pension Sector --------------------------------------------------------------------------------------- 66
7.1 The structure of pension ---------------------------------------------------------------------------------- 66
7.2. Pension Sector Performance --------------------------------------------------------------------------- 67
8. Insurance Sector------------------------------------------------------------------------------------- 68
8.1 Insurance Sector Structure ------------------------------------------------------------------------------ 68
8.2. Insurance Sector Activities ------------------------------------------------------------------------------ 69
8.3. Insurance sector Performance ------------------------------------------------------------------------- 70
9. Microfinance Sector and Financial Auxiliaries ------------------------------------------------ 72
9.1. Activity of Microfinance Sector ------------------------------------------------------------------------- 72
9.2. The Performance of the Microfinance Sector ------------------------------------------------------- 74
9.3 Financial Auxiliaries---------------------------------------------------------------------------------------- 75
10. Statistical appendix -------------------------------------------------------------------------------- 76
11. References ------------------------------------------------------------------------------------------ 94
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LIST OF FIGURES ------------------------------------------------------------------------------------------------- 15
Figure 1. EURIBOR interbank lending rate and ECB refinancing rate -------------------------------- 15
Figure 2. Brent Crude oil price ---------------------------------------------------------------------------------- 16
Figure 3. Structure of ProCredit Holding assets ------------------------------------------------------------ 17
Figure 4.Growth trend of loans and deposits of ProCredit Holding ------------------------------------- 17
Figure 5. Expenditures to income ratio and ROE and CAR of ProCredit Holding ------------------ 18
Figure 6. Structure of Raiffeisen Bank International assets ---------------------------------------------- 18
Figure 7. Growth trend of loans and deposits of Raiffeisen Bank International --------------------- 18
Figure 8. Expenditures to income ratio and ROE and CAR of Raiffeisen Bank International ---- 19
Figure 9. Structure of NLB Group assets --------------------------------------------------------------------- 19
Figure 10. Growth trend of loans and deposits of NLB Group ------------------------------------------- 20
Figure 11. Expenditures to income ratio and ROE and CAR of NLB Group ------------------------- 20
Figure 12. Real GDP growth rate ------------------------------------------------------------------------------- 21
Figure 13. Inflation and its main contributors ---------------------------------------------------------------- 21
Figure 14. Imports, exports, and trade balance ------------------------------------------------------------- 21
Figure 15. Annual change of financial system assets and the appropriate sectors ---------------- 23
Figure 16. Structure of assets of the financial system ----------------------------------------------------- 23
Figure 17. Financial intermediation by sectors to GDP --------------------------------------------------- 24
Figure 18. Financial intermediation rate of the banking sector to GDP ------------------------------- 24
Figure 19. Structure of foreign claims ------------------------------------------------------------------------- 25
Figure 20. Structure of foreign liabilities ---------------------------------------------------------------------- 25
Figure 21. Net foreign assets by financial institutions ----------------------------------------------------- 26
Figure 22. Exposure within assets and liabilities ------------------------------------------------------------ 26
Figure 23. Capital structure of commercial banks ---------------------------------------------------------- 27
Figure 24. HHI for assets, loans and deposits --------------------------------------------------------------- 27
Figure 25. Structure of assets of the banking sector- ------------------------------------------------------ 28
Figure 26. Annual growth of the banking sector assets --------------------------------------------------- 28
Figure 27. Structure of securities ------------------------------------------------------------------------------- 29
Figure 28. Contribution to loans growth, by sector --------------------------------------------------------- 29
Figure 29. Annual growth of new loans and total loans --------------------------------------------------- 30
Figure 30. New loans by sectors -------------------------------------------------------------------------------- 30
Figure 31. Annual growth of new loans ----------------------------------------------------------------------- 31
Figure 32.Main categories of new loans ---------------------------------------------------------------------- 31
Figure 33. Total loans, new loans, paid loans and non-performing loans ---------------------------- 31
Figure 34. Structure of loans by economic activity --------------------------------------------------------- 33
Figure 35. Structure of industrial sector loans by sub-categories--------------------------------------- 33
Figure 36. Annual change in loans by economic sectors ------------------------------------------------- 34
Figure 37. Structure of loans by maturity --------------------------------------------------------------------- 35
Figure 38. Growth trend of loans by maturity ---------------------------------------------------------------- 35
Figure 39. Structure of loans maturity by economic activity ---------------------------------------------- 35
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Figure 40. Structure of deposits and annual growth ------------------------------------------------------- 36
Figure 41. Structure of enterprise deposits by sectors ---------------------------------------------------- 37
Figure 42. Non-residents deposits and interest rates on deposits-------------------------------------- 37
Figure 43. Structure of deposits by maturity ----------------------------------------------------------------- 37
Figure 44. Structure of time deposits -------------------------------------------------------------------------- 38
Figure 45. Average interest rates ------------------------------------------------------------------------------- 38
Figure 46. Average interest rates on enterprise and household loans -------------------------------- 39
Figure 47. Average interest rates on enterprise loans ----------------------------------------------------- 39
Figure 48. Average interest rates on household loans ---------------------------------------------------- 39
Figure 49. Average interest rates on loans by economic activity --------------------------------------- 40
Figure 50. Average interest rates on enterprise and household deposits ---------------------------- 40
Figure 51. Net profit, income and expenditures ------------------------------------------------------------- 41
Figure 52. General structure of income ----------------------------------------------------------------------- 41
Figure 53. Structure of income by category ------------------------------------------------------------------ 41
Figure 54. Annual growth rate of income by category ----------------------------------------------------- 42
Figure 55. Structure of expenditures by category ---------------------------------------------------------- 42
Figure 56. Annual growth of expenditures by main categories ------------------------------------------ 42
Figure 57. Annual growth rates of expenditures by categories ------------------------------------------ 43
Figure 58. Annual growth of loan loss provisions and non-performing loans ------------------------ 43
Figure 59. Profitability indicators -------------------------------------------------------------------------------- 44
Figure 60. Expenditures to income ratio ---------------------------------------------------------------------- 44
Figure 61. The map of the banking sector risks ------------------------------------------------------------- 45
Figure 62. Loans and deposits of the banking system ---------------------------------------------------- 46
Figure 63. Broad liquid assets ratio to short-term liabilities ---------------------------------------------- 46
Figure 64. Banking system reserves --------------------------------------------------------------------------- 47
Figure 65. Liquidity gap ------------------------------------------------------------------------------------------- 47
Figure 66. NPL to total loans ratio ------------------------------------------------------------------------------ 48
Figure 67. Annual growth of total loans and NPL- ---------------------------------------------------------- 48
Figure 68. NPL by sectors ---------------------------------------------------------------------------------------- 48
Figure 69. Structure of loans by classification --------------------------------------------------------------- 49
Figure 70. Loans movements by credit classifications ---------------------------------------------------- 49
Figure 71. NPL and provisions ---------------------------------------------------------------------------------- 49
Figure 72. Concentration of credit risk ------------------------------------------------------------------------ 50
Figure 73. Banking system capitalization --------------------------------------------------------------------- 50
Figure 74. Regulatory capital and RWA ---------------------------------------------------------------------- 51
Figure 75. Structure of banking system regulatory capital ----------------------------------------------- 51
Figure 76. Structure of Tier 1 capital --------------------------------------------------------------------------- 52
Figure 77. Structure of Tier 2 capital --------------------------------------------------------------------------- 52
Figure 78. Structure of RWA by risk weight ------------------------------------------------------------------ 53
Figure 79. RWA to total sector assets ratio ------------------------------------------------------------------ 53
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Figure 80. Opened positions in foreign currency against Tier 1 capital ------------------------------- 54
Figure 81. Loans and liabilities in foreign currency --------------------------------------------------------- 54
Figure 82. Loans and deposits sensitivity to interest rates ----------------------------------------------- 55
Figure 83. The gap of assets and liabilities sensitivity to interest rates ------------------------------- 55
Figure 84. Structure of pension fund investments ---------------------------------------------------------- 66
Figure 85. Assets under Kosovo Pensions Savings Trust management ----------------------------- 66
Figure 86. Assets under Slovenian - Kosovo Pension Fund management --------------------------- 67
Figure 87. Structure of insurance companies assets ------------------------------------------------------ 68
Figure 88. Structure of insurance companies assets ------------------------------------------------------ 69
Figure 89. Liability and equity of insurance companies --------------------------------------------------- 69
Figure 90. Premiums received and claims paid ------------------------------------------------------------- 70
Figure 91. Assets of microfinance institution----------------------------------------------------------------- 72
Figure 92. Structure of MFI loans by sectors ---------------------------------------------------------------- 72
Figure 93. Structure of MFI loans by economic sectors --------------------------------------------------- 72
Figure 94. Structure of loans by maturity --------------------------------------------------------------------- 73
Figure 95. Structure of MFI leasing by sector --------------------------------------------------------------- 73
Figure 96. Interest rates on MFI loans ------------------------------------------------------------------------ 73
Figure 97. Interest rates on MFI loans by sectors ---------------------------------------------------------- 74
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LIST OF TABLES -------------------------------------------------------------------------------------------------- 24
Table 1. The number of financial institutions----------------------------------------------------------------- 24
Table 2. Structure of assets in the banking sector --------------------------------------------------------- 29
Table 3. Structure of banking sector liabilities --------------------------------------------------------------- 36
Table 4. Key efficiency indicators of the banking sector -------------------------------------------------- 44
Table 5. Indicators of the banking sector capacity --------------------------------------------------------- 45
Table 6. The Indicators used to identify systemic importance of the banks in Kosovo ------------ 56
Table 7. Results of systemic importance of the banks in Kosovo -------------------------------------- 58
Table 8. Summary of stress-test results: credit risk -------------------------------------------------------- 61
Table 9. Summary of stress-test results: liquidity risk ----------------------------------------------------- 62
Table 10. The share of payment instruments to total EICS transactions ----------------------------- 63
Table 11. Banking Sector Network ----------------------------------------------------------------------------- 65
Table 12. The share of the value of cards transactions by terminal in the total
value of card transactions ---------------------------------------------------------------------------------------- 65
Table 13. Pension funds structure by ownership ----------------------------------------------------------- 66
Table 14. Penetration and density of the insurance sector in the countries of the region -------- 68
Table 15. Gross premiums collected -------------------------------------------------------------------------- 70
Table 16. Claims paid --------------------------------------------------------------------------------------------- 70
Table 17. Additional efficiency indicators of the sector ---------------------------------------------------- 75
LIST OF BOXES --------------------------------------------------------------------------------------------------- 17
Box 1. Performance of the main banking groups operating in Kosovo -------------------------------- 17
Box 2. New loans --------------------------------------------------------------------------------------------------- 30
Box 3. Bank lending survey -------------------------------------------------------------------------------------- 32
Box 4. Identification of banks with systemic importance in Kosovo ------------------------------------ 56
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1. Governor’s foreword
Kosovo’s financial system continued to have a high level of stability during the second half of
2014. The risks to which financial system is exposed to in general continue to be well managed,
whereas the financial performance of the individual sectors has improved. The overall
macroeconomic stability, manifested by the positive economic growth rate, as well as fiscal and
price sustainability, continues to contribute in the country’s financial stability. The high
dependence of the economy on imported goods has made the overall level of prices influenced by
the declining trends of global prices, which resulted in very low inflation rate in Kosovo. Kosovo
continues to have a stable fiscal position, expressed with low rates of the budget deficit and
public debt. For 2015, CBK projections suggest that Kosovo's economy will have an accelerated
economic growth, in which the further expansion of bank lending is expected to have a significant
contribution.
The lending activity of the banking sector was recovered in 2014 after the slowdown marked in
the previous two years. Significant impact in the accelerated growth of the lending activity had
the loosened lending standards and the improvement of lending conditions by the banks, whilst
the demand for loans has marked a growth. The growth of the lending activity was mainly
financed by the growth of residents’ deposits collected within the country. During 2014, the
banking sector was characterized by a significant drop of the interest rate on loans, which was
preceded by a drop of the interest rate on deposits. The reduction of the bank financing costs
represents a very favourable development for the economy, since the high of interest rates were
often regarded as a significant barrier to the development of business activity in the country.
Therefore, the lower financing costs are expected to be reflected in a larger business activity in
the country which, subsequently, enables further expansion of financial intermediation.
Financial soundness indicators continue to reflect a high degree of stability of Kosovo's banking
sector, which continues to have satisfactory liquidity position, high level of capitalization, and
good quality of loan portfolio.
The remaining financial sectors which recorded positive growth of their activity were the pension
sector, insurance sector, microfinance institutions sector, as well as financial auxiliaries. The
pension sector continued to recording good financial performance, by increasing the price share of
the invested assets and, consequently, recording a positive return on investments. Meanwhile,
the insurance sector continues to be characterized with a poor financial performance, althpough
it has managed to reduce the losses in comparison to the previous year.
Central Bank of the Republic of Kosovo (CBK) continues to be committed to the advancement of
infrastructure which ensures the maintenance of financial stability in the country. In this regard,
in addition to the advancement in the field of micro-prudential regulation and supervision, the
CBK has initiated the drafting of macro-prudential supervision policy, which represents a very
important tool for strengthening the capacity needed to ensure the financial stability.
Bedri Hamza
Governor
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2. Summary
The global economy during 2014 was characterized with an expansion of the economic activity.
The improvement of the economic activity is reflected into the improvement of the credit cycle in
the euro area, given that during 2014 lending to the private sector marked a modest growth
based mainly on increased demand for financing fixed investment of enterprises and loosened
lending standards by banks. The continuous decline of prices in international markets was also
reflected in the euro area, which in December 2014, was characterized by a low inflation rate of
0.5 percent. In the euro area region a further strengthening of the economic activity is expected,
based mainly on the further decline of oil prices, increase of consumer confidence and positive
developments in the labour markets. Also, the continuous growth of the euro area exports is
expected to have a positive impact on the economic activity, as a result of the depreciation of the
euro as well as the European Central Bank (ECB) quantitative easing programme
South-Eastern Europe during 2014 was characterized by a weaker performance of economic
activity compared to the previous year. Similar to the euro area countries, deflationary pressures
were also present in the countries of the region during 2014. Despite the weaker economic
performance, the countries of the region in 2014 marked a positive growth of financial
intermediation. With the exception of Montenegro which recorded a lower lending activity, all
other countries were characterized by an accelerated loan growth. The countries of SouthEastern Europe also improved their credit portfolios with the exception of Bosnia and
Herzegovina and Macedonia, which reported a growth of non-performing loans during 2014. For
2015, the IMF and the World Bank forecast an acceleration of the economic growth in the region
of South-Eastern Europe.
Kosovo's economy during 2014 was characterized by overall macroeconomic stability, manifested
by a positive economic growth rate, as well as fiscal and price sustainability. During 2014, the
real growth of the economic activity according to preliminary estimates of the Kosovo Agency of
Statistics was 0.9 percent. The high dependence of the economy on imported goods has made the
overall level of prices to fall being influenced by the declining global trends of prices, which in
turn resulted in a very low inflation rate . Kosovo continues to have a sustainable fiscal position,
expressed by low budget deficit and public debt rates. For 2015, CBK's forecasts suggest that
Kosovo's economy will record an accelerated growth rate based on expectations for higher
domestic demand and investments. Positive forecasts also rely on the important contribution of
the bank lending growth.
Kosovo’s financial system during 2014, was characterized with an activity expansion and a high
level of sustainability in all its constituent sectors. The lending activity of the banking sector
picked up after the slowdown of the previous two years, thus strengthening the role of the
banking sector in financing the economic activity of the country. The total value of loans, until
December 2014, reached euro 1.88 billion, representing an annual growth of 4.2 percent. A
significant impact on accelerating the growth of lending activity was due to loosened lending
standards and the improvement of lending conditions by banks, whilst the demand for loans
marked an increase as well. Enterprise lending structure remains similar to the previous years,
where loans intended for the trade sector represent the largest category with a share of 53.4
percent of total loans to enterprises. Growth of the lending activity in the country was mainly
financed by the growth of deposits collected within the country. Deposits in Kosovo’s banking
sector marked an annual growth of 3.6 percent, reaching euro 2.53 billion in December 2014.
During 2014, the structure of deposits by date of maturity changed, i.e. a significant reduction of
the share of time deposits is noted, which in the previous years represented the largest share of
total deposits, a whilst the transferable and saving deposits increased. This development in the
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structure of deposits by date of maturity was mainly a result of the sharp decline of the interest
rate on deposits, which might have discouraged the depositors to conduct time deposits.
During 2014, the banking sector was characterized with a significant reduction of the interest
rate on loans, which was preceded by the reduction of interest rates on deposits. The average
interest rate on loans decreased to 9.2 percent in December 2014 from 11.1 percent in December
2013. Whereas, the average interest rate on deposits in December 2014 was reduced to 1.1
percent from 2.4 percent as it was in December 2013. In addition, the interest rate spread on
loans and deposits in December 2014 was reduced to 8.1 pp, from 8.7 pp as it was in December
2013.
Financial soundness indicators of the banking sector continue to reflect the high level of
sustainability. During 2014, the banking sector marked a significant improvement of financial
performance by reaching a net profit of euro 60.1 million, mainly as a result of a decrease in
expenditures, particularly on provisions and interest expenses on deposits. The liquidity position
of the banking system remains at a satisfactory level, taking into account that in December 2014
the ratio of broad liquid assets to short term liabilities stood at 43.3 percent, which is
significantly above the minimum level of 25 percent that is required by the Central Bank.
Capital levels in the banking sector strengthened during 2014, mainly due to the significant
improvement of the financial performance, resulting in the improvement of the quality of the
capital as well as the sector capitalization indicators. In December 2014, the Capital Adequacy
Ratio reached 17.8 percent compared to 16.7 percent from the previous year. The banking sector
exposure to credit risk has shown a declining trend during 2014, where the share of nonperforming loans to total loans decreased to 8.3 percent from 8.7 percent in December 2013. The
banking sector has also increased the coverage rate of non-performing loans with loan loss
provisions which cover potential loan losses, where the coverage ratio of non-performing loans by
provisions increased to 114.4 percent compared to 110.6 percent in December 2013. The exposure
of the banking sector to market risk remains at a low level given the ongoing decline of
aggregated net open position in foreign currency to Tier 1 capital, the decline of loans in non-euro
currency, and low sensitivity of assets and liabilities to changes in interest rates given the fact
that the largest share of loans and deposits carry fixed interest rates. Moreover, the stress-test
analysis continues to suggest the high ability of the banking sector to manage the considered
shocks in the context of hypothetical scenarios.
Banking infrastructure during 2014 continued to expand. The increase in the number of ATMs
and POS devices resulted in an increase on the number and the value of withdrawals through
ATMs, and sales through POSs. During this period, the number and the value of transactions
processed through the interbank payment system in Kosovo (IECS) has increased. An increase
was also marked on the total number of bank accounts, e-banking accounts, as well as the
number of debit and credit cards. All these developments led to the improvement of the banking
services’ efficiency.
Other financial sectors were also characterized with an increase in activities, including the
pension sector, insurance sector and the microfinance institutions sector. The pension sector
continues to be the sector with the highest rate of asset growth within the financial system of
Kosovo, where the value of its assets, as of December 2014 amounted to euro 1.1 billion, marking
an annual growth of 19.1 percent. The pension sector also continued to mark a good financial
performance, marking an increase of share price in invested assets, and consequently, a positive
return from investments. The insurance sector has marked an increase of activity, although the
sector's financial performance continues to be unfavourable compared to the previous year, where
the amount that was marked as a loss has been reduced. The microfinance sector in 2014 has
stopped the trend of activity contraction pursued during the recent years, by maintaining the
value of total assets at euro 112.9 million, and by improving its financial performance.
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3. External economic environment
During 2014, the global economic activity on the global level was developed in a more favourable
macroeconomic environment. The US economy was characterized by the strengthening of the
economic growth, driven mainly by domestic demand, while the euro area ultimately began the
economic recovery despite uncertainties about any possible consequences of problems in Greece.
During 2014, economic activity in euro area was gradually recovered, with improvement of
consumer confidence and the gradual improvement of conditions in the labour market. However,
economic growth remained concentrated in the central economy of the euro area, namely in
Germany, while different parts of the euro area continued to be characterized by weak growth,
namely economic decline. In 2014, economic growth of the euro area reached 0.9 percent,
compared to the economic decline of 0.5 percent marked in the previous year. Although it is
considered a modest economic growth, signals for further strengthening of the activity in the euro
area region relies heavily on the further decline of oil prices, which is expected to reflect an
increase of consumer trust and thus on the increase of expenditures. The increase of consumer
confidence was mainly driven by lower prices of energy in 2014, but also due to the positive
developments in the labour markets. The increase of the economic activity is expected to be
supported by continuous growth of euro area exports as a result of depreciation of euro as well as
the beginning of implementation of the quantitative easing programme from the European
Central Bank (ECB). For 2015, IMF forecasts an economic growth of 1.5 percent in the euro area.
According to ECB, the average inflation rate in euro area in 2014 declined to 0.4 percent,
compared to 1.4 percent in 2013. Continuous decline of prices in international markets resulted
in a deflation of 0.6 percent and 0.3 percent, respectively, in January and February 2015.
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
In order to counterbalance the elevated
Figure 1. EURIBOR interbank lending and ECB
risk of deflation in the euro area and to
refinancing rate
3.00%
recover the fragile economy in the
region, ECB has decided to launch the
2.50%
quantitative easing programme as of
2.00%
March 2015. The quantitative easing
1.50%
programme aims to directly impact the
1.00%
reduction of financing cost and
0.50%
investment return rates (yield) by
0.00%
buying
securities
from
European
governments and from European
2009
2010
2011
2012
2013
2014
agencies and institutions in secondary
1m
12m
ECB refinancing rate, (right axis)
market on monthly basis in amount of
Source: Euribor (2014) and ECB (2014)
euro 60 billion, in order to promote
corporate investments. The effect of ECB's program affected the return rate of investment in
German government bonds, with 10 year maturity to decline to a record level of 0.18 percent in
mid-May, while the return rate of France government bonds was 0.45 percent. Increase of the
difference in the return rate of US government bonds (1.97 percent), mainly reflects the
quantitative easing effects by the ECB. Quantitative easing programme is broadly expected to
last until September 2016.
In 2014, the ECB kept unchanged the key refinancing rate, which led to a slight increase of 1
month interest rate of Euribor interbank lending. In 2014, the average 1-month rate of Euribor
increased on average 0.023 percent compared to 0.018 percent in September 2014 (figure 1). On
the other hand, the Euribor rate for 12-month period declined on average 0.33 percent in 2014,
from the average of 0.36 percent in September 2014.
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During 2014, the performance of the economic activity in the region of South-Eastern Europe is
generally estimated to have been weaker than in 2013. The average economic growth in the
countries of the region in 2014 was estimated to be around 1.5 percent (2.6 percent in 2013). The
highest economic growth in the region was marked by Macedonia (3.8 percent) and Kosovo (2.7
percent), while Serbia was the only country in the region that was characterized with economic
decline in 2014. For 2015, IMF forecasts an acceleration of the economic growth by 2.8 percent of
the countries of South-Eastern Europe.
Similar to the euro area countries, South-Eastern European countries are characterized by lower
level of inflation, namely deflation in 2014 in comparison to the previous year. The average
inflation rate in the countries of the region in 2014, according to the IMF was 0.4 percent. Serbia
and Albania were characterized by a higher inflation rate of 2.1 and 1.6 percent, respectively,
whereas Montenegro, Bosnia and Herzegovina and Macedonia were characterized with deflation.
Figure 2. Brent crude oil price, in USD
140
120
100
80
60
40
20
0
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
The price of Brent Crude1 oil in 2014
marked an average annual decline of
about 9.1 percent. Gold was also
characterized with the price decline in
2014. In 2014, the price of gold was
about 10.3 percent lower compared to
the previous year. Globally, the food
products in 2014 were characterized by
price decline compared to the previous
year. During 2014, compared to the
previous year, food products had a lower
price from an average of 3.7 percent,
while cereals had lower price with an
average of 12.5 percent.
2008
2009
2010
2011
2012
2013
2014
Source: World Bank, EIA (2014), and CBK calculations
The decline of oil prices, aggressive monetary policy and improvement of economic activity
particularly in Germany, were reflected into improvement of euro area lending cycle. After more
than two years, in 2014 private sector lending marked a modest increase. According to ECB bank
lending survey, growth of private sector lending is mainly attributed to increased demand for
financing fixed enterprise investments and facilitation of lending standards by the banks.
The countries of South-Eastern Europe were also characterized with the growth of lending
activity. Except Montenegro that marked a lending decline, all the other countries were
characterized by an acceleration of loans growth. However, lending growth in South-Eastern
European countries relied mainly on growth of household lending, while lending to enterprises
was estimated to have stagnated. In terms of deposits of commercial banks in South-Eastern
European countries, Albania and Kosovo were characterized by a slower growth pace of total
deposits in 2014, while all other countries had accelerated growth of deposits. During 2014,
South-Eastern European countries mainly reported a decline of non-performing loans, with the
exception of Bosnia and Herzegovina and Macedonia which reported deterioration of credit
portfolio quality.
During 2014, ECB's quantitative easing programme resulted into a weakening of the euro
currency against the major currencies. The average exchange rate of euro against US dollar in
2014 was almost at the same level as in the previous year (0.1 percent increase), although in the
previous four months of 2014, euro was characterized by significant decline against US dollar (10
percent annual decline in December 2014). Euro has marked an average annual decrease of 5.0
1
‘Brent Crude’ represents commercial classification for the oil produced in the North Sea as the representative of oil price in global level.
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and 1.3 percent, respectively, against the British pound and the Swiss franc. In terms of the
region currencies, euro during 2014 was appreciated against Serbian dinar, Croatian kuna and
Macedonian denar with an average of 3.7, 0.7 and 0.1 percent, respectively, while it was
depreciated against the Albanian lek by 0.2 percent.
Box 1. Performance of the main banking groups operating in Kosovo
ProCredit Holding – PCH (Germany)
The value of the total assets of the banking group ProCredit Holding (PCH) reached euro 6.0
billion in December 2014, by marking an
Figure 3. Structure of ProCredit Holding assets in
annual growth of 2.2 percent. According
percent, December 2014
to the regional expansion, the structure
5.1%
2.4%
of assets of the group is focused on
15.5%
18.4%
South-Eastern
Europe,
which
13.5%
constitutes 45.0 percent of total assets of
the group. The second segment is
45.0%
Germany with 18.4 percent of the total
assets of the group, followed by Eastern
America and Eastern Europe with a
share of 15.5 percent and 13.3 percent,
Southeastern Europe
Eastern Europe
Southern America
respectively, of total assets of the group.
Central America
Africa
Germany
The smallest share belongs to the
Source: Annual reports of ProCredit Holding (2015)
Central America and Africa (figure 3).
The group performance in 2014 was affected by general macroeconomic developments in the countries
where it operates. More specifically, the deterioration of the situation in the Eastern Europe as a result of
the conflict between Russia and Ukraine were reflected in the banking segment of Eastern Europe. The
group performance depends largely on the performance of the banks in Serbia, Kosovo and Bulgaria, which
are the three major institutions in Eastern Europe group, that marked a slight economic growth as a region
during 2014. The region of South America, specifically the countries where the group operates, marked
higher economic growth compared to South-Eastern and Eastern Europe, thus contributing positively to the
group's financial performance.
The group's business model continues to be
traditional, where the lending activity is
financed mainly by deposits (figure 4). In
December 2014, total loans of PCH reached
euro 4.3 billion, representing an annual
increase of 3.5 percent compared to 0.1
percent decline from the previous year. PCH
banking group deposits amounted to euro 4.0
billion in December 2014, representing an
annual increase of 5.0 percent. In addition, the
loans to deposits ratio in December 2014
decreased to 108.5 percent compared to 110.1
percent in December 2013.
Figure 4. Growth trend of loans and deposits of
ProCredit Holding, in percent
12%
10%
8%
6%
4%
2%
0%
-2%
Dhjetor 2011
Dhjetor 2012
Kredi
Dhjetor 2013
Dhjetor 2014
Depozita
Source: Annual reports of ProCredit Holding (2015)
During 2014, PCH Group marked an
improvement of overall efficiency indicator, expressed through the expenditures to income ratio, which
marked a rate of 71.7 percent in December 2014, representing a decrease of 2.9 percentage points compared
to the previous year (figure 5). The improvement is mainly attributed to accelerated decline of 10.9 percent
of operational expenditures compared to the decline of 6.8 percent of operational income. Accelerated decline
of operational expenditure came as a result of personnel expenditure reduction, which marked an annual
decline of 14.0 percent, as well as reduction of administrative expenditures that marked a decline of 8.2
percent.
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Financial Stability Report
In the context of income, interest income
marked an annual decline of 9.9 percent
despite that the group's lending activity
increased during this period. Also, income
from fees and commissions marked an
annual decline of 3.2 percent in 2014.
Despite the decline in income, better
management of expenditures ensured
significant higher profit of the group until
December 2014 compared to the previous
year. By December 2014, the realized profit
Figure 5. Expenditures to income ratio and ROE and CAR
(right axis) of ProCredit Holding, in percent
100%
16%
90%
14%
80%
12%
70%
60%
10%
50%
8%
40%
6%
30%
4%
20%
2%
10%
0%
0%
Dhjetor 2011
Dhjetor 2012
Dhjetor 2013
Expendtiures to income ratio
Dhjetor 2014
ROE
CAR
amounted to euro 50.2 million (euro 39.0
Source: Annual reports of ProCredit Holding (2015)
million until December 2013). During 2014,
the group also significantly improved the
return on equity (ROE) rate to 9.4 percent compared with 7.7 percent in December 2013. The Capital
Adequacy Ratio (CAR) improved to 12.7 percent in December 2014 (12.2 percent in December 2013), while
continuing
to
meet
the
regulatory
requirements of capital adequacy (figure 5).
Figure 6. Structure of Raiffeisen Bank International
Raiffeisen Bank International – RBI (Austria)
The value of the total assets of the banking
group Raiffeisen Bank International (RBI)
amounted to euro 121.6 billion in December
2014, marking an annual decline of 6.9
percent. According to the regional expansion,
the structure of group's assets is focused on
the Central Europe, which represents 33.5
percent of total group assets. Another
important segment is that of South-Eastern
Europe, which represents about 17.6 percent
of total group assets. Austria with 35.3 percent
is third, followed by Russia and Eastern
Europe that represent 10.2 percent and 3.3
percent, respectively, of total group assets
(figure 6). During 2014, most of the countries
where the group operates were characterized
by a slowdown of economic growth or economic
contraction, which indirectly was reflected in
the group's activities. More specifically,
reduction of RBI's assets was influenced by the
unfavourable geopolitical situation in Ukraine,
economic sanctions imposed on Russia and the
depreciation of the Ukrainian and Russian
currencies
against
dollar
and
euro,
amendments in the banking legislation in
Hungary as well as depreciation of fixed assets
- goodwill that impacted on RBI to allocate
about euro 251 million for additional
provisions.
assets in percent, December 2014
35.3%
10.2%
3.3%
17.6%
33.5%
Central Europe
Eastern Europe
Eastern Europe – other
RBI - Austria
Russia
Source: Annual report of Raiffeisen Bank International (2015)
Figure 7. Growth trend of loans and deposits of
Raiffeisen Bank International, in percent
20%
15%
10%
5%
0%
-5%
December 2011
December 2012
Loans
December 2013
December 2014
Deposits
Source: Annual reports of Raiffeisen Bank International (2015)
The business model of RBI banking group
continues to be traditional, based mainly in loans and deposits (figure 7). In December 2014, loans
constituting 64.1 percent of total assets of RBI, reached the value of euro 77.9 billion, marking an annual
decline of 3.4 percent. This decline was largely driven by tightening of the lending criteria in Russia and
Ukraine. Deposits, which represent the main source of financing for this group, in December 2014 amounted
to euro 66.1 billion, marking an annual decline of 0.5 percent. Reduction of deposits in Russia and Ukraine
in 2014 contributed to the decline of total deposits of RBI. As a result of the significant decline of loans
along the decline of the level of deposits, loan to deposit ratio declined to 3.5 percentage points compared to
18|
Financial Stability Report
the previous year, reaching 117.9 percent in
December 2014. RBI group has marked an
improvement
of
overall
efficiency
indicator,
expressed
through
the
expenditures to income ratio, which
declined to 56.5 percent in December
2014 compared to 58.3 percent in
December
2013
(figure
8).
This
Number 7
Figure 8. Expenditures to income ratio and ROE and CAR
(right axis) of Raiffeisen Bank International
100%
18%
90%
16%
80%
14%
70%
12%
60%
10%
50%
8%
40%
6%
30%
4%
improvement is mainly attributed to the
20%
2%
10%
accelerated decline of 9.5 percent of
0%
0%
operational expenditures, along the decline of
December 2011
December 2012
December 2013
December 2014
operational income of 6.5 percent in
Expenditures to income ratio
ROE
CAR
December
2014.
Within
operational
Source: Annual reports of Raiffeisen Bank International (2015)
expenditures, personnel expenditures were
characterized by an annual decline of 11.2 percent, while administrative expenditures marked a decline of
6.6 percent until December 2014, whereas within operational income, the interest income marked an annual
decline of 7.7 percent, while the income from fees and commissions marked an annual decline of 0.3 percent.
In 2014, RBI allocated a higher expenditure amount for provisions against potential loan losses due to the
developments in Ukraine and Russia. Consequently, RBI group until December 2014 marked a net loss of
euro 492.7 million. The group marked a deterioration in return on equity (ROE) ratio, which in 2014 stood
at 0.2 percent, representing a significant decline compared to the rate of 7.8 percent in 2013. Capital
adequacy ratio (CAR) in December 2014 stood at 16.0 percent compared to the rate of 15.9 in December
2013 (figure 8). Meanwhile, the ratio of non-performing loans to total loans in December 2014 increased to
11.3 percent compared to 10.7 percent in December 2013. In December 2014, the coverage of non-performing
loans by provisions stood at 67.4 percent (63.1
percent in December 2013). RBI continues
to be the only one out of the three main
banking groups operating in Kosovo that
trades its shares on the stock exchange.
RBI’s price per share on Vienna Stock
Exchange in December 2014 was reduced
to euro 12.5 compared to euro 25.6 in
December 2013. This decline of the share
price, among others, came as a result of
the political and economical instability in
Ukraine and Russia.
Figure 9. Structure of NLB Group assets in percent,
December 2014
28.8%
0.9%
70.3%
Slovenia
Southeastern Europe
Western and Central Europe
Source: Annual reports of NLB Group (2015)
NLB Group (Slovenia) NLB banking group,
during 2014 was also characterized by a
decline of activity, while indicators of the financial performance and sustainability marked an improvement.
In December 2014, the value of total assets of the group amounted to euro 11.9 billion, representing an
annual decline of 4.6 percent. Regarding the group's regional assets extension, Slovenia represents the main
market with 70.3 percent of total assets of the group. South-Eastern Europe is also a very important market
for NLB group, given that 28.8 percent of total group assets are invested in this region. The remainder of
the group’s assets is invested in Western and Central Europe with a share of 0.9 percent (figure 9).
Although during 2014, Slovenia showed the first signs of economic recovery, they were not reflected in the
banking sector which continued with the restructuring phase and was characterized by a reduction of
assets. The business model of the NLB group is based mainly on lending that is largely funded by
deposits (figure 10). During 2014, the NLB Group was characterized by a decline of lending level.
In December 2014, the value of total loans amounted to euro 9.1 billion, representing an annual
decline of 4.8 percent. Regarding liabilities, the value of total deposits in December 2014
amounted to euro 8.9 billion, representing an annual growth of 8.3 percent . Loan reduction and
deposit growth affected the loan to deposit ratio to decline to 101.2 percent in December 2014 compared to
115.1 percent in December 2013.
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Number 7
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During 2014, NLB Group improved the key efficiency indicator and the financial performance. Overall
efficiency indicator, expressed through
expenditures to income ratio, marked an
Figure 10. Growth trend of loans and deposits of NLB
Group, in percent
annual decline of 36.2 percentage points,
thus declining to a level of 59.4 percent in
10%
December
2014
(figure
11).
This
5%
improvement is mainly attributed to
accelerated growth of operational income
0%
from 46.7 percent in December 2014 against
-5%
reduction of operational expenditures by 8.8
-10%
percent.
-15%
Within income, the interest income marked
an annual growth of 0.6 percent, whereas -20%
Dec 2010
Dec 2011
Dec 2012
Dec 2013
Dec 2014
income from fees and commissions marked
Loans
Deposits
an annual growth of 1.5 percent until
Source: Annual reports of NLB Group (2015)
December 2014. In terms of operational
expenditures,
personnel
expenditures
marked an annual decline of 7.8 percent by
Figure 11. Expenditures to income ratio, ROE and
December
2014,
while
overall
and
CAR (right axis) of NLB Group
administrative expenditures declined by 11.0
percent. As a result of the income growth 100%
40%
level, better management of expenditures
90%
20%
and reduction of provisioning expenditures
80%
0%
70%
-20%
(from euro 1.1 billion in 2013 to euro 141.4
60%
-40%
million in 2014), the group managed to
50%
-60%
recover from the losses incurred in the past
40%
-80%
five years, closing 2015 with a profit of euro
30%
-100%
62.3 million. As a result, the return on equity
20%
-120%
(ROE) rate improved to 4.7 percent compared
10%
-140%
to -135.5 percent in December 2013. In
0%
-160%
December 2011 December 2012 December 2013 December 2014
addition, the group strengthened the
Expenditures to income ratio
ROE
CAR
capitalization level expressed through capital
adequacy ratio (CAR), which amounted to
Source: Annual reports of NLB Group (2015)
17.6 percent in December 2014, compared to
15.2 percent in December 2013 (figure 11). Positive movement was marked in the credit portfolio, where the
ratio between non-performing loans and total loans decreased to 25.5 percent in December 2014 compared
to 25.6 percent in December 2013. Whereas, the coverage of non-performing loans by provisions in
December 2014 was 61.4 percent compared to 63.1 percent in December 2013.
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Financial Stability Report
Number 7
4. Kosovo’s Economy
Kosovo's economy in 2014, according to
KAS preliminary estimates, marked a
real growth of 0.9 percent (figure 12).
This estimation is based on investment
growth
with
1.5
percent
and
consumption with only 1.4 percent,
while net exports deepened the trade
deficit by 3.2 percent. The main
component within GDP remains the
consumption, with a share of 104.5
percent, investments with 27.8 percent
and net exports with -32.3 percent.
Figure 12. Real GDP growth rate, in percent
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2009
2010
2011
2012
2013
2014 (e)
Source: KAS (2015)
In general, 2014 was characterized by a
significant growth of remittances (11.8 percent) and growth of consumer loans (48.7 percent). In
addition, the government’s decision to increase the salaries and pensions, marked a significant
increase on the government's current expenditures (11.9 percent). On the other hand, a
considerable decline was marked in public investments (22.3 percent), while the foreign direct
investments were lowered almost in half in 2014 compared to 2013.
The price decline in international
Figure 13. Inflation and its main contributors
markets during 2014 was also reflected
in Kosovo's economy. Inflation in
Kosovo, expressed by the consumer price
index (CPI) in 2014 was characterized by
7.4
a significantly lower rate compared to
1.8
2.5
0.4
3.5
the previous year. The annual average
-2.3
inflation rate in 2014 was 0.4 percent,
compared to the inflation of 1.8 percent
in 2013 (figure 13). During 2014, energy
-13
2009
2010
2011
2012
2013
2014
prices and alcoholic beverages marked
Transport
Other
an increase, whereas there was a decline
Health
Energy
Furnishing
Alcohol. beverages
of prices mainly in imported goods,
Source: KAS and CBK calculaions (2014)
namely food products and soft drinks. As
a consequence of the high dependency of
Figure 14. Import, export and trade balance,
Kosovo's economy on imports, as well as
non-cummulative in millions of euro
relatively high participation of tradable 1000
800
goods and services in the consumer
600
basket, the price movements in
400
200
international markets continue to be the
0
main determinant of price movement in -200
the country. In 2014, the CPI, import -400
-600
prices and producer prices were -800
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
characterized with lower rates compared
2008
2009
2010
2011
2012
2013
2014
to the previous year. The import price
Trade
Exports
Imports
index marked an annual decline of 0.5
Source: KAS (2014)
percent (in 2013 was marked a growth of
0.2 percent) whereas the producer prices
marked a growth of 1.6 percent (in 2013 was marked a growth of 2.4 percent).
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Number 7
Financial Stability Report
Fiscal sector in 2014 was characterized by a slight growth in income and similar level of
expenditures compared to the previous year. Budgetary primary income marked a growth of 1.5
percent and reached a value of around euro 1.3 billion. On the other hand, the total budget
expenditures amounted to about euro1.5 billion, which represents a similar level to the previous
year. Therefore, the Kosovo budget marked a primary deficit of euro 131 million or 2.4 percent of
GDP. Public debt at the end of 2014 amounted to 10.6 percent of GDP, which is for 1.5
percentage points higher compared to the end of 2013.
The external sector was characterized by deterioration of trade position in 2014 (figure 14).
Despite the increase of exports of goods by 10.4 percent, the increase of imports of goods by 3.6
percent has impacted on the growth of trade deficit by 2.7 percent. Secondary income category
continues to affect on the deficit reduction of the component of the current and capital account of
the balance of payments of Kosovo. Remittances as one of the main components of the current
account marked a growth of 11.8 percent in 2014 and reached a value of euro 693.7 million.
Financial account in 2014 marked a negative balance of euro 145.1 million compared to the
negative balance of euro 132.2 million in 2013. Regarding liabilities, FDI continues to be the
main category, whereas regarding assets, the main category was other investments (mainly
deposits and commercial loans) outside Kosovo's economy. FDI balance was characterized with
deterioration in 2014, determined mainly by the decline of FDI in the country, which declined to
euro 151.3 million from euro 280.2 million as they were in 2013.
The financial system is characterized with expansion of its activity and a high level of
sustainability in all its constituent sectors. The role of the banking sector in financing the
economic activity in the country was strengthened in 2014. Acceleration of the growth of lending
activity during this period, mainly was driven by the supply side, and continuous reduction of
financing costs have contributed to a further growth of private consumption and investment.
In 2014 9.404 new enterprises were registered or 16 enterprises fewer than in the previous year,
while 1,671 businesses were closed or 163 businesses more than in the previous year. The
structure of newly registered enterprises is similar to last year dominated by trade, hotels,
manufacturing, construction and agriculture. Compared to the previous year, there was a
reduction in the number of registered businesses of real estate enterprises by 198 enterprises and
construction enterprises by 140 enterprises, while hotels and manufacturing enterprises marked
an increase of 123 and 106 enterprises, respectively. Registered enterprises in the trade sector
have also marked an increase.
In terms of 2015, Kosovo's economy is expected to accelerate the growth pace. This growth is
expected to be generated by domestic demand, while net exports are expected to continue to have
a negative contribution to the GDP growth. Consumption, as the main component of the domestic
demand, is expected to have a major contribution to economic growth also during 2015.
Investments, unlike last year, are expected to be characterized by a significant increase of public
investments. Also, the decline of interest rates and easing of lending standards for approving
loans by banks is expected to have significant impact in encouraging private sector investment.
Also FDI, which until April 2015 marked a significant growth, is expected to contribute to the
growth of total net investments. Position of net export is expected to continue to have a negative
impact on GDP growth. Despite forecasts for higher growth of exports, the highest level of
imports of goods compared to exports will have an impact in deepening the trade deficit of goods.
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Financial Stability Report
5. Financial System in Kosovo
5.1. General Characteristics
Financial system in Kosovo continued to
expand its activity during the year. In
December 2014, the total financial
system assets amounted to euro 4.5
billion, marking an annual increase of
7.4 percent (figure 15). The growth of
total assets of financial system is mainly
attributed to the growth of assets of
commercial banks and pension funds.
The insurance sector, despite the
expansion of its activity, had lower
contribution on the growth of total assets
of financial system, while the impact of
the microfinance sector was neutral.
The structure of financial system
continues to be dominated by the
banking sector, which represented 70.1
percent of total assets of the system in
December 2014, followed by pension
funds representing 24.1 percent of total
assets (figure 16). Pension sector
continues to be the sector with the
highest rate of asset growth within the
financial system. In December 2014,
assets of the pension sector marked a
growth of 19.1 percent, thus reaching
their share to the total of financial
system assets to 24.1 percent compared
to 21.7 percent in December 2013.
Figure 15. Annual change of financial system
assets and the appropriate sectors, in percent
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
December 2011
December 2012
December 2013
Financial system
Banking sector
Insurance sector
Microfinance sector
December 2014
Pension sector
Source:CBK (2015)
Figure 16. Structure of assets of the financial
system, in percent
December 2014
December 2013
24.1%
21.7%
0.2%
0.2%
2.7%
3.1%
72.3%
Banks
Insurance
Microfinance
Financial auxiliaries
Pension
2.5%
3.1%
70.1%
Banks
Insurance
Microfinance
Financial auxiliaries
Pension
Source: CBK (2015)
The insurance industry was also characterized with the accelerated growth of activity. In
December 2014, assets of the insurance companies marked a growth of 5.8 percent (1.5 percent in
December 2013). The share of insurance sector assets to total assets of the financial system
remained the same as in the previous year at 3.1 percent.
The microfinance sector, during the last three years was characterized by a decrease of activity,
and in 2014 stopped the downward trend, where assets value of the sector remained unchanged
as in the previous year. However, participation of the sector in total financial system assets
declined to 2.5 percent (2.7 percent in December 2013), mainly as a result of a higher rate of
asset growth of other sectors. In December 2014, financial auxiliaries’ assets marked a growth of
18.6 percent, but their share in the financial system continues to be low with a representation of
only 0.2 percent of the total financial system assets.
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Financial Stability Report
During 2014, the rate of financial
intermediation, calculated as the ratio of
financial system assets to GDP
deepened, thus reaching 81.3 percent
compared to 79.4 percent in December
2013. However the situation is different
in relation to individual financial sectors
where compared to the last year, the
share of the banking sector to GDP has
marked a slight decline as a result of
slower growth of activity, thus stopping
the growing trend followed over the past
three years. On the other hand, the
pension sector, for the fourth consecutive
year, including 2014, expanded its share
to the financial intermediation in the
country. The share of the insurance
sector to financial intermediation in the
country remained the same as in the
previous year, while the microfinance
sector reduced its share to total financial
intermediation (figure 17).
Figure 17. Financial intermediation rate by sectors
to GDP, in percent
70%
60%
50%
40%
30%
20%
10%
0%
Banking sector
December 2011
Pension sector
December 2012
Insurance sector
December 2013
Microfinance sector
December 2014
Source: CBK (2015)
Figure 18. Financial intermediation rate of the
banking sector to GDP, in percent
140%
120%
100%
80%
60%
40%
20%
Compared to the countries of the region,
it is noted that the level of financial
intermediation in Kosovo continues to be
December 2011
December 2012
December 2013
December 2014
relatively low in all constituent sectors
Source: CBK (2015)
of the financial system. Based on this, it
may be understood that, in relation to the economy size, the financial sector of Kosovo has still a
possibility for the growth of financial intermediation in order to converge towards the average of
other countries of the region (figure 18).
Table 1. Number of financial institutions2
Description
December 2011
December 2012
December 2013
December 2014
Commercial banks
8
9
9
10
Insurance companies
13
13
13
14
Pendion funds
2
2
2
2
Financial auxiliaries
34
38
39
42
Microfinance institutions
20
17
17
18
Source: CBK (2015)
The structure of financial system in terms of the number of financial institutions was expanded
compared to the previous periods. During 2014, a new bank with foreign capital was added to the
country’s financial system (which has been granted a preliminary license), bringing the number
of banks that operate in the country to ten. Also, a microfinance institution with foreign capital
was added as well in the insurance companies sector with foreign capital (which has been
granted the preliminary license) bringing their number to 18 namely 14. The number of financial
2
The number of financial institutions represents the number of institutions that are licensed to operate in Kosovo market.
24|
Financial Stability Report
Number 7
auxiliaries reached 42 from 39 as they were in the previous year, while the number of pension
funds remained the same. Most financial institutions in the country continue to consist of
microfinance institutions and financial auxiliaries, whose total number reached 60 in December
2014 (Table 1).
5.2 Exposure towards external sector
Kosovo financial system3 assets that are
invested abroad, in December 2014,
amounted to euro 1.6 billion, marking
an annual growth of 26.8 percent.4 The
accelerated growth of assets invested
abroad was mainly due to the expansion
of Kosovo pension fund investments in
the external sector. The structure of
foreign assets consists mainly of assets
and other equities with a share of 63.5
percent, followed by deposits with a
share of 20.4 percent and securities with
a share of 12.1 percent. The remainder
consists of loans with 3.8 percent and
other assets with 0.2 percent (figure 19).
Figure 19. Structure of foreign claims, in percent
100%
30%
26.8%
80%
25%
20%
60%
15%
40%
8.0%
20%
6.1%
8.1%
10%
5%
0%
0%
December 2011
Deposits
December 2012
December 2013
December 2014
Securities other than shares
Loans
Assets and other equities
Other
Annual growth (right axis)
Source: CBK (2015)
Within total of foreign assets, the
Figure 20. Structure of foreign liabilities, in percent
highest rate of growth was marked by
20%
pension fund investments in assets and 100%
15.4%
15%
equities (57.3 percent) and bank
80%
10%
deposits held in the external sector (33.2
5%
60%
2.4%
percent). Meanwhile, investments in
0%
other categories declined during 2014.
40%
-5%
The most significant decline rate was
-10%
20%
-13.5%
marked by loans (-45.2 percent) followed
-15%
0%
-20%
-18.2%
by securities investments which also
December 2011
December 2012
December 2013
December 2014
marked a decline (-24.3 percent). The
Deposits
Loans
Other
Annual growth (right axis)
decline marked in two categories was
due to the reduced investments of
Source: CBK (2015)
commercial banks in these instruments.
Also, the decline in securities abroad came as a result of shifting the bank investments from
securities abroad to securities of the Government of Kosovo, which during 2014 were
characterized by higher interest rates.
The total value of liabilities to the external sector, in December 2014, amounted to euro 243.3
million, marking an annual increase of 2.4 percent. The structure of external liabilities is
dominated by loans with a share of 61.5 percent, followed by deposits with 37.2 percent and other
liabilities with a share of 1.3 percent (figure 20). During 2014, within the total external
liabilities, the category of loans marked a slower growth of 3.1 percent (28.0 percent in December
2013). This is attributed mainly to the reduction of loans received by microfinance institutions (-
3
In this context, the financial system does not include the Central Bank of the Republic of Kosovo.
4
Within the requirements of Kosovo financial system to the external sector it is not included "cash" category. In monetary and financial statistics the "cash" category is
considered as external asset (requirement to non-residents), due to the fact that euro is not national currency of Kosovo, but in this analysis these means are considered
as such since they are kept in banks in Kosovo.
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Number 7
Financial Stability Report
1.5 percent) and lower growth of loans received by commercial banks (6.5 percent). The category
of deposits in 2014 marked a growth of 0.2 percent compared to the growth of 3.3 percent that
was in December 2013.
Subsequently, until December 2014, the
value of net foreign assets (NFA) of
Kosovo financial system amounted to
euro 1.4 billion, marking an annual
growth of 32.4 percent. The growth of
pension fund investments in the external
sector was the main contributor to the
growth of NFA. Moreover, pension funds
continue to represent the largest share of
NFA (75.1 percent), while the remaining
part consists mainly from NFA of the
banking sector (29.4 percent). The only
segment which marked a negative
balance of NFA continues to be the
microfinance sector (-4.5 percent),
mainly as a result of the high reliance on
external financing, in form of credit lines
(figure 21).
Figure 21. Net Foreign Assets by financial
institutions, in millions of euro
1,300
1,100
900
700
500
300
100
-100
December 2011
Pension sector
Microfinance sector
December 2012
December 2013
December 2014
Banking sector
Insurance sector and financial auxiliaries
Source: CBK (2015)
Figure 22. Exposure within assets and liabilities,
December 2014, in percent
80%
70%
60%
Exposure of the total financial system to
50%
40%
non-resident continues to be more
30%
pronounced within assets, whereas there
20%
is noticed a lower exposure within
10%
liabilities. More specifically, the ratio of
0%
Financial system
Banking sector
Pension sector
Microfinance sector
foreign assets to total assets of financial
system in December 2014 reached 35.5
Foreign assets/Total assets
Foreign liabilities/total assets
percent (30.1 percent in December 2013),
Financial system does not include the CBK
Source: CBK (2015)
while that of foreign liabilities to total
system’s liabilities amounted to 5.4 percent (5.6 percent in December 2013) (figure 22).
Regarding the sector exposure, the banking sector continues to have lower net exposure to the
external sector. The ratio of foreign assets to total assets of the sector is 18.3 percent, while the
ratio of foreign liabilities to total liabilities of the sector is 5.7 percent. Within the banking sector,
the largest banks are observed to be more exposed to external sector compared to smaller banks,
in terms of assets as well as liabilities. This reflects the fact that the largest banks, which are
mostly foreign banks, have a higher level of interaction with the external sector, and particularly
with their parent banks.
Pension funds sector continues to be exposed to the external sector within assets. In December
2014, assets invested abroad accounted to 94.0 percent of total assets of the pension sector.
Unlike other sectors, the microfinance sector is exposed only within liabilities and until
December 2014 the level of exposure was 54.7 percent of total liabilities. The microfinance sector
has high exposure in terms of liabilities because it uses foreign credit lines to finance the lending
activities, given that MFIs have no legal right to receive deposits.
26|
Financial Stability Report
Number 7
6. Kosovo’s Banking Sector
6.1 Banking Sector Structure
The banking sector structure continues
Figure 23. Structure of commercial banks assets
to be dominated by foreign owned banks,
100% 5.3%
where out of ten licensed banks
7.0%
7.4%
8.0%
90%
15.6%
(including one with a preliminary
15.6%
15.9%
16.2%
80%
70%
license), eight are foreign-owned and
27.1%
23.4%
24.9%
23.9%
60%
manage 90.4 percent of the total sector
50%
assets and 93.1 percent of the total
40%
27.3%
30.0%
26.4%
31.0%
30%
banking sector capital. The majority of
20%
9.6%
10.1%
10.6%
10.9%
the banking sector assets (51.3 percent
10%
13.7%
13.3%
11.4%
8.4%
0%
of total assets) are managed by two
December 2011
December 2012
December 2013
December 2014
banks originating from Germany and
Turkey
Kosovo
Germany
Austria
Slovenia
Serbia
Albania
Austria. Slovenia is represented by a
bank which continues to be the third
Source: CBK (2015)
bank in the market with a share of 15.6
percent of the total sector assets. Turkey is represented by three banks which in the last four
years have increased their share reaching to 13.7 percent in December 2014. Albania continues
to be represented by one bank which has a share of 8 percent in total banking sector assets. A
bank from Serbia also operates in Kosovo's banking sector, with a share of 1.8% percent to the
total sector assets. In December 2014, two local banks, had a share of 9.6 percent to the total
banking sector assets, which compared to the previous year represents a decline of 0.5 percentage
points
During 2014, the banking sector
Figure 24. HHI for assets, loans and deposits
concentration level continued to have a
2150
declining trend. In December 2014, the
2100
share of assets of three largest banks
2050
declined to 66.9 percent compared to
2000
67.4 percent from the previous year. The
1950
decline of concentration level is also
1900
expressed through the Herfindahl1850
Hirschman Index (HHI), which shows a
1800
1750
steady decline of assets concentration of
December 2011 December 2012 December 2013 December 2014
loans and deposits during the period
Assets
Loans
Deposits
2011-2014
(figure
24).
Decreased
concentration level in assets and loans
Source: CBK (2015)
came as a result of accelerated assets
growth, and smaller bank lending along with the slower growth of assets in the three largest
banks. Three largest banks in December 2014 marked an annual growth of 3.7 percent in assets
and an annual decline of 0,1 percent in loans, compared to the annual growth of 6.2 percent of
assets and 13.9 percent of loans in other banks. On the other hand, during 2014, the index
suggests a slight concentration level increase in deposits, despite a declining trend that occurred
in the last three years. A slight increase of deposit concentration in 2014 resulted due to a higher
increase of deposits in three major banks (annual growth of 4.4 percent) compared to the increase
of deposits in other banks (annual increase of 2.1 percent).
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Number 7
Financial Stability Report
6.2. Banking Sector Activities
6.2.1. Assets
Figure 25. Structure of the banking sector assets
In millions
The value of assets of the banking sector
of Kosovo in December 2014 reached
euro 3.18 billion, marking an annual
growth of 4.2 percent, thus representing
a decline of the growth trend compared
to the growth rate of 8.1 percent marked
in December 2013 (figure 25). The
slowdown of the banking sector growth
trend was mostly a result of the
slowdown in deposit growth which was
mainly due to the significant decline in
the deposits interest rate, during 2014.
3,500
9%
3,000
8%
7%
2,500
6%
2,000
5%
1,500
4%
3%
1,000
2%
500
1%
0
0%
December 2011
December 2012
December 2013
December 2014
Cash and balance with CBK
Balance with commercial banks
Securities
Gross loans
Fixed assets
Other assets
Annual growth of total assets (right axis)
Source: CBK (2015)
Within assets structure of the banking
sector, it is observed a slight increase in
the share of categories such as balance
Figure 26. Annual growth of the banking sector
assets, in percent
with commercial banks, securities and
60%
loans, whereas the share of the cash and
balance category with CBK marked a
40%
decrease in the total assets. Fluctuation
20%
in the assets structure show an
allocation of the surplus over the
0%
obligatory minimum held at CBK under
-20%
profitable instruments such as loans,
securities and balance with commercial
-40%
December 2011 December 2012 December 2013 December 2014
banks. The increase of lending share in
Gross loans
Securities
Balance with commercial banks
Cash and balance with the CBK
the total sector assets reflects an
Source: CBK (2015)
accelerated loan growth in 2014, and a
recovery from a slower growth in recent years. Unlike loans, during 2014, the category of
securities and balance with commercial banks marked a slowdown in the growth, whereas the
cash and balance with CBK was characterized with an annual decline (figure 26). The category of
balance with commercial banks which includes deposits and credit lines in banks abroad marked
an increase of 15.0 percent (18.1 percent in 2013). Whereas, cash and balance with CBK was the
only category of assets that was characterized by a decline during 2014. This category marked an
annual decline of 3.5 percent compared to the growth of 8.8 percent from the previous year (Table
2). The decline was mainly a result of the annual decrease of 5.1 percent of commercial bank
reserves in CBK.
In December 2014, the category of investments in securities reached euro 383.8 million, marking
an annual growth of 8.3 percent, which is significantly lower compared to 38.2 percent growth
marked in the previous year. Consequently, in December 2014 the share of securities in the
banking sector assets reached 12.0 percent compared to 11.6 percent in the previous year. In
context of total investments in securities, during 2014, it is observed a larger orientation of banks
towards investments in securities of the Government of Kosovo. In December 2014, investments
in securities of the Government of Kosovo marked an annual growth of 92.6 percent, thus
increasing the portfolio share of total investments in securities with 50.2 percent (28.2 percent in
December 2013) (figure 27). Orientation toward investments in the country was mainly a result
of higher interest rates in securities of the Government of Kosovo compared to the previous year,
28|
Financial Stability Report
and along with lower interest rates of
foreign government securities.
In
December 2014, the average of interest
rates in securities of the Government of
Kosovo was 1.6 percent compared to 1.0
percent from the previous year. Another
contributing factor to the increase of
investments in securities of the
Government of Kosovo was the short
period of their maturity (about 73.9
percent had a maturity of 6 months to 1
year).
Number 7
Figure 27. Structure of securities, in percent
100%
80%
49.7%
71.8%
60%
76.7%
99.8%
40%
50.2%
20%
0%
December 2011
23.3%
28.2%
December 2012
December 2013
December 2014
Other financial and non financial corporations
Foreign governments
Source: CBK (2015)
On the other hand, investments in
securities in the foreign sector, which mostly consists of foreign government bonds, marked an
annual decrease of 25.0 percent thus reducing the share to 49.7 percent of total portfolio on
investment in securities (71.8 percent in December 2013). This significant decline of securities in
foreign markets was influenced by the significant decline of interest rates from the previous year
along with the higher interest rates of securities of the Government of Kosovo. In December
2014, the average of interest on foreign 5 government securities was 0.2 percent compared to the
rate of 0.6 percent in the previous year. Investments in securities of other financial and nonfinancial corporations, which are considered instruments of a higher rate of risk, have a lower
share on investments portfolio, indicating that banks are avoiding high-risk investments.
Table 2.Structure of assets in the banking sector
December 2011
Description
In millions of
euro
December 2012
Share (%)
In millions of
euro
December 2013
In millions of
euro
Share (%)
December 2014
Share (%)
In millions of
euro
Share (%)
Cash and balance w ith the CBK
331.5
12.5%
425.7
15.0%
463.3
15.1%
447.1
14.0%
Commercial banks
329.5
12.4%
287.9
10.2%
339.9
11.1%
390.8
12.3%
Securities
202.0
7.6%
256.6
9.1%
354.5
11.6%
383.8
12.0%
Gross loans
1,698.1
64.1%
1,763.4
62.3%
1,805.8
59.0%
1,882.3
59.1%
Fixed assets
47.4
1.8%
57.7
2.0%
55.5
1.8%
53.7
1.7%
Other assets
41.3
1.6%
38.1
1.7%
40.3
1.4%
28.8
0.9%
2,649.7
100%
2,829.3
100%
3,059.3
100%
3,186.6
100%
Total
Source: CBK (2015)
Loans
Loans continue to be the main category
of the banking sector assets with a share
of 59.1 percent to total assets of the
sector in 2014. The lending activity
showed
signs
of
recovery,
thus
accelerating the growth rate compared
to the slowdowns marked during the last
two years. In December 2014, the value
of total loans reached to euro 1.88
billion, which represents an annual
growth of 4.2 percent (2.4 percent in
Figure 28. Contribution to loans growth by sectors, in
percentage points
0.18
18%
0.16
16%
0.14
14%
0.12
12%
0.1
10%
0.08
8%
0.06
6%
0.04
4%
0.02
2%
0
0%
-0.02
-2%
December 2011
December 2012
December 2013
December 2014
Other
Households
Enterprises
Annual growth rate of loans (right axis)
Source: CBK (2015)
5
In calculation of the average interest rate for foreign governments were includes countries: Germany, France, Belgium and Italy.
|29
Number 7
Financial Stability Report
December 2013). New loans issued by the banking sector in 2014 were characterized with a
significant increase of 30.4 percent (Box 2). The acceleration of loans growth in the banking
sector came due to the influence of loan supply and demands for both households and enterprises
(figure 28). The results of bank lending survey for the second half of 2014 shows an easing of, to
some extent, lending standards and conditions by the banks and an increase of demand by
borrowers (Box 3). The main factors which clarify the eased bank lending policies are:
satisfactory liquidity situation of the banking sector, competition in financial system, positive
developments in the real estate market and increase of consumers confidence. The increase of
demand for loans, particularly by households, could have been impacted by the increase of
salaries for civil servants and easing of lending standards by banks.
The structure of loans continues to be dominated by enterprise loans, which in December 2014
accounted for 65.9 percent of the total loans, and marked an annual growth of 2.1 percent (2.0
percent in December 2013). However, the main contribution to the accelerated growth of total
loans was provided by household loans, which account for 33.7 percent of total loans, and marked
an accelerated annual growth of 12.7 percent, compared to 3.9 percent growth from previous
year. Other loans, namely those in non-euro currency and loans for non-government
organizations, which represent 0.3 percent of total loans, marked an annual decrease of 12.0
percent. Also, loans to non-residents (mainly loans issued to foreign enterprises), which have a
share of 0.02 percent in December 2014, representing the smallest category in the total bank
lending, marked an annual decline of 97.7 percent.
Box 2. New loans
Total value of new loans issued by the banking sector during 2014 reached euro 993.9 million,
marking an annual increase of 30.4 percent. (figure 29).
Figure 29. Annual growth of new loans and total
loans, in percent
30.4%
35%
Figure 30. New loans by sectors, in millions of
euro
700
30%
600
25%
20%
16.4%
500
15%
3.8%
5%
0%
-5%
400
2.4%
10%
-7.2%
4.2%
2.4%
300
200
1.0%
-10%
100
December 2011
December 2012
December 2013
December 2014
0
December 2011
Annual growth of total loans
Source: CBK (2015)
Annual growth of new loans
December 2012
New loans to enterprises
December 2013
December 2014
New loans to households
Source: CBK (2015)
New loans continue to be dominated by enterprise loans, which in December 2014 accounted to
61.9 percent of the total new loans and marked an annual growth of 31.5 percent (figure 30).
Whereas, household loans accounted to 38.1 percent of the total new loans and marked an annual
growth of 28.7 percent (figure 31).
Structure of new loans for enterprises consists of investment loans, non-investment loans and
loans with favourable conditions. Investment loans continue to dominate with a share of 59.8
percent to total new loans for enterprises (figure 32). Non-investment loans and loans with
favourable conditions in 2014 accounted for 31.3 percent and 8.9 percent, respectively, of total
new loans issued to enterprises.
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Financial Stability Report
Figure 31. Annual growth of new loans, in percent
Figure 32. Main categories of new loans, in percent
90%
37%
31.5%
32%
28.7%
27%
22%
22.1%
74.4%
75%
60%
17%
64.4%
57.8% 59.8%
45%
12%
6.6%
33.0%
30%
31.3%
7%
15%
2%
-3%
Number 7
-6.1%
3.5%
-0.1%
-8%
-7.9%
-13%
December 2011
December 2012
Decemebr 2013
December 2014
Annual growth of new loans to enterprises
Annual growth of new loans to households
Source: CBK (2015)
14.0% 14.0%
9.2% 8.9%
15.6%
8.5%
0%
Investing
Non investing Favourbale
Loans to enterprises
Dhjetor 2013
Consuming
Mortgage
Favourable
Loans to households
Dhjetor 2014
Source: CBK (2015)
The structure of new loans provided to households consists mainly of consumer loans, mortgage
loans and loans with favourable conditions. Consumer loans, which continue to dominate new
loans to households, in 2014, increased their share to 74.4 percent of the total new loans to
households (64.4 percent in 2013). During 2014, mortgage loans continued to have a share of 14.0
percent to the new loans to households. Additionally, loans with favourable conditions decreased
their share in the structure of new loans to households to 8.5 percent, from 15.6 percent in 2013.
With the purpose of identifying the
Figure 33. Total loans, new loans, paid loans and
impact of new loans, returned loans and
outstanding loans, in millions of euro
write-offs in the increase of total active 2,000
credits stock, figure 33 shows the 1,750
development trends of these loan 1,500
categories. All three categories have 1,250
different impact on the total amount of 1,000
750
active loans, whereby new loans affect
500
positively on the growth of this amount;
250
whilst the return of loans and write-offs
0
have a negative or decreasing effect on
December 2011
December 2012
December 2013 Decemember 2014
the total value of active loans. Figure 33
Total loans
New loans
Paid loans
Write offs
shows that the amount of new
Source: CBK (2015)
accumulated loans during one year is
significantly higher in 2014 compared to the previous years. This increase of new loans was
reflected in the increase of returned loans which marked an annual growth of 28.9 percent (5.7
percent in 2013), whereas write-offs marked an annual decline of 21.6 percent (growth of 18.8
percent in 2013).
In 2014, the ratio of returned loans and write-offs to new loans was 92.3 percent compared to
94.4 percent in 2013. This means that despite the high growth of new loans in 2014, their impact
in the increase of total loan stock was low due to the high level of returned loans and write-offs,
regardless that this ratio marked a decline of 2.1 percentage points. However, the decline in the
ratio of returned loans and write-offs to new loans influenced the acceleration to the growth trend
to the total active loans in 2014.
The ratio of write-offs to total new loans declined to 1.6 percent from 2.6 percent in 2013, which
means that the effect of write-offs in "avoiding" the growth of total loans from the increase of new
loans is declining. Furthermore, the ratio of returned loans to total new loans declined to 90.7
percent from 91.8 percent in 2013, and impacted on the increase of total loan stock in 2014.
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Number 7
Financial Stability Report
Furthermore, in 2014, the "ratio of returned loans and write-offs to new loans" for households
and enterprises was also improved compared to the previous year, however it was more
significant in relation to enterprises.
Box 3. Bank Lending Survey
The recent results of the bank lending survey reflect the developments in the bank lending
activity during the period September 2014 - March 2015, and the expectations regarding changes
in the lending activity for April-September 2015.
Lending activity in the second half of 2014 and in the first months of 2015 is characterized with
an accelerated growth trend, compared to the decline of growth that appeared in the previous
period. Dynamics of country's lending activity is estimated to have been at the highest level in
the last three years. The trend of accelerated lending growth which characterized 2014 and the
first months of 2015 is attributed mainly to the facilitated bank lending offer for enterprises and
households during this period, whereas the demand was reported to be lower by large
enterprises, but higher by SME's and households.
Facilitated lending offer for enterprises in general is attributed to facilitation of lending
standards, particularly for small and medium enterprises (SME's)and long-term loans, whereas a
more conservative approach of banks towards lending to large enterprises is reconfirmed. The
increase of support for SMEs through eased lending standards, particularly in sectors that
previously were less credited, such as agriculture and manufacturing, as well as the growth of
long-term crediting, shows a gradual shift of banks from a conservative approach toward an
alternative which enables expansion of their business.
Standards for loans provided to households were eased to a certain extent during the reporting
period. Crediting standards were eased for both categories of house purchase and consumer
loans. If we analyse the lending standards by the purpose of use, it is noted that banks have
declared eased crediting standards for both, house purchase and consumer loans. Regarding the
loan approval rate for the period September 2014-March 2015, banks declared to have applied a
more eased approach, mainly for SME’s and consumer loans.
The main factors which explain facilitated bank lending policies in the period September 2014 March 2015 were the satisfactory position of commercial banks liquidity, competition in the
financial system and banks expectations regarding economic developments in the country.
Facilitated lending policies by the banks in the reporting period is realized mainly through
decline of the average interest rates, and provision of loans with a longer term of maturity and
increase in the amount of the loan.
Banks participating in the survey reported that the demand for loans during the period of
September 2014-March 2015 has increased from SME’s and households in general; banks
reported a decline of demands for loans by the large enterprises during this period. Within
households’ category, the demand for loans was higher for house purchase loans and consumer
loans. In relation to loan maturity, commercial banks reported an increase of demand for longterm loans during the reporting period. The increase of the demand for loans by households was
in compliance with the increase of internal consumption during this period, which could have
been driven by the increase of salary and wages for public servants in April 2014, and a
continuous decline which characterized the banks financing cost. On the other hand, the increase
of demand by SME’s is neutralized, to a certain extent, by the decrease of demand for loans from
large enterprises, which could be attributed to a weak investment activity that characterized the
country in general during 2014. The slight increase of demand for loans by SME’s is reported to
have been positively influenced by the increase of demand for fixed investment of enterprises to
finance working capital and debt restructuring. Whereas, the slightly increased demand by
households is mainly attributed to the developments in the real-estate marked an improvement
in consumers confidence.
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Financial Stability Report
Number 7
In the next six months (April-September 2015), the bank lending offer, expressed through
applied lending standards, is expected to remain generally eased. Banks expect to have eased
lending standards for SME’s in terms of enterprise lending, whereas almost all banks stated that
they expect a certain facilitation of lending standards that will be applied for households (house
purchase and consumer loans). Concerning the rate of loan approval, banks are expecting an
easier approach of bank financing for the SME’s and households. For the period April September 2015, banks stated that they are expecting a recovery of the demand for loan.
Demand for loans is expected to be higher from SME's and large enterprises. Banks also expect a
higher demand by the households.
The structure of loans by economic activity
Lending
structure
of
enterprises
according to the economic activity
remains similar to previous years (figure
34). Loans designated for trade sector
represent the largest category with a
share of 53.4 percent in the total loans
by enterprises, followed by loans to
industrial sector (mines, manufacturing,
energy and construction presented in
figure 35 have a share of 23.3 percent in
December 2014. The lowest access to
bank financing continues to be in the
agricultural sector with a total share of
4.0 percent compared to the total loans.
During 2014, the economic sectors which
marked an increase in lending were
manufacturing, agriculture and trade.
Growth is mainly attributed to the
decline of loan interest rates on these
sectors during this period. Another
factor that could have driven the growth
in the abovementioned sectors is the
easing of standards by banks for lending
enterprises.
Figure 34. Structure of loans by economic activity, in
percent
100%
80%
3.5%
3.7%
3.8%
4.0%
24.8%
24.3%
23.9%
23.3%
52.7%
53.2%
52.6%
53.4%
19.0%
18.8%
19.7%
19.3%
December 2011
December 2012
December 2013
December 2014
Industry
Trade
60%
40%
20%
0%
Agriculture
Other services
Source: CBK (2015)
Figure 35. Structure of industrial sector loans by
subcategories, in percent
100%
80%
60%
40.8%
43.1%
40.7%
5.1%
5.5%
7.1%
48.0%
45.8%
45.2%
36.0%
5.9%
40%
51.4%
20%
0%
6.1%
5.6%
6.9%
6.8%
December 2011
December 2012
December 2013
December 2014
During 2014, loans designed for
Construction
Energy
Manufacturing
Mining
manufacturing sector marked a more
Source: CBK (2015)
significant increase of 13.1 percent,
compared by the annual decline of 1.0 percent marked in the previous year. This reflects in the
bank's increased support for the manufacturing sector in countries which provided a lower credit
rate during the year. Another factor that could influence the growth of lending in this sector is
the general developments in the manufacturing sector, whereby during 2014 was marked a
significant growth in the number of registered businesses.
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Number 7
Financial Stability Report
Loans designated for the sector of
Figure 36. Annual change in loans by economic
agriculture were characterized by an
sectors, in percent
accelerated growth namely annual
40%
growth of 7.9 percent (5.0 percent in
30%
December 2013) (figure 36). In addition
20%
to the decline of the interest rate, the
10%
support of USAID through the loan
0%
portfolio guarantee program could have
-10%
influenced the increase of lending for
-20%
this sector. Based on the Plans of the
-30%
Government of Kosovo for drafting a
December 2011
December 2012
December 2013
December 2014
scheme for guaranteeing loans in the
Agriculture Construction Energy Manufacturing Mining Trade Other services
agriculture sector, it is expected a
Source: CBK (2015)
further increase of lending and further
improvement of lending conditions for this sector.
Loans for the trade sector were characterized with an accelerated growth which in December
2014 marked an increase of 3.6 percent compared to the previous year when they marked an
increase of only 0.8 percent. The acceleration of lending in the trade sector reflects the increase of
Kosovo's trade activities with other countries. Another factor that may have influenced the
acceleration of lending growth was the increase in the number of registered businesses in the
trade sector during 2014, compared to a significant decline in the previous year.
On the other hand, despite the decline of interest rate on the trade sectors, and eased lending
standards for enterprises by the banks, the sector of energy, construction and mines marked a
decline in 2014.
In December 2014, loans issued for the energy sector marked an annual decrease of 17.8 percent
compared to the growth of 30.6 percent registered in December 2013. However, lending of the
energy sector during the most part of 2014 was characterized with an increase which was finally
neutralized by the significant decline of 19.6 percent in December 2014. The termination of the
medium-term credit line of euro 1.8 million in December 2014 had a significant importance in the
lending sector. The effect of this credit-line was pointed-out considering the fact that this sector
is dominated by loans with maturity up to 1 month.
Lending to construction sector during 2014 was characterized with a further decline, marking an
annual decrease of 12.2 percent in December 2014 (a decline of 5.2 percent in 2013). The decline
in lending of this sector might have reflected the general developments in the construction sector,
where it is considered that activities in this sector have decreased. In 2014, a decline in the
number of new enterprises registered in the construction sector, and an increase of subdued
businesses compared to the previous year was evidenced.
Loans to the mining sector were also characterized with a decline of 2.2 percent in December
2014 (an increase of 24.7 percent in December 2013). The decline of activities in the mining
sector, which is represented through the industrial circulation index, has had an impact in
reducing the demand for loans in this sector, thus reflecting the decline of lending to the mining
sector.
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Number 7
Financial Stability Report
Loans structure by maturity
Loans structure by maturity during 2014
continues to be similar to the previous
periods (figure 37). Most of loans
continue to be dominated by loans with
longer maturity. In December 2014,
loans with maturity ‘over 2 years’
comprised 69.2 percent of total loans
marking a slight increase of the share
compared to 2013. The increase of the
share reflects the high rate of the annual
increase of 7.3 percent (figure 38) of the
loan value with this maturity.
The short-term maturity loans, namely
"up to 1 year" continued to be the second
category with a share of 23.5 percent to
total loans (25.0 percent in December
2013). Whereas, medium-term maturity
loans, namely "1 up to 2 years" continue
to have a lower share within total loans,
thus representing 7.3 percent in
December 2014 (7.7 percent in December
2013). Medium-term maturity loans and
short-term maturity loans, during 2014
marked an increase of the value of 2.0
percent.
Growth of long-term lending is observed
in both enterprise loans and household
loans. In the context of lending to
enterprises, long-term lending growth is
more
noted
in
the
sectors
of
manufacturing, agriculture, trade and
other services. The main factor that may
have contributed to the growth of longterm lending is the provision of lower
interest rates from commercial banks in
the country for long-term loans to these
economy sectors (figure 39).
Figure 37. Structure of loans by maturity, in percent
100%
80%
60%
69.2%
7.7%
7.3%
21.1%
25.0%
23.5%
December 2012
December 2013
71.4%
7.2%
7.4%
21.2%
December 2011
40%
20%
0%
Over 2 years
Over 1 year up to 2 years
December 2014
Up to 1 year
Source: CBK (2015)
Figure 38. Growth trend of loans by maturity, in
percent
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
December 2011
December 2012
Up to 1 year
December 2013
Over 1 year up to 2 years
December 2014
Over 2 years
Source: CBK (2015)
Figure 39. Structure of loans maturity by economic
activity, in percent
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Up to 2 Over 2 Up to 2 Over 2 Up to 2 Over 2 Up to 2 Over 2 Up to 2 Over 2 Up to 2 Over 2 Up to 2 Over 2
years years years years years years years years years years years years years years
Agriculture
Construction
December 2011
6.2.2. Liabilities
67.2%
71.6%
Energy
Manufacturing
December 2012
Mining
December 2013
Trade
Other services
December 2014
Source: CBK (2015)
In 2014, the structure of liabilities of the
banking sector continued to be similar to the previous years. Deposits continue to be the main
funding source of commercial banks in the country, representing 79.6 percent of total liabilities of
the banking sector (Table 3). The continuous growth of domestic deposits allowed banks to
benefit from a stable funding source and avoid exposure to the fluctuations in international
financial markets.
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The second category in terms of shares to total liabilities of the sector remains Own Resources,
which in December 2014 represented 10.1 percent of total liabilities. This category marked an
annual growth of 16.3 percent compared to 2.6 percent for the same period of the previous year.
The significant growth of own resources was driven mainly by the accelerated growth of profit
accumulated in the banking sector during 2014.
Regarding liabilities, the category of balance with commercial banks marked the most significant
annual growth of 93.4 percent, which reflects the increase of inter-bank activity. On the other
hand, the category of subordinated debt was the category with the most significant decline within
obligations. During 2014, the subordinated debt decreased by 16.0 percent compared to a
significant growth of 81.5 percent that was marked in 2013. The increase of subordinated debt in
2013 was the result of changes in regulatory requirements, which required capital increase by
banks, where a part of the additional capital was financed through subordinated debt. Whereas
the good financial performance of the banking sector in 2014, expressed with a significant
increase in profit, reduced the need to use the subordinated debt to meet the requirements of the
capital.
Table 3. Structure of the banking sector liabilities
December 2011
Description
Balance from other
banks
In millions of
euro
40.0
December 2012
Share (%)
In millions of
euro
1.5%
6.0
December 2013
December 2014
Share (%)
In millions of
euro
Share (%)
0.2%
16.5
0.5%
In millions of
euro
Share (%)
31.8
1.0%
2,104.0
79.4%
2,279.1
80.6%
2,449.0
80.1%
2,537.0
Other borrow ings
30.4
1.1%
18.9
0.7%
13.4
0.4%
14.9
0.5%
Other liabilities
191.5
7.2%
223.6
7.9%
246.2
8.0%
232.7
7.3%
Subordinated debt
31.0
1.2%
31.0
1.1%
56.3
1.8%
47.3
1.5%
Ow n resources
252.8
9.5%
270.7
9.6%
277.8
9.1%
323.1
10.1%
2,649.7
100%
2,829.3
100%
3,059.3
100%
3,186.8
100%
Deposits
Total liabilities
79.6%
Source: CBK (2015)
Deposits
In June 2014, the value of total deposits
of the Kosovo banking sector amounted
to euro 2.53 billion, showing an annual
growth of 3.6 percent. During this year,
a slowdown on the deposits growth trend
was marked, which is mainly due to
significant decline of the interest rate in
deposits during this period. The
slowdown on the growth of deposits
could have been affected by the increase
of migration in Kosovo in the last
months of 2014.
Figure 40. Structure of deposits and annual growth,
in percent
100%
90%
24.9%
23.2%
22.7%
22.1%
80%
70%
8.3%
60%
50%
8.6%
7.5%
40%
3.6%
30%
20%
10%
70.8%
72.0%
72.5%
72.8%
December 2011
December 2012
December 2013
December 2014
0%
Other deposits
Enterprises
Annual growth (right axis)
Source:CBK (2015)
15%
14%
13%
12%
11%
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Non resident deposits
Household deposits
Household
deposits,
which
are
considered to be more stable in comparison to other sources of funding, continue to dominate the
deposit structure of the banking sector, thus representing 72.8 percent of total deposits (figure
40). In December 2014, the value of household deposits marked an annual growth of 4.1 percent
compared to an annual growth of 8.2 percent in December 2013, thus representing the key
contributor to the slowdown in the increase of the total deposits. Enterprise's deposits comprise
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Financial Stability Report
22.1 percent of total deposits and this year they marked an annual growth of 0.7 percent, which
represents a lower growth rate compared to the previous year (5.4 percent in December 2013).
Figure 41. Structure of enterprise deposits by
sectors,
in percent
120%
100%
80%
54.9%
63.6%
60%
71.5%
70.8%
13.0%
11.0%
15.5%
18.2%
40%
24.5%
14.3%
20%
20.5%
22.1%
0%
December 2011
December 2012
Other non financial corporations
December 2013
December 2014
Other public enterprises
Other financial corporations
Source:CBK (2015)
Figure 42. Non-residents deposits and interest rates
on deposits
100
5%
86.9
90
89.1
88.9
5%
80
70
In millions
The structure of enterprise's deposits
continues to be represented mainly by
deposits of non-financial corporations’
(private enterprises), which represent
70.8 percent of total deposits of
enterprises (figure 41). Compared to the
previous year, this category marked an
annual decline of 0.3 percent compared
to an annual growth of 18.5 percent
marked in December 2013). The second
category by weight within the structure
of enterprise deposits are comprised of
other financial enterprise deposits,
which in December 2014, was the only
category within the enterprise deposits
that marked an annual growth of 18.1
percent. Its growth was mainly as a
result of the growth of pension funds
and insurance companies deposits. The
category of public enterprise category
was characterized with a significant
decline of 14.3 percent, thus becoming
the main contributor in slowing down
the growth of enterprise deposits.
60
50
4%
64.2
3.5%
4%
3.6%
3%
3.4%
40
3%
30
2%
20
10
1.1%
0
2%
1%
December 2011 December 2012 December 2013 December 2014
Non-residents deposits
Deposit interest rate (right axis)
The remainder part of total deposits is
comprised of non-resident deposits with
Source: CBK (2015)
a share of 3.5 percent and other deposits
(government and other non-governmental organizations) with a share of 1.6 percent. Nonresident deposits, whose value amounted to euro 88.9 million in 2014 marked an annual decline
of 0.2 percent (figure 42), whereas, other deposits were characterized with an annual increase of
39.0 percent, mainly as a result of the central government deposits increase in commercial banks.
The structure of deposits by maturity
Figure 43. Structure of deposits by maturity, in
percent
120%
According to maturity, the structure of
100%
15.6%
deposits has changed during 2014.
16.5%
16.5%
21.1%
80%
While in the previous year the structure
31.7%
of deposits was dominated by time 60%
46.7%
51.4%
50.2%
deposits, in December 2014, the
40%
majority of deposits were transferable
47.2%
36.8%
deposits with a share of 47.2 percent to 20%
33.2%
33.0%
total deposits. Time deposits are the
0%
December 2011
December 2012
December 2013
December 2014
second largest category with a share of
Saving deposits
Time deposits
transferable deposits
31.7 percent, whereas saving deposits
Source:CBK (2015)
constitute 21.1 percent of total deposits.
Changes to the structure of deposits by maturity (figure 43) show that the significant decline of
the interest rate in deposits has discouraged depositors of time deposits.
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The increase of the share of transferable deposits to the total structure of deposits reflects the
significant annual growth of 33.0 percent of this category during 2014. In the context of the
transferable deposits, household deposits recorded a more significant annual growth of 46.8
percent (increase of 24.4 percent in December 2013), marking the main contribution to the
growth of total transferable deposits. Transferable deposits of enterprises are characterized by a
slow growth of 12.6 percent compared with the growth of 16.7 percent marked in the previous
year.
Time deposits during 2014 marked an annual decline of 29.7 percent. This decline was as a result
of households time deposits which marked a significant decline of 31.6 percent. Other time
deposits (the government and other non-government organization) were the only category that
marked an annual growth rate of 7.9 percent (33.7 percent in December 2013).
During 2014, within the structure of
Figure 44. Structure of time dposits, in percent
time deposits, was marked a decline in
time deposits "up to 1 year", whereas
100%
17.1%
18.3%
19.1%
90%
there was a growth of medium-term
26.8%
80%
deposits "from 1 to 2 years" and long18.8%
70%
25.1%
28.5%
term deposits "over 2 years" (figure 44).
22.7%
60%
50%
In December 2014, the deposits with
40%
maturity of "up to one year ', which
62.1%
56.5%
54.4%
30%
50.5%
continue to be the main category of time
20%
10%
deposits, had a share of 50.9 percent of
December 2011
December 2012
December 2013
December 2014
total time deposits, compared to 62.1
Over 2 years
From 1 up to 2 years
Up to 1 year
percent from the previous year. The shift
Source: CBK (2015)
of time deposits structure toward a longterm maturity could be a reflection of
higher interest rates of loans with longer maturity.
Saving deposits marked an accelerated growth in December 2014, thus recording an annual
growth rate of 32.4 percent (13.8 percent in December 2013). Within them, non-resident deposits
marked a significant growth of 40.3 percent compared to the growth of 8.4 percent registered in
the previous year. However, household deposits were the main contributor to the growth of
saving deposits, taking into account that they dominate the structure, and marked a growth of
32.2 percent (20.0 percent in December
Figure 45. Average interest rates, in percent
2013). Whereas, other deposits category,
which constitutes 0.04 percent of total
16%
saving deposits was the only category
14%
within these deposits that marked an
12%
annual decline of 36.6 percent in
10%
December 2014.
8%
6%
4%
6.2.3. Interest rates
2%
0%
December 2011 December 2012 December 2013 December 2014
Interest rates on loans and deposits
Interest rates on loans
Interest rates on deposits
continued their declining trend in 2014
Interest rate spread
as well. The average interest rate on
Source: CBK (2015)
loans decreased to 9.2 percent in
December 2014 from 11.1 percent in December 2013. The decrease of the interest rates on loans
reflects the decrease in the interest rate on deposits during this period which could also be the
result of a higher competitive pressure in the banking market, whereby the easing of lending
standards and criteria could be an indication of it. In December 2014, the average interest rate
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Financial Stability Report
on deposits declined to 1.1 percent from 2.4 percent in December 2013. The decline was mainly
due to sufficient presence of liquidity in the banking sector. As a result of these developments,
the interest rate spread on loans and deposits in December 2014 was reduced to 8.1 percentage
points, from 8.7 percentage points in
Figure 46. Average interest rates on loans to
December 2013 (figure 45).
enterprises and households, in percent
16%
The downward trend of interest rates on
loans is noticed on both loans to
15%
enterprises and loans to households
13%
(figure 46). In December 2014, the
12%
average interest rate on loans to
10%
enterprises decreased to 9.4 percent
9%
from 10.9 percent in the same period of
the previous year. In the context of loans
7%
December 2011
December 2012
December 2013
December 2014
to enterprises, during December 2014,
Enterprises
Households
the investment loans were characterized
Source: CBK (2015)
by an average interest rate of 9.7 percent
(10.9 percent in December 2013), while other business loans had an average of interest rate of
10.5 percent (12.3 percent in December 2013) (figure 47).
With regard to loans to enterprises by
maturity,
in December 2014 was
marked a higher interest rate for other
business loans with maturity "over 5
years" (11.8 percent), while the lowest
rate was recorded in investment loans
with a maturity 'over 5 years' (8.4
percent). In 2014, the decline of interest
rates on loans to enterprises reflected
the growth of new loans to enterprises,
which during this period marked a
significant growth compared to the
previous year.
Figure 47. Average interest rates on enterprise
loans, in percent
17%
15%
13%
11%
9%
7%
5%
December 2011
Investing loans
December 2012
December 2013
Other business loans
December 2014
Overdrafts
Source: CBK (2015)
In December 2014 the average interest
Figure 48. Average interest rates on loans to
rate on loans to households decreased to
households, in percent
9.0 percent from 11.4 percent in
20%
December 2013. Regarding loans to
18%
16%
households, the interest rate on
14%
consumer loans declined to 9.1 percent
12%
10%
in December 2014 (11.7 percent in
8%
December 2013), while the average rate
6%
4%
on mortgage loans declined to 8.2
2%
percent (9.7 percent in December 2013)
December 2011
December 2012
December 2013
December 2014
(figure 48). Regarding mortgage loans,
Overdrafts
Loans with favourable conditions
more significant decline of interest rates
Consumer loans
Mortgage loans
to 8.0 percent in December 2014 from
Source: CBK (2015)
10.4 percent in December 2013, was
marked at loans with maturity “over 5 to 10 years”. The decline of interest rates on household
loans was also reflected with the growth of new loans in 2014, which marked a significant growth
compared to the previous year.
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Financial Stability Report
With regard to interest rates on loans
Figure 49. Average interest rates on loans by
according to economic sectors, the
economic activity, in percent
agriculture sector continues to be
24%
21%
characterized with the highest interest
18%
rate, despite the decline marked during
15%
the year, where the average rate
12%
declined to 12.6 percent from 15.0
9%
percent in December 2013 (figure 49).
6%
Although it is still at a higher level
3%
compared to other sectors, the interest
0%
rate for agriculture sector loans was
December 2011
December 2012
December 2013
December 2014
Agriculture
Industry
Services
characterized by a more noticeable
decline during the period 2011-2014,
Source: CBK (2015)
thus
significantly
narrowing
the
difference in interest rates of other sectors loans. In December 2014, the average interest rate of
industry sector loans declined to 8.9 percent from 11.0 percent in December 2013, whereas the
service sector (including trade) declined to 9.9 percent from 10.9 in December 2013. During 2014,
the highest interest rate of 12.8 percent was marked in the agriculture sector in the loans with
maturity of 'up to 1 year', whereas the lowest rate of 7.8 percent was marked in the industry
sector in loans with maturity of 'over 5 years'.
In 2014, the average interest rate on deposits marked a significant decline compared to the
previous year. The decline was largely driven by the decline of the household deposits rates
which dominates the total deposits
structure. In December 2014, the interest
Figure 50. Average interest rates on enterprise and
household deposits, in percent
rate on household deposits declined to 0.9
6%
percent from 2.8 percent as it was in
5%
December 2013. In 2014, the decline of
interest rate in enterprises deposits, also
4%
significantly contributed to the decline in
3%
the average interest rates on deposits.
2%
The average interest rate was low
1%
throughout the year, particularly during
the second and third quarter, and
0%
December 2011
December 2012
December 2013
December 2014
recovered in the last quarter reaching to
Enterprises
Households
1.9 percent in December 2014. (1.2
Source: CBK (2015)
percent in December 2013) (figure 50).
6.3. Performance of the Banking Sector
Kosovo’s banking sector, during 2014, marked a significant improvement of financial
performance. The net profit realized during 2014 amounted to euro 60.1 million, whereas the net
profit registered in 2013 was euro 26.0 million (figure 51).
During 2014, the banking sector's income declined slightly, primarily as a result of income
decline from interest rate on loans and income from fees and commissions. Consequently, the
growth of the profit in the banking sector, during 2014, was a result of expenditure reduction,
particularly those for provisions (loan loss provisions) and interest expenditures in deposits.
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Number 7
Financial Stability Report
Considering
the
unsatisfactory
Figure 51. Net profit, income and expenditures, in
performance of income, profit of the
millions of euro
banking sector remains highly sensitive 280
249.0
247.0
244.2
240.1
to a possible increase of deposit interest 240
228.6
223.0
204.1
rates, which could happen considering 200
184.2
the acceleration of lending growth. Also, 160
profit remains sensitive to a possible
120
deterioration of loan portfolio quality,
80
60.1
which will need to increase the
36.0
26.0
40
18.5
expenditures for provisions. Therefore,
0
to ensure a sustainable level of
December 2011
December 2012
December 2013
December 2014
profitability, banks need to generate
Net profit
Income
Expenditures
more income, which under the
Source: CBK (2015)
conditions of declining interest rates on
loans, require higher growth of loan portfolio. However, the increase of lending must be done by
observing the principles of sound lending in order to ensure the maintenance of a good loan
portfolio quality. Providing profit sustainability also requires measures to increase banks
operational efficiency, which means a
Figure 52. General structure of income, in percent
more stable reduction of banking
expenditures.
100%
90%
Income
In December 2014, banking sector
income amounted to euro 244.2 million,
representing an annual decline of 1.9
percent. The income structure of the
sector is mainly dominated by interest
income, followed by non-interest and
revaluation income. Interest income,
including income from interest on loans,
securities, and placements with other
banks and other income, represent 80.2
percent of total banking sector income
(figure 52).
18.7%
18.8%
19.9%
19.6%
81.3%
81.2%
79.6%
80.2%
December 2011
December 2012
December 2013
December 2014
80%
70%
60%
50%
40%
30%
20%
10%
Revaluation income
Non-interest income
Interest income
Source: CBK (2015)
Figure 53. Structure of income by categories, in
percent
100%
17.4%
17.9%
18.3%
18.2%
80%
In December 2014, interest income
60%
marked an annual decline of 1.2 percent
40%
78.9%
77.6%
77.6%
77.3%
(a decline of 1.1 percent in December
2013), providing the main contribution
20%
to the decline of total income of the
0%
banking sector. Whereas non-interest
Dhjetor 2011
Dhjetor 2012
Dhjetor 2013
Dhjetor 2014
Loans
Bank placements
Securities
income, which are the second category
Other
Fees and commissions
Other operating income
regarding the weight in the overall
structure of income, in December 2014
Source: CBK (2015)
marked an annual decline of 3.6 percent
(increase of 6.4 percent in December 2013). The effect of revaluation income had a low impact in
the trend of total income, considering the share of only 0.2 percent in the structure of total
income.
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Financial Stability Report
In December 2010, the category of
income from interest on loans marked an
annual decline of 1.6 percent, which
coincides with the decline of interest
rates on loans during this period (figure
54). During 2014, income from fees and
commissions marked an annual decline
of 2.6 percent, despite the prices increase
for certain banking services. This may
reflect the increase of the number and
volume of e-banking transactions during
2014, which have lower fees. Until
December 2014, the number of e-banking
transactions increased to euro 1.6
million (euro 1.1 in 2014), while the value
2013).
Figure 54. Annual growth rate of income by
category, in percent
80%
60%
40%
20%
0%
-20%
-40%
-60%
2011
Loans
2012
Placements
2013
Securities
Dec
Jun
Sep
Mar
Dec
Jun
Sep
Mar
Dec
Jun
Sep
Mar
Dec
Jun
-80%
Sep
The decline of total interest income was
mainly as a result of the decline of
income from interest on loans, which are
the main determinants of the trend of
interest
income,
considering
that
comprise 96.7 percent of total interest
income (figure 53). The second category
regarding the weight in the structure of
total income, the non-interest income,
marked a decline mainly as a result of
the decline of income from fees and
commissions, which comprise 93.1
percent of total non-interest income.
Mar
Number 7
2014
Fees and commissions
Source: CBK (2015)
Figure 55. Structure of expenditures by category, in
percent
100%
90%
80%
70%
47.6%
44.8%
21.2%
25.8%
45.1%
55.3%
60%
50%
40%
24.9%
17.2%
30%
20%
10%
28.6%
27.6%
28.6%
23.9%
December 2011
December 2012
December 2013
December 2014
0%
Interest expenditures
General and administrative expenditures
Fees provisions
Non-interest expenditures
Revaluation losses
Source: CBK (2015)
of transactions to euro 4.2 billion (euro 2.7 billion in
During 2014, the category of income from interest on securities was the sole category of income
which was characterized with an increase. This category marked an annual increase of 25.8
percent in December 2014, compared to a decline of 24.5 percent marked during the previous
year. The increase reflects the orientation of commercial banks in the country towards
investments on securities of the Government of Kosovo, which during the year had higher
interest rates compared to the previous year and compared to the securities of foreign
governments. In 2014, the average
Figure 56. Annual growth of expenditures by
interest rate on securities of the
categories, in percent
Government of Kosovo was 1.6 percent 80%
compared to 1.0 percent in 2013. The 67%
placement in the market of government 54%
36.6%
41%
bonds with two year maturity, which 28%
21.3%
8.0%
have higher interest rates, had a 15% 10.3%
1.1%
2%
significant impact in the increase of
1.2%
5.4%
-1.9%
5.9%
-11%
-6.1%
income from interest on securities.
-24%
-31.1%
-37%
Expenditures
-43.0%
-50%
December 2011
In December 2014, total expenditures of
the banking sector amounted to euro
184.2 million, marking a decline of 17.4
42|
December 2012
December 2013
Interest expenditures
Non-interest expenditures
General and administrative expenditures
Source: CBK (2015)
December 2014
Financial Stability Report
Number 7
percent compared to the previous year. The structure of expenditures is dominated by the
category of general and administrative expenditures which increased its share compared to the
previous year, reaching 55.3 percent in
Figure 57. Annual growth rate of expenditures by
December 2014 (45.1 percent in
categories, in percent
December 2013). Interest and non140%
interest expenditures category have
110%
decreased their shares in the structure
80%
of total expenditures, by declining to
50%
23.9 percent and to 17.2 percent,
20%
-10%
respectively (figure 55).
-40%
General
and
administrative
-70%
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
expenditures in 2014 marked an annual
2011
2012
2013
2014
growth of 1.2 percent compared to the
Deposit interest rate
Fees and commissions
decline of 1.9 percent in 2013 (figure 56).
Provisions
General and administrative expenditures
In this category, general expenditures
Source: CBK (2015)
marked a decline of 2.2 percent, those of
personnel increased by 0.1 percent, while other non-interest expenditures marked a growth of 8.8
percent.
In 2014, interest expenditures marked an annual decline of 31.1 percent compared to 1.1 percent
growth marked during the previous year. The decline is mainly attributed to the reduction of
interest expenditures on deposits, which is the main component of this category with a share of
82.7 percent in total interest expenditures. Interest expenditures on deposits marked an annual
decline of 37.3 percent as a result of the significant decline in deposit interest rates during 2014
(figure 57).
In December 2014, the category of non-interest expenditures was characterized by a significant
decrease of 43.0 percent, thus contributing to the decline of total expenditures in 2014. The
reduction of these expenditures is attributed to the annual decline of 55.4 percent of expenditures
on provisions for loan-losses, which also constitutes the majority of non-interest expenditures.
The lower amount of provisions allocated during this period was a result of improved loan
portfolio quality, namely the reduction of non-performing loan value in 2014 compared to the
previous year (figure 58). Despite the fact that expenditures on provisions marked a significant
decline, the level of coverage with provisions continues to be at a satisfactory level with 114.4
percent in December 2014 (110.5 percent
in December 2013).
Figure 58. Annual growth of loan loss provisions
and NPL, in percent
Profitability and efficiency
60%
44.8%
The considerable profit increase in 2014
impacted on the significant improvement
of profitability indicators of the banking
sector compared to previous years.
Return on Average Assets (ROAA)
reached 1.9 percent from 0.9 percent in
2013. Return on Average Equity (ROAE)
also marked an increase, reaching 20.2
percent from 9.4 percent in 2013 (figure
59).
40%
22.9%
20%
35.8%
18.6%
13.6%
0%
-0.2%
-8.4%
-20%
-40%
-60%
-55.4%
-80%
December 2011
December 2012
Growth rate of loan loss provisions
December 2013
December 2014
NPL growth rate
Source: CBK (2015)
Significant reduction of expenditures, despite the slight decline of income, had an effect on
improvement of overall efficiency indicator, which is expressed through the ratio of expenditures
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Number 7
Financial Stability Report
to total incomes. In December 2014, this indicator decreased to 75.4 percent from 89.6 percent in
the previous year (figure 60).
In millions of euro
A slight improvement of the banking
Figure 59. Profitability indicators
sector efficiency is noted observed in the
60
25%
ratio of operational expenditures to total
20.2%
assets, which in December 2014 was
50
20%
reduced by 0.1 percentage points
40
14.9%
15%
compared with the same period of the
30
previous year (Table 4). Also, net
9.4%
10%
interest margin 6 marked a slight growth
7.1%
20
of 0.1 percentage point, to 5.8 percent in
5%
1.9%
10
1.4%
December 2014. The growth of this
0.9%
0.7%
0
0%
indicator reflects the accelerated growth
December 2011
December 2012
December 2013
December 2014
of net interest income (as a result of
Profit
ROAA (right axis)
ROAE (right axis)
decline of interest expenditures in
Source: CBK (2015)
deposits) compared to the growth of
interest-bearing assets.
Some indicators of capacity of the banking sector are presented in table 5, whose developments in
recent years suggest the growth of capacity utilization of the sector. This is expressed through
indicators that present the ratio of the average value of assets managed by one employee and the
report of the average number of loans issued by one employee. The data for both indicators, up to
December 2014, suggest increased capacity utilization by the banking sector of Kosovo.
Table 4. Key efficiency indicators of the banking sector, in percentage
Description
December 2011 December 2012 December 2013 December 2014
Operational expenditures/total assets
3.7%
3.6%
3.3%
3.2%
Net interest margine
6.3%
6.0%
5.7%
5.8%
Source: CBK (2015)
The improvement of these two indicators
Figure 60. Expenditures to income ratio, in percent
was influenced by the increased activity
of the banking sector in 2014 along the 95%
92.5%
slight decrease of the number of
employees in the banking sector to 3.504 90%
89.6%
in December 2014 from 3.549 in the
85%
previous year. Another indicator of the
85.0%
banking capacity, expressed as the ratio
80%
of realized profit per employee, marked
75.4%
a high improvement. This came as a 75%
result of high profits realized during
2014 and the decrease of the number of 70%
December 2011
December 2012
December 2013
December 2014
employees. Whereas the ratio between
Source: CBK (2015)
the total of personnel expenditures and
the number of employees in December 2014, marked an increase compared to the last year,
which represents a cost increase of manpower factor for banks in Kosovo. Similar level of
6
44|
The net interest margin represents the ratio between net interest income and the average profitable assets.
Financial Stability Report
Number 7
personnel expenditures along the decrease of the number of employees in the banking sector
during this period affected the growth of this indicator.
Table 5. Indicators of the banking sector capacity
Description
December 2011
December 2012
December 2013
December 2014
Assets/no. of employees (in thousands of euro)
710.8
759.1
862.0
908.7
Number of loans/no. of employess
103.2
119.7
121.5
135.4
Profit/no. of employees (in thousands of euro)
9.6
5.0
7.3
17.1
Personnel expenditures/no. of employees(in thosuands of
euro)
10.9
11.4
11.9
12.1
Source: CBK (2015)
6.4 Banking Sector Risks
The risks to which the Kosovo banking
Figure 61. The map of the banking sector risks (in %)
sector is exposed remain at a low level
Economic growth in
without any significant change during
Kosovo
25.0
2014. In figure 61, which presents the
20.0
main indicators of banking risks and the
15.0
Economic growth in
NPL
10.0
performance of the sector, it can be
euro area
5.0
noticed that all risk indicators have
0.0
shown improvements, with the exception
-5.0
of economic growth in the country, which
declined. This general improvement of
CAR
Net interest margine
influential developments in the banking
sector is reflected in the significant
ROAE
increase of performance compared to the
2013
2014
previous
year.
The
external
Source: CBK (2015)
macroeconomic
environment
has
improved undergoing positive growth rate compared to 2013 when the euro area economy
marked an economic decline.7 Regarding the domestic macroeconomic environment, Kosovo’s
economy marked an increase in 2014, but with lower rate compared to 2013.
The capital of the banking sector increased during 2014 as a result of increased net income,
resulting in enhanced quality of capital as well as the sector's capitalization indicators.
Strengthened capital position suggests durability banking sector and satisfactory ability to cope
with the potential losses. Credit risk has decreased in 2014, reflecting the lower rate of nonperforming loans to total loans and the declining trend in concentration of credit risk compared
to the previous year. Also, the coverage of non-performing loans by provisions for loan losses
increased, which shows good protection of the sector from possible losses. The liquidity position of
the banking system remains at a satisfactory level despite the rapid growth of crediting
compared to deposits growth. Deposits marked slowdown in the growth and orientation towards
shorter maturity which, together with higher growth in lending in 2014, are reflected in the
decline in liquidity reserves and slightly decreased of indicators of liquid assets to short term
liabilities. However, both of these liquidity indicators remain well above the minimum levels
established by regulatory requirements. Banking system of Kosovo continues to have low
exposure to market risk, given the fact that almost all loans and deposits continue to carry fixed
7
The annual growth rate of GDP of Kosovo for 2014 is an estimate of the CBK, while the annual growth rate of euro area GDP is obtained from IMF statistics.
|45
Number 7
Financial Stability Report
interest rates and the fact that the balance sheet of the banking sector is almost entirely
denominated in euro currency and therefore has low exposure to exchange rate risk.
6.4.1 Liquidity risk
The exposure of the banking sector to
Figure 62. Loans and deposits of the banking
liquidity risk remains low despite the
system, in millions of euro
slight increase that has been marked in
3000
86%
84%
2014. Deposits marked a slowdown in
2500
82%
the growth and an orientation towards
2000
80%
shorter maturities, partly reflecting
78%
1500
76%
increased sensitivity to the declining
1000
74%
deposit interest rate. However, deposits
72%
500
are expected to continue to grow given
70%
0
68%
the prospects for higher economic
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
growth in Kosovo and the euro area in
2011
2012
2013
2014
2015, and those developments are
Loans
Deposits
Loans to deposits ratio (right axis)
expected to be reflected in better
Source: CBK (2015)
performance of the business and high
level of remittances. The highest growth of lending during 2014 as well as the slowdown in
deposit growth reflected to a decline in liquidity reserves and a slight decrease in indicators of
liquid assets to short-term liabilities, but both these indicators remain above the minimum levels
prescribed by regulatory requirements. External funding, although traditionally used in small
extent by the banking sector, can be easily accessible in the current period considering
quantitative easing program of the European Central Bank which is expected to be reflected in
increased liquidity in the foreign market.
The loans to deposits ratio recorded a slight increase of 74.2 percent in December 2014 compared
with 73.7 percent of the previous year (figure 62). As seen in figure 62, loans to deposits ratio is
consistently characterized by seasonal effects. Seasonality is generally more significant for
deposits, which almost always tend to decline in the second quarter of the year. On the other
hand, lending shows a more significant growth trend in the second quarter. Reason of seasonality
in loans and deposits might be increased demand for expenditure in the economy during this
period. New loans have higher value in this period, which suggests increased demand for
expenditures in the economy, which could mean that the funds available for saving and,
consequently deposits, tend to be lower during this period of the year.
In 2014, deposits have recorded a more
significant slowdown of growth in the last
quarter and this has affected increased
ratio of loans to deposits at the end of the
year, compared to previous years when
the loan to deposit ratio at the end of the
year reached the minimum values.
However, the loan to deposit ratio
remains below the rate of 80 percent,
which can be considered as high-level
indicator of liquidity in the sector,
suggesting that there is room for further
lending growth without risking the
liquidity position of the banking sector.
46|
Figure 63. Broad liquid assets ratio to short term
liabitlites
48%
2500
39%
43%
50%
2000
40%
1500
30%
1000
20%
500
10%
0
0%
Dhjetor 2012
Dhjetor 2013
Broad liquid assets
Short-term liabilities
Broad liquid assets/short-term liabilities
Source: CBK (2015)
Dhjetor 2014
Financial Stability Report
Number 7
The increase of the lending activities in 2014 has affected a decrease in short-term liquid assets.
In December 2014, short-term assets declined by 3.7 percent, by decreasing the share to total
assets at 34.3 percent compared to 37.2 percent in December 2013. On the other hand, short-term
liabilities increased by 6.4 percent. Subsequently, overall ratio of liquid assets to short term
liabilities declined to 43.3 percent compared with 48 percent in December 2013, but remains well
above the 25 percent minimum level required by the Central Bank (figure 63).
In the context of liquid assets, the most significant decline recorded tradable securities of
governments and central banks, followed by deposits with banks and other financial institutions
and account with CBK. Meanwhile, transferable deposits mainly contributed to short-term
increased liabilities.
Required reserves of the banking sector
Figure 64. Banking system reserves, in millions of
have also continued to stay at a higher
euro
level than the regulatory requirements,
450
400
but the reserve surplus in 2014 was
350
lower compared to the previous year
300
250
(figure 64). In December 2014, the
200
minimum requirements for mandatory
150
reserve were in value of euro 224
100
50
million, while total reserves of the sector
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
were higher by 69 percent. Maintaining
high level reserves can be considered
Required reserves
Balance with the CBK
Cash
Total reserves
positive because the sector reduces
exposure to potential risk developments
Source: CBK (2015)
for liquidity sector. However, this
represents an opportunity cost for banks that do not collect interest on excess reserves, which can
be transmitted to increase the cost of banking services. Therefore, in this context, the downward
trend of excess reserves in 2014 can be considered as a favourable development because it
suggests better management of liquid assets in terms of opportunity cost minimization, by
placing liquid assets in view of activities such as lending to ensure income for banks and
contribute to the economic development.
During the first half of 2014, the
Figure 65. Liquidity gap, in millions of euro
banking
sector
of
Kosovo
was
600
characterized by an increase of
'structural liquidity risk', manifested by
300
increased discrepancy between the
0
maturity of assets and liabilities of the
-300
same maturity interval (figure 65).8
-600
Liquidity
gap
has
increased
-900
considerably in almost all categories.
1-7 days 8 - 30 days 31 - 90 days 91 - 180
181 - 365 Over 1 year
ddays
ddays
The most significant growth was
December 2011
December 2012
recorded in the category '1-7 days',
December 2013
December 2014
where the gap has doubled to euro -878
Source: CBK (2015)
million from euro -431.8 in December
2013. This led to the negative gap for the cumulative period "up to 3 months' to increase to euro 669.3 million from euro -271 million in December 2013. The significant growth of negative gap for
the period '1-7 days' also led to significant increase of the negative gap for cumulative period 'of
8
The negative gap means that assets for the determined interval of maturity exceed the liabilities and vice versa.
|47
Number 7
Financial Stability Report
up to 1 year', but its negative effect is slightly mitigated by increased positive gap for categories
'31-90 days 'and '91 -180 days', and the transition to a positive gap of category '181 to 365 days'.
Dec
Sep
Jun
Mar
Dec
Sep
Jun
Mar
Dec
Sep
Jun
Mar
Dec
Sep
Jun
Mar
The increase of the negative gap was mainly driven by developments in the main items of the
balance sheet, to be exact loans and
deposits. Lending growth is reflected in
Figure 66. NPL to total loans ratio, in percent
the reduction of short maturity assets
10%
8.5%8.3%
8.5%8.7%8.6%
and increase of assets with maturities
9%
8.2%
7.8%
7.6%
7.5%
8%
longer than one year. With regard to
7.0%
6.5%
7% 6.2%
liabilities, the increase of deposits
5.9%6.0%5.7%6.0%
6%
under the maturity category "1-7 days"
5%
and the decline of deposits for all other
4%
categories of maturity show a shift of
3%
deposits toward short-term maturity.
2%
This development coincides with the
1%
0%
decline of interest rates on deposits,
which reduced the attractiveness of
2011
2012
2013
2014
time deposit.
Source: CBK (2015)
Such developments in the deposits
structure, stress the need of increasing
deposits with long-term maturity,
because such development would
reduce the risk of liquidity and would
create higher possibilities for a growth
in long-term lending, which is a highly
desirable development with regard to
improving the conditions on funding
investments.
Figure 67. Annual growth of total loans and NPL
40%
35.8%
30%
18.6%
20%
16.4%
13.6%
10%
3.8%
2.4%
0%
December 2011
December 2012
December 2013
4.2%
-0.2%
December 2014
-10%
6.4.2 Credit risk
Growth rate of total loans
Growth rate of NPL
Source: CBK (2015)
Kosovo banking sector exposure to
Figure 68. NPL by sectors
credit risk showed a downward trend
during the year 2014. The ratio of non18%
16%
performing loans (NPL) to total loans
14%
12%
decreased to 8.3 percent from 8.7
10%
percent in December 2013 (figure 66).
8%
6%
The decline of non-performing loans
4%
2%
ratio comes as a result of annual NPL
0%
value decline and accelerated growth
of loan stocks in 2014 (figure 67),
whereas one of the factors that may
have contributed in improvement to the
December 2012
December 2013
quality of the loan portfolio sector is
Source: CBK (2015)
the fact that in recent years banks
have applied tighter lending standards for the economy.
December 2014
Household sector remains with the lowest exposure to credit risk. The NPL ratio remains at a
similar level to the previous year, with a slight increase of 2.7 percent compared with 2.6 percent
in December 2013.
48|
Number 7
Financial Stability Report
The enterprise sector continued to be
the most exposed sector to credit risk,
within which the exposure was more
pronounced in the energy and real
estate (figure 68). NPL ratio for these
two sectors has recorded the most
significant annual growth. In the energy
sector, the share of non-performing
loans to total loans amounted to 17.4
percent from 14.1 percent marked in the
previous year, while for real estate to
13.7 percent from 12.2 percent in
December 2013. The increase of the
NPL rate in both sectors represents an
annual growth of the NPL value from
8.1 percent for electricity and 3.5
percent for real estates and on the
other hand, the stock value decline of
total loans for these sectors ( annual
decrease of 12.5 percent for energy
loans and 8.1 percent decrease in real
estate loans).
On the other hand, manufacturing and
trade sector have marked an increase of
the total loans value and a decrease of
the NPL value which resulted in decline
of the NPL ratio in both sectors. In the
manufacturing sector, the NPL rate
decreased to 12.0 percent from 15.2
percent in 2013, while in the trade
sector, the NPL rate decreased to 11.5
percent from 12.2 percent as it was in
the previous year. Another sector that
was
characterized
by
significant
improvement of the loan portfolio
quality is the tourism and services
sector, which despite decline of the total
loans value, declined its share to nonperforming loans to total loans to 8.7
percent from 11.3 percent as it was in
the previous year.
Figure 69. Structure of loans by classification
100%
95%
90%
3.7%
5.0%
2.0%
2.6%
1.7%
2.5%
5.9%
6.6%
2.8%
1.7%
3.6%
3.3%
2.5%
2.9%
2.2%
3.0%
85%
90.0%
87.1%
80%
86.2%
84.7%
75%
December 2011
Standard
December 2012
Watch
December 2013
Substandard
December 2014
Doubtful
Loss
Source: CBK (2015)
Figure 70. Loans movements by credit classification, in
percent
40%
35%
8.7%
30%
8.3%
7.5%
25%
12.3%
5.8%
20%
11.6%
10.0%
15%
8.3%
10%
15.3%
12.9%
5%
10.0%
0%
December 2011
December 2012
Delayed
Classified
December 2013
Non-performing
13.8%
December 2014
Source: CBK (2015)
Figure 71. NPL and provisions
180
160
122%
121%
120%
140
118%
120
116%
100
114.4% 114%
112.6%
80
112%
110.6%
60
110%
40
108%
20
106%
0
104%
December 2011
December 2012
NPL (në milionë euro)
December 2013
December 2014
Provizionet/NPL (boshti i djathtë)
Source: CBK (2015)
The agricultural sector is characterized
by improvement of the loans portfolio quality, where NPL rate marked a slight to 7.9 percent
from 8.0 percent in December 2013.
In terms of the loans structure by its classification, in 2014 has been marked an increase of the
share of standard loans and loss loans, while other categories have marked a decline (figure 69).
The increase of the share of standard loans reflects a more significant increase of lending that
has characterized this period, whereas the increase of loss loans share in one hand and the
reduction of the share of doubtful loans, nonstandard and watch loans on the other hand suggests
|49
Number 7
Financial Stability Report
that a part of these categories with overdue have deteriorated by migrating towards the latter
category.
Figure 72. Concentration of credit risk
350
99.6%
129.7%
300
In millions of euro
However, the performance of loans by
credit rating, as shown in figure 70
shows an improvement trend for the
three loan classifications: overdue loans,
classified loans and non-performing
loans.9 The decline of the share of nonperforming loans to total loans is
attributed to the decrease in the share of
doubtful loans, since loss loans have
increased their share in the structure of
total loans.
120%
250
100%
93.4%
200
150
140%
80%
60.4%
60%
100
40%
50
20%
0
0%
December 2011
December 2012
December 2013
December 2014
Overall large exposures
Total Tier 1 capital
Large exposures to total Tier 1 capital (right axis)
The banking sector has increased the
Source: CBK (2015)
level of coverage of non-performing loans
by provisions to cover potential loan losses. The coverage ratio of non-performing loans by
provisions has increased to 114.4 percent from 110.6 percent in December 2013 (figure 71).
Provision coverage ratio of classified loans has marked an increase to 82.0 percent in December
2014 from 78.2 percent in December 2013.
Lending to the economy has recovered in 2014 and similar growth trend is expected to continue
in 2015. According to the bank lending survey in December 2014, the supply and demand for
loans is expected to increase in all sectors. Such expansion in lending may have a positive impact
on the enterprise capacity expansion and could reflect positively on their capacity to return the
existing and new loans. However, the easing of lending standards, along with the reduction of
interest rates on loans, may receive loan applications from clients of a lower financial
"classification"; however the further expansion of lending is required to be in accordance with
sound lending principles.
Concentration of credit risk
Figure 73. Banking system capitalisation
20%
17.6%
16.7%
17.8%
Another aspect of credit risk is the
14.2%
15%
degree of concentration of credit
exposures. The year 2014 has marked a
10%
decrease of the concentration of the
credit risk, unlike previous years when
5%
this indicator had marked an increase
(figure 72). The ratio of large credit
0%
December 2011
December 2012
December 2013
December 2014
exposures10 in relation to the Tier 1
CAR
11
Tier 1 capital/Risk weighted assets
capital,
as a key indicator of the
Equity to assets ratio
concentration of credit risk, has
Source: CBK (2015)
decreased to 99.6 percent in December
2014 from 129.7 percent as it was in the previous year. The decrease was attributed to the
increase of the Tier1 capital (annual growth of 22.5 percent) and also the decline in the value of
9
According to CBK Regulations on credit risk management, the abovementioned credit ratings are grouped into three categories of credit risk exposure: overdue loans,
which include watch, sub-standard, doubtful and loss categories; Classified loans which include categories that include sub-standard, doubtful and loss loans, and
nonperforming loans that include doubtful and lost loans.
10
High exposure is considered the sum of all direct and indirect exposure to a single borrower or group of related borrowers whose value exceeds 10% of Tier 1 capital of
respective bank.
11
According to the regulation on large exposures, the sum of all large credit exposures against person or group of persons, when each of the exposures exceed ten
percent (10%) of Tier 1 capital of the bank, is limited to 300% of Tier 1 capital
50|
Financial Stability Report
Number 7
large exposures which decreased to euro 299.8 million in December 2014 (an annual decline of
6.0 percent).
The number of large exposures of the banking sector has decreased as well. From 68 in December
2013, the large exposures number decreased to 56 in December 2014. However, the average value
of large exposures was higher than in the previous year, standing at euro 5.4 million in
December 2014 (euro 4.7 million in December 2013) by suggesting higher concentration of credit
risk in a smaller number of credit exposures.
6.4.3 Solvency risk
Kosovo's banking sector strengthened
Figure 74. Regulatory capital and RWA
capital position during 2014. In
1800
20%
December of 2014, the Capital Adequacy 1600
15.9%
17.0%
15%
14.1%
Ratio (CAR), which represents the total 1400
14.1%
10%
9.2%
regulatory capital to the risk weighted 1200
7.3%
1000
5%
assets ratio, amounted to 17.8 percent
800
600
0%
compared with 16.7 percent in the
-1.6%
400
12
previous year (figure 73). The increase
-5%
-7.7%
200
of the capitalization ratio came as result
0
-10%
December 2011
December 2012
December 2013
December 2014
of the increase of the regulatory capital
Regulatory capital
RWA
with a rate of 14.1 percent, compared
Annual growth rate of regulatory capital (right axis)
with the increase of 7.3 percent of the
Annual growth rate of RWA (right axis)
Risk Weighted Assets (RWA) (figure 74).
Source: CBK (2015)
The increase of the capitalization
indicator ranks Kosovo above the
Figure 75. Structure of the banking system
average level of capitalization in the
regulatory capital
region, which in December 2014 had, on
100%
average, a CAR of 16.8 percent. 13 The
16.0%
17.9%
18.1%
90%
23.5%
80%
increase of the regulatory capital during
70%
2014 is attributed to the increase of Tier
60%
50%
1 capital (increase of 22.5 percent), while
84.0%
82.1%
81.9%
40%
76.5%
the Tier 2 capital marked a decrease (a
30%
20%
decrease of 13percent). This development
10%
has further improved the quality of the
0%
December 2011
December 2012
December 2013
December 2014
banking sector capital, which is reflected
in the rate of Tier 1 capital to risk
Tier 1 capital
Tier 2 capital
weighted assets, as well as in the
Source: CBK (2015)
increase of the leverage ratio. In
December 2014, the index of Tier 1 capital to risk weighted assets amounted to 14.6 percent
compared with 12.8 percent, in December 2013.
Leverage ratio, which represents the level of equity to total assets, amounted to 10.8 percent
from 9.7 percent in December of the previous year. The increase of the leverage ratio came as
result of a more pronounced increase in equity (16.3 percent of annual growth) along with the
increase of the sector total assets (16.4 percent of annual growth). The current leverage ratio
exceeds the regulatory requirement that requires a minimum ratio of 7 percent. 14 However, the
12
According to CBK regulation on Capital Adequacy, banks are required to maintain at least 12 percent of total regulatory capital to RWA ratio and at least 8 percent of
Tier 1 capital to RWA ratio.
13
Average capital adequacy ratio (capital of Tier I and II to Risk Weighted Assets) of the region (Western Balkan countries such as: Bosnia and Herzegovina,
Montenegro, Macedonia, Albania and Serbia). The data were obtained from the Global Financial Stability Report of the International Monetary Fund. The reporting period
covers December 2014 with the exception of Montenegro, where the data are for the period of March 2014.
14
CBK regulation on Capital Adequacy.
|51
Number 7
Financial Stability Report
current level continues to remain below the level of the countries in region, which in December
2014, on average, had leverage ratio of approximately 14.0 percent. 15
Regulatory capital value of the banking
sector amounted to euro 366.6 million in
December 2014, exceeding the minimum
requirement of the regulatory capital (or
12 percent of RWA) for euro 119.4
million. As noted above, the regulatory
capital
quality
has
marked
an
improvement in 2014, compared to its
decreasing trend in the recent years. In
December 2014, the trend of gradual
decline of the share of Tier 1 capital and
the growth of the financing by sources
of the Tier 2 capital ended, where the
share of Tier 1 capital in total
regulatory capital increased to 82.1
percent from 76.5 percent of in the
previous year (figure 75). This level of
the share of the Tier 1 capital to total
regulatory capital is close to the regional
average, which in June 2014 was around
85 percent. 16
Figure 76. Structure of Tier 1 capital, in millions of
euro
350
4.81
300
250
5.06
4.70
91.86
56.93
63.92
200
150
100
200.07
221.17
231.26
December 2013
December 2014
50
0
December 2012
Investments in equities, deferred tax
Lending to bank related persons
Intengible assets and Goodwill
Retained profit, current year to date, reserve assets
Capital (Shareholders capital, surplus, preferred shares)
Source: CBK (2015)
Figure 77. Structure of Tier 2 capital, in millions of
euro
80
70
60
50
40
56.3
45.74
31.0
31.0
The significant growth of the sector 30
profit in 2014 is the main factor in the 20
increase of the Tier 1 capital, which 10
19.80
19.1
19.0
16.5
means improvement of the capital
0
December 2011
December 2012
December 2013
December 2014
quality. Consolidation in conformity
Debt instruments required as convertible in ordinary shares
Subordinated debt
with regulatory changes enforced in
General provision for loans (Standard and watch)
December 2012, which was manifested
Source: CBK (2015)
by a gradual reduction of the sector's
exposure to bank related persons, was another important factor in increasing the level of Tier 1
capital.17 The increase in the share capital by some banks had a significant weight in the increase
of the Tier 1 capital, as well.
On the other hand, the distribution of the dividend by some banks was almost the only factor
that reduced regulatory capital through retained profit reduction. Tier 1 capital structure
remains similar with prior time periods. Shareholder capital remains the dominant category,
with a slight decline of the share (76.8 percent from 90.0 percent in December 2013) as a result of
increased share of the second category by size which consists of the profit (figure 76).
Tier 2 capital, on the other hand, decreased as a result of subordinated debt reduction. In
December 2014, the value of subordinated debt declined to euro 45.7 million compared to euro
56.3 million in December 2013 when the subordinated debt of the sector had recorded the highest
growth (almost doubled in comparison with previous years) (figure 77). The increase of
15
Leverage average ratio for the region (countries of Western Balkans, such as: Bosnia and Herzegovina, Montenegro, Macedonia, Albania and Serbia) calculated by the
CBK from the balance sheet reports of respective countries, reported to the relevant Central Banka. The data include period of December 2014.
16
The average Tier 1 capital to the total regulatory capital ratio for countries of the regions, calculated from the reported data within the Financial Soundness Indicators of
the International Monetary Fund – IMF, as well as from publications of relevant countries Central Banks.
17
Borrowings to persons associated with the bank deducted in the calculation of Tier 1 capital, thus reducing these exposures has increased the Tier 1 capital level.
Within the new positions which are deducted from the calculation of Tier 1 capital, borrowings to related persons have greater weight, whose value represents 5.4 percent
of the Tier 1 capital in December 2014 compared to 10.8 percent in December 2013.
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subordinated debt in 2013 was mainly a result of the need to increase capital for completion of
the new regulatory requirements that came into effect in late 2012 and in July 2013. In 2014, the
sector had already reached consolidation conform to regulatory requirements. Good quality
financial performance of the banking sector in 2014, expressed with a record growth of profits,
has served to increase the sector capital by reducing the need of subordinated debt, whereas
general loan provisions increased in 2014, reaching euro 19.8 million compared to euro 19.0
million in December 2013.18 Unlike previous years where banks, although in very small
percentages, used debt instruments compulsorily convertible into shares for capital completion,
in the previous two years these instruments were not applicable.
Risk-weighted assets
The value of Risk-Weighted Assets
(RWA) in December 2014 amounted to
euro 2.06 billion from euro 1.92 billion in
the previous year. The increase of RWA
was mainly a result of growth risk
weight with operational risk of 100
percent, which include loans and offbalance sheet items. The value of these
assets amounted to euro 1.6 billion from
euro 1.4 billion in the previous year,
increasing their share in total RWA to
78.1 percent from 72.4 percent in
December 2014 (figure 78).
On the other hand, assets with risk
weight of 75 percent have marked a
significant decline, reducing the effect of
increase of the total RWA from the
significant increase of assets with risk
weight of 100 percent. These assets,
which include loans covered with
collateral of the first order19 decreased to
euro 187 million from euro 292 million
in the previous year, while their share in
total RWA decreased to 9.1 percent from
15.2 percent.
Figure 78. Structure of RWA by risk weight
100%
1.6%
0.1%
0.1%
70.4%
72.4%
78.1%
80%
60%
76.9%
40%
20%
0%
1.1%
2.6%
0.4%
1.2%
December 2011
December 2012
December 2013
December 2014
Weight 20%
Weight 50 %
Weight 75%
Weight 100 %
Weight 150 %
Operational risk
Sourcei: CBK (2015)
Figure 79. RWA to toal sector assets ratio
62%
60%
60.8%
58.2%
58.2%
58.6%
58%
58.2%
58.2%
56%
55.3%
54%
53.2%
52%
50%
48%
December 2011
December 2012
December 2013
December 2014
RWA to total assets ratio
RWA to total assets ratio (excluding operational risk assets)
Other categories of RWA did not
Source: CBK (2015)
experience any significant change. Of
the total assets of the sector, 20 the value of assets which do not carry risk, or that weigh 0 percent
of risk, decreased to nearly 60 percent of the value of RWA compared to 65 percent in December
2013. This may suggest an increasing trend of the risk of the banking sector in Kosovo. The trend
of higher risk can also be based on the analysis of the RWA to total assets ratio, which has
marked an increase (figure 79). In December 2014, the share of risk weight assets to total assets
of the banking sector reached 60.8 percent from 58.6 percent in December 2013. 21
18
Value of provisions allocated by banks on loans with standard and watch rating is calculated as shear of Tier 2 capital, limited to 1.25% of risk- weighted assets.
19
Specifically, the assets weighted by 75 percentage points of risk include loans or parts thereof covered by collateral of the first order in the form of residential
mortgages and loans for the builders to finance immovable property construction, where the financed property has been sold or rented.
20
21
Off-balance assets are included in the calculation due to their involvement to the calculation of total RWA.
Inclusion of assets in operational risk to RWA became effective in July 2013, therefore, RWA of the period December 2011 and 2012 do not include these assets.
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6.4.4 Market risk
Banking sector exposure to the market risk, which implies the risk of the movements in exchange
rates and changes in interest rates, continue to be at low level. Net open position in foreign
currency against Tier 1 capital has marked a decline, thus further decreasing the low sensitivity
of the sector to changes in exchange rates. Loans in foreign currency, which also currently have a
very low share to total loans portfolio (0.3 percent in December 2014), have recorded a decrease,
and thus do not pose risk to the banking sector. Exposure to interest rate risk continues to
remain low. The main items of the balance sheet of the banking sector, being comprised of loans
and deposits, mainly carry fixed interest rates and are not affected by movements in interest
rates in the short term. However, there is interest rate risk in terms of refinancing and
reinvestment of assets, where possible changes in interest rates are quickly reflected on the
liability side of the sector due to the shorter maturity interest-bearing liabilities in relation to
assets. Since assets and the interest-bearing liabilities ratio to total assets remain low, it
suggests that changes in interest rates
Figure 80. Opened positions in foreign currencies
may have little impact on the
against Tier 1 capital
sustainability of the sector.
3.5%
Exchange rates risk
2.5%
The aggregated net open position in 1.5%
foreign currency slightly extended 0.5%
during 2014. Foreign currency assets -0.5%
marked a decline to euro 123.1 million -1.5%
December 2011 December 2012 December 2013 December 2014
(equivalent value) from euro 145.3
million in December 2013. The foreign
US$
UK£
CHF
Other
Opened net aggregated positions/Tier 1 capital
currency liabilities marked a lower
decline from euro 145.4 million to euro
Source: CBK (2015)
126.9 million equivalent value, making
the net open position expand to
Figure 81. Loans and deposits in foreign currency
equivalent value of euro -3.7 million
(euro -0.03 million in the equivalent
5.5%
6.0%
5.7%
5.3%
value in December 2013). On the other
4.5%
5.0%
5.0%
hand, the aggregate net open position to
4.4%
4.0%
4.4%
all currencies22 recorded a decline of euro
3.6%
3.0%
5.7 million equivalent values in
2.0%
December 2014 compared to euro 6.4
1.0%
0.43%
million equivalent values in the previous
0.39%
0.34%
0.32%
0.0%
year. This decrease, along with the
December 2011
December 2012
December 2013
December 2014
increase of the level of the Tier 1 capital
The share of loans in foreign currency in total loan portfolio
The share of liabilities in foreign currency in total liabilities
of the banking sector during this period
Loans in foreign currency against deposits in foreing currency
had an impact in decreasing the
Source: CBK (2015)
aggregated net open position in foreign
currency to Tier 1 capital ratio to 1.9 percent compared to 2.6 percent in December 2013 (figure
80).
In terms of the currency disaggregation, higher net open position to Tier 1 capital was reached by
US dollar, unlike Swiss franc in the previous year. In December 2014, this ratio for the US dollar
reached -0.8% (-0.4% in December 2013), while for Swiss franc the ratio changed direction and
22
Aggregated net open position means the amount of long and short positions in all currencies. For example, a short net positio n (-) in dollars equivalent to 1 million
euro, and a net long position (+) in Swiss francs worth of 1 million euro equivalent resulting in aggregated net position of euro 2 million, whereas net open position would
be 0.
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decreased to -0.2% (from 0.5% in December 2013). The net opened position ratio for individual
currency to the Tier 1 capital continues to be under the maximum of 15 percent allowed by the
CBK. Based on these data, it may be suggested that the banking sector remains well protected
from the movements in exchange rates.
Kosovo’s banking sector has a quite low level of lending in foreign currency. In December 2014,
the loans issued in foreign currency decreased to euro 5.9 million from euro 6.1 million
equivalent value in the previous year. Their ratio to total lending portfolio also decreased to 0.32
from 0.34 percent in December 2013. Foreign currency deposits, on the other hand, have higher
share. In 2014, their value decreased from euro 113.1 million to euro 136.9 million in 2013
equivalent value and their share to total deposits decreased to 4.5 percent from 5.6 percent as it
was in the previous. The higher decline of deposits compared to loans in foreign currency led to
the loans to deposits ratio in foreign currency increase to 5.3 percent from 4.4 percent in
December 2013 (figure 81).
Interest rates risk
Kosovo's banking sector is relatively well
protected against changes in interest
rates, due to the fact that loans and
deposits have mainly fixed interest rates
and interest income and expenses from
these items are not affected by
movements in interest rates until
maturity. Almost 91 percent of total
loans had fixed interest rates in
December 2014, while deposits with
fixed interest rates accounted for 100
percent of total deposits (figure 82).
Figure 82. Loans and deposits sensitity to interest
rates, by interest rate type
100%
9.0%
9.2%
91.0%
90.8%
December 2013
December 2014
90%
80%
70%
100.0%
100.0%
December 2013
December 2014
60%
50%
Loans sensitivity to interest rate
Fixed interest rate
Deposits sensitivity to interest rate
Changeable interest rate
Source: CBK (2015)
However, changes in interest rates can
have an impact in terms of refinancing
Figure 83. The gap of assets and liabilities sensitivity
and reinvestment of assets depending on
to interest rate, in millions of euro
the composition of the maturity period of
800
assets and deposits which are sensitive
600
400
to interest rates (figure 83), and interest
200
rate movement direction . The difference
0
between assets and liabilities which are
-200
sensitive to interests rates is almost the
-400
highest in the category of maturity up to
-600
1-30 days 31-90 days 91-180 days 181-365
1-5 years Over 5 years
30 days, where liabilities which are
days
sensitive to interest exceed assets.
December 2012
December 2013
December 2014
During 2014, this gap has increased to
euro -416.7 from euro -384.8 million in
Source: CBK (2015)
December 2013. Given that the gap is
negative for this category of maturity (the volume of the liabilities which are sensitive to interest
rates is higher than the volume of assets), potential changes in short-term interest rates are
more reflected in expenditures compared to the income of the sector. The dominant share of
liabilities which are sensitive to interest rate are comprised of deposits, thus the banking sector
is exposed to any possible increases in interest rates in the short term as the refinancing cost of
deposits increases faster than income from the higher interest rates for investments as the
maturity of assets is longer.
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However, within a year, the cumulative gap has gone in positive gap mainly due to lower
liabilities which are sensitive to interest rates. In December 2014, the gap of assets and liabilities
which are sensitive to interest rates for the period of maturity up to one year amounted to euro
151.2 million as opposed to euro-239.0 million euro gap in December 2013. In this situation of a
positive gap, the difference in interest rates in the period of one year more affects more on
revenues than on the sector expenditures, thus the overall sector exposure to increasing interest
rates is almost neutralized.
Box 4. Identification of systemically important Banks in Kosovo
The model for identification of banks with systemic importance represents an important tool for continuous
assessment of the degree of systemic importance of commercial banks in the country. Generally, a bank is
considered to be of systemic importance if it is expected that its potential failure would be manifested with
significant negative consequences for the functioning and stability of the entire sector and for the economy
in general. Therefore, continuous monitoring of the degree of systemic importance is considered to be of
particular importance for financial stability since it enables the identification of banks whose potential
failure would be manifested with significant negative consequences for the functioning and stability of
financial sector and economy in general. In addition this model enables drafting of recommendations to
compile policies and necessary measures to ensure the loss absorbing capacity of banks in compliance with
the degree of their systemic importance.
This article presents an assessment of the degree of systemic importance for all the banks and their
branches operating in the Kosovo’s market, based on the balance sheets data of December 2014 of the
appropriate banks. To assess the systemic importance of banks, the model is based on four basic criteria:
size, substitutability, interconnectedness and complexity. The first two criteria suggested by base model
(size and substitutability) are considered as fundamental criteria for the determination of systemic
importance in the case of Kosovo, therefore, their weight in the model is dominant with 40 percent each.
Table 6. The Indicators used to identify systemic importance of the banks in Kosovo
Criteria
Indikatorët
The share of cash and balance w ith the CBK
The share of sector assets
The share in the market of the sector deposits
Size
(w eight 40%)
Ow n capital of the bank to total sector capital ratio
The share of the sector securities
The number of depositors to total depositors
The share of liquid sector assets
The share of agricultural loans of the sector
The share of consumer loans of households
The share of loans to industry, manufacturing, energy and construction
Replacem ent
(w eight 40%)
The share of trade loans
The number of transactions to total transactions throught payment system
The share of Kosovo's Government securities
The share of total market loans
The share of deposits and borrow ings from other financial corporations and other banks
Interconnection
(w eight 10%)
The share of loans for other financial corporations
The share of placements in other banks (not including parent bank)
Com plexity
(w eight 10%)
Off-balance items share
Source: CBK (2015)
While the two other criteria (interconnectedness and complexity) are weighted with 10 percent each, based
on the fact that Kosovo’s banking sector has low degree of interconnectedness of institutions in terms of
cross lending and borrowing and it is based on traditional banking activities where with a low degree of
complexity as funding is based primarily on deposits and loans are the main product.
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For each of these criteria, respective indicators have been identified through which the systemic importance
of each bank is assessed. The indicators used are shown in table 6, and each of the indicators within a
particular criterion is given equal weight.
The selection of indicators is done according to the subject matter theory and suggestions of framework
based on which this model was developed. The general assumption in relation to size criteria, considered as
the main criteria for measuring systemic importance of an institution, is that the larger the share of the
bank is to the total sector the more significant it is its systemic importance as the affected parties from
possible shocks in this bank are more numerous and the costs for the entire sector and the economy are
larger. The size of the institutions is intended to be measured both in terms of the total share of the assets
to total sector assets, as well as in specific aspects of the balance sheet such as the share of deposits to total
sector deposits, the number of depositors, the share of the cash and reserves, etc. in order to reflect the
importance of the respective bank in the specific aspects/ segments of the banking activity, for instance, the
number of depositors who might be affected in case of problems or potential bankruptcy of a particular
bank.
Substitutability criteria aims to measure the extent of substitutability of products and services offered from
the respective bank by other banks in the market, in case of the failure of the respective bank. Key
assumption for the substitutability criteria is that the larger the share of a bank in a particular market
segment or in a certain type of service the higher is its technical capacity and knowledge for effective
functioning in the relevant segment (e.g. assessing credit risk for the agricultural sector), which makes it
more difficult the replacement of its role in that respective segment by existing or new banks in the market.
Therefore, the systemic importance of an institution increases when the difficulties in substituting its
services and products are larger.
Interconnectedness criterion is intended to measure the degree of interconnectivity of the banking
institutions among themselves and with other financial institutions in the country in order to identify the
risk of the spill-over effect of the crises to the other financial institutions and to the real sector. This
criterion is of particular importance in measuring systemic risk in the countries with developed financial
sectors where interconnection between institutions are numerous and complex. In Kosovo, the inter-bank
market is almost non-existent and interconnections between financial institutions are limited to deposits
and loans that other financial institutions as insurance companies, microfinance institutions and other
financial auxiliaries have at commercial banks in the country. Consequently, the interconnection between
financial institutions will be attempted to be measured by the share of placements with other banks and
credit exposure to other financial corporations, as well as the share of deposits and borrowings from other
financial corporations.
Regarding the complexity criteria, it should be noted that its aim is to measure the degree of complexity of
the business model and operations of a bank under the assumption that the more complex the activity of a
bank is, the higher the interconnections and agreements with third parties are, which increase the costs
and time of addressing the problems in case of bankruptcy. In the case of Kosovo, a proxy for measuring the
complexity of a bank has been suggested to be the share of the off-balance sheet items in the total portfolio
of the assets of that bank.
To identify the systemic importance of a bank, the value of every indicator has been compared with the
average value of the corresponding indicator for the entire sector. In cases where the value of the indicator
of an institution has exceeded the average value of the sector, then that institution was considered to have
systemic importance for that specific indicator. When the indicator was above the average of the sector (thus
it is of the systemic importance), it was given the value of 1, while on the contrary its value was set to 0.
Afterwards, these values were multiplied by the respective indicator weight, and when a bank resulted to
have systemic importance in half or more than half of the indicators of a single criterion, then this bank was
considered to be systemically important for that criteria. At the end, banks which had a sum of the weighted
average of each of the criteria equal to or higher than 50%, then those banks were considered to have
systemic importance. The higher the weighted average is, the higher the systemic importance of that
institution is.
Results
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General results of the model with the data of December 2014 have been presented in the table 7. The results
remain similar to the previous year in the sense that the four largest banks operating in Kosovo continue to
be considered of an overall systemic importance. However, interval of the level of systemic importance has
increased and extended by 65% for systemic bank with the lowest level of systemic importance, up to 100%
for systemic bank with the highest degree, compared to 2013 when the interval was 53-89%. Two of the
banks with overall systemic importance, similar to the previous year, resulted in systemic importance in all
the criteria. While the other two, despite the overall systemic importance, have not resulted in the systemic
importance of interconnectedness criteria (in December 2013 one of these banks did not result to be of a
systemic importance nor the in the criterion of substitutability).
Table 7.Results of systemic importance of the Kosovo banks, according to criteria
Banks/Criteria
Size
Replacement
Interconnection
Complexity
TOTAL
√
√
√
√
√
√
√
√
√
√
√
Bank 1
Bank 2
Bank 3
Bank 4
Bank 5
√
√
Bank 6
√
√
Bank 7
√
√
Bank 8
√
√
√
Bank 9
Source: CBK(2015)
Results also suggest that one of the smallest banks, which did not result with overall systemic importance
due to lower share in the market, nevertheless, resulted to be of systemic importance in two of the criteria
which is that of interconnectedness and complexity (in December 2013 this bank had a systemic importance
only in the criteria of complexity). Also, it is worth mentioning that some of the banks, although did not
result to have systemic importance for the entire criteria of substitutability and interconnectedness,
resulted to have important share in several indicators as the number of transactions compared to the total
transactions through the payment system, the share of securities of the Kosovo’s Government, and the
share of deposits and borrowings from other financial corporations and placements in other banks excluding
parent banks. Such a result, where banks have systemic importance in some certain indicators and criteria,
but not overall systemic importance, suggests that the effect of their potential failures however can be high
for certain sectors and aspects of the financial and real sector.
6.5. Stress-Test Analysis
Stress-test analysis represents an important tool to assess the sustainability of the sector against
potential shocks in the credit portfolio as well as the liquidity position, which may result from
unfavourable economic developments and changes in the market conditions. This analysis
assesses the impact of these shocks in the quality of credit portfolio, the bank's income, liquidity
position as well as its general financial position – the capital level.
The analysis presented below is based on the banking sector data of December 2014 which were
used for testing the sustainability of the sector to credit risk combined with the risk of interest
rate and exchange rate risk (market risk).In the analysis was also tested the sector ability to
maintain liquidity under hypothetical assumptions of significant withdrawal of deposits
(liquidity risk).
The results of the stress tests analysis continuously suggest satisfactory abilities of the sector to
handle extreme situations' of exposure to these risks.
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Credit Risk
Methodology
Baseline scenario: The analysis is based on the hypothetic scenario when the economic
situation in the euro area and in the region would deteriorate, and this would reflect the Kosovo’s
economy mainly through a reduction in remittances and exports, thus discouraging overall
demand in the country. As a result, the economic growth in the country is supposed to deteriorate
by expanding the output gap and negatively impacting on the quality of credit portfolio. In this
scenario it is considered the average rate of economic growth in Kosovo of around 3.5 percent in
the past five years and it is supposed an economic decline of 2.5 percent for 2014, which would
make the output gap to stand at 6.0 percent, whereas the impact on the credit portfolio quality,
respectively in non-performing loans (NPL), it is estimated by considering a coefficient of
elasticity of the NPL to the output gap of 0.8, 23 where the share of NPL to total loans of the
banking sector would grow by 4.8 pp. As a result of the shocks to the real sector, it is considered
that next year will not be marked an increase in lending.
In an addition to the baseline scenario, beside the credit risk were also considered the effects of
market risk in the sector revenues. So, the credit risk is combined with interest rate risk and
exchange rate. Interest rates for the assets are assumed to decease by 3.0 pp, while for the
liability part to 0.8pp because their base level is already quite low. Depreciation of euro against
other currencies is assumed to be 20 percent, with the exception of the Swiss franc against which
the depreciation is assumed to be at a higher level, reaching 30%.24
The effects of the abovementioned assumptions on the banking sector reflect as follows: the
increase of the share of NPL to total loans has an impact on the provision increase; depreciation
of euro has an impact on the revaluation of loss/profit from net open positions, and the reduction
of interest rates affects the losses/profits of net interest income considering the maturity gap of
assets and liabilities and their reinvestment/refinancing.
In addition to these assumptions, it is considered the expected profit as loss absorption from
these shocks. In this context, it is assumed that the profit will also be affected by the
abovementioned shocks, mainly through the decline of the ability of generating interest income
as a result of the failure of loans (NPL growth). Therefore, the expected profit of banks is
calculated based on the net profit after the tax of the year 2014, by initially applying first shock
of 40 percent to reflect the effect of no lending growth, and then were deducted the revenues that
would be realized if NPL would not increase.25
The assumed increase of NPL is expressed through the migration of loans from performing
categories (standard, watch, substandard) towards nonperforming categories (doubtful and loss).
NPL growth is proportionally distributed within the category of doubtful loans and loss loans,
taking into account the initial share of these categories to total NPL. The NPL growth is reflected
in the level of provisions based on the regulation of CBK for loan provisioning according to the
classification. The assumption of increasing the NPL applies also to off-balance sheet items that
include unused commitments, guarantees, available credit notes and commercial credit notes.
23
IMF unpublished note "CESE Bank Loss Projection and Stress Testing Exercise", July 2009.
24
Higher depreciation of the Euro against the franc is considered due to higher depreciation in January 2015 that came as a result of the termination of
interconnectedness (eng: unpeg) of the value of these currencies.
25
Assessment of 'loss' revenues as a result of rising NPL was originally made by calculating ex post of the interest rate on loans for each bank, which is then multiplied by
the value added to NPL.
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Despite the fact that in the analyzed scenario it is considered the depreciation of the euro against
foreign currencies to assess the risk of the currency exchange rate, it is important to note that
the impact of this risk on the balance sheet of the banking sector continues to be very low
because of the low value of the net open positions in foreign currency.
The scenario on interest rate risk implies the reduction of the interest rates for 3pp for assets
and for 0.8pp for liabilities in the balance sheet. The reduction of the interest rates may affect net
interest margin (NIM), mainly taking into account loans and deposits maturity since the
majority of loans and deposits in the banking sector of Kosovo have fixed interest rates and
interest rate changes are reflected until maturity. The negative effect on revenues from the
interest rate decline on the asset side is neutralized to some extent by positive impact of interest
rate decrease on liabilities, but the effect remains negative due to a more significant decline in
the interest rate on assets.
Additional scenarios: besides the aforementioned scenarios, additional scenarios on credit risk
analysis are considered also the failure of the largest borrowers in each of the banks, as well as
the capable level of NPL for each bank prior to the occurrence of capitalization problems.
Finally, the stability of the banking sector in this analysis is assessed in terms of the impact of
hypothetical scenarios in the level of regulatory capital of the banking sector, risk-weighted
assets, and consequently, the capital adequacy ratio (CAR).
Results
The state of the banking sector in Kosovo, in terms of capitalization of banks, in December 2014,
was very favourable, with the capital adequacy ratio (CAR) standing at 17.8 percent (table 8).
The banking sector continued to remain stable also in terms of the level of non-performing loans
ratio to total loans, which stood at 8.3 percent, and their coverage by loan loss provisions which
stood at the level of 114.4 percent, in December 2014. Hence, based on the good initial position
and the highest profitability since the beginning of its operation, Kosovo's banking sector has
shown high level of sustainability against the credit risk even under the terms of the
hypothetical scenarios as described above.
Under the baseline assumptions for assessing credit risk (balance sheet and off balance sheet) in which the NPL share to loan portfolio would increase by 4.8pp, whereas the expected profit for
the year would be used to absorb losses - capital adequacy ratio (CAR) of the banking sector
would decrease at the rate of 15.6 percent, 26 which is above the minimum of 12 percent as
required by the CBK. However, at the level of individual banks, CAR of the three banks would
decline below 12 percent. Funds needed to restore capitalization to the required level would reach
euro 8.6 million (equivalent to 0.16 percent of the value of the projected GDP for 2014). In these
circumstances, the share of NPL to total loans of the banking sector would amount to 13.1
percent, while at the level of individual banks the highest level of NPL rate would be 15.8
percent.
Based on the shocks of the above assumptions, total loss of the banking sector would reach a
value of euro 72.3 million (1.3 percent of GDP). However, this value cannot be considered fully as
possible loss of the sector as it should be taken into account that a large part of this loss would be
26
It is worth mentioning that in this edition there is methodical change, the same as in Stability Report no. 6, in credit risk assessment, where the estimated annual losses
henceforth are not deducted from risk-weighted assets for purposes of calculating the capitalization rate (CAR) after the shocks. This change is in accordance with
practice that loans classified as loss do not happen to be deleted from the balance sheet before passing a year, and since ti me horizon of stress test analysis is one year,
it is suggested that such losses remain within risk-weighted assets by a factor (weight) of the same risk. This methodological change represents a conservative approach
to assessing credit risk in comparison with previous editions.
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absorbed by the expected profit for the considered period. Also, a part of loss is returned through
collateral or by reprogramming, but this aspect is not considered in this analysis.
Table 8.Summary of stress-test results: credit risk
Number of banks
Description
Levels prior to the shocks
CAR
<0
CAR
0-8%
1/
CAR %
CAR
8-12%
Low er
number
Higher
number
NPL %
No. of the
sector
Low er
number
Higher
number
Ricapitalisation
No. of the
sector
0
0
1
11.2
20.4
17.8
6.3
11.0
8.3
In mln. of
euro
As % to
GDP
Macroscenario shocks
Base scenario
0
0
3
7.2
18.3
15.6
4.8
15.8
13.1
8.6
0.16
Combination with trade risk
0
0
3
6.2
17.2
14.5
4.8
15.8
13.1
11.6
0.21
Failure of three borrowers
2
0
2
-14.6
17.5
12.9
8.5
60.9
17.1
25.3
0.46
Failure of five borrowers
2
1
3
-30.5
17.5
9.8
8.5
80.2
20.6
79.9
1.46
Note: 1 / Out of nine banks considered in the stress test analysis, the number of banks that fall below the required regulatory, is divided by categories. Note: 2 / In
reporting the minimum and maximum values of indicators at the level of banks, in some cases excluding the high values of CAR and the NPL value of 0 percent, which
characterize banks in the beginning of their activity.
Source: CBK (2015)
Results of the additional scenario in which credit risk is combined with market risk - in which
case along with the increased NPL rate by 4.8 pp, is included also the depreciation of the euro
and the decline of interest rates on the levels as mentioned above - capital adequacy ratio (CAR)
of the banking sector would drop to 14.5 percent. Three banks would decline their CAR under the
below minimum regulatory of 12 percent, and the needs for recapitalization would be euro 11.6
million (0.21 percent of GDP). In this scenario, the effect of the depreciation of the euro would be
lower as a result of net open position low value, while the effect of the decline in interest rates
would be more significant.
An additional scenario assumes the failure of large exposures. The results of the scenario in
which it is supposed the failure of the three largest borrowers in each of the banks suggest that
CAR of the sector would decrease to 12.9 percent. In these circumstances, in four banks, CAR
would drop below the minimum required level of 12 percent and additional tools necessary to
increase the minimum level of capital required would be euro 25.3 million (a value equivalent to
0.46 percent of GDP estimated for 2014). Assuming the failure of the five largest borrowers in
each bank, the CAR of the sector would decline to 9.8 percent, while the number of subcapitalized banks would reach six of them. The value needed for the recapitalization of the
banking sector would amount to euro 79.9 million (an equivalent value of 1.46 percent of GDP
estimated for 2014).
The capable NPL levels of each bank before problems with capitalization would arise (before CAR
would decrease below 12 percent) seem to be quite high for the most of the banks. In one of the
banks, the NPL could increase up to 22.5 percent of the total loan portfolio of that bank before
needing additional capital. In some banks, the capable levels of NPL rates seem to be lower,
where the lowest level of NPL, which would cause no problems for one of the banks, is 11.9
percent (only 2.8pp more than the NPL level prior to the shock). One of the banks can withstand
with the increase of NPL rate for only 1.7pp before needs arise for additional capitalization.
However, the banking sector is able to withstand an NPL rate up to 18.1 percent without needing
capital injection to maintain CAR at regulatory level of 12 percent.
6.5.2. Liquidity risk
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Methodology27
Baseline scenario: Analysis of liquidity risk is based on the baseline scenario of withdrawing a
significant value of deposits from the banking sector, thus assessing the ability of the sector to
withstand such shock. More specifically, it is considered the withdrawal of 8 percent of deposits
on a daily basis, over a period of five consecutive days, by allocating liquid assets in the value of 5
percent of remaining deposits after each day due to operational purposes of the bank in the
following day. Allocation of liquid assets in the value of 5% of the deposits means that, under
these conditions, it is assumed that the required reserve of 10% would be halved, to 5 percent.
The scenario is also built on the assumption that during this period the possibility of converting
the remaining liquid assets into cash would be 80 percent, while the possibility of converting nonliquid assets into cash would be only 1 percent of these assets within a day. Also, this scenario
assumes that banks are unable to be financed through external funding sources.
Additional scenarios: Besides the aforementioned scenario, as an additional scenario on credit
risk analysis, were considered also the failure of the largest depositors in each bank, as well as
the capable level of withdrawals of deposits for each bank have been considered, before the need
for additional liquidity arises.
Finally, the stability of the banking sector in this analysis is tested in terms of assessing the
adequacy of banks’ liquid assets to cope with quite high withdrawal of deposits level, as well as
the adequacy of liquid assets to cope with potential risk of deposits concentration.
Results
The banking sector of Kosovo was characterized with high liquidity in December 2014, where the
key indicator of liquidity (liquid assets to short term liabilities ratio) stood at 43.3 percent. Thus,
due to well liquidity position, banking sector showed satisfactory level of stability to cope with
assumed conservative scenarios of deposits withdrawals.
Table 9. Summary of stress-test results: liquidity risk
Number of banks 1/
Additional liquid needed assets (in mln. of
euro)
After the first day
1
0.9
After the second day
1
3.3
After the third day
1
5.8
After the fourth day
3
24.4
After the fifth day
5
51.2
Description
Note:1/ Number of banks which would need additional liquid assets.
Source: CBK (2015)
Results of the baseline scenario of withdrawals of 8 percent of deposits per day, in five
consecutive days, suggest that Kosovo’s banking sector would start to have needs for additional
liquidity on the first day, where only one of the banks would have lack of liquid assets of euro 0.9
million (table 9). At the end of day three, only one of the bank would start to have problems with
adequacy of liquid assets and total need for liquidity injections would reach euro 5.8 million. At
the end of day four, two other banks would start to have problems with adequacy of liquid assets
and total needs for liquidity injections would reach euro 24.4 million. After day five, total of five
banks would have lack of liquidity funds to cope with the assumed withdrawals of deposits. The
rate of the total withdrawal of deposits on day five would reach 34 percent, and the amount of
27
Methodology of calculation of liquid assets has been changed in order to be in compliance with the CBK Regulation on liquidity risk management. Previously liquid
assets with aim of stress-test analysis were calculated according to the methodology of IMF Financial Soundness Indicators.
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additional liquid assets needed to overcome liquidity problems would amount to euro 51.2 million
(0.93 percent of GDP projected for 2014).
The assumption of the largest depositors’ failure in each bank results to be not significant for the
liquidity level in general in the banking sector. Results of this scenario suggest that Kosovo’s
banking sector does not have significant concentration of funding sources (deposits as the main
components of liabilities); therefore the immediate withdrawal of deposits from individuals or
companies with larger amounts of deposits does not pose serious risk for the sector.
The endurable levels of deposit withdrawals for each of the banks before liquidity problems
would appear are considered to be quite high. The bank with the lowest threshold stands with
10.3 percent, whereas the one with the highest threshold reaches 45.7 percent. At the sector
level, the threshold of total withdrawal of deposits was close to 33.2 percent, which means that
the banking sector may be able to cope with the withdrawal of one-thirds (1/3) of the total
deposits without needing additional liquid assets. In this case, under the assumption that the
loans value would remain unchanged, loans to deposit ratio for the banking sector would reach
110.5 percent.
6.6. Financial Infrastructure in Kosovo
6.6.1. Payment System
Payment systems have an important role in the financial system and the economy of a country.
Efficient and safe operation of payment systems presents an important factor in maintaining and
promoting financial stability. In Kosovo there is a single system for interbank payments
Electronic Interbank Clearing System (EICS) which is operated and supervised by the Central
Bank of the Republic of Kosovo (CBK).
EICS is a hybrid system of payments, whereby payments of low and high value are processed, as
well as urgent payments.
The number of transactions that EICS processed, in December 2014, amounted to euro 9.1
million (euro 6.8 million in December 2013), thus marking an annual increase of 33.2 percent.
Whereas, the value of total transactions until December 2014 amounted to euro 6.8 billion (euro
6.4 billion in December 2013), representing an annual growth of 6.1 percent. The daily average of
EICS transactions reached 36.4 thousand, amounting to euro 27.4 million.
Table 10. The share of payment instruments to total EICS transactions, in percentage
Description
Number of total transactions
Value of total transactions
December 2013
December 2014
December 2013
December 2014
Regular
14.3%
11.4%
51.6%
48.8%
Priority
0.4%
0.3%
11.9%
9.8%
Regular - massive
48.5%
41.2%
8.3%
7.9%
Prioritary - massive
26.5%
35.7%
5.8%
9.4%
Giro payments
10.2%
11.2%
14.0%
13.9%
Securities
0.0%
0.0%
8.3%
10.2%
Direct debit
0.2%
0.2%
0.1%
0.1%
Source: CBK (2015)
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In relation to the number of transactions, the regular massive payments continued to have the
highest share within the payment instruments, 41.2 percent of the number of total payments,
(table 10). These payments are primarily carried from or for governmental institutions, followed
by the massive priority payments with a share of 35.7 percent mainly generated by governmental
institutions (execution of salaries and pensions) and the regular payments with a share of 11.4
percent. The massive priority payments are payments which have recorded the fastest growth in
number (3,233,049 in December 2014 from 1,797,330 in December 2013) mainly as a result of the
commencement of processing salaries of administration and pensions of MLSW through EICS
since April 2013.
In relation to the value of transactions, regular payments continue to lead the payment structure
(48.8 percent of the total value of transactions). Kos-GIRO payments despite of the decline that
marked in their share to the total value of payments (13.9 percent in December 2014 compared
with 14.0 percent December 2013) continue to remain in the second place. During this period,
massive priority payments and securities were characterized by a more significant increase in
value, which was also reflected in their substantial increase of their share in the payment
structure. Priority massive payments processed through EICS increased their share to 9.4
percent in December 2014 from 5.8 percent in December 2013, mainly as a result of their
significant increase in value (euro 645.3 million in December 2014, from euro 374.5 million in
December 2013). As mentioned above, processing the salaries of administration and pensions of
MLSW through EICS, from April 2013, is the main factor of the significant growth of this
instrument. Also payment of securities through EICS marked a significant growth (euro 695.4
million in December 2014 from euro 534.0 million in December 2013) which resulted in the
increase of their share in the structure with 10.2 percent in December 2014 (8.3 percent in
December 2013).
Total number of valid bank accounts reached 1.92 million accounts in December 2014, implying
that on average almost every citizen in Kosovo is equipped with a bank account. 28 If we compare
the number of bank accounts in the country in December 2014 with the same period of the
previous year we have an increase of total bank accounts for 3.3 percent. 29
E-banking accounts through which users access banking services online have continued to grow.
Until December 2014, the total number of e-banking accounts reached 157,761, representing an
annual increase of 20.1 percent. Consequently, the number and the volume of transactions
through e-banking service has increased. Total number of transactions executed through ebanking accounts reached 1,579,838 until December 2014 (1,056,655 in December 2013). Total
value of transactions executed through e-banking accounts until December 2014 amounted to
euro 4.2 billion (euro 2.7 billion in December 2013).
The structure of e-banking accounts continues to be dominated by resident accounts with a share
of 97.2 percent in December 2014. Within the accounts of residents, individual bank accounts
constitute around 79.7 percent of the total accounts of residents and the remainder of 20.3
percent is comprised of business accounts. Similarly, the structure of the accounts of nonresidents is dominated by individual accounts (92.0 percent in December 2014), while business
accounts have a share of 8.0 percent.
The total number of cards (debit and credit cards) that provide services for cash withdrawals and
various payments marked an annual growth of 6.0 percent in December 2014. The number of
cards with a debit function, in December 2014, reached 678,090, while the credit cards reached
121,652. Despite the lower level of use, the number of credit cards was characterized by a more
28
According to the Kosovo Agency of Statistics, in December 2013 the total resident population was 1,820,631.
29
The total number of bank accounts includes: number of current accounts, savings and other bank accounts.
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rapid growth (11.3 percent) compared to the growth of debit cards (5.1 percent). The highest
share in both credit and debit cards was marked by Visa cards until December 2014 (90.9 percent
and 73.2 percent, respectively), followed by Master Card (9.1 percent 26.8 percent, respectively).
Banking Infrastructure in terms of Automated Teller Machine (ATM) networks and POS (Pointof-Sale) devices has marked an increase. The number of ATMs and POSs (enabling payments at
the point of sales) marked an annual increase of 0.4 percent, and 3.1 percent increase,
respectively, until December 2014. Total number of ATMs installed by commercial banks, until
December 2014, was 498, while the number of POSs reached 9,349 (Table 11).
Table 11. Banking Sector Network
Description
December 2011
December 2012
December 2013
December 2014
Number of ATM
460
483
496
498
Number of POS
7,534
8,592
9,071
9,349
Number of e-banking accounts
68,990
97,089
131,365
157,761
Source: CBK (2015)
Until December 2014, the number of withdrawals through ATMs reached to 9.9 million (9.3
million until December 2013), with a total amount of euro 996.2 million (euro 936.2 million until
December 2013). The number of payments through POS terminals, until December 2014, reached
4.7 million, amounting to euro 238.1 million. The value of cash withdrawals through ATMs to
total card transactions reached 78.9 percent until December 2014, indicating the high level of
cash use. While the value of payments through POSs to total card transactions reached 18.9
percent until December 2014.
Despite the high share of cash withdrawals to the total value of card transactions, from Table 12
it can be noted that compared to the previous years has decreased the share of cash withdrawals
to the total value card transactions.
While cash withdrawals at ATM terminals in 2013 amounted to 81.0 percent of the total value of
card transactions, in 2014, cash withdrawals constitute 78.9 percent of the total value, declining
their share by 2.1 pp.
Table 12. Participation of the value of card transactions by terminals in the total value of card
transactions, in percent
Description
December 2011
December 2012
December 2013
December 2014
ATM cash w ithdraw als
81.8%
81.1%
81.0%
78.9%
ATM depositing
0.0%
0.0%
0.2%
1.1%
Credit transfers thorough ATM
0.1%
0.1%
0.1%
0.0%
Cash w ithdraw als through POS
3.3%
2.3%
2.1%
1.1%
Payments through POS terminals
14.8%
16.5%
16.6%
18.9%
Source: CBK (2015)
At the same time, the share of card payments to the total value of card transactions has
increased in the recent years. While in 2013 the card payments constituted 16.6 percent of the
total value of card transactions, in 2014 card payments constitute 18.9 percent of the total value,
increasing their share by 2.3 pp.
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7. Pension Sector
7.1 The structure of pension sector
Within the financial system, the pension sector continues to be characterized with the highest
growth rate of assets. Assets value of the pension sector, until December 2014, amounted to euro
1.1 billion, thus, marking an annual increase of 19.1 percent. Kosovo Pension Sector consists of
Kosovo Pension Savings Fund (KPSF) and Slovenian-Kosovo Pension Fund (SKPF). The majority
of the shares of pension savings in Kosovo are still managed by KPSF, which manages 99.5
percent of total assets of the pension sector, which were characterized with an annual increase of
19.1 percent, whereas, SKPF manages a smaller share of pension savings, which marked an
annual increase of 9.2 percent.
Table 13. Pension Funds Structure by Ownership
Description
December 2011
December 2012
December 2013
December 2014
Kosovo
99.2%
99.3%
99.4%
99.5%
Slovenia-Kosovo
0.8%
0.7%
0.6%
0.5%
Source: CBK (2015)
Figure 84. Structure of pension fund investments, in
percent
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
In the country
Abroad
December 2011
Abroad
FSKP
December 2012
December 2013
December 2014
Figure
Source: 85.
CBKAssets
(2015) under KPSF management
1,200
1.29
1.21
1,000
800
1.4
1.3
1.12
1.2
1.03
1.1
1.0
600
Investments abroad also dominate the
400
740.1
structure of SKPF assets. Until
588.4
200
December 2014, 79.6 percent of SKPF
0
assets were invested abroad, whereas
Dhjetor 2011
Dhjetor 2012
the
remainder
of
20.4
percent
Assets under management
represents the investment in Kosovo.
Source: CBK (2015)
Figure 84 shows a continuous growth
trend of SKPF investments in the external sector.
66|
In the country
FKPK
In millions of euro
Regarding the KPSF, the structure of
assets, until December 2014, was
dominated
by
foreign
market
investments with a share of 94.1
percent (figure 84). The remainder of
assets is comprised of investments in
treasury bills of the Government of
Kosovo (5.0 percent) and deposits held
at the CBK (0.9 percent). Compared to
the previous year, KPSF withdrawn
most of deposits held at CBK, and has
invested in investment funds in the
external sector mainly as a result of
higher return rate. The majority of
these investments abroad are in the
form of shares and treasury bills of
foreign governments.
1088.3
913.6
0.9
0.8
0.7
0.6
0.5
Dhjetor 2013
Dhjetor 2014
Share price, in euro (right axis)
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Financial Stability Report
7.2. Pension Sector Performance
Figure 86. Assets under SKPF management
6.0
145.16
5.8
138.56
140.0
5.4
5.2
5.0
150.0
145.0
5.6
In millions of euro
Pension sector during 2014 was
characterized by a positive financial
performance. Both funds marked an
increase of the share price and an
increase in return on investments (figure
85 and 86). The value of the share 30 price
of KPSF, in December 2014, reached
euro 1.29, thus marking an annual
increase of 6.5 percent. It is worth
mentioning that KPSF share price has
reached the highest value ever in
comparison with previous periods, thus
recovering from significant decline in
2008 as a result of the global financial
crisis.
135.0
129.97
5.8
125.66
4.8
5.3
4.6
4.9
4.9
December 2011
December 2012
130.0
125.0
120.0
4.4
4.2
115.0
Assets under management
December 2013
December 2014
Share price, in euro (right axis)
Source: CBK (2015)
Also the share price of SKPF continued with an upward trend, thus, reaching euro 145.16 in
December 2014, representing an annual increase of 4.8 percent. The positive performance of
investments reflects the improvement of the conditions in the international stock markets, where
the major share of Kosovo Pension sector assets is invested. As a result, during 2014, KPSF
generated euro 66.7 million of gross return from investments, whereas, until December 2014,
SKPF investment gross return amounted to euro 371.9 thousand.
30
Base value of the share price for the KPSF is = 1, whereas the base value of SKPF is = 100
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8. Insurance Sector
8.1 The Structure of the Insurance Sector
The structure of the insurance sector
continues to be dominated by “non-life”
insurance, which represents 89.9 percent
of total sector assets, while the remainder
of 10.1 percent includes “life” insurance.
From total of 14 insurance companies
operating in Kosovo, 11 companies offer
“non-life” insurance products, while 3
companies offer “life” insurance products.
The insurance sector in Kosovo continues
to be dominated by foreign owned
companies, which in December 2014
managed 67.4 percent of total assets of
insurance sector.
Figure 87. Structure of insurance companies
assets, in percent
100%
90%
80%
70%
7.9%
8.6%
8.0%
6.0%
5.5%
15.4%
16.0%
14.3%
32.6%
35.3%
32.6%
31.1%
28.8%
29.8%
December 2012
December 2013
6.3%
15.3%
8.2%
8.2%
6.1%
7.0%
10.0%
7.1%
60%
50%
40%
33.3%
30%
20%
10%
26.6%
0%
December 2011
Austria-Albania
Kosovo
Slovenia
Croatia
December 2014
Albania
Turkey
Source: CBK (2014)
Austria and Albania are represented with
5 companies, which comprise 37.8 percent of total assets of the insurance sector. Domestic
capital is represented by 4 companies, which all together represent 32.6 percent of total assets of
the sector. Slovenia is represented by 2 companies which manage 14.3 percent of the sector
assets. Meanwhile, Turkey is represented by one company which manages 8.2 percent of total
assets of the insurance sector (figure 87).
The degree of the market concentration in the insurance sector it can be considered low,
especially if compared to the market concentration of the banking sector. Herfindahl Hirschman
index calculated for the assets of the insurance companies indicates 884.5 points in December
2014. However, the degree of premiums concentration was higher in comparison to assets, where
in December 2014 the Herfindahl-Hirschman index for premiums was 1077.1 points. A same
difference is noticed if it is compared the share of the three largest companies to total assets and
premiums of the sector, where in December 2014 the share of total assets was 34.0 percent, while
to total premiums was 41.3 percent.
Table 14. Penetration and density of the insurance sector of regional countries31
Premiums/GDP
Premiums/Number of Population
December 2013
December 2013
Macedonia
2.0%
56.6 euro
Albania
0.6%
28.7 euro
Montenegro
2.2%
56.8 euro
Serbia
1.8%
78.0 euro
Kosovo (2014)
1.5%
45.1 euro
Croatia
2.8%
279 euro
Slovenia
5.5%
941 euro
Description
Source: Official statistics of the respective countries (2015)
The degree of penetration of the insurance services in Kosovo economy, which is calculated as a
ratio of gross premiums received to GDP and measures the development of the insurance market,
31
Updated data of respective countries are used in order to have more accurate comparison of insurance penetration and density of Kosovo with the countries of the
region.
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shows low representation of 1.5 percent, in December 2014 (Table 14). In the context of the
regional countries, the highest ratio of premiums to GDP was marked in Slovenia, whereas the
lowest ratio was marked by Albania. The insurance service density in Kosovo, which is calculated
as a ratio of gross premiums received to the number of population, have also remained relatively
low, reaching the value of euro 45.09 per capita. In comparison with regional countries, Kosovo,
following Albania, has the lowest ratio of premiums/population, whereas Slovenia has the highest
level of this indicator.
8.2. Insurance Sector Activities
In December 2014, the assets value of
the insurance companies amounted to
euro 140.4 million, marking an annual
increase of 5.8 percent, representing an
fostered increase in comparison to
annual growth of 1.5 percent in
December 2013. The asset structure of
companies continued to be dominated by
deposits, thus comprising 60.2 percent of
total assets, followed by fixed assets,
cash, technical assets, etc. (figure 88).
Figure 88. Structure of insurance companies assets,
December 2014, in percent
2.5%
0.0% 6.1%
8.3%
12.1%
0.5%
1.6%
8.7%
60.2%
Cash
Deposits
Other financial assets
Shares and other securities by the value of trade
Premiums debits
Technical assets
Fixed assets (net value)
Intangible assets
Other
Within the total assets of insurance
Source: CBK (2015)
sector, categories that marked a more
significant growth was marked by intangible assets (61.5 percent), followed by cash (36.4
percent), premium debtors (11.9 percent) and Deposits (9.5 percent). However, shares, securities
and other financial assets declined. In December 2014, other financial assets marked an annual
decline of 27.2 percent, whereas the decline in securities, during 2014 was as a result of the
maturity of securities invested during previous years.
Within liabilities, technical reserves lead
Figure 89. Liabilities and equity of insurance
with 56.7 percent of total liabilities,
companies, December 2014, in percent
while the remainder is comprised of own
capital resources, other liabilities and
56.7%
7.0%
loans (figure 89). In December 2014, own
2.3%
capital marked an annual increase of 4.1
percent. To the increase of own capital
33.9%
major contribution is attributed to the
general and special reserves, as well as
to the reduction of losses during 2014 in
comparison to losses in the previous
year. On the other hand, the capital
Loans
Own capital
Technical reserves
Other liabilities
level of insurance companies was
Source: CBK (2015)
negatively affected by the withdrawal of
a retained profit, held over the previous years.
By December 2014, the value of gross written premiums amounted to euro 80.2 million, marking
an annual decline of 3.7 percent (table 15). Within them, the value of gross written premiums of
'non-life' insurance amounted to euro 79.6 million and marked an annual decline of 3.3 percent.
Within "non-life" insurance, the insurance premiums received from 'third party liability' (TPL)
amounted to euro 42.3 million in December 2014, representing an annual decline of 3.6 percent.
Whereas, premiums received from 'border policies' and 'voluntary policies' marked an annual
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growth of 11.4 percent, and 13.7 percent, respectively, until December 2014. The value of written
premiums in the "life" insurance marked an annual growth of 18.9 percent, amounting to euro
2.4 million in December 2014.
Table 15. Collected gross premiums, in millions of euro
Description
December 2013
December 2014
Non-life gross premiums
77.1
79.6
Life gross premiums
2.1
2.4
Source: CBK (2015)
The value of claims paid by insurance companies and the Kosovo Insurance Bureau (KIB), until
December 2014, amounted to euro 32.4 million, marking an annual decline of 16.6 percent,
mainly as a result of reduced claims paid to 'non-life' insurance, (Table 15). In the context of
"non-life' insurance, the decline is attributed mainly to the reduction of claims paid to "non-thirdparty liability", amounting to euro 10.8 million euro, representing an annual decline of 31.4
percent. Claims paid by "life" insurance, up to December 2014, amounted to euro 0.2 million,
while the claims paid by the KIB, until December 2014, amounted to euro 4.2 million (euro 5.2
million in December 2013).
Table 16. Claims paid, in millions of euro
Description
December 2013
December 2014
Claims non-life
33.4
28.0
Claims life
0.2
0.2
5.2
4.2
Claims KIB
Source: CBK (2015)
The ratio of claims paid to written
premiums, shows that the sector
performance has improved compared to
the previous year. This ratio in 2014
declined to 39.5 percent compared to
49.1 percent in December 2013 as a
result of the decrease of claims paid by
insurance companies (figure 90).
Figure 90. Premiums received and claims paid, in
millions of euro
90
60%
49.1%
80
70
50%
43.8%
39.0%
39.5%
60
50
68.6
27.1
30%
32.4
31.0
20%
20
8.3. Insurance sector Performance
40%
82.0
38.9
40
30
79.1
70.8
10%
10
0
0%
In 2014, key performance indicators and
Premiums received
Claims paid
Claims/Premiums (right axis)
stability of insurance sector marked a
Source: CBK (2014)
slight improvement compared to 2013.
Profitability remains as main concern as
regards to performance of this sector. Up to December 2014, the insurance sector recorded a loss,
amounting to euro 318.8 thousand, which is lower in comparison to the loss of euro 754.6
thousand recorded in 2013. The "non-life" insurance continues to be characterized with loss
compared to "life" insurance which resulted profitable. In 2014, "non-life" insurance managed to
December 2011
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Financial Stability Report
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reduce the loss up to 22.6 percent, whereas the "life" insurance marked an increase up to 69.6
percent compared to the end of December 2013. The improvement of the financial position was
mainly a result of better management of expenditures compared to the previous year.
Return on Average Assets (ROAA), in December 2014, was -0.23 percent compared to -0.26
percent as it was in December 2013. Whereas, Return on Average Equity (ROAE) was -0.68
percent compared to -0.74 percent as it was in December 2013.
In context of capitalization, the situation in insurance sector is better. The sector remains well
capitalized, with capitalization rate of 33.9 percent, meaning that the market was in good
condition to cope with possible shocks. Furthermore, during this period, the insurance
companies had a satisfactory liquidity position. Cash and its equivalents to technical reserves
ratio stood at 121.4 percent in December 2014, (123.3 percent in December 2013), while cash and
cash equivalents to total liabilities ratio stood at 104.3 percent (99.0percent in December 2013).
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9. Microfinance Sector and Financial Auxiliaries
9.1. Activity of Microfinance Sector
Figure 91. Assets of microfinance institutions, annual
growth
130
8%
125
In millions of euro
Microfinance sector during 2014 has
stopped the trend of contraction of its
activity followed over the recent years.
In December 2014, the value of total
assets of microfinance institutions was
euro 112.9 million which represents a
similar level to 2013 (figure 91).
Loans, which represent 65.9% of total
sector assets, were characterized with
an annual growth of 2.9 percent, and
reached the amount of euro 74.4 million
in December 2014. Within total loans,
34.1 percent are designated for
enterprises whereas 65.9 percent for
households (figure 92). Loans designated
for enterprises marked an annual
growth of 10.0 percent and were the
main contributors in expanding the
lending activity of MFIs, whereas
household loans were characterized with
an annual decline of 0.4 percent. The
decline of household lending might have
been impacted by competition of the
banking sector by considering that the
household lending from this sector over
the same period was characterized with
accelerated
growth.
Nevertheless,
despite the competition from the
banking sector that facilitated the
standards and conditions for enterprise
lending, MFIs marked a growth of
enterprise lending that might have been
impacted
from
the
growth
of
requirements for loans.
5%
120
0.0%
115
-1%
-2.5%
127.2
2%
-4%
110
115.8
-9.0%
-9.0%
105
112.9
112.9
-7%
-10%
100
-13%
December 2011
December 2012
Total assets
December 2013
December 2014
Annual growth (right axis)
Source: CBK (2015)
Figure 92. Structure of MFI loans by sectors, in
percent
December 2013
December 2014
31.9%
34.1%
65.9%
68.1%
Households
Enterprises
Households
Enterprises
Source: CBK (2015)
Figure 93. Structure of MFI loans by economic
sectors, in percent
December 2013
27.0%
46.3%
26.8%
December 2014
46.5%
25.4%
26.8%
Structure of loans by economic sectors
remains similar with the previous year.
Lending to the services sector leads the
Agriculture
Agriculture
structure of loans designated for
Industry, energy, and construction
Industry, energy, and construction
Services
Services
enterprises with a share of 46.5 percent.
Source: CBK (2015)
Unlike the banking sector, the
microfinance sector is characterized with higher lending of agriculture sector. In December 2014,
loans issued to the agriculture sector had a share of 25.4 percent of total loans issued to
enterprises. The remainder of loans is designated to construction, industry and energy (figure
93).
Structure of loans by maturity remains similar to the previous year, being dominated by midterm loans with maturity 'of 1 to 5 years' which represent 86.3 percent of total loans. Short-term
72|
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Financial Stability Report
loans ‘up to 1 year’ constitute 13.4
percent of the loans, and the remainder
is represented by long-term loans (figure
94).
Microfinance institutions continue to be
characterized by good credit portfolio
quality. In December 2014, the ratio of
non-performing loans (NPL) to total
loans was 4.8 percent (5.2 percent in
December 2013). Also, the coverage of
non-performing loans with provisions
continues to be at satisfactory level by
improving to 113.1 percent in December
2014 compared to the level of 107.0
percent in December 2013. Increase of
salaries of the public sector may have
contributed to the decline of nonperforming loans since the largest part
of the loans issued by MFIs are
designated for households.
Leasing represents the second most
important category of MFIs assets with
a share of 19.8 percent to total assets.
By December 2014, leasing reached the
value of euro 22.4 million, marking an
annual growth of 1.4 percent. Unlike
previous periods, in December 2014, the
leasing structure is dominated by
leasing designated for households,
which constituted 53.5 percent of total
activity (figure 95). Household leasing
doubled the value compared to the
previous year as a result of significant
growth of mortgage lease. Whereas, the
annual decline of 35.0 percent for the
enterprise leasing, in December 2014,
came as a result of the significant
decline of financial leasing in the form of
mortgage loans and leasing for
equipment designated for businesses.
Figure 94. Structure of loans by maturity, December
2014, in percent
86.3%
0.4%
13.4%
Up to 1 year
Over 1 year up to 5 years
Over 5 years
Source: CBK (2015)
Figure 95. Structure of MFI leasings by sectors, in
percent
December 2013
December 2014
27.5%
46.5%
53.5%
72.5%
Households
Enterprises
Households
Enterprises
Source: CBK (2015)
Figure 96. Interest rate on MFI loans, in percent
26%
25.2%
24.8%
25%
25%
24.1%
24.1%
23.8%
23.5%
24%
24.0%
24%
23.4%
22.5%
23%
23.3%
22.6%
23%
22%
22.4%
22%
21%
21%
Mar
Jun
Sep
2012
Dec
Mar
Jun
Sep
2013
Dec
Mar
Jun
Sep
Dec
2014
Source: CBK (2015)
Since MFIs have no legal right to be
financed by customer deposits, the main
part of the liabilities of these institutions consists of external credit lines. Therefore, the exposure
of microfinance sector in the context of obligations is high. In December 2014, the ratio of
external liabilities to total assets of MFIs amounted to 54.7 percent (55.5 percent in December
2013).
The average interest rates on MFI loans continue to be significantly higher compared to the rates
applied by the banking sector. The average interest rate on MFI loans, in December 2014, was
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Financial Stability Report
23.3 percent (22.6 percent in December 2013) (figure 96). Interest rates for household loans
amounted to 23.8 percent from 23.7 percent, as it was in December 2013. Whereas, the interest
rate on enterprise loans is 22.6 percent compared to 19.8, as it was in December 2013 (figure 97).
The average interest rate for the
agricultural sector, in December 2014,
reached 25.5 percent (25.0 in December
2013), while for the services sector
reached 21.7 percent (20.4 percent in
December 2013). On the other hand,
interest rates on Industry Sector
declined to 23.8 percent from 25.3
percent in December 2013. It is noticed
that the interest rates of financial sector
are characterized by seasonality effects,
where during the first half of the year
tend to increase compared to the
downward trend during the second half
of the year (figure 97).
Figure 97. Interest rates on MFI loans by sectors, in
percent
29%
27%
25%
23%
21%
19%
17%
15%
Mar
Jun
Sep
Dec
Mar
2012
Jun
Sep
Dec
Mar
Jun
2013
Enterprises
Sep
Dec
2014
Households
Source: CBK (2015)
9.2. The Performance of the Microfinance Sector
Microfinance institutions in 2014, had a profit of euro 1.3 million, compared to the loss of euro
324.4 thousand from the previous year. Profitable operation was mainly a result of the significant
decline of expenditures along with the slight increase of income.
The income of the sector, until December 2014, amounted to euro 19.3 million, representing an
annual increase of 0.6 percent. The income structure continues to be dominated by interest
income, with a share of 83.1 percent. On the other hand, expenditures declined by 7.7 percent,
within which, the main contributors were expenditures for loan-loss provisions (marked a
decrease of 60.0 percent) and personnel expenditures which marked a decrease of 3.9 percent.
The overall efficiency indicator, which is expressed through the expenditures to income ratio, has
improved to 93.3 percent from 101.7 percent as it was in the previous year.
The improvement of the financial performance was reflected in the improvement of profitability
indicators as well. The return on average assets (ROAA) improved to1.1 percent from -0.3 percent
as it was in 2013. Also, return on average equity (ROAE) reached 4.3 percent from -1.1 percent in
2013.
Key efficiency indicators of the sector presented in table 17 are not aligned among themselves.
The number of employees in the microfinance sector increased to 776 at the end of 2014
compared to 765 as they were in the same period of the previous year, whereas the number of
approved loans decreased to 34,564 in 2014 compared to 36,805 in the previous year. This
impacted on the indicator that measures the ratio of the loan number per employee to decrease
compared to the previous year (Table 17). Moreover, the indicator that measures the average
assets managed per employee decreased compared to the previous year as a result of nonexpansion of the sector's activity, despite the increase of the number of employees. On the other
hand, the realized profit per employee and personnel expenditures per employee marked an
improvement compared to the previous year. The ratio of the realized profit per employee marked
an increase in 2014, as a result of profitable sector operation compared to operation loss in 2013.
Whereas, the ratio of personnel expenditures to the number of employees decreased by reducing
the average cost of expenditures per employee, as a result of better management of expenditures.
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Financial Stability Report
Therefore, despite the fact that MFIs have made progress in several key efficiency indicators, the
expansion of activities and more efficient management of employees are some of the challenges of
this financial sector.
Table 17.Additional efficiency indicators of the sector
Description
Assets/no. of employess (in thousands of euro)
December 2012
December 2013
December 2014
145.5
128.1
147.6
Profit/no. of employees (in thousands of euro)
-5.0
-0.4
1.7
Number of loans /no. of employees
44.5
48.1
44.5
Personnel expenditures /no. of employees (in thousands of euro)
13.8
14.8
14.0
Source: CBK (2015)
9.3 Financial Auxiliaries
The structure of the financial auxiliaries consists of the exchange bureaus and money
transferring agencies (MTA). This sector constitutes the largest number of financial institutions
in the country, but manages the smallest share of financial sector assets (0.2 percent in
December 2014). The value of total assets of financial auxiliaries in December 2014 amounted to
euro 9.0 million, representing an annual decline of 18.6 percent.
Until December 2014, the income of the financial auxiliaries amounted to euro 6.6 million,
representing an increase of 17.0 percent compared to the same period of the previous year. The
income structure of financial auxiliaries is dominated by the category of the transfer income,
with a share of 73.4 percent, which was characterized with an annual increase of 5.8 percent. On
the other hand, expenditures amounted to euro 3.4 million, representing an annual increase of
26.8 percent. Net income of financial auxiliaries sector amounted to euro 3.2 million until
December 2014, representing an annual increase of 7.6 percent.
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10. Statistical appendix
76|
Financial Stability Report
Number 7
Table 1. Financial soundness indicators, in percentage
Banking system
Core set
Regulatory capital to risk-w eighted assets
Capital adequacy
Regulatory Tier I capital to risk-w eighted assets
Net non-performing loans to capital
Assets quality
Non-performing loans to toal loans
Other financial corporations
Net opened position in foreign currency to capital
Other nonfinancial corporations
Sectorial distribution of loans to total loans Households
NPISH
Non-resident
Total
Return on Assets (ROA)*
Profitability
Return on Equity (ROE)*
Interest margine to gross income
Non-interest expenditures to gross income
Liquid assest (core) to toal assets
Liquidity
Liqud assets (broad) to total assets
Liquid assets (core) to short-term liabilities
Liquid assets (broad) to short-term liabilities
Sensitivity to market risk
Net open position in foreign exchange to capital
December 2011
December 2012
December 2013
December 2014
17.6
14.2
16.7
17.8
14.8
11.6
12.8
14.6
4.4
7.4
7.8
4.7
5.8
7.5
8.7
8.3
0.5
1.1
1.1
0.4
0.09
0.08
0.01
0.03
69.2
66.7
66.4
65.7
30.1
30.8
31.3
33.9
0.09
0.02
0.05
0.01
0.00
1.28
1.10
0.02
100.0
100.0
100.0
100.0
1.7
0.8
1.0
2.2
17.4
8.6
10.6
22.5
75.2
74.7
73.1
75.9
76.8
87.8
84.8
66.6
26.6
25.3
27.7
25.9
31.3
32.6
36.6
32.8
33.7
31.7
35.7
32.4
39.6
40.8
47.1
41.0
2.5
0.7
2.3
1.8
10.2
10.0
9.7
10.8
77.8
80.4
107.4
97.1
38.7
38.1
38.5
41.7
Encouraged set
Capital to assets
Credit exposure to capital
Personnel expenses to noninterest expenses
Interest rate spread in loans and deposits
Customer deposits to toal loans (non-interbank )
Foreign-currency-denominated liabilities to total liabilities
10.2
9.1
8.7
8.1
117.5
122.6
131.6
129.3
4.9
4.3
4.6
0.0
* Net income before tax is considered.
Guide: Financial Soundness Indicators, Compilation Guide, IMF (2006)
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Financial Stability Report
Table 2.Balance sheets of commercial banks, December 2014, in millions of euro
Procredit Bank
(In millions of euro)
Assets
Cash and balances w ith CBK
Balance w ith commercial banks
Securities
Liabilities
159.76
Balance from other banks
112.42
Deposits
94.51
Loans
443.74
Fixed assets
15.26
0.30
678.31
Other borrow ings
0.0
Other liabilities
47.78
Subordinated debt
14.55
92.26
Other assets
7.52
Ow n resources
TOTAL ASSETS
833.2
TOTAL LIABILITIES
833.2
Source: CBK (2015)
Raiffeisen Bank
(In millions of euro)
Assets
Cash and balances w ith CBK
Balance w ith commercial banks
Securities
Loans
Fixed assets
Other assets
TOTAL ASSETS
Liabilities
76.0
Balance from other banks
85.0
Deposits
142.8
Other borrow ings
471.8
Other liabilities
66.1
6.9
Subordinated debt
19.0
5.6
Ow n resources
93.2
788.0
6.2
603.1
0.5
TOTAL LIABILITIES
788.0
Source: CBK (2015)
Banka për Biznes
(In millions of euro)
Assets
Cash and balances w ith CBK
26.3
Balance from other banks
Balance w ith commercial banks
4.3
Deposits
Securities
Loans
Fixed assets
Other assets
TOTAL ASSETS
Source: CBK (2015)
78|
Liabilities
0.0
103.0
Other borrow ings
0.0
Other liabilities
7.3
0.8
Subordinated debt
1.8
2.2
Ow n resources
8.8
7.2
80.0
120.9
TOTAL LIABILITIES
120.9
Financial Stability Report
Number 7
Banka Ekonomike
(In millions of euro)
Assets
Cash and balances w ith CBK
Balance w ith commercial banks
Securities
Liabilities
18.7
Balance from other banks
7.6
Deposits
28.0
Loans
120.8
0.0
Other liabilities
6.7
Subordinated debt
Other assets
1.6
Ow n resources
183.4
154.5
Other borrow ings
Fixed assets
TOTAL ASSETS
0.5
13.8
1.0
13.6
TOTAL LIABILITIES
183.4
Source: CBK (2015)
Banka Kombëtare Tregtare
(In millions of euro)
Assets
Cash and balances w ith CBK
Balance w ith commercial banks
Securities
Liabilities
37.0
Balance from other banks
32.5
Deposits
49.2
Loans
127.5
10.0
Other liabilities
18.4
3.6
Subordinated debt
Other assets
2.7
Ow n resources
252.5
211.0
Other borrow ings
Fixed assets
TOTAL ASSETS
0.0
0.0
13.0
TOTAL LIABILITIES
252.5
Source: CBK (2015)
NLB Prishtina
(In millions of euro)
Assets
Cash and balances w ith CBK
Balance w ith commercial banks
Securities
Loans
Fixed assets
Liabilities
54.5
Balance from other banks
93.6
Deposits
49.2
Other borrow ings
280.9
12.6
Other assets
401.7
3
Other liabilities
36.7
Subordinated debt
-
Ow n resources
2.5
TOTAL ASSETS
1.0
493.3
51.4
TOTAL LIABILITIES
493.3
Source: CBK (2015)
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Financial Stability Report
TEB Bank
(In millions of euro)
Assets
Cash and balances w ith CBK
Liabilities
60.5
Balance from other banks
5.0
Balance w ith commercial banks
7.4
Deposits
Securities
7.3
Other borrow ings
-
Other liabilities
30.3
Loans
311.9
Fixed assets
5.1
Other assets
312.0
Subordinated debt
11
Ow n resources
2.8
TOTAL ASSETS
394.9
36.6
TOTAL LIABILITIES
394.9
Source: CBK (2015)
Komercijalna Banka
(In millions of euro)
Assets
Cash and balances w ith CBK
Balance w ith commercial banks
Liabilities
5.5
47.6
Balance from other banks
Deposits
Securities
0.0
Other borrow ings
Loans
3.6
Other liabilities
0.0
Subordinated debt
Fixed assets
Other assets
0.0
48.5
1
1.2
-
Ow n resources
1.0
TOTAL ASSETS
57.8
7.1
TOTAL LIABILITIES
57.8
Source: CBK (2015)
Türkiye İş Bankası
(In millions of euro)
Assets
Cash and balances w ith CBK
Balance w ith commercial banks
Securities
Loans
Fixed assets
Other assets
TOTAL ASSETS
Source: CBK (2015)
80|
Liabilities
8.9
Balance from other banks
18.1
0.3
Deposits
11.1
5.6
Other borrow ings
-
20.7
Other liabilities
0.9
Subordinated debt
0.3
Ow n resources
36.6
TOTAL LIABILITIES
0.4
7.1
36.6
Financial Stability Report
Number 7
Table 3.1.FC survey – net foreign assets and domestic claims
(Cumulative data, end of period, in millions of euro)
N et f o r eig n asset s
D o mest ic claims
Claims on
of which:
non
IM F
residents M onetary Deposits Securities
gold and
other than Quota
SDR
shares
holdings
D escr ip t io n
Less:
liabilities
Shares
to
and other nonreside
equities
nts
Net claims on central government
Claims on
central
governme
nt
Less: Liabilities to
central government
Claims on
other
sectors
Deposits
of which:
Loans
of which:
2005 December
827.3
890.9
__
422.6
242.4
__
145.3
63.6
348.9
-225.7
__
225.7
225.7
574.6
Other non Househol
financial
ds
corporati
ons
565.6
439.6
126.0
2006 December
1,173.6
1,245.7
__
660.0
341.3
__
170.8
72.1
231.7
-475.0
__
475.0
475.0
706.6
694.3
548.2
146.1
2007 December
1,622.4
1,704.6
__
955.0
408.9
__
175.4
82.3
124.5
-853.3
__
853.3
853.3
977.8
965.9
765.1
200.6
2008 December
1,593.1
1,726.7
__
795.1
661.6
__
128.2
133.6
419.6
-871.8
__
871.8
871.8
1,291.5
1,276.8
995.7
281.0
2009 December
1,700.5
2,036.2
60.3
910.1
724.5
64.3
144.3
335.7
571.5
-846.3
__
846.3
846.3
1,417.8
1,396.1
1,052.3
343.5
2010 December
1,957.5
2,387.7
64.0
1,257.8
525.2
68.5
269.3
430.2
766.8
-824.8
__
824.8
824.8
1,591.6
1,568.3
1,127.7
434.2
M arch
2,027.1
2,456.6
61.8
1,250.7
586.5
66.2
294.0
429.5
734.3
-913.5
__
913.5
913.5
1,569.9
1,542.6
1,181.2
438.8
June
1,988.0
2,421.3
60.9
1,171.3
640.0
65.4
293.9
433.3
840.1
-905.2
__
905.2
905.2
1,745.3
1,716.2
1,233.3
482.1
September
2,108.2
2,511.5
63.3
1,297.5
539.1
68.0
332.7
403.3
862.2
-905.5
__
905.5
905.5
1,767.7
1,740.8
1,235.1
504.2
2011 December
2,067.8
2,446.0
65.1
1,359.4
230.0
70.1
533.1
378.2
987.5
-798.4
__
798.4
798.4
1,785.8
1,785.8
1,242.1
514.6
M arch
2,087.9
2,449.5
63.8
1,179.7
346.9
68.8
580.9
361.6
1,000.8
-788.9
29.9
818.8
818.8
1,789.7
1,762.0
1,238.7
521.1
2012 June
2,081.2
2,445.1
66.4
1,257.2
239.1
71.9
598.7
363.9
1,057.1
-801.1
29.9
831.0
831.0
1,858.3
1,832.9
1,281.9
548.6
September
2,301.6
2,716.8
65.0
1,129.0
598.8
70.7
622.1
415.1
985.7
-848.8
73.6
922.3
922.3
1,834.5
1,809.6
1,260.9
546.3
2012 December
2,337.1
2,773.4
63.3
1,260.7
486.0
68.8
666.5
436.3
1,079.9
-764.7
73.8
838.5
838.5
1,847.2
1,819.4
1,271.3
546.3
M arch
2,376.5
2,821.3
63.3
1,189.5
515.7
69.0
734.5
444.8
1,112.0
-751.8
73.9
825.7
825.7
1,863.8
1,838.7
1,287.5
549.8
June
2,352.5
2,793.0
61.9
1,008.6
646.2
67.8
777.9
440.4
1,110.8
-798.6
110.9
909.5
909.5
1,909.4
1,882.0
1,314.8
566.1
September
2,541.1
3,003.2
60.7
982.4
826.8
66.8
816.9
462.1
1,095.2
-783.8
130.8
914.6
914.6
1,879.0
1,853.2
1,291.5
560.6
2013 December
2,558.5
3,014.1
59.6
1,143.6
818.7
65.9
651.2
455.6
1,263.4
-620.8
153.2
774.0
774.0
1,884.2
1,859.9
1,291.1
567.7
M arch
2,592.4
3,060.7
59.5
1,104.0
899.8
66.2
660.9
468.2
1,286.9
-620.7
190.1
810.8
810.8
1,907.7
1,883.2
1,313.4
568.5
597.0
June
2,589.6
3,001.1
59.9
1,045.1
803.3
66.9
752.4
411.5
1,294.6
-580.4
230.4
810.8
810.8
1,973.4
1,949.3
1,351.3
September
2,700.7
3,158.9
61.6
1,243.8
574.9
69.1
967.4
458.2
1,373.8
-589.1
227.0
816.1
816.1
1,962.9
1,939.2
1,325.5
613.4
2014 December
2,648.4
3,113.3
62.5
1,414.7
315.7
70.4
1,024.4
464.9
1,507.4
-488.5
247.4
735.9
735.9
1,995.8
1,971.5
1,331.8
639.0
Source: CBK (2015)
|81
Financial Stability Report
Number 7
Table 3.2. FC survey - liabilities
(Cumulative data, end of period, in millions of euro)
Deposits
of which:
Other
deposits
Public
Other non Househol
non
financial
ds
financial corporati
corporati
ons
ons
Insurance technical reserves
Shares
and other
equity
of which:
Public
Other
Household
nonfinanc nonfinanc
s
ial
ial
corporati corporati
ons
ons
Other
items
(net)
2005 December
830.6
315.0
67.6
76.8
155.5
515.6
181.3
33.7
298.9
3.0
Net equity
Pre
of
payment of
household premiums
s in
and
pension
reserves
funds
against
outstandin
174.5
152.4
22.1
165.8
2.2
2006 December
886.4
300.5
34.8
96.4
156.2
586.0
193.3
27.6
359.5
3.4
251.4
223.9
27.5
209.3
54.7
46.0
D escr ip t io n
2007 December
1,110.9
386.1
49.6
133.5
187.5
724.8
188.4
43.8
489.3
…
316.1
286.2
29.9
273.8
2008 December
1,351.9
390.9
15.4
176.0
186.2
961.0
250.1
51.4
656.7
…
288.6
256.3
32.3
311.1
61.1
2009 December
1,444.3
483.2
50.1
184.0
237.7
961.0
73.9
82.9
801.9
…
422.3
380.8
41.5
326.1
79.3
2010 December
1,744.2
621.2
83.8
218.6
303.5
1,123.1
42.8
83.4
995.9
…
540.5
493.7
46.8
361.0
78.6
M arch
1,737.8
596.2
107.5
178.2
295.9
1,141.6
34.7
80.0
1,025.9
…
572.6
524.2
48.3
364.9
86.2
June
1,757.4
591.4
72.0
185.9
315.2
1,166.0
48.0
75.0
1,039.9
…
602.7
551.5
51.1
373.1
94.7
September
1,900.9
662.1
99.1
205.0
336.9
1,238.8
51.7
81.0
1,102.9
…
598.5
545.9
52.6
377.3
93.7
2011 December
1,942.7
667.5
77.2
208.1
360.9
1,275.1
60.8
79.7
1,129.6
…
647.8
593.3
54.5
389.7
75.0
M arch
1,905.7
626.7
32.2
212.4
363.2
1,279.0
46.2
73.1
1,154.6
…
698.6
642.9
55.7
405.1
79.7
2012 June
1,931.6
651.7
24.7
223.2
379.6
1,279.9
59.5
75.8
1,141.1
…
717.3
659.1
58.3
389.0
100.3
September
2,018.4
681.1
30.0
245.0
384.1
1,337.3
63.3
74.1
1,195.7
…
767.8
708.1
59.7
397.2
103.9
2012 December
2,094.0
717.5
31.2
257.5
407.2
1,376.5
61.8
78.2
1,232.9
…
814.9
745.1
69.8
399.2
111.5
M arch
2,095.8
710.2
37.0
234.4
415.8
1,385.5
50.9
74.2
1,255.5
…
866.8
800.3
66.5
403.6
122.3
116.6
June
2,068.8
718.8
35.9
231.8
425.2
1,350.1
48.8
75.4
1,221.3
…
880.0
808.8
71.2
398.0
September
2,191.3
784.2
36.7
270.8
450.9
1,407.2
72.9
73.6
1,255.6
…
932.2
859.5
72.7
397.5
115.3
2013 December
2,298.0
870.6
39.1
299.6
506.6
1,427.3
55.7
98.2
1,268.4
…
990.3
919.0
71.3
403.9
129.7
M arch
2,278.5
896.3
63.1
260.9
536.1
1,382.2
42.5
79.2
1,255.6
…
1,026.9
954.3
72.6
415.8
157.5
June
2,267.0
941.7
57.0
256.3
602.7
1,325.3
58.2
67.7
1,194.3
…
1,075.2
1,002.6
72.6
388.3
161.2
September
2,329.2
1,047.3
32.5
300.9
683.8
1,281.9
53.9
75.3
1,150.2
…
1,123.4
1,044.6
78.8
441.4
180.5
2014 December
2,354.4
1,134.6
21.1
338.4
743.5
1,219.8
51.6
58.0
1,104.8
…
1,173.8
1,094.1
79.7
453.2
174.3
Source: CBK (2015)
82|
Loans
Transfera
ble
deposits
Number 7
Financial Stability Report
Table 4.1. ODC balance sheet – assets
(Cumulative data, end of period, in millions of euro)
Total assets
2001 December
Cash and Balances with commercial banks Securities Gross
of which in euro:
balances
loans and
with CBK
lease
In euro
In non
Other Public Other non
financing financial non
currency
euro
financial
currencie
corpora financi corporati
s
tions
al
ons
corpo
ration
s
519.8
265.1
212.8
212.8
.
7.5
25.9
__
__
25.9
2002 December
473.7
81.3
292.7
292.7
.
2003 December
589.2
106.2
106.2
106.2
.
2004 December
816.5
116.5
186.0
169.2
2005 December
984.4
131.7
221.9
201.0
2006 December
1,161.2
141.1
243.3
D escr ip t io n
…
House
holds
Gross
loans in
non euro
currency
Fixed
assets
Other
assets
__
__
4.5
3.9
86.5
__
__
80.8
5.7
__
9.5
3.7
119.6
232.8
__
0.2
193.5
39.0
__
12.3
12.2
16.8
112.3
373.7
__
…
289.9
83.7
__
15.9
12.2
21.0
82.9
513.9
__
…
387.9
126.0
__
16.9
17.0
218.8
24.5
99.4
636.6
__
…
490.5
146.1
__
23.0
17.9
2007 December
1,435.0
189.0
208.1
173.4
34.7
78.9
892.1
__
0.2
691.3
200.6
__
27.2
39.7
2008 December
1,808.3
218.2
283.9
236.3
47.6
39.7
1,183.4
0.6
0.1
901.7
281.0
__
39.0
43.1
2009 December
2,204.6
322.2
405.6
326.7
78.8
97.0
1,289.0
2.3
0.3
942.9
343.5
__
43.1
47.7
2010 December
2,455.1
307.0
439.1
367.3
71.8
173.4
1,458.7
9.9
6.3
1,004.1
434.2
2.5
44.0
32.9
2011 December
2,649.7
331.5
329.5
251.8
77.7
202.0
1,698.1
17.3
1.5
1,127.0
510.9
7.3
47.4
41.3
2012 December
2,829.3
425.7
287.9
228.0
59.9
256.6
1,763.4
19.8
1.4
1,169.8
542.6
6.9
57.7
38.1
January
2,812.6
390.7
311.9
237.6
74.3
262.5
1,754.9
19.1
0.8
1,165.1
542.1
6.4
57.2
35.4
February
2,837.8
399.6
297.4
220.8
76.6
282.7
1,765.6
19.1
0.4
1,176.9
540.9
7.0
56.6
35.9
M arch
2,835.7
414.3
270.1
193.1
77.0
275.5
1,782.7
19.9
0.3
1,188.0
545.8
6.7
56.0
37.2
April
2,799.3
394.5
279.3
190.3
89.0
229.5
1,801.6
18.7
0.3
1,203.7
551.0
6.9
56.2
38.2
M ay
2,825.3
379.8
292.9
205.3
87.6
246.7
1,810.0
18.6
0.3
1,209.1
554.0
7.0
57.4
38.5
June
2,787.0
355.4
261.4
175.4
86.0
246.3
1,825.7
19.1
0.3
1,216.1
561.9
6.9
57.6
40.5
July
2,860.1
402.6
294.3
216.3
78.1
249.8
1,816.0
19.3
0.3
1,203.7
565.3
7.0
57.0
40.3
August
2,968.0
455.0
349.3
270.0
79.3
273.8
1,790.1
17.9
0.3
1,193.6
551.5
6.4
56.7
43.0
September
2,935.4
438.3
328.4
228.5
99.8
276.0
1,798.0
18.8
0.3
1,195.1
556.5
6.3
56.3
38.5
October
2,952.0
452.8
333.6
230.0
103.6
271.7
1,798.8
18.6
0.3
1,186.9
566.5
6.4
55.5
39.5
November
2,976.7
468.4
332.0
239.4
92.6
278.1
1,803.2
18.9
0.3
1,193.4
563.9
6.3
55.2
39.8
2013 December
3,059.3
463.3
339.9
258.8
81.0
354.5
1,805.8
20.4
0.2
1,194.5
563.9
6.1
55.5
40.3
January
3,048.5
431.7
383.6
298.3
85.3
355.1
1,794.5
19.1
0.2
1,189.5
559.8
6.0
55.2
28.5
February
3,045.1
398.0
397.2
299.1
98.1
373.2
1,794.3
19.1
0.2
1,190.0
559.3
5.9
54.6
27.9
M arch
3,053.3
367.6
384.8
295.3
89.5
392.7
1,825.9
20.0
0.2
1,214.9
564.8
5.7
54.2
28.1
April
3,038.3
357.4
355.5
267.7
87.7
397.4
1,839.7
18.8
0.2
1,224.4
571.2
5.8
55.8
32.4
M ay
3,041.0
338.6
360.8
277.7
83.1
397.4
1,856.8
19.1
0.2
1,229.1
583.4
5.9
55.3
32.2
June
3,059.5
358.2
318.7
232.7
86.0
405.3
1,889.9
20.2
0.2
1,250.9
593.2
5.9
55.2
32.2
July
3,116.4
391.1
377.2
301.9
75.2
380.9
1,874.3
19.0
0.2
1,241.0
601.5
6.2
55.0
37.8
A ugust
3,160.4
422.9
380.9
304.8
76.0
418.9
1,848.2
19.2
0.2
1,212.2
604.0
6.2
54.5
35.0
53.4
32.6
September
3,149.5
413.0
385.5
313.1
72.5
410.0
1,855.0
7.8
0.2
1,225.2
609.5
6.4
Octo ber
3,150.3
414.0
417.6
350.9
66.6
380.6
1,854.0
7.5
0.2
1,236.4
603.1
6.2
53.8
30.3
No vember
3,156.4
444.0
379.9
325.1
54.7
379.5
1,860.8
7.6
0.2
1,236.1
610.2
6.1
53.4
38.9
635.3
6.0
53.7
28.8
2014 December
3,186.6
447.1
390.8
328.0
62.8
383.8
1,882.3
7.1
0.6
1,232.7
Source: CBK (2015)
|83
Number 7
Financial Stability Report
Table 4.2. ODC balance sheet – liabilities
(Cumulative data, end of period, in millions of euro)
Total liabilities
Balances
Deposits
from other
banks
Transfera
Other
Saving
ble
deposits: deposits
deposits
D escr ip t io n
2001 December
519.8
.
492.3
365.4
126.8
_
5.0
…
2.0
20.4
18.4
2002 December
473.7
.
427.2
295.9
131.3
_
5.4
…
6.6
1.3
33.2
30.8
2003 December
589.2
1.8
514.0
290.5
223.5
_
8.9
…
17.5
2.0
45.0
44.1
2004 December
816.5
14.3
694.5
281.0
413.5
_
1.4
…
27.9
9.3
69.1
57.7
…
2005 December
984.4
23.0
836.7
296.6
540.1
_
6.4
…
37.3
7.0
74.0
62.4
2006 December
1,161.2
30.3
924.3
308.9
615.4
_
4.2
…
92.1
7.0
103.3
78.4
2007 December
1,435.0
25.8
1,143.1
380.7
762.4
_
2.7
…
103.7
7.0
152.7
114.9
2008 December
1,808.3
34.9
1,444.1
429.8
1,014.2
_
…
…
129.8
7.0
192.5
145.9
2009 December
2,204.6
58.5
1,744.8
515.0
1,229.8
_
…
…
171.7
24.4
204.6
159.4
2010 December
2,455.1
70.7
1,936.8
670.9
923.2
342.7
23.4
0.1
160.0
33.5
230.5
170.4
2011 December
2,649.7
40.0
2,104.0
699.0
1,056.8
348.2
30.4
0.2
191.3
31.0
252.8
176.6
2012 December
2,829.3
6.0
2,279.1
751.9
1,172.1
355.0
18.9
1.7
221.4
31.0
270.8
200.1
January
2,812.6
4.3
2,265.1
738.9
1,170.9
355.4
19.1
1.6
218.6
31.0
272.6
200.1
February
2,837.8
7.2
2,278.3
744.1
1,178.2
356.0
20.0
1.8
227.4
31.0
271.7
200.1
M arch
2,835.7
4.0
2,269.4
756.0
1,155.6
357.8
19.4
1.6
233.0
31.0
276.9
200.1
April
2,799.3
3.0
2,231.4
756.8
1,095.4
379.2
19.9
1.2
229.2
31.0
283.2
205.1
M ay
2,825.3
10.6
2,247.0
776.6
1,096.2
374.3
17.5
1.7
229.9
31.0
287.2
212.3
June
2,787.0
20.2
2,201.3
745.3
1,086.8
369.2
14.8
1.7
239.4
36.3
272.9
218.3
July
2,860.1
6.9
2,271.2
779.7
1,117.0
374.5
11.2
1.7
237.9
55.3
275.7
219.2
August
2,968.0
6.4
2,370.9
867.8
1,120.1
383.1
11.3
2.0
244.4
56.3
276.6
219.2
September
2,935.4
9.8
2,344.7
826.6
1,134.9
383.2
10.8
1.9
239.2
56.3
272.5
219.2
October
2,952.0
11.5
2,354.6
828.4
1,140.7
385.4
10.7
1.9
240.0
56.3
276.8
220.2
November
2,976.7
15.1
2,359.2
833.1
1,135.5
390.5
10.6
2.0
258.8
56.3
274.7
220.2
2013 December
3,059.3
16.5
2,449.0
900.8
1,144.0
404.2
13.4
2.0
244.3
56.3
277.9
221.2
January
3,048.5
21.3
2,443.4
887.4
1,134.4
421.7
13.2
1.6
231.5
56.4
281.0
221.2
February
3,045.1
21.3
2,433.4
890.7
1,113.8
428.8
13.9
1.5
235.1
56.3
283.4
221.2
M arch
3,053.3
21.6
2,430.8
910.4
1,085.4
435.0
13.4
1.5
241.7
56.3
287.8
221.2
April
3,038.3
23.1
2,425.9
920.0
1,062.9
443.0
13.5
1.2
241.7
57.3
275.5
226.2
M ay
3,041.0
25.7
2,415.1
926.7
1,035.1
453.2
14.4
1.2
244.8
57.3
282.5
226.2
June
3,059.5
29.9
2,421.0
957.8
1,006.6
456.6
17.9
1.2
242.2
57.3
289.9
226.2
July
3,116.4
26.9
2,474.9
1,029.1
975.9
469.9
17.0
1.1
239.4
57.3
299.6
231.2
August
3,160.4
25.3
2,513.6
1,096.6
922.8
494.2
16.7
1.1
237.6
57.3
308.8
231.2
September
3,149.5
22.2
2,518.0
1,100.3
908.8
508.8
16.9
1.5
233.6
47.3
310.0
231.2
October
3,150.3
22.5
2,514.0
1,112.3
880.1
521.6
17.0
1.6
235.2
47.3
312.7
231.2
November
3,156.4
27.2
2,502.7
1,129.9
844.4
528.4
16.4
2.1
243.6
47.3
317.0
231.3
2014 December
3,186.6
32.2
2,537.5
1,198.3
803.9
535.3
14.1
2.9
229.9
47.3
323.1
231.3
Source: CBK (2015)
84|
Other
Write Other
Subordin Own
of which:
borrowin downs,
liabilities ated debt resources
gs (incl. provisions
Share
non neg.
capital
CD)
Financial Stability Report
Number 7
Table 5.1. ODC deposits – Euro deposits
(Cumulative data, end of period, in millions of euro)
Total deposits in euro
Governm Finanncial corporations
ent
Other
Other
Insurance
deposito financial companies
ry
intermedi
corporati
aries
ons
D escr ip t io n
Non financial corporations
Pension
funds
Financial
auxilliaries
Other domestic sectors
Public
Other
nonfinanc nonfinanc
ial
ial
corporati corporati
ons
ons
Househol
ds
Nonresid
ents
NPISH
2001 December
492.3
__
__
__
__
__
.
__
165.2
__
165.2
313.1
313.1
__
13.9
2002 December
427.2
__
__
__
__
__
.
__
183.6
__
183.6
226.1
226.1
__
17.5
2003 December
515.8
__
1.8
1.8
__
__
.
__
226.1
__
226.1
267.9
267.9
__
20.0
2004 December
674.9
1.3
25.6
3.7
3.5
15.5
.
2.9
275.3
173.5
101.8
360.3
350.7
9.6
12.3
2005 December
815.3
2.9
35.4
8.1
5.8
18.8
.
2.8
319.0
211.3
107.7
440.7
428.7
12.0
17.3
2006 December
890.4
7.0
28.1
0.1
2.4
24.7
0.4
0.5
337.8
217.4
120.5
499.2
486.1
13.1
18.2
2007 December
1,092.0
4.1
39.1
3.1
5.6
28.3
0.4
1.7
386.2
215.5
170.7
647.0
631.9
15.2
15.6
2008 December
1,366.9
1.4
62.9
5.0
6.5
31.5
19.4
0.4
479.7
263.8
215.9
785.0
774.5
10.5
37.9
2009 December
1,640.1
165.0
78.2
6.1
5.9
43.1
22.6
0.4
371.5
121.6
249.9
962.2
948.8
13.4
63.2
2010 December
1,831.1
11.7
105.0
7.3
7.9
47.6
41.6
0.6
414.9
122.3
292.6
1,220.1
1,206.1
14.0
79.4
2011 December
1,982.4
2.7
117.5
9.9
6.8
57.2
43.1
0.5
406.6
128.5
278.1
1,395.6
1,373.4
22.2
60.0
2012 December
2,162.8
0.7
120.0
3.8
6.2
64.3
45.3
0.4
401.7
75.6
326.1
1,558.6
1,535.4
23.2
81.7
January
2,142.0
0.8
120.4
3.0
6.9
64.0
46.0
0.4
375.4
76.0
299.5
1,569.9
1,544.8
25.1
75.6
February
2,154.9
1.0
115.5
4.5
6.8
63.9
39.9
0.4
386.3
71.8
314.6
1,579.5
1,553.8
25.7
72.5
M arch
2,143.4
1.0
98.0
1.5
6.6
65.1
24.3
0.5
369.8
69.1
300.7
1,583.6
1,558.1
25.5
91.0
April
2,106.5
0.9
77.9
1.6
6.1
64.2
5.5
0.4
367.5
60.7
306.8
1,575.6
1,549.3
26.4
84.5
M ay
2,122.0
1.9
78.6
2.2
6.5
64.0
5.4
0.5
372.8
65.6
307.2
1,591.7
1,563.9
27.7
77.0
June
2,076.0
1.3
78.6
1.5
7.1
64.1
5.7
0.3
363.4
64.8
298.6
1,562.1
1,535.2
26.9
70.6
96.4
July
2,144.6
0.8
80.5
2.0
7.0
65.5
5.5
0.4
378.2
70.6
307.6
1,588.6
1,561.0
27.6
August
2,242.9
2.1
80.4
1.4
6.9
66.1
5.6
0.4
425.0
77.6
347.4
1,639.9
1,610.8
29.0
95.5
September
2,216.4
1.4
83.7
1.9
8.1
67.5
5.8
0.4
419.4
87.4
332.1
1,622.8
1,594.7
28.1
89.0
84.7
October
2,225.4
1.4
85.3
3.1
8.4
67.6
5.8
0.4
425.4
89.9
335.5
1,628.6
1,600.4
28.3
November
2,235.7
2.0
90.1
3.6
8.6
69.1
8.5
0.4
411.2
84.6
326.6
1,648.9
1,623.5
25.4
83.5
2013 December
2,314.1
1.8
88.2
2.5
7.4
72.3
5.7
0.3
455.6
72.1
383.5
1,685.1
1,658.7
26.4
83.4
January
2,312.9
1.7
96.1
6.3
13.7
70.3
5.4
0.5
397.5
59.9
337.5
1,710.8
1,681.4
29.4
106.8
February
2,303.9
1.8
107.0
5.8
12.9
71.7
16.1
0.4
381.6
58.4
323.2
1,711.5
1,682.5
28.9
102.1
M arch
2,298.3
1.9
110.7
6.4
11.9
75.1
16.8
0.4
376.9
52.0
324.9
1,712.5
1,675.9
36.7
96.3
April
2,288.9
1.8
111.4
5.1
12.0
76.3
17.6
0.4
379.6
68.7
311.0
1,705.0
1,674.6
30.3
91.1
M ay
2,280.8
2.0
112.9
4.9
12.1
77.1
18.5
0.3
383.9
68.2
315.7
1,695.2
1,667.0
28.2
86.7
June
2,285.9
1.9
112.9
3.6
12.3
77.3
19.3
0.3
382.8
69.2
313.6
1,703.7
1,676.2
27.5
84.7
July
2,339.8
1.9
114.0
7.0
11.0
76.1
19.7
0.3
407.4
70.0
337.5
1,719.8
1,691.4
28.4
96.8
August
2,381.2
2.0
117.7
5.6
12.4
78.2
21.1
0.4
428.8
67.1
361.7
1,741.6
1,710.7
30.9
91.2
September
2,389.5
4.6
117.2
3.9
11.7
79.5
21.8
0.3
433.2
66.4
366.8
1,748.9
1,718.9
29.9
85.7
October
2,394.6
7.2
118.5
4.0
13.3
79.0
21.8
0.5
423.9
68.0
356.0
1,758.5
1,726.9
31.6
86.5
November
2,390.9
8.5
114.3
2.3
5.4
83.9
22.1
0.5
420.9
64.9
356.0
1,761.3
1,730.6
30.7
85.9
2014 December
2,426.3
8.8
104.6
2.8
5.1
79.3
17.1
0.3
449.7
61.8
387.9
1,781.1
1,750.6
30.6
82.1
Source: CBK (2015)
|85
Financial Stability Report
Number 7
Table 5.2. Non Euro deposits
(Cumulative data, end of period, in millions of euro)
Non-euro deposits
Finanncial
corporati
ons
D escr ip t io n
CBK
Nonfinan
Other domestic sectors
cial
Other
Other Insurance corporat Public
Other
Households
ions
deposito financial compani
nonfinan nonfinan
Transfer
ry
intermedi
es
cial
cial
able
corporat
aries
corporat corporat
deposits
ions
ions
ions
Non
residents
NPISH
Saving
account
Other
deposits
2005 December
29.4
…
__
…
…
…
2.8
__
2.8
26.0
25.7
10.8
__
14.9
0.3
0.5
2006 December
34.3
…
__
…
…
…
3.7
0.3
3.5
29.8
29.6
12.4
__
17.2
0.2
0.5
0.4
2007 December
53.3
0.5
__
…
0.1
…
8.1
1.5
6.6
44.3
44.2
16.2
__
28.0
0.1
2008 December
81.9
0.9
__
…
…
…
11.6
0.1
11.5
68.4
68.2
22.9
__
45.2
0.3
1.0
2009 December
112.1
2.1
__
…
…
…
18.3
1.3
17.0
91.1
90.9
29.7
__
61.1
0.2
0.7
2010 December
113.8
3.1
__
…
__
…
13.7
4.3
9.4
93.8
93.3
33.1
25.9
34.3
0.5
3.1
2011 December
131.5
0.3
__
…
__
…
9.8
0.1
9.7
117.5
117.0
46.5
31.7
38.9
0.4
3.8
2012 December
120.9
1.6
__
…
0.2
…
9.6
__
9.6
104.9
104.7
45.7
27.0
32.0
0.2
4.8
…
0.2
…
13.1
__
13.1
107.4
107.1
47.9
27.5
31.7
0.3
4.7
10.4
111.9
111.4
50.6
28.8
32.0
0.4
4.9
4.9
January
125.7
0.4
__
February
127.5
0.3
__
…
0.2
…
10.4
__
M arch
127.1
0.4
__
…
0.4
…
7.8
__
7.8
113.9
113.2
52.8
28.5
31.9
0.8
…
__
…
9.4
__
9.4
111.5
110.7
52.5
28.1
30.0
0.8
5.1
9.6
111.9
110.8
53.3
28.3
29.2
1.1
5.2
5.3
April
126.2
0.2
__
M ay
126.9
0.2
__
…
0.1
…
9.6
__
June
126.3
0.2
__
…
0.2
…
8.6
__
8.6
112.3
111.3
54.5
28.1
28.8
1.0
…
0.2
…
10.6
__
10.6
112.2
112.0
56.5
27.8
27.8
0.3
5.0
July
128.1
0.3
__
August
128.9
0.3
__
…
0.2
…
9.8
__
9.8
113.9
113.7
56.9
28.9
27.9
0.3
4.8
September
129.7
0.4
__
…
0.1
…
12.4
__
12.4
112.1
111.8
55.8
28.8
27.2
0.3
4.8
…
October
131.7
0.4
__
0.1
…
13.8
__
13.8
112.4
111.6
54.5
29.7
27.4
0.8
5.1
November
126.6
0.6
__
…
0.3
…
8.7
__
8.7
112.2
111.4
55.2
29.0
27.2
0.8
5.0
2013 December
136.9
0.7
__
…
0.4
…
14.3
__
14.3
116.7
116.2
59.6
29.6
27.0
0.5
5.2
…
January
136.4
0.1
__
0.1
…
12.6
__
12.6
118.4
118.0
60.4
30.7
26.9
0.4
5.3
February
135.0
0.4
__
…
0.1
…
11.9
__
11.9
117.3
116.7
60.9
30.4
25.4
0.6
5.4
M arch
138.5
0.2
__
…
0.1
…
15.3
__
15.3
117.4
115.9
61.5
30.7
23.7
1.6
5.6
…
5.9
April
141.2
0.2
__
0.1
…
15.6
__
15.6
119.5
118.4
64.9
30.3
23.2
1.2
M ay
138.8
0.4
__
…
0.3
…
11.7
__
11.7
121.0
120.5
66.4
32.1
22.0
0.4
5.7
June
138.3
0.2
__
…
0.1
…
10.4
__
10.4
121.4
120.8
68.2
31.6
21.0
0.6
6.3
July
141.7
0.5
__
…
0.5
…
10.1
__
10.1
123.9
123.0
70.8
31.4
20.8
0.8
7.2
…
0.2
…
9.5
__
9.5
121.4
120.9
70.0
31.7
19.2
0.5
6.6
August
137.6
0.2
__
September
132.0
0.1
__
…
0.1
…
9.4
__
9.4
115.5
115.1
68.3
29.3
17.6
0.3
7.0
October
123.0
0.1
__
…
0.1
…
8.7
__
8.7
108.0
107.5
65.6
26.6
15.4
0.4
6.3
…
0.1
…
8.7
__
8.7
98.9
98.3
61.5
23.0
13.8
0.6
6.0
…
0.3
…
8.5
__
8.5
97.8
97.3
63.2
21.5
12.6
0.6
6.4881
November
113.8
0.1
__
2014 December
113.1
0.3
__
Source: CBK (2015)
86|
of which:
Number 7
Financial Stability Report
Table 6.1.Euro deposits at ODC, by initial maturity – nonfinancial corporations
(Cumulative data, end of period, in millions of euro)
Non financial corporations
Public nonfinancial corporations
Transfer
able
deposits
D escr it p io n
Saving
account
Other nonfinancial corporations
Other
deposits
of which:
Up to 1 Over 1
month month
and up
to 3
months
Transfer
able
deposits
Over 3 Over2
months years
and up
to 6
months
Saving
account
Other
deposits
of which:
Up to 1 Over 1
month month
and up
to 3
months
Over 6
months
and up
to 1
year
Over 1 Over2
year
years
and up
to 2
years
2001 December
165.2
__
__
…
__
__
__
__
__
165.2
133.9
…
31.3
__
__
__
__
__
2002 December
183.6
__
__
…
__
__
__
__
__
183.6
159.7
…
23.9
__
__
__
__
__
2003 December
226.1
__
__
…
__
__
__
__
__
226.1
139.0
…
87.1
__
__
__
__
__
2004 December
275.3
173.5
24.2
…
149.3
34.0
0.0
__
…
101.8
78.2
…
23.6
9.0
6.0
0.2
2.1
__
2005 December
319.0
211.3
29.9
…
181.3
23.9
12.8
__
…
107.7
74.4
…
33.4
6.3
8.3
5.1
0.7
__
2006 December
337.8
217.4
24.0
…
193.3
19.9
19.4
__
…
120.5
93.6
…
26.9
6.2
6.8
1.7
3.0
__
2007 December
386.2
215.5
27.1
…
188.4
105.6
21.4
__
…
170.7
128.4
…
42.3
18.0
10.4
3.7
2.0
__
2008 December
479.7
263.8
13.7
…
250.1
21.8
47.2
__
…
215.9
170.2
…
45.8
18.7
4.7
2.0
7.0
__
…
10.9
2009 December
371.5
121.6
47.6
…
73.9
0.7
10.7
52.3
249.9
178.0
71.9
31.2
11.1
…
5.3
2010 December
414.9
122.3
79.5
…
42.8
2.7
21.7
3.1
12.6
292.6
212.6
16.9
…
63.1
19.0
5.3
17.1
8.8
9.7
2011 December
406.6
128.5
67.8
0.0
60.8
0.1
29.7
17.2
11.6
278.1
201.1
14.0
62.9
12.3
5.1
18.5
7.3
8.0
2012 December
401.7
75.6
13.8
0.0
61.8
0.9
46.0
0.1
12.0
326.1
249.6
9.2
67.3
10.0
6.0
27.4
6.5
7.8
January
375.4
76.0
30.0
2.0
44.0
4.2
24.9
0.1
12.0
299.5
227.2
6.3
66.0
11.0
12.1
27.1
6.3
7.8
February
386.3
71.8
16.7
2.0
53.0
2.0
36.2
0.1
12.0
314.6
237.7
13.8
63.0
11.1
11.0
27.4
5.6
6.9
M arch
369.8
69.1
18.3
1.9
48.9
0.0
32.0
2.1
12.1
300.7
228.1
14.8
57.8
12.3
3.7
28.4
5.1
6.2
April
367.5
60.7
14.4
2.0
44.3
4.4
23.9
2.0
12.1
306.8
231.0
14.6
61.1
5.2
2.7
27.6
6.2
7.0
7.6
M ay
372.8
65.6
14.7
2.5
48.4
0.1
32.2
2.0
12.1
307.2
231.8
13.6
61.8
4.2
4.2
28.9
6.2
June
363.4
64.8
16.0
2.0
46.8
0.1
31.8
0.0
12.1
298.6
224.4
13.6
60.7
4.9
4.0
27.9
6.1
7.6
July
378.2
70.6
14.7
1.8
54.1
9.4
31.1
0.0
12.1
307.6
234.8
14.4
58.4
4.1
9.2
29.7
6.3
6.9
August
425.0
77.6
19.1
1.2
57.4
8.5
34.2
0.0
12.1
347.4
269.5
15.8
62.1
4.7
8.6
32.7
6.7
7.0
September
419.4
87.4
14.4
1.2
71.8
0.1
50.0
5.0
12.1
332.1
259.6
17.1
55.4
11.6
1.0
27.1
6.0
7.0
October
425.4
89.9
13.5
0.6
75.7
0.1
54.0
5.0
12.0
335.5
271.2
15.2
49.1
3.6
2.1
27.8
6.4
7.2
November
411.2
84.6
18.8
0.2
65.7
4.4
39.9
5.0
12.0
326.6
250.7
15.8
60.1
5.7
1.9
37.4
6.3
6.9
2013 December
455.6
72.1
16.4
0.1
55.7
0.1
35.3
5.0
12.0
383.5
286.4
17.0
80.1
8.5
1.4
54.7
7.1
5.9
January
397.5
59.9
11.8
0.7
47.4
0.0
27.7
5.0
12.2
337.5
246.7
17.4
73.5
7.0
1.5
49.7
6.9
6.0
February
381.6
58.4
10.7
0.2
47.5
4.4
6.5
22.0
12.2
323.2
243.4
7.0
72.8
8.0
1.3
48.5
6.9
6.0
M arch
376.9
52.0
9.5
.
42.5
0.0
1.5
17.0
12.3
324.9
246.6
6.2
72.0
4.0
0.9
48.7
5.5
6.7
April
379.6
68.7
11.5
.
57.2
0.0
1.5
27.0
12.3
311.0
238.5
7.7
64.8
3.9
0.6
48.2
4.7
7.0
M ay
383.9
68.2
10.2
.
58.1
0.4
1.5
27.0
12.3
315.7
246.2
8.9
60.6
3.7
0.5
44.4
4.7
6.8
June
382.8
69.2
11.0
.
58.2
0.4
.
29.0
12.2
313.6
246.5
6.7
60.4
4.2
0.4
44.0
4.8
6.6
July
407.4
70.0
12.1
.
57.9
0.0
.
19.0
12.2
337.5
266.0
6.9
64.6
4.4
0.4
47.7
4.6
7.1
A ugust
428.8
67.1
27.6
.
39.4
10.0
.
2.0
12.2
361.7
289.1
8.2
64.4
4.2
0.6
46.8
4.7
7.8
September
433.2
66.4
12.5
.
53.9
…
10.0
2.0
12.2
366.8
292.3
11.0
63.5
3.9
0.4
46.0
4.9
7.9
Octo ber
423.9
68.0
14.0
.
53.9
10.1
.
2.0
12.2
356.0
283.6
9.1
63.3
4.0
0.5
45.7
4.9
7.8
No vember
420.9
64.9
11.3
.
53.6
10.1
.
2.0
12.2
356.0
288.0
8.9
59.1
3.7
0.3
42.4
4.8
7.7
2014 December
449.7
61.8
10.2
.
51.6
5.0
.
3.0
12.2
387.9
330.2
8.7
49.0
3.2
0.8
31.7
5.1
7.8
Source: CBK (2015)
|87
Number 7
Financial Stability Report
Table 6.2.Euro deposits at ODC, by initial maturity - households and NPISH
(Cumulative data, end of period, in millions of euro)
Other domestic sectors
Households
Transfera
ble
deposits
D escr ip t io n
2001 December
313.1
313.1
Saving
account
Other
deposits
of which:
Up to 1
month
Over 3
months
and up to
6 months
Over
3months
and up
to1 year
Over 1
year and
up to 2
years
Transfera
ble
deposits
Over 2
years
Saving
account
Other
deposits
219.2
…
93.9
__
__
93.9
__
__
__
__
…
__
2002 December
226.1
226.1
121.7
…
104.4
__
__
104.4
__
__
__
__
…
__
2003 December
267.9
267.9
134.4
…
133.5
__
__
133.5
__
__
__
__
…
__
2004 December
360.3
350.7
136.9
…
213.8
63.8
__
91.8
14.2
1.9
9.6
8.9
…
0.7
2005 December
440.7
428.7
144.7
…
284.0
87.2
__
109.3
26.5
19.3
12.0
10.4
…
1.6
2006 December
499.2
486.1
143.8
…
342.3
122.2
__
127.9
26.5
37.1
13.1
7.6
…
5.5
2007 December
647.0
631.9
170.6
…
461.3
156.2
__
141.6
74.6
50.3
15.2
11.9
…
3.3
2008 December
785.0
774.5
163.3
…
611.2
189.6
__
234.6
64.8
61.6
10.5
7.7
…
2.8
2009 December
962.2
948.8
208.0
…
740.8
242.4
315.9
63.2
80.5
13.4
11.1
…
2.3
2010 December
1,220.1
1,206.1
270.4
274.5
661.2
30.0
76.1
347.8
61.1
108.3
14.0
13.0
0.5
0.5
2011 December
1,395.6
1,373.4
314.4
276.2
782.8
24.8
67.0
257.3
261.5
147.6
22.2
18.3
0.5
3.3
…
2012 December
1,558.6
1,535.4
361.5
283.2
890.8
25.2
58.4
337.8
260.5
177.6
23.2
19.7
0.0
3.4
January
1,569.9
1,544.8
352.1
283.5
909.1
25.6
54.4
345.8
265.0
180.5
25.1
20.2
0.1
4.9
February
1,579.5
1,553.8
362.2
281.8
909.8
29.4
54.0
494.6
130.4
163.4
25.7
20.7
0.1
4.9
M arch
1,583.6
1,558.1
363.0
283.0
912.1
23.1
67.2
490.6
133.1
163.1
25.5
20.6
0.2
4.8
April
1,575.6
1,549.3
370.5
321.7
857.1
8.4
48.1
479.5
135.1
162.2
26.4
21.4
0.2
4.7
M ay
1,591.7
1,563.9
390.6
318.3
855.0
5.4
43.8
478.5
139.0
162.0
27.7
23.1
0.2
4.5
June
1,562.1
1,535.2
370.8
314.3
850.2
10.3
37.5
474.1
140.3
162.7
26.9
22.3
0.1
4.4
July
1,588.6
1,561.0
386.0
318.5
856.5
13.7
38.2
465.7
152.1
165.2
27.6
23.2
0.1
4.3
August
1,639.9
1,610.8
413.1
324.4
873.3
12.8
38.1
469.1
165.8
169.8
29.0
24.6
0.2
4.3
September
1,622.8
1,594.7
395.1
323.9
875.7
9.3
34.2
467.3
173.4
174.0
28.1
23.7
0.2
4.2
October
1,628.6
1,600.4
393.9
326.1
880.3
6.9
31.1
464.9
179.5
176.6
28.3
24.2
0.3
3.8
November
1,648.9
1,623.5
417.3
332.1
874.2
11.1
27.7
459.3
182.3
178.1
25.4
21.4
0.2
3.8
2013 December
1,685.1
1,658.7
447.0
342.5
869.2
8.7
24.9
455.0
187.1
177.1
26.4
22.3
0.2
3.8
January
1,710.8
1,681.4
455.8
357.9
867.7
6.3
24.0
451.4
192.7
176.0
29.4
25.3
0.1
4.0
February
1,711.5
1,682.5
466.6
365.3
850.6
6.4
23.3
440.0
191.5
173.8
28.9
25.1
0.1
3.8
M arch
1,712.5
1,675.9
474.6
372.3
829.0
4.7
19.2
434.1
185.1
166.9
36.7
32.8
0.1
3.8
April
1,705.0
1,674.6
496.9
377.9
799.9
3.8
11.6
429.1
185.9
164.2
30.3
26.7
0.1
3.5
M ay
1,695.2
1,667.0
505.7
384.0
777.2
3.6
11.0
413.0
180.3
164.9
28.2
24.0
0.1
4.1
June
1,703.7
1,676.2
534.5
389.6
752.0
3.3
10.3
395.0
175.5
164.9
27.5
23.3
0.2
4.0
July
1,719.8
1,691.4
568.6
401.1
721.7
2.8
9.2
365.3
174.7
166.5
28.4
25.8
0.2
2.5
A ugust
1,741.6
1,710.7
598.6
421.6
690.5
4.1
8.6
333.7
172.4
168.5
30.9
28.3
0.1
2.5
September
1,748.9
1,718.9
615.6
436.2
667.1
3.3
8.3
310.5
172.6
169.5
29.9
27.9
0.1
2.0
Octo ber
1,758.5
1,726.9
634.1
451.0
641.8
3.3
7.8
290.6
166.6
170.5
31.6
29.5
0.1
2.0
No vember
1,761.3
1,730.6
646.7
461.0
622.9
3.2
6.9
277.4
161.8
170.5
30.7
28.7
0.1
2.0
2014 December
1,781.1
1,750.6
679.9
470.2
600.5
3.4
6.0
259.7
155.2
172.2
30.6
28.5
0.1
2.0
Source: CBK (2015)
88|
NPISH
Financial Stability Report
Number 7
Table 6.3. ODC loans – by maturity
(Cumulative data, end of period, in millions of euro)
Total
Financial
Nonfinan
of which:
of which:
corporat
cial
Other
Insuranc corporat Public Korporatat jofinanciare
ions
financial
e
nonfinan
ions
Up to 1 Over 1
intermed compani
cial
year
year and
iaries
es
corporat
up to 2
ions
years
D escr ip t io n
Over 2
years
Other
of which:
domesti
Households
c
corporat
Up to 1 Over 1
ions
year
year and
up to 2
years
Over 2
years
Non
residents
Loans in
Non
Euro
Currency
2001 December
25.9
__
__
__
25.9
__
25.9
24.6
1.3
__
__
__
__
__
__
__
__
2002 December
86.5
__
__
__
80.8
__
80.8
67.3
13.5
__
5.7
5.7
1.4
4.3
__
__
__
2003 December
232.8
__
__
__
193.7
0.2
193.5
124.7
68.7
0.2
39.0
39.0
11.4
16.0
11.6
__
__
2004 December
373.7
__
__
__
289.9
…
289.9
111.5
111.3
67.2
83.7
83.7
15.9
15.2
52.6
__
__
2005 December
513.9
__
__
__
387.9
…
387.9
117.9
125.2
144.7
126.0
126.0
19.5
21.0
85.4
__
__
2006 December
636.6
__
__
__
490.5
…
490.5
128.7
127.7
234.1
146.1
146.1
19.7
24.7
101.7
__
__
2007 December
892.1
__
__
__
691.5
0.2
691.3
174.0
122.6
394.6
200.6
200.6
24.0
29.6
147.1
__
__
2008 December
1,183.4
0.6
__
0.6
901.8
0.1
901.7
191.0
132.3
578.4
281.0
281.0
20.9
30.9
229.2
__
__
2009 December
1,289.0
2.3
1.2
1.1
943.2
0.3
942.9
215.7
113.0
614.2
343.5
343.5
27.0
32.1
284.5
__
__
2010 December
1,458.7
5.7
2.6
3.0
1,014.5
6.3
1,008.3
259.4
64.3
684.5
434.3
434.2
26.5
30.7
377.0
1.6
2.5
2011 December
1,698.1
17.3
15.6
1.7
1,128.6
1.5
1,127.0
298.8
83.4
744.8
512.4
510.9
44.0
38.1
428.8
32.5
7.3
November
1,758.8
18.7
16.0
2.6
1,167.6
1.4
1,166.2
316.4
89.5
760.3
542.6
541.9
50.0
37.6
454.3
22.4
7.5
2012 December
1,763.4
19.8
16.3
3.5
1,171.2
1.4
1,169.8
313.4
91.7
764.8
543.0
542.6
52.2
37.3
453.0
22.5
6.9
January
1,754.9
19.1
16.0
3.1
1,165.9
0.8
1,165.1
303.7
96.8
764.6
542.5
542.1
51.8
37.5
452.8
20.9
6.4
February
1,765.6
19.1
16.1
3.0
1,177.3
0.4
1,176.9
349.8
76.1
751.0
541.4
540.9
52.5
40.5
447.9
20.9
7.0
M arch
1,782.7
19.9
16.3
3.5
1,188.3
0.3
1,188.0
354.7
79.9
753.4
546.8
545.8
53.8
40.9
451.1
21.0
6.7
April
1,801.6
18.7
16.2
2.5
1,204.0
0.3
1,203.7
364.7
86.8
752.2
551.4
551.0
57.4
41.3
452.3
20.6
6.9
M ay
1,810.0
18.6
16.1
2.5
1,209.4
0.3
1,209.1
374.2
87.1
747.8
554.4
554.0
57.1
41.1
455.9
20.6
7.0
June
1,826.9
19.1
16.4
2.7
1,216.4
0.3
1,216.1
373.6
99.5
743.1
562.7
561.9
61.6
42.7
457.6
20.6
8.0
July
1,816.0
19.3
16.7
2.6
1,204.0
0.3
1,203.7
377.2
91.7
734.8
565.6
565.3
62.5
43.0
459.8
20.0
7.0
August
1,790.1
17.9
16.1
1.8
1,193.9
0.3
1,193.6
362.9
95.8
734.9
551.8
551.5
59.5
41.1
450.9
20.1
6.4
September
1,798.0
18.8
16.2
2.6
1,195.4
0.3
1,195.1
369.8
94.9
730.5
557.3
556.5
62.4
41.7
452.3
20.1
6.3
October
1,798.8
18.6
16.8
1.8
1,187.2
0.3
1,186.9
368.1
94.1
724.7
566.9
566.5
64.1
42.7
459.7
19.8
6.4
November
1,803.2
18.9
17.0
1.9
1,193.7
0.3
1,193.4
381.9
96.0
715.5
564.6
563.9
63.5
42.0
458.5
19.8
6.3
2013 December
1,805.8
20.4
17.3
3.1
1,194.7
0.2
1,194.5
378.0
97.4
719.1
564.7
563.9
65.4
41.1
457.3
19.9
6.1
January
1,794.5
19.1
17.0
2.1
1,189.7
0.2
1,189.5
379.4
98.5
711.6
560.5
559.8
65.6
39.5
454.7
19.1
6.0
February
1,794.3
19.1
16.7
2.4
1,190.2
0.2
1,190.0
366.5
90.5
733.1
560.0
559.3
60.1
32.7
466.6
19.1
5.9
M arch
1,825.9
20.0
16.8
3.2
1,215.1
0.2
1,214.9
388.3
102.3
724.4
565.9
564.8
65.8
39.2
459.8
19.2
5.7
April
1,839.7
18.8
16.7
2.0
1,224.6
0.2
1,224.4
395.8
99.6
729.0
571.8
571.2
66.5
39.7
465.0
18.7
5.8
M ay
1,856.8
19.1
16.9
2.1
1,229.2
0.2
1,229.1
397.4
97.1
734.5
583.8
583.4
68.5
40.4
474.5
18.7
5.9
June
1,889.9
20.2
17.2
3.0
1,251.0
0.2
1,250.9
399.4
96.0
755.5
594.0
593.2
69.3
40.4
483.4
18.8
5.9
July
1,874.3
19.0
17.2
1.8
1,241.2
0.2
1,241.0
396.1
93.4
751.5
602.0
601.5
70.3
42.1
489.1
5.9
6.2
August
1,848.2
19.2
17.1
0.8
1,212.4
0.2
1,212.2
375.8
92.6
743.8
604.4
604.0
69.5
41.3
493.2
5.9
6.2
September
1,855.0
7.8
5.1
2.7
1,225.3
0.2
1,225.2
386.6
84.2
754.3
609.6
609.5
70.3
41.3
497.8
5.9
6.4
October
1,854.0
7.5
5.1
2.4
1,236.6
0.2
1,236.4
368.1
73.8
794.6
603.2
603.1
48.9
35.1
519.1
0.4
6.2
November
1,860.8
7.6
5.7
1.9
1,236.3
0.2
1,236.1
377.6
76.4
782.1
610.4
610.2
50.2
35.0
525.0
0.5
6.1
2014 December
1,882.3
7.1
5.8
1.3
1,233.4
0.6
1,232.7
367.0
93.6
772.1
635.4
635.3
69.6
42.6
523.1
0.5
6.0
Source: CBK (2015)
|89
Financial Stability Report
Number 7
Table 6.4. ODC loans – main economic sectors
(Cumulative data, end of period, in millions of euro)
Total
Agriculture
Industry, energy and construction
Services
D escr ip t io n
Up to 1 year
Up to 1 year
Over 1 year
Up to 1 year
Over 1 year
2001 December
25.9
…
…
__
3.8
3.8
…
22.2
22.2
2002 December
86.5
1.5
1.5
__
13.6
13.6
…
71.4
71.4
…
2003 December
232.8
4.7
3.9
0.8
22.2
12.6
9.7
205.8
119.7
86.1
2004 December
289.9
7.9
3.9
4.1
47.8
22.5
25.3
234.2
89.5
144.8
2005 December
387.9
12.5
4.1
8.4
74.2
24.5
49.7
301.1
92.4
208.8
2006 December
490.5
16.4
3.4
13.0
97.7
28.0
69.7
376.4
120.6
255.8
2007 December
691.5
29.0
4.1
24.9
144.5
32.8
111.7
518.0
149.5
368.5
2008 December
902.4
37.4
4.1
33.3
160.2
28.9
131.2
704.8
126.4
578.4
2009 December
945.5
38.2
3.8
34.4
236.7
54.8
181.9
670.5
113.2
557.3
2010 December
1,022.8
38.2
1.7
36.5
269.3
77.1
192.2
715.3
188.5
526.8
…
2011 December
1,149.5
40.5
2.7
37.8
284.7
82.3
202.4
824.4
220.5
603.8
2012 December
1,194.2
43.6
3.0
40.6
290.4
74.1
216.2
860.2
232.3
627.9
February
1,199.2
44.7
4.2
40.5
291.7
90.8
200.9
862.9
251.6
611.3
M arch
1,210.9
46.1
4.5
41.6
294.3
93.2
201.1
870.5
253.5
617.0
April
1,225.4
47.1
4.4
42.7
296.4
93.2
203.2
881.9
262.7
619.3
M ay
1,230.8
48.0
4.4
43.6
296.3
94.5
201.7
886.5
270.6
615.9
June
1,238.3
48.2
4.1
44.1
294.8
93.9
200.9
895.4
271.1
624.2
July
4.1
44.3
291.4
95.1
196.3
886.2
274.2
612.0
608.0
1,226.0
48.4
August
1,214.1
56.5
4.1
52.4
291.4
95.5
195.9
866.3
258.3
September
1,216.5
55.4
3.7
51.7
295.1
96.4
198.7
866.0
265.9
600.1
October
1,208.0
46.8
3.2
43.7
291.9
94.1
197.8
869.2
276.3
592.9
November
1,214.7
46.2
3.2
43.0
292.1
97.6
194.5
876.4
286.5
589.9
2013 December
1,217.4
45.8
3.3
42.5
291.4
95.8
195.6
880.2
286.2
594.0
January
1,217.4
45.8
3.3
42.5
291.4
95.8
195.6
880.2
286.2
594.0
February
1,211.5
45.3
3.3
42.0
286.4
94.5
191.9
879.8
289.4
590.4
M arch
1,237.1
45.3
3.4
41.9
297.9
95.4
202.5
893.9
296.8
597.1
April
1,245.4
45.3
4.3
41.1
300.6
98.2
202.4
899.5
298.5
601.0
M ay
1,250.4
45.3
4.3
41.0
303.4
100.0
203.4
901.7
297.0
604.7
June
1,273.3
45.5
4.5
41.0
304.8
103.4
201.5
923.0
294.9
628.0
645.8
July
1,262.5
45.3
3.4
41.9
301.3
89.3
212.1
915.9
270.1
August
1,233.9
45.0
4.7
40.3
294.3
97.2
197.1
894.6
277.2
617.4
September
1,235.6
48.9
4.9
44.0
293.7
97.2
196.6
892.9
288.0
605.0
October
1,246.3
48.2
4.3
43.9
295.3
97.0
198.4
902.8
282.5
620.3
November
1,246.1
49.4
5.0
44.4
295.0
100.1
194.9
901.7
293.2
608.5
2014 December
1,242.8
49.4
4.0
45.5
290.0
85.8
204.2
903.4
281.8
621.5
Source: CBK (2015)
90|
Over 1 year
Number 7
Financial Stability Report
Table 7.1. ODC effective interest rate – deposit interest rate
(New contracts)
Deposit
rates
Nonfinancial corporations
Transfer
able
deposits
Description
Households
Other deposits
Less than 250.000 euro
Up to 1
month
Saving Transfe
deposits rable
deposit Up to 1
month
s
M ore than 250.000 euro
Over
2years
Up to 1
month
Over 1
Over 6
month
months
and up and up 1
to 3
year
months*
*
Other deposits
Over 1
month
and up
to 3
months
Over 3
Over 6
Over 1
months months
year
and up 6 and up 1 and up
months
year
2 years
Saving
deposit
s
Over
2years
2005 December
3.1
0.3
Over 1
Over 6
month
months
and up and up 1
to 3
year
2.1 months
2.4
3.4
*
2.9
1.7
0.0
1.8
2.2
*
3.3
3.9
4.0
2006 December
3.1
0.4
2.1
2.9
4.3
*
3.1
*
*
1.5
0.0
1.9
2.3
*
3.4
4.2
4.5
1.7
2007 December
4.0
0.5
2.7
2.9
4.4
*
4.3
4.1
*
2.4
0.0
2.6
2.7
*
3.6
4.7
5.3
2.3
2008 December
4.4
0.5
3.1
4.0
5.3
*
3.6
4.9
*
2.9
0.1
3.2
4.6
*
4.5
5.0
3.9
2.7
2009 December
4.0
0.7
3.4
3.4
5.0
*
3.9
4.9
*
2.6
0.3
3.1
3.3
*
4.4
5.0
5.5
2.5
2010 December
3.4
0.6
2.4
3.1
5.0
5.1
*
3.7
*
2.1
0.6
2.6
2.6
3.1
4.5
4.8
5.1
2.2
2011 December
3.6
0.9
2.2
2.9
4.9
5.1
2.6
3.9
5.2
2.2
0.5
2.5
2.5
2.9
4.2
4.6
5.4
2.1
2012 December
3.7
0.8
*
2.8
*
*
2.7
4.0
4.8
2.1
0.5
2.3
2.5
2.8
4.2
4.5
4.8
2.1
January
3.6
0.9
1.3
2.8
4.8
*
2.9
*
3.6
2.0
0.6
2.3
2.3
2.8
4.1
4.5
5.2
1.7
February
3.6
0.8
1.8
2.1
3.0
*
*
4.0
*
1.9
0.6
2.1
2.4
3.0
4.1
4.6
5.2
1.6
1.7
M arch
3.5
1.0
1.8
*
2.1
*
*
*
5.0
2.0
0.6
2.1
2.5
2.9
3.9
4.4
4.7
1.7
April
3.4
0.8
0.8
1.6
*
4.9
*
*
*
2.0
0.6
1.9
2.2
2.7
3.9
4.5
5.0
1.6
M ay
3.5
0.7
*
*
4.4
*
2.3
3.7
3.8
2.0
0.6
2.2
2.1
2.7
3.8
4.5
5.0
1.6
June
3.5
0.9
*
*
3.6
*
*
*
*
2.0
0.6
2.0
2.7
2.5
3.9
4.4
4.9
1.6
July
3.6
0.7
*
2.5
*
*
*
*
*
2.0
0.8
2.3
2.2
2.5
3.7
4.5
5.0
1.6
August
3.4
0.7
*
*
*
*
1.7
*
4.8
2.0
0.4
2.3
2.1
2.6
3.7
4.3
4.6
1.6
September
3.4
0.6
0.6
*
*
4.2
*
2.6
*
2.0
0.5
2.1
2.5
2.5
3.6
4.4
4.9
1.6
October
3.3
0.6
1.3
2.3
*
*
0.0
*
*
2.0
0.4
2.0
2.1
2.3
3.5
4.3
4.8
1.6
November
3.2
0.4
0.5
0.6
*
*
*
*
*
1.8
0.4
1.8
2.1
2.3
3.4
4.1
4.7
1.6
2013 December
2.4
0.5
0.8
*
0.5
*
*
*
*
1.7
0.5
1.7
1.7
2.0
2.9
3.4
4.0
1.7
January
2.7
0.1
0.8
*
2.4
3.7
*
*
*
*
0.3
1.6
1.7
1.9
2.8
3.3
3.8
1.4
February
2.0
0.3
0.8
0.9
1.5
*
*
*
*
*
0.3
0.9
1.3
1.8
2.1
2.7
*
1.1
M arch
1.7
0.4
0.5
0.5
*
*
*
*
*
*
0.2
0.8
*
1.5
1.4
2.8
*
0.8
April
0.6
0.2
0.6
0.5
0.4
*
*
*
*
*
0.1
0.4
0.4
0.3
0.7
0.8
1.4
0.7
M ay
0.6
0.2
0.6
0.6
0.7
0.5
0.1
*
*
0.6
0.1
0.4
0.3
0.3
0.7
0.8
1.5
0.7
June
0.6
0.2
0.4
0.6
*
0.1
0.0
*
*
0.6
0.1
0.3
0.2
0.3
0.6
0.9
1.4
0.5
July
0.7
0.1
0.2
*
*
*
*
*
0.1
0.6
0.1
0.3
0.4
0.3
0.6
1.1
1.6
0.7
A ugust
0.9
0.2
*
0.5
*
2.0
…
*
*
0.6
0.1
0.3
0.4
0.3
0.8
1.3
1.8
0.5
September
1.0
0.2
*
0.5
0.8
*
…
*
*
0.6
…
0.3
0.4
0.2
0.8
1.4
1.9
0.5
Octo ber
0.5
0.1
*
*
0.9
*
0.1
*
*
0.4
…
0.3
0.4
0.2
0.6
0.6
*
0.5
No vember
0.6
0.2
1.0
*
0.9
*
*
*
0.7
0.5
0.02
0.2
0.4
0.2
0.7
0.3
1.6
0.4
2014 December
1.1
0.1
0.2
*
*
*
*
*
1.9
0.7
0.01
0.2
0.5
0.3
0.7
0.9
2.0
0.6
Source: CBK (2015)
|91
Financial Stability Report
Number 7
Table 7.2.ODC effective interest rate – credit interest rate
(New contracts)
Nonfinancial corporations (Loans)
Investment business loans
Description
Interest
rate on
loans / 1
Up to 1
year
Over 5
years
Up to 1
year
Over 1
year and
up to 5
years
Households (Loans)
Overdrafts
Credit
Loans with
(outstandin
lines
favourable
g amounts) (outstand
conditions /4
2/
ing
amounts) Cash
Other
over
loans
loans
Overdraft
Loans with
s
favourable
(outstand
conditions /4
ing
amounts) Cash
Other
2/
over
loans
loans
Consume
r loans
M ortgage loans / 3
Up to 1
year
Over 1
year and
up to 5
years
Over 5
years
2005 December
14.5
17.3
13.3
13.3
15.2
14.4
15.1
11.5
…
*
*
…
*
11.5
*
*
*
2006 December
14.7
*
14.5
14.5
13.6
15.2
15.7
12.4
…
*
*
…
*
12.4
*
13.4
*
2007 December
14.1
*
13.8
13.8
*
14.6
15.1
13.7
…
*
*
…
*
13.7
12.9
12.4
*
2008 December
13.8
*
13.9
13.9
14.2
13.4
15.0
13.5
…
*
19.5
…
…
13.5
9.8
10.8
8.1
*
*
…
*
17.8
…
13.3
*
10.7
*
12.7
13.3
7.7
*
22.6
6.6
8.6
14.6
*
11.7
10.3
10.8
…
2009 December
14.1
*
14.3
14.3
*
2010 December
14.3
16.1
13.9
*
18.7
14.4
2011 December
13.9
17.1
13.6
*
16.4
13.8
11.8
12.1
6.1
9.9
16.4
6.0
8.6
14.0
14.3
12.0
2012 December
12.9
15.4
12.0
10.2
15.3
13.7
10.7
11.9
5.9
*
12.5
6.1
8.0
13.1
*
10.8
9.8
January
13.6
12.7
13.7
*
15.5
15.4
10.7
12.6
5.6
*
16.4
6.5
4.8
12.6
11.9
11.2
10.3
February
13.5
14.1
14.0
*
16.7
14.2
9.7
11.6
*
*
15.0
6.5
6.7
12.8
*
11.0
9.8
M arch
12.6
15.2
12.3
11.0
16.0
13.8
11.0
12.9
7.3
9.9
15.8
6.2
6.7
12.1
*
11.0
9.5
April
12.6
12.9
12.5
10.5
16.1
14.1
10.5
13.4
7.0
10.3
16.9
6.6
5.8
12.0
13.4
11.3
9.7
M ay
12.3
13.3
13.0
10.2
15.2
13.9
10.7
12.2
7.4
*
15.5
6.9
5.5
11.8
*
11.1
9.6
June
12.0
12.9
11.5
9.4
14.2
13.5
10.3
11.9
6.7
*
13.2
6.8
8.9
12.2
13.6
11.2
9.8
July
12.6
13.0
12.3
*
13.9
13.7
9.3
11.4
3.7
*
14.3
7.4
8.4
12.5
11.2
11.0
9.8
August
12.0
13.8
11.3
10.9
14.3
13.1
10.8
10.7
5.4
11.0
16.6
5.7
5.4
12.4
*
11.0
9.7
September
12.2
13.1
11.9
*
13.8
12.7
10.1
10.8
5.3
*
15.8
6.5
10.1
12.2
*
10.9
9.2
9.2
October
11.7
13.6
11.7
10.2
12.5
12.5
10.5
12.7
5.8
*
16.4
6.5
10.1
12.0
9.9
10.7
November
12.2
13.8
11.3
11.9
14.5
13.5
9.4
11.9
*
*
15.9
6.0
9.8
12.5
13.8
10.4
9.5
2013 December
11.1
12.3
10.9
9.5
11.6
12.9
9.4
11.0
6.0
*
14.4
4.6
7.3
11.7
*
10.4
9.0
January
11.7
13.1
11.6
10.5
11.9
13.0
8.8
12.9
5.9
*
14.6
5.0
7.5
11.8
10.9
9.7
9.0
February
11.8
10.1
11.6
11.1
11.8
12.5
8.8
11.0
3.4
*
13.8
5.0
6.3
12.0
11.3
9.9
9.0
M arch
11.2
11.1
10.9
11.8
11.4
12.6
9.8
10.9
6.6
9.8
14.6
3.9
4.3
11.3
*
9.7
9.0
April
10.7
11.7
10.3
9.9
10.3
12.5
9.4
11.0
4.0
10.8
14.0
4.3
4.1
11.2
9.3
9.8
9.2
M ay
10.5
11.9
10.0
10.2
11.1
12.1
9.9
12.0
6.8
3.7
11.8
3.9
4.8
10.7
*
9.4
8.7
June
10.6
12.1
9.9
11.0
10.6
12.2
9.4
11.3
4.2
*
14.3
4.6
3.6
10.9
9.8
9.5
9.1
July
10.8
10.1
10.3
11.4
10.9
11.5
9.6
10.6
6.0
*
13.6
4.0
4.5
10.9
8.9
9.2
9.3
8.3
August
10.7
11.4
11.0
9.4
10.3
11.2
9.5
10.2
3.7
*
13.4
4.2
4.0
11.0
*
9.9
September
10.8
11.8
10.9
10.0
10.6
10.9
9.1
11.2
2.9
*
13.4
3.3
4.0
10.9
9.5
9.6
8.7
October
10.4
12.4
10.8
9.3
9.9
10.8
9.4
11.0
3.1
*
13.8
2.9
4.5
10.4
12.4
9.2
8.6
November
9.9
11.2
10.3
9.1
10.6
10.5
8.9
11.9
*
*
13.3
2.7
*
9.9
*
9.1
8.0
2014 December
9.2
10.8
9.8
8.4
9.5
10.2
9.3
11.8
2.2
*
12.9
3.2
2.3
9.1
8.8
8.0
7.8
Source: CBK (2015)
92|
Over 1
year and
up to 5
years
Other business loans
Number 7
Financial Stability Report
Table 8.1.ODC balance sheet – income and expenditure
(Cumulative data, within one calendar year, in millions of euro)
Net profit / loss for period
Income
Expenditures
Interest
income
D escr ip t io n
of which:
Loans
2007 December
33.5
157.3
2008 December
26.0
2009 December
27.4
2010 December
32.8
2011 December
36.0
2012 December
18.5
247.0
Non- of which:
Interest
Securitie income Fees and
s
commissi
ons
Net gains Provision
or losses
s for
Nonof
General arising for
taxes
Interest which:
and
revaluatio
Deposits expendit Provisio administ ns ( +/-)
ures
rative
ns for
loan and expense
s
other
assets
losses
23.2
20.1
17.8
69.7
-0.2
7.9
Interest
expenditures
117.9
103.0
3.6
39.5
23.8
115.8
26.0
195.0
155.7
140.4
2.3
39.3
30.2
157.0
43.1
35.1
27.7
22.8
86.2
-1.5
10.5
203.3
164.6
159.6
1.2
38.7
32.7
171.9
52.1
48.1
33.4
26.4
86.4
-1.1
2.8
217.2
175.8
169.6
3.1
41.4
37.5
179.0
55.3
49.4
35.6
28.3
88.1
-1.2
4.3
240.1
195.1
186.3
4.2
45.0
41.7
198.8
58.4
51.3
43.2
34.8
97.1
-1.2
4.2
200.5
194.9
3.0
46.6
44.2
224.6
63.1
57.6
59.1
50.3
102.4
-0.7
3.3
January
1.9
20.8
16.7
16.2
0.1
4.2
3.7
18.6
5.6
5.2
4.8
4.2
8.1
0.1
0.4
February
0.9
39.8
31.9
31.0
0.3
7.9
7.1
38.3
10.6
9.8
11.4
9.8
16.3
0.1
0.7
M arch
6.2
60.6
49.0
47.4
0.7
11.6
10.6
53.8
16.2
15.0
13.3
10.9
24.4
0.2
0.8
April
7.7
81.2
65.6
63.6
0.9
15.6
14.5
72.4
21.5
19.9
18.2
15.1
32.7
0.2
1.3
M ay
11.4
102.1
82.5
80.0
1.0
19.6
18.3
89.1
26.8
24.8
21.5
17.7
40.7
0.3
1.8
June
15.2
122.7
99.1
96.3
1.2
23.6
21.9
106.4
31.9
29.5
25.5
21.0
49.0
0.9
2.0
July
17.7
144.6
116.5
113.2
1.4
28.1
26.0
125.6
37.2
34.4
31.0
25.7
57.5
0.9
2.2
August
18.7
165.9
133.1
129.4
1.5
32.8
30.0
145.8
42.4
39.2
37.8
31.6
65.5
1.0
2.5
September
22.4
186.1
149.0
145.0
1.7
37.0
33.8
162.2
47.7
43.9
40.9
33.9
73.7
1.1
2.6
October
25.7
206.8
165.7
161.1
1.9
41.1
37.8
179.2
53.1
48.8
44.2
36.5
81.9
1.1
3.0
November
23.6
226.7
181.7
176.5
2.1
45.0
41.5
201.0
58.4
53.4
52.1
43.6
90.4
1.2
3.3
2013 December
26.0
247.8
198.2
192.5
2.3
49.6
45.6
219.8
63.8
58.0
55.5
46.1
100.5
1.2
3.2
January
2.9
20.0
16.0
15.4
0.2
4.0
3.6
16.6
5.0
4.5
3.6
2.5
8.0
0.0
0.6
February
5.4
38.9
31.2
30.1
0.4
7.7
7.0
32.6
9.4
8.3
7.6
5.4
15.7
0.1
1.0
M arch
9.8
59.3
47.7
46.0
0.6
11.6
10.6
48.5
13.7
12.0
10.8
7.7
24.0
0.1
1.2
April
12.5
79.5
63.9
61.5
0.8
15.7
14.5
65.5
17.9
15.6
15.4
11.5
32.3
0.2
1.7
M ay
19.4
100.4
80.6
77.7
1.0
19.8
18.6
78.7
22.0
19.0
16.6
11.7
40.2
0.2
2.5
June
26.9
121.3
97.1
93.6
1.2
24.2
22.4
91.6
25.8
22.1
17.3
11.8
48.5
0.2
3.1
1.5
27.4
25.3
107.5
29.5
25.2
21.2
14.7
56.9
0.3
3.7
July
31.5
142.4
115.0
111.0
August
40.7
163.4
132.0
127.5
1.7
31.3
29.2
118.7
32.8
27.9
20.9
13.5
65.1
0.3
4.3
September
46.9
183.1
147.8
142.7
2.0
35.3
32.9
131.6
35.9
30.3
22.4
14.2
73.4
0.4
4.9
October
49.6
202.9
163.6
158.0
2.2
39.3
36.8
148.6
38.6
32.5
28.1
19.0
81.8
0.5
5.3
November
54.0
222.6
179.5
173.4
2.5
43.1
40.3
163.5
41.2
34.5
31.6
21.7
90.7
0.5
5.7
2014 December
60.1
243.7
195.9
189.5
2.9
47.8
44.5
177.4
44.0
36.4
31.6
20.5
101.8
0.5
6.8
Source: CBK (2015)
|93
Number 7
Financial Stability Report
11. References
Bank of Albania
Bank of Slovenia
Central Bank of Bosnia and Herzegovina
Central Bank of Montenegro
Croatian National Bank
Insurance Europe – Statistics on European Insurance Industry
Kosovo Agency of Statistics
National Bank of Serbia
National Bank of the Republic of Macedonia
NLB Group: Annual Reports (2011-2014)
PCH: Annual Reports (2011-2014)
RBI: Annual Reports (2011-2014).
94|
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