Kosovo – Bank balance sheets for third quarter 2012 show stagnation in deposits and loans, decline in bank profits

On 12 November the journalist Lavdim Hamidi published on the Kosovo newssite "Zëri" an analysis of bank balance sheets in Kosovo for the third quarter of 2012.  The balance sheets for 3Q 2012 were submitted to the Central Bank of the Republic of Kosovo by the nine banks licensed to operate by the government of Kosovo.  The analysis showed that the overall levels of both deposits and loans were stagnant in 3Q, and profits in 3Q declined from the previous quarter with some banks even operating in the red.  Analyst Alban Zogaj is quoted as explaining that the results are due to banks in Kosovo becoming more cautious in lending, which will necessarily curb their profits, and he predicts that the decline in new lending will lead to less investment, fewer jobs, and less economic growth in Kosovo.

Source: Teposhtëza e bankave (2012-11-12 09:50)

Mark Pleas

Eastern Europe Banking & Deposits Consultant

[contact]