Fehmi Mehmeti: The financial sector is liquid and supports the
economy in Kosovo
Speech by Mr Fehmi Mehmeti, Governor of the Central Bank of the Republic of Kosovo,
at the conference with the head of the IMF Mission for Kosovo, Mr Gabriel di Bella,
Pristina, 4 November 2022.
* * *
Dear Di Bella - Head of the IMF mission for Kosovo
Dear media
First of all, allow me to thank the International Monetary Fund for the continuous
support it has provided to Kosovo, and in particular to the Central Bank of the Republic
of Kosovo, in carrying out its duties in maintaining and preserving a stable and
continuously growing financial system.
During the meetings held with representatives of the International Monetary Fund, we
informed them about the latest developments and data of the financial system in
Kosovo. The financial system in Kosovo has continued to be liquid and well capitalized,
where double-digit growth has been recorded in all indicators being one of the important
factors in the economic growth and development of the country.
In total, the means of the financial system in the country, on 31 August, 2022, have
reached the total value of 9.3 billion euros, with an annual increase of 10 percent.
In the meantime, the means of the banking sector have continued the growth trend
even during 2022, reaching the value of around 6.4 billion euros in August 2022, which
represents an annual increase of 11.1 percent.
In August 2022, the total value of deposits is worth 5.2 billion euros, which represents
an annual increase of 11.8 percent, while the growth of deposits continued during the
month of September, with a rate of 12.7 percent.
The banking sector continues to be stable, increasing lending activity and playing a very
important role in crediting the country's economy during this year as well. The value of
the credit portfolio of the banking sector at the end of August 2022 was in the amount of
4.2 billion euros, with an annual increase of 18.6 percent, while the average loan
interest rate was 6.0 percent.
Non-performing loans have continued with the downward trend and today the rate of
non-performing loans is at the level of 2.1%, which is a significantly better indicator
compared to countries in the region or even beyond. The banking sector continues to
be well capitalized and liquid. The capital adequacy indicator for the banking sector
stands at 16.1 percent, which is significantly above the regulatory requirements of 12
percent, while the liquidity indicator is 35.7 percent, similarly, higher than the regulatory
requirement of 25 percent.
We also have positive results in the insurance sector and other sectors.
The Central Bank of the Republic of Kosovo is certain that it will continue to have the
support of the International Monetary Fund and we will continue the successful
cooperation with the International Monetary Fund.
Once again, allow me to thank the representatives of the International Monetary Fund
for the contribution and continuous support of Kosovo and the Central Bank.
Thank you.