The Impact of Banking Performance in Banking Sector - Evidence for Kosovo

Abstract

In this research paper is analyzed the impact of banking performance in banking sector in Kosovo during the period of time 2009 - 2014. The main arguments are focused on challenges and contributions that banking performance has in Kosovo banking sector. Then, is identified the consequences of financial global crisis, the participation of banking performance in Kosovo's GDP and about NPL in Kosovo. The results of analysis have shown that interest rate of loans and capital adequacy ratio (CAR) have positive impact on banking sector, but non performing loans (NPL) has negative impact on the banking sector. In the conclusion, the commercial banks in Kosovo should increase further their profit on the investments in securities, as well as annual growth of assets.

DOI: 10.5901/mjss.2016.v7n6p355