Analysis of Financial Performance of the Banking System in Kosovo - 2014-2019 Period

Abstract

The banking system plays an important role in the economic development of a country. A banking institution is indispensable in a modern society. It plays a key role in the economic development of a country and focuses the essence of the money market on a developed country. The basic function of banks is to collect deposits as much as possible from customers and mobilize it in the most favorable and profitable sector such as industry, trade, agriculture and entertainment. This study mainly attempts to analyze the financial performance of commercial banks in Kosovo covering the period 2014 - 2019. There are many past studies in which researchers used different financial reports to control the financial performance of commercial banks such as: Return on Assets (ROA), Return on Equity (ROE), Return on capital (ROC), Return on Fixed Operating assets (ROFA), Report of costs on Income (C/I). Based on the accounting data, we used the key coefficients which are: ROA, ROE and NIM for estimating financial performance. The findings of the study may be useful for managing commercial banks in Kosovo.

Keywords

• roa - return on assets; roe - return on equity; nim - net interest margin; financial performance; profit