Banks and Other Financial Institutions in Kosovo
Financial institutions are banks and other organizations that provide financial services for clients or members. In Kosovo, the primary financial institutions are banks, pension funds, insurance firms, non-bank financial institutions and micro-finance institutions. The Central Bank of Kosovo (CBK) is responsible for licensing and regulating financial institutions.
According to the CBK, financial sector assets in Kosovo at the end of 2011 amounted to about €3.5 billion.Banking is the main component of the financial sector, with assets of €2.76 billion. Pension fund assets amounted to a little under €600 million and insurance firm assets amounted to a little over €100 million.
Banks and insurance companies are critical to businesses engaged in international trade transactions. Banks can provide trade financing (see Part 3 of this Guide) as well as general financing of business activities and investment instruments. Insurance firms provide a variety of insurance products important to trade transactions including transport and marine insurance, liability insurance, surety contracts and customs bonds. Some non-bank financial institutions also finance trade transactions for their clients, and also provide other types of loans and leases.
In 2011, Kosovo’s banking system consisted of 8 banks, 6 of which are foreign owned. Although Kosovo is still primarily a cash economy, the use of electronic bank payments is rapidly increasing. In November 2012, the Central Bank of Kosovo granted a branch license to the Turkish commercial bank Turkie Is Bankasi, bringing the total number of licensed banks to 9.