The liquid assets of banks in Kosovo reached €1.49 billion at the end of December 2023, marking an increase of 2.64 percent compared to November. Despite this monthly growth, the figure represents a significant annual decline of 10.8 percent when compared to December 2022.
The liquidity ratios for the banking system remained above the mandated minimums on both a daily and weekly basis, indicating a stable financial environment. The balance sheet total for the banks was recorded at €7.91 billion at the end of December, reflecting a month-on-month increase of 2.48 percent and an annual growth of 9.05 percent.
Asset and Liability Composition
In terms of asset structure, net loans accounted for a dominant share of 65.34 percent by the end of December. Following this, securities contributed 18.27 percent, while cash and deposits held at central banks made up 13.04 percent. The remaining 3.35 percent consisted of other asset items.
On the liability side, deposits represented the largest portion at 76.8 percent, followed by capital at 12.96 percent and borrowings at 5.91 percent. Other liabilities collectively accounted for 4.33 percent of total liabilities.
As of the end of December, the total capital of banks stood at €1.03 billion, which showed a monthly increase of 1.88 percent and an impressive annual rise of 15.06 percent. This growth in capital reflects the banks’ ability to strengthen their financial positions despite the challenges faced over the past year.
The data, provided by the Central Bank of the Republic of Kosovo, underscores the resilience of the banking sector in a fluctuating economic landscape. As financial institutions continue to adapt and evolve, monitoring these metrics will be crucial for understanding the overall health of the banking environment in Kosovo.
