Analysis of Financial Performance of the Banking System in Kosovo - 2014-2019 Period
Keywords:
ROA - Return on Assets; ROE - Return on Equity; NIM - Net Interest Margin; Financial Performance; ProfitAbstract
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.
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