This article seeks to investigate the determinants of financial performance of microfinance institutions in Kosovo over the period of 2007-2016. The data has been taken from twelve microfinance institutions in Kosovo. The dependent variables used as proxies for microfinance institutions' (MFI) performance are Operational self-sufficiency (OSS), Return on Assets (ROA) and Profit Margin (PM). ROA and PM are widely used indicators to analyse financial performance or profitability of MFI. The findings of this study show that the most important factor which has strong impact on financial performance of MFIs in Kosovo is high interest rate on loans. Our results show that the age of MFI is the determinant that influences its financial performance. It can also be noted that MFI with better governance are those that are members of financial associations.
The determinant of the credit risk of banks in a developing country have limited data to analyze and limited participation in literature. Determinants of credit risk are very important in order to define the non-performing loans (NPL) in Kosovo banking systems. Even though banking system in Kosovo is the newest in region, it is comparable with banking systems to all places in regions (Albania, Serbia, Montenegro, Macedonia, Bosnia and Herzegovina, etc.).The main purpose of this paper is to classify some factors that influence credit risk in commercial banks in Kosovo. The research includes seven commercial banks for the period 2006–2015. Data analysis and interpretation are processed with Statistical Program for Social Sciences SPSS v.19.0.The effect of variations in the determinants of credit risk exposure is based on using a multivariate panel regression model. Our empirical results suggest that a significant relationship exists between credit risk and the following variables: Profitability (ROE and ROA), Inefficiency (IE), Loans to deposit ratio (LDR), Credit growth (CG) and Deposit rate (DR), while variables of Solvency (SR) and Credit rate (CR) are not statistically significant in terms of credit risk.
The main focus of this study is foreign direct investment (FDI), which (through its direct and indirect contributions) can serve as the main driving force behind enterprise restructuring in particular and the economic restructuring of countries in general. The study will examine countries in Southeastern Europe (SEE) — Kosovo, Albania, Montenegro, Serbia, North Macedonia, and Bosnia and Herzegovina — during the period 2005–2020. The techniques used to analyse the data include the regression model, the DW test, and (for multicollinearity between the variables) the VIF test. The study finds a positive and significant relationship between economic growth and FDI flow in some countries. In Kosovo and Bosnia and Herzegovina, however, such investment does not have a positive impact on economic growth.
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