Currently, the banking sector jointly with government spending, are the only key source of injecting money into the Kosovo economy. Nonetheless the banking industry holds a dominant position within the financial system, especially in regard to lending activities for businesses and in regard to people’s economic life, which by far is the key driver of growth acceleration and reducing unemployment. The Kosovo Pension and Saving Trust (KPST) on the other hand is the answer to individuals’ safety net when they retire, which is a completely different concept from the Pay-As-You-Go system that is currently operating in many of OECD countries. Standing on analogous risks from regional countries, the banking industry in Kosovo faces less risk during their lending activities than banks in the region. As long as banks are the only institutional money injection for our economy, banks are the key driver for job creation, raising productivity and innovation.
For the full version of the report: Understanding the Current State of the Financial System in Kosovo and its Implications for Human Rights