Governor of the Central Bank of Kosovo (CBK), Bedri Hamza, requires commercial banks to work towards increasing the efficiency to provide better conditions for lending. But he has a message for Kosovo businesses. “We need to engage in formal terms as being in financial transactions and reports, being regular taxpayers, and provide reasonable business-plans which would create space for further cuts in interest rates,” said governor Hamza.

Hamza says the results show that the Kosovo banking system has the ability to withstand the level of nonperforming loans without any problem.

Besides banking, Hamza spoken about his selection at the top of this institution denying allegations that CBK is politicized. “Interest rates have declined. In 2011 the average interest rate on loans was 14.1 percent, 13.4 percent in 2012, while in January-July 2013 dropped to 12.7 percent. On the other hand, interest on deposits in 2011 was 3.5 percent in 2013 and 2012 of 3.6 percent. ”

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He says one of the most influential factors of interest rate are credit risk and operational costs. Governor Hamza said that businesses should engage in formal terms as being in financial transactions and reports, as well as being in regular taxpayers, and provide reasonable business-plans.

“The commercial banks should work towards increasing the efficiency to provide better conditions for lending. Regarding the institutional aspect, CBK has contributed in this direction through the credit registry simultaneously represents the most important source of information about the history of the borrowers’ performance but also through regulations that apply to the system, “said CBK Governor Hamza