Socio Economic Environment and Investment Perspective in Kosova

The aim of this study is to address the socio-economic environment and the internal and external investment potential factors. Factors investor research is done based on statistical data, analysis, and empirical method. The socio-economic environment in Kosova justifies investment in industry, construction, agriculture, trade and tourism. Investments based on social and economic factor for the Kosova case are justified by the formula "Tailor". Investment performance and profit maximization based on the production or provision of services at low cost. Cultural, demographic, educational, religious, and ethnic state on the one hand and on the other hand the trend for consumption, the trend for increasing the propensity for Welfare, standardization of applications, products, and services, stable and fiscal banking system are favorable elements for investments in Kosova.Keywords: socio-economic environment, domestic investment.

Risk management of commercial banks in Kosovo

Purpose: This research elaborated on the management of the activity of banks operating in Kosovo. Design/Methodology/Approach: The study provided for the secondary service by reporting goals for the four largest banks in Kosovo. Findings: Problems of commercial banks of Kosovo in managing risks for establishing concepts for managing the activity, defects of the activity management system and backwardness of the research and method of managing the activity. Practical Implications: With the continued development of the financial sector, commercial banks in Kosovo have formed a series of strict risk management systems, while the risk management of commercial banks in Kosovo is still in its infancy. As Kosovo's financial industry is opening up to the outside world, Kosovo's banking industry faces increasingly fierce competition and the risks are also more complex. In this case, understanding the level of risk management of commercial banks in Kosovo and improving the level of risk management is a necessary topic. Originality/Value: The results of the study realize a series of meaningful suggestions are put forward and help to improve the risk management level and control the risks effectively.peer-reviewe

Socio Economic Environment and Investment Perspective in Kosova

The aim of this study is to address the socio-economic environment and the internal and external investment potential factors. Factors investor research is done based on statistical data, analysis, and empirical method. The socio-economic environment in Kosova justifies investment in industry, construction, agriculture, trade and tourism. Investments based on social and economic factor for the Kosova case are justified by the formula "Tailor". Investment performance and profit maximization based on the production or provision of services at low cost. Cultural, demographic, educational, religious, and ethnic state on the one hand and on the other hand the trend for consumption, the trend for increasing the propensity for Welfare, standardization of applications, products, and services, stable and fiscal banking system are favorable elements for investments in Kosova

Effects of Sustainable Materials in Construction, Environment and Health

In this paper it is presented a definition of sustainable construction from ecological aspect, characterized by reducing the impact of different materials in the environment during construction, but also during the whole lifetime of use of buildings. To assess the impact of materials on health and environment is necessary to examine all phases from beginning of the materials manufacturing till the insertion to the construction, including the use of natural resources for the production of construction products, necessary energy for production, amount of release and CO2 emissions (carbon dioxide) in different stages, methods of construction, use of construction and in the end demolition and recycling. In this paper are presented aspects of a sustainable building with a particular approach to the selection of construction materials and the awareness raise about the impact of materials on environment and health during the whole life of using the facilities. Also it is presented sustainable construction and environment, materials that affecting and the conditions of the different materials using during construction in Kosovo. With a special emphasis also presented the impact of materials on our health, recent research regarding the materials using in constructions and the difference between the old and new constructions in terms of human health. The difference between buildings constructed decades ago and buildings constructing now

IFRS 9 Transition Effect on Financial Stability of Kosovo Commercial Banks

From January 1, 2018, most of the commercial banks in Kosovo adopted IFRS 9. The new standard introduces the expected credit loss model to allow for timely recognition of credit losses, estimated not only on the actual credit loss but also on forward-looking information regarding the current loan portfolio. Although, transition phases may lead to increasing impairments and a decrease in banks’ equity, which directly influences the financial stability of banks. This paper examines the day-one transition effect of IFRS 9 on the level of assets balance, allowance for loan losses, and capital regulatory class II of banks in Kosovo. To test our hypothesis, we have performed a comparative analysis for the six biggest commercial banks in Kosovo to identify correlation and causality between studied variables. As a statistical technique, we have employed a “paired sample t-test†where we compare financial indicators before and after adopting IFRS 9 to examine the impact on financial stability for commercial banks in Kosovo. Our results are in line with the results of recent studies in the IFRS 9 field and conclude that the transition phase has a significant influence on the recognition of additional loan impairment but assets and capital regulations are not affected significantly. Results demonstrate the transition to IFRS 9 causes instability and re-consolidation of capital, but in the long-run reduce the possibility for large and sudden losses. Commercial banks in Kosovo should follow a balanced growth approach without compromising the quality of the loan portfolio

Bank profitability determinants: evidence from Kosovo and Albania

This research aims to examine the factors that impact the profitability of commercial banks in Kosovo and Albania. Profitability is crucial in the financial sector as it directly affects policymakers, regulators, and bank management. The study focuses on several determinants of bank profitability, including the number of employees, loan interest rate, non-performing loans, and total loans. The study employed quarterly secondary data spanning from 2010 to 2020, resulting in 400 observations. The analysis used multiple linear regression, influenced by the huge number of observations and the applicability of ordinary least squares (OLS) for such studies. This method allowed for a thorough examination of the interactions between the dependent and independent variables, providing a more in-depth understanding of the factors driving bank profitability. The statistical significance was determined using software such as STATA and SPSS. The dependent variables in the analysis are return on assets (ROA) and return on equity (ROE). The findings reveal that the loan interest rate, total loans, and non-performing loans significantly influence the profitability of the analyzed banks in Albania and Kosovo. Furthermore, the total number of loans and employees are statistically significant determinants of ROE. These findings provide valuable insights for bank management and policymakers in enhancing bank profitability and stability

Impact of non-performing loans on bank’s profitability : empirical evidence from commercial banks in Kosovo

Purpose: The study examined the impact of nonperforming loans on Kosovo banks' profitability over a time span of 2010 to 2019.Methodology: The traditional profit theory was employed to formulate profit, measured by Return on Assets as a function of the ratio of Non-Performing Loans, Liquidity Risk, and Bank Size as control variables. We have employed multivariable linear regression to estimate the determination of the profit function.Findings: The results showed that the effect of nonperforming loans on the profitability is statistically significant and shows that for each 1% increase in NPL, the Return of Assets decreases by 0.19%, holding other variables constant.Originality/Value: The commercial banks in Kosovo, it is recommend following a balanced approach between portfolio growth and credit risk exposure.peer-reviewe

Professional and practical challenges during the transition period from Kosovo Accounting Standards (KAS) to IFRS

Purpose: This research aims to present the main obstacles of the application and implementation of the IFRS during the transition period from Kosovo Accounting Standards (KAS) to International Financial Reporting Standards (IFRS). Considering that the development of accounting in Kosovo, it has not been an easy transition as can be expected. -- Design/methodology/approach: We conducted a quantitative research through a customized questionnaire which was addressed to 130 certified accountants and auditors in Kosovo, regarding the challenges presented during this period, of which 77 have resulted in positive answers, but with 2 incomplete answers. -- Findings: Through this research we have managed to identify some of the main challenges faced by accountants and auditors during the transition period from KAS to IFRS and how many respondents agreed that the transition process is complicated. From the analysis of data and results we can conclude that the need for ongoing training and lack of knowledge and experience needed for accountants and auditors has increased the complexity of the IFRS application process. -- Originality/value: Findings from this study can be a contribution to the application of IFRS for developing countries as well as a contribution to the literature regarding the practical, legal challenges, continuing education regarding the transition phase and regarding the implementation and application of IFRS.peer-reviewe

A review of sources on terrorist financing

Terrorism financing is one of the most complex problems the democratic world is facing today. The transfer of funds to support terrorist activities has created enormous challenges across the world. This has fuelled several inter-religious and nationalist hate, and as such has put many nations into war with terrorist organisations. The main objective of this study is to review the sources of terrorist financing. The paper relies on secondary data that were drawn from various books, journals, as well as from institutional materials relevant to the issues raised. It concludes that terrorists are exploiting established financial systems at the global level to move their finances, and that informal systems remain the biggest challenge to thwart terrorist activitie