IDEAS home Printed from https://ideas.repec.org/a/hde/epregl/v73y2022i4p485-512.html
   My bibliography  Save this article

Determinants Of Bank’S Net Interest Margins In Kosovo

Author

Listed:
  • Albulena Mustafa-Zatriqi

    (Faculty of Economics, University of Prishtina)

  • Skender Ahmeti

    (Faculty of Economics, University of Prishtina)

Abstract

The aim of this paper is to investigate internal and external determinants that impact the Net Interest Margin (NIM). The paper employs an OLS-PSCE procedure using quarterly Panel Data (From March 2013 to December 2019) for commercial banks in Kosovo. Results suggest that the Net Interest Margin in the banking sector in Kosovo is mostly influenced by factors within the bank such as: Loan-to-Deposit Ratio; Operation Costs and Fee Income, but less affected by external factors besides inflation. In addition, results suggest that external factors do not influence the net interest margin; therefore, a governmental policy intervention might not have an impact on Net Interest Margin. The results of the research are important for commercial banks in Kosovo, since they can help improve the efficiency through the internal and external indicators that are impacting the NIM.

Suggested Citation

  • Albulena Mustafa-Zatriqi & Skender Ahmeti, 2022. "Determinants Of Bank’S Net Interest Margins In Kosovo," Ekonomski pregled, Hrvatsko društvo ekonomista (Croatian Society of Economists), vol. 73(4), pages 485-512.
    • Handle: RePEc:hde:epregl:v:73:y:2022:i:4:p:485-512
    DOI: 10.32910/ep.73.4.1
    as

    Download full text from publisher

    File URL: https://doi.org/10.32910/ep.73.4.1
    Download Restriction: no
    File URL: https://libkey.io/10.32910/ep.73.4.1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Net Interest Margins; Loan-to-deposit ratio; Operating costs; Fee Income; Liquidity; Credit risk; Inflation;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hde:epregl:v:73:y:2022:i:4:p:485-512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Josip Tica (email available below). General contact details of provider: https://edirc.repec.org/data/hdeeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.