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Management of Liquidity Risk and the Banking Activity: The Banking System of Kosovo as a Case

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Listed:
  • Leonora Haliti Rudhani

    (PhD Candidate in University of Pristina. Republic of Kosovo)

  • Driton Balaj

    (Associate Professor PhD, University of Prishtina, Faculty of Economics, Republic of Kosovo)

Abstract

The banking sector inKosovo continues to have a high level of sustainability and financial stability. Two substantial components for the stability of the banking system appear to be liquidity and liquidity risk. The purpose of this paper is to analyze liquidity management in Kosovo's commercial banks through liquidity risk indicators from 2008 to 2017. By comparing the methodology of the data presented, the study will assess the state of management of the liquidity risk of commercial banks. From 2008 until now, commercial banks in Kosovo have had liquidity reserves at a level higher than the level required by CBK, which means that exposure to liquidity risk was minimal.

Suggested Citation

  • Leonora Haliti Rudhani & Driton Balaj, 2019. "Management of Liquidity Risk and the Banking Activity: The Banking System of Kosovo as a Case," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 8(2), pages 01-08, April.
    • Handle: RePEc:rbs:ijfbss:v:8:y:2019:i:2:p:01-08
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    References listed on IDEAS

    as
    1. Leonora Haliti Rudhani & Skender Ahmeti & Taulant Rudhani, 2016. "The Impact of Internal Factors on Bank Profitability in Kosovo," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(1), pages 95-107, February.
    2. Stewart C. Myers & Raghuram G. Rajan, 1998. "The Paradox of Liquidity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 733-771.
    3. Allen, Franklin & Santomero, Anthony M., 1997. "The theory of financial intermediation," Journal of Banking & Finance, Elsevier, vol. 21(11-12), pages 1461-1485, December.
    4. Hennie Van Greuning & Sonja Brajovic Bratanovic, . "Analyzing Banking Risk : A Framework for Assessing Corporate Governance and Risk Management, Third Edition," World Bank Publications, The World Bank, number 2618, September.
    5. Pavla Vodová, 2013. "Liquidity Ratios of Polish Commercial Banks," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2013(3), pages 24-38.
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    Cited by:

    1. Gezim Jusufi & Vehbi Ramaj & Fatos Ukaj, 2022. "BARRIERS TO BANK LOANS AND SMEs EARNINGS: EVIDENCE FROM KOSOVO," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 31(1), pages 3-24, june.

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