The Role of Banks in the Kosovo Economy
Keywords:
banks, economic growth, interest rates, financial systemAbstract
Banks play an important role in a country's financial system and economy. As a key component of the financial system, banks transfer funds from savers to borrowers in an efficient manner, thus mediating the financial system. They offer specialized financial services that reduce the cost of obtaining both savings and loan information. With these crucial financial services, banks help to make the economy efficient. If banks did not exist, the economic growth of any country would not be as it is now. This paper aims to present the role of banks in the Kosovo economy and it is fair to say that the Kosovo economy has been greatly assisted by banking activity as businesses grow and consumption increases. From all that has been said so far, it can be concluded that imagining a bankless economy is very difficult and scary because it is precisely what all economic agents rely on.
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