Title: Some Factors for Growing Savings to Be Well-thought-out by Key Actors in Kosovo

  • Fitim Mexhuani Candidate (Europian University of Tirana), Artur RIBAJ Prof. Asoc. Dr. (University of Tirana)
Keywords: commercial banks, savings, factors for growing savings.


The main problem for developing countries is the lack of investment, which consequently limits the country's economic growth. Developing the real sector of any economy is not an issue that should be left to random actors. So, the Government of Kosovo, Bank of Kosovo and Commercial Banks are the three main actors that should be focused on factors that influence the growth of the level of domestic savings. By channeling savings into Kosovo's economy through banks for investments in healthy financial capital, Kosovo becomes economically and politically more developed and independent.This paper based on literature analyses and data processing identifies some of the factors that could affect the growth of savings in Kosovo, as these will lead to higher level of financial capital for entrepreneurs and the continuity of the country's economic growth. Taxation and income levels, demographic variables, confidence and deposit security, banking network, state-owned bank, financial education and financial inclusion are among the key factors of increasing savings. The interest rate is also important factor, but since this factor is often subject of other papers, we did not incorporate it in this paper.


. Allen, Franklin, Asli Demirguc-Kunt, Leora Klapper and María Soledad Martínez Pería. 2012. “The Foundations of Financial Inclusion: Understanding Ownership and Use of Formal Accounts.” Policy Research Working Paper 6290, World Bank, Washington, DC.

. Anginer, Deniz, Asli Demirguc-Kunt, and Min Zhu. 2012. “How Does Bank Competition Affect Systemic Stability?” Policy Research Working Paper 5981, World Bank, Washington, DC. Bankable Frontier Associates. 2009.

. Scher Mark and Naoyuki Yoshino, Small Savings Mobilization and Asian Economic Development, M.E.Sharpe. 2005

. Financing Growth and Development in the Transition Economies: The Role of Domestic Savings. 2000. UN Economic Commission for Europe

. Gilles Bérubé G., Côté D. “Long-Term Determinants of the Personal Savings Rate: Literature Review and Some Empirical Results for Canada.” Working Paper 2000-3.

. Banka Qëndrore e Kosovës, Raporti Vjetor 2017. (Qershor 2018)

. IMF on Economic Growth of Kosovo. (2016)

. Koskela E, Viren M., (1983) “A note on long-term determinants of the private savings ratio.” Economic letter 11 91983) 107-113. North-Holland Publishing Company.

. OECD Report to G20 Finance Ministers and Central Bank Governors. (September 2015)

. Peter V., Raja Peter R., (2006) “Tax Finance and Savings: Conceptual Issues International Research.” Journal of Finance and Economics ISSN 1450-2887 Issue 3 (2006) © EuroJournals Publishing, Inc. 2006.

. The Law on “Deposit Insurance” of the Kosovo Republic

. Thirlwall A. (2002) “The Mobilization of Savings for Growth and Development in Developing Countries” Icfai University Journal of Applied Economics, 2002, vol. I, issue 1, pages 7-30.

. Arestis, P. and Demetriades, P. (1997). “Financial Development and Economic Growth: Assessing the Evidence”, Economic Journal, 107.

. Ayadi, R., Arbak, E., Ben-Naceur, S. and Pieter De Groen, P. (2013). Financial Development, Bank Efficiency and Economic Growth across the Mediterranean. MEDPRO Technical Report No. 30. March 2013

. Balogun, E. D. (2007). "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, Vol. 106(2)

. Ribaj, A, (2017). Tregjet financiare, risqet dhe etika.

. Khan, A. (2012). Role of Commercial Banks in Economic Development.

. Koskela, E., Viren, M. (1983). A long-Term determinants of the private saving ratio. North Holland Publishing Company.

. Mark Carlson and Kris James Mitcheer. (2006). Branch Credit Banking, Bank banking, Competition, and Finnacial Stability. Journal of money Vol.38, No.5, 129-151.

. Spratt, Steven, and others (2010). The Great Transition: A Tale of How It Turned Out Right. London: new economics foundation.

. Richard J. Butler and Harold H. Gardner (2011), "Moral Hazard and Benefits Consumption Capital in Program Overlap: The Case of Workers' Compensation", Foundations and Trends® in Microeconomics: Vol. 5: No. 8, pp 477-528.

. Hanning, A and Jansen S. (2010) Financial inclusion and Financial Stability; Current Policy Issues. ADBI Working Paper 259, Tokyo: Asia Development Bank Institute.

. Kaufmann, Daniel. 2005. “Myths and Realities of Governance and Corruption.” University Library of Munich, MRPA Paper 8089, Munich.

. Chiba Michael (2009). Financial Inclusion, Poverty Reduction and the Millennium Development Goals [Journal] / European Journal of Development & Research, 2009. - Vol. 21.