Analyzing determinants and sources of financing of Kosovo banking system

Kosovo banking sector is young with ten licensed banks (as of August 2018), with majority of them in foreign ownership mainly from European Union (EU). Started to operate since 2000s, banking sector is characterized with stable growth, low nonperforming loans and increasing intermediation ratio. In order to identify determinants and sources of financing, loans and deposits are used, decomposed by original maturity since December 2000 (monthly frequency). Using specific statistical application, namely R software but not limited to, we try to show the key determinants, of sources, and of financing of the Kosovo Economy. Using decision tree and other models as well, we will try to shed some light of the determinants on the deposits side of banks and financing side. The paper is composed of two main blocks, with the first part describing main characteristics of the Kosovo banking, and second with showing results using particular statistical software