Acta Universitatis Danubius. Œconomica, Vol 16, No 2 (2020)

Abstract

The banking system plays an important role in the economic development of a country. A banking insti­tution is indispensable in a modern society. It plays a key role in the economic development of a country and focuses the essence of the money market on an developed country. The basic function of banks is to collect deposits as much as possible from customers and mobilize it in the most favorable and profitable sector such as industry, trade, agriculture, entertainment, etc.This study mainly attempts to analyze the financial performance of commercial banks in Kosovo cove­ring the period 2014 - 2019. There are many past studies in which researchers used different financial reports to control the financial performance of commercial banks such as: Return on Assets (ROA), Return on Equ­ity (ROE), Return on capital (ROC), Return on Fixed Operating assets (ROFA), Report of costs on Income (C / I) etc. Based on the accounting data, we used the key coefficients that are: ROA, ROE and NIM for estimating financial performance. The findings of the study may be useful for managing commer­cial banks in Kosovo.