Surviving Low Interest Rates Central Banks in Kosovo and Other Western Balkan Countries: Republic of Kosovo
Selected Issues Papers, April 19, 2023
Source details
- Canonical URL
- Surviving Low Interest Rates Central Banks in Kosovo and Other Western Balkan Countries: Republic of Kosovo
Other formats
Bibliographic details
- Authors: Si Guo
- Published: April 19, 2023
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400241079.018
Background
- Interest income from foreign reserves is one of the main revenue sources for most emerging market central banks.
- Low global interest rates during 2008–2021 negatively affected central bank revenues in the Western Balkan region.
- The impact was more pronounced for central banks in Kosovo, Montenegro, and Bosnia and Herzegovina because they cannot use seigniorage to finance their operations.
Main findings
- The decline in interest income from foreign reserves was partially compensated by higher fees, commissions, and other regulatory revenues.
- Central banks in Kosovo, Montenegro, and Bosnia and Herzegovina experienced more pronounced revenue impacts due to the inability to use seigniorage.
Subjects and policy areas covered
- Central banks
- Financial institutions
- Financial services
- Foreign exchange
- International organization
- Monetary policy
- National accounts
Keywords (as provided)
- Bosinia
- Central bank
- Central bank rates
- central banks in Kosovo
- emerging market central banks
- Exchange rate arrangements
- Global
- Government securities
- Herzegovina
- Income
- interest income
- International reserves
- Kosovo
- Low interest rates
- Montenegro
- personnel cost-to-GDP ratio
- rising interest rates
Content in this bundle
- Surviving Low Interest Rates: Central Banks in Kosovo and Other Western Balkan Countries