Effects of global risk in the bank system, on transition countries particularly in Kosovo

Abstract

The purpose of the paper is to discuss the effects of global risk in the banking system and in the field of Finances 
in transition countries particularly in Kosovo. With this paper I will try to cover the following issues: 
The first part of the paper deals with the definition of the bank as a financial institution and the way banks work. 
In this section I have at great length elaborated and tried to answer the following questions: 
How do the banks work in Kosovo? Where do banks get their Financial Capital? Are the banks an 
investment instruments? Have they been affected from the global risk and at last have they succeeded 
to manage the crisis?  
In the second part of this paper I will explain what is the global risk and which financial institution were more 
attacked from global risk. 
In the third part will be discussed about the Central Bank of Republic of Kosovo and what was the reaction of this 
institution on global crises and global risk? Further will be explained which measures were taken in 
order to manage crisis and how central bank succeeded to maintain the financial stability. In the end of paper, I 
will explain how global risk and global crises effected on bank deposits in Kosovo.