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This research has aimed to analyze the determinants of capital structure among insurance companies in Kosovo, based on a data retrieved from 11 insurance companies during the period 2009-2012. For this purpose, the debt ratio is taken as a dependant variable whereas company size, growth, life, fixed assets and liquidity ratio were taken as independent variables. The result of RE model shows that these variables are in positive relationship with the debt ratio. On the other hand, the company size, the fixed assets ratio, liquidity ratio, company life and growth had considerable effects on debt equation. Based on the research results, the insurance companies should have a high consideration for asset increase because the size of company is an important factor that has a positive effect on debt/equity ratio.

Regulators and policymakers pay an increasing attention to the possible procyclical nature of banks' behavior in provisioning. Loan-loss provisioning practices of banks are perceived as one of the sources of this procyclicality. The main objective of this study is to provide the evidence on procyclical behavior and capital management of banks through loan-loss provisions in South-Eastern European countries for the period 2004 -2015. Our results show that loan-loss provisions of banks are procyclical; however, there is no evidence to indicate a relationship between loan-loss provisions and capital management. The findings suggest that a dynamic provisioning system would be beneficial if it is implemented in South-Eastern Europe. The results also show an empirical evidence that loan-loss provisions are not used for income smoothing in banks in South--Eastern Europe.

This paper has been prepared to describe the regulatory measures regarding Loan classification and provisioning of South East Europe countries like Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Montenegro, Serbia, and Slovenia. A proper loan classification and provisioning system ensures credibility of the financial system that in turn restores trust and confidence in the mind of depositors. Determining what constitutes an adequate level of provisions to absorb credit losses is often subject of debate between banks and supervisors, as changes in provisioning estimate an immediate impact in bank earnings and, eventually, regulatory capital. A comparative analysis in this study between South East Europe (SEE) countries shows that countries have the regulatory measures which correspond with international standards. However, the criteria for classifying and provisioning loan portfolios depend on the prudential policies of the central banks. In the area of NPL definition, we find that almost all of the countries in the region have some type of asset classification system in place covering all types of borrowers. Non performing exposures in the region are generally defined three criteria: 90 days past due status, borrower bankruptcy, and the significant financial difficulty of the borrower. Countries with the highest rate of non‑performing loans (2005–2015) are Serbia, Montenegro, Albania, while the countries with the highest percentage of coverage with provisions are: Kosovo, Macedonia and Serbia.

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