First, macroeconomic stability doesn’t guarantee financial stability; indeed, in some circumstances, macroeconomic stability may foster financial instability by lulling people into complacency about risks. And second, some shocks to the financial system are so substantial, especially when they weaken a large number of intermediaries, that decreases in aggregate demand can be large, long lasting, and not quickly or easily remedied by conventional monetary policy.
The Kosovo Credit Guarantee Fund, with the support of international friends and partners, within a relatively short period of time has managed to transform into a very important institution, playing a special role in increasing and facilitating financing for the country's economy. Bank lending continues to be a very important and sustainable source of financing for the private sector in Kosovo.