This report provides an analysis of the current situation of the banking sector, and the potential impact that banking sector has on economic growth. In this regard, Riinvest Institute with the support of Kosovo Foundations for Open Society (KFOS) saw the need for a research report as a primary attempt in accomplishing a comprehensive analysis of determinants of credit interest rates in Kosovo, as well as analyse a large variety of potential problems related to difficulties in accessing financial resources offered by commercial banks.