The possibility of non- returning the credits is a challenge faced by all banks. Giving back the taken credits is an important
issue for the efficient operation of the banking system. Lending is one of the main uncertainties of the banking system, as the
paying of credits rarely can be completely guaranteed. Very often these questions are asked: Which are the factors that have
an impact in the failure of bank credit repayment? What policies should be pursued to stimulate the return of bank loans? The
research aimed to analyze the impact of macroeconomic factors (gross domestic product, interest rates, unemployment,
inflation) and credit policies (the time of maturity and grace period), in the failure of returning the credits in the banking sector.
The results of the research are processed on 242 questionnaires; these data were processed with the help of SPSS v 21
program. By growing the gross domestic product, maturity interval, and application of grace period there might be a decrease
of non-performing loans, whereas increasing interest rate, inflation and unemployment norms increases the rate of nonperforming
credits in relation to total credits in Kosovo. This study argues what is needed for Kosovo's banking system and
presents the ideas of sustainable development of the banking sector in relation to non-performing loans, and credit policy reorientation.