This research paper aims to explore the drivers contributing to the low non-performing loans (NPL) ratio observed within the Kosovo banking sector between 2014 and 2023. Kosovo has a robust banking sector. By producing quantitative and qualitative empirical findings, this research paper aims to provide a comprehensive understanding of the impact drivers that have enabled the Kosovo banking sector to achieve and maintain a remarkably low NPL ratio. This research paper combines both secondary and primary data. The quantitative dataset provides accurate analysis, including loan growth, profitability of the banks, and key performance indicators (KPI). The primary data is gathered through a quantitative and qualitative survey prepared online, such as closed and open questionnaires with credit/loan takers. These interviews provided valuable insights into the underlying factors that contribute to the observed NPL trends. The analysis of both quantitative and qualitative data is conducted using an empirical approach, employing statistical methods to identify key drivers, and assessing their significance and scientific validity.Based on the findings, this paper formalizes and concludes the specific drivers within the Kosovo banking sector that have obviously contributed to low NPL percentage performance during 2014–2023.