
This paper aims to explain the relationship between the court and the tribunal of arbitration. This paper examines the importance of resolving disputes in the banking sector through arbitration versus regular courts’ advantages and disadvantages, especially in the banking sector of Kosovo. The paper focuses particularly on the growing popularity of arbitration in the banking sector in Kosovo, ultimately, arbitration as a dispute resolution procedure, especially disputes that are related to the obligation of the policy, extent of a loss or damage and other related issues with the terms of the insurance contract (policy). It concludes that the quick and effective resolution of disputes from the banking sector should see arbitration as the most efficient alternative for resolving disputes with greater professionalism and safety.