Roadmap for the Implementation of the Supervisory Review Process for banks is approved

The Central Bank of the Republic of Kosovo (CBK) has approved the Roadmap for the Implementation of the Supervisory Review and Evaluation Process (SREP), enabling the gradual implementation of this process while considering the specificities of the banking sector, to ensure that supervisory practices are appropriate and proportionate to the size, scope, and complexity of our banking system.

The primary goal of SREP is the continuous monitoring and assessment of risks to which banks are exposed, as well as the development of an adequate supervisory strategy that maintains and advances the banking system as a whole, contributing to the country’s financial stability.

The implementation of SREP for banks is part of ongoing reform activities aligned with the strategic objectives of the CBK, while it fulfills one of the Structural Benchmark commitments outlined in the CBK’s tasks under the two current agreements with the International Monetary Fund (IMF) as well as recommendations provided during the IMF Mission in December 2024 as part of the Technical Assistance (TA) for the Supervisory Review Process.

The SREP Roadmap has been prepared with the support of the IMF, through which the CBK aims to improve the risk assessment system by selecting relevant criteria and refining assessment guidelines, relying on regular prudential data analysis to achieve more harmonized risk assessment results. With this, the goal is to gradually transition from the current CAMELS assessment system to SREP, in accordance with the principles set out by the European Banking Authority (EBA) Guidelines.

The SREP Roadmap outlines plans for staff training, consultations, and collaboration with local banks and other stakeholders regarding SREP, as well as setting an indicative timeline for the full implementation of the SREP manual.

The CBK expresses its gratitude to the IMF for its support in drafting this Roadmap as well as for other assistances aimed at strengthening the institution’s capacities while remains committed to implementing reforms and recommendations in accordance with best practices. For more details, please find the SREP Implementation Roadmap at the following link 🔗 Roadmap for the Implementation of the Supervisory Review Process.