CBK holds consultative workshop on advancing the regulatory framework for non-bank financial institutions

The Central Bank of the Republic of Kosovo (CBK) held sectoral consultative workshop with microfinance institutions, focusing on advancing the regulatory and supervisory framework for this sector, as well as the CBK’s regulatory expectations for the further development and regulation of the financial system.

The workshop was opened by Mr. Amir Zylfiu, Chief of Staff to the Governor’s Office, who underlined the importance of the consultative process in advancing the regulatory and supervisory framework that aims to enable new business models for NBFIs, strengthen financial inclusion, enhance consumer protection, and align the sector with international standards and the best practices of the European Union.

The Director of the Department for Supervision of Markets, Microfinance Institutions and Non-Bank Institutions, Mr. Sokol Shasivari, presented the current state of the sector, its role in expanding financial inclusion, and the main challenges related to governance and risk management during a period of rapid digitalization and innovation. He also outlined the CBK’s expectations for upcoming changes, emphasizing the need to strengthen prudential requirements, improve governance and transparency, and raise standards of conduct toward consumers. These changes are expected to bring significant improvements in risk management, capital, and prudential supervision.

During the workshop, the working group’s ongoing efforts to advance the legal framework were presented and discussed. This work is supported by technical assistance from the International Finance Corporation (IFC) and aims to establish more comprehensive regulation of licensing, operations, governance, and supervision of non-bank financial institutions, including the benefits for the sector.

The workshop included constructive discussions and feedback from participants, marking the beginning of a structured dialogue with stakeholders, with the goal of ensuring that the review of the legal and supervisory framework is carried out in close cooperation with the sector while balancing market development needs with the preservation of financial stability.

The CBK reaffirms its commitment to developing a modern framework and a sustainable sector aligned with EU standards and international best practices, supporting the further development of the non-bank financial sector and strengthening consumer safety and well-being. A series of additional meetings with other non-bank institutions will also follow.