The Governor of the Central Bank of the Republic of Kosovo, Mr. Fehmi Mehmeti and Chief Executive Officer of the Financial Supervisory Authority of the Republic of Albania, Mr.Ervin Mete have signed a Memorandum of Understanding in order to regulate, license and supervisory of markets.
Through this Memorandum, the CBK and AFSA establish a system of mutual cooperation and exchange of information between the parties, based on the importance of developing the financial markets of both countries, which will be extended to insurance / reinsurance markets, capital markets, other non-bank financial activities.
The Governor of the CBK, Mr.Fehmi Mehmeti has considered important the signing of this Memorandum.
He focused on the importance of mutual cooperation between the two regulators in addressing issues of common interest, in function of the well-being and development of the markets under supervision.
Whereas, the director of AFSA, Mr. Ervin Mete thanked Governor Mehmeti for his commitment in finalizing this memorandum, emphasizing that the new cooperation agreement responds not only to the developments of the time, but also to the issues that have emerged over the years between the Financial Supervisory Authority and the Central Bank of Republic of Kosovo.
This Memorandum of Understanding provides for the mutual validity of compulsory motor third party liability insurance policies, reciprocal liabilities over damage practices.
The memorandum deepens the lines of cooperation between the two regulators in the function of integrated and effective supervision, in particular through the supervisory colleges of the insurance groups, for the local insurance and reinsurance companies, which have their investments or branches in other countries.
Also, with regard to the insurance market, the parties undertake to address specific supervisory issues in both countries, such as the reciprocal validity of compulsory motor third party liability insurance policies, reciprocal obligations on claims practices or the treatment and payment of damages.
With regard to capital markets, Albania is at a more advanced stage in terms of legal framework, through recently adopted laws, as well as has established the market infrastructure, the Stock Exchange and the Registry.
The Authority is ready to assist the Central Bank of the Republic of Kosovo in this regard.
Also, both regulators will cooperate in the improvement of information technology and digitizing systems, responding to the constant evolution of supervised markets, and exchange of experiences through bilateral meetings in order to further enhance standards in the field of digitalization and cyber security.
The Memorandum of Understanding signed by both parties, will be in force for an unlimited period, while the same repeals the previous Memorandum that was in force since 2008.