Functions and Responsibilities
The Central Bank of Republic of Kosovo (the “CBK”), a successor to the Banking and Payments Authority of Kosovo and to the Central Banking Authority of Kosovo was established on June 2008 with the approval of the Law No. 03/L-074 on “Central Bank of the Republic of Kosovo” by the Kosovo Assembly.
The CBK is an independent legal entity with full authority as a legal person according to law in force in Kosovo, and reports to the Kosovo Assembly.
The CBK principal objectives are to:
- a) Foster the soundness, solvency and efficient functioning of a stable market based financial system, encouraging market emergence of safe financial instruments; and
- b) Without prejudice to this, support the general economic policies in Kosovo with a view to contributing to an efficient allocation of resources in accordance with the principles of an open market economy.
- The CBK has the following specific powers:
a) to recommend broad policy guidelines to the Assembly and Government in areas under its responsibility;
b) to formulate and implement measures for payments and settlement systems for transactions in domestic and foreign currency in Kosovo, and to supervise and regulate payments;
c) to own and operate one or more payments systems;
d) to act as banker to the Ministry of Finance and Economy and to provide financial advice at Ministry request;
e) to act as fiscal agent to the Ministry of Finance and Economy;
f) to maintain a depository for safe keeping of currency and securities;
g) to hold foreign currency deposits of banks, Ministry of Finance and Economy and other public entities;
h) to ensure an adequate supply of bank notes and coins for the settlement of cash transactions;
i) to license, supervise and regulate financial institutions;
j) to conduct regular economic and monetary analysis of the Kosovo economy, make public the results, and submit proposals and measures to the Assembly and the Government on the basis of such analysis;
k) to supervise and regulate dealers in foreign exchange, broker-dealers and mutual funds;
l) to approve external auditors of financial institutions;
m) to set accounting standards for financial institutions in Kosovo in line with International Financial Reporting Standards.
Within the powers provided by law, the CBK is independent of any other power in accomplishing main objectives of its activity and exercising of its duties. Each subject is obliged to respect the independence of Central Bank of the Republic of Kosovo, and shall not seek to influence any CBK Governing Board member or employee in the discharge of his or her duties or to interfere in the activities of the Central bank of Republic of Kosovo.