Financial Stability

Maintaining the financial stability constitutes a primary statutory and objective obligation for the Central Bank of the Republic of Kosovo (CBK). Financial stability can be defined as the situation in which all components of the financial system (financial markets, financial institutions and financial infrastructure) function without systemic break and maintain and empower system resistance.

In order to maintain financial stability, CBK, among other things, continuously identifies, monitors and analyses systemic risk. Identifying potential risks is done through continuous monitoring of cyclical and structural macroeconomic developments as well as the financial system. Whereas risks assessment and their potential impact on financial stability and consequently overall macroeconomic stability is done through regular qualitative and quantitative analysis, including the analysis of the performance of high-frequency economic and financial indicators, forecasts on key macroeconomic indicators and the application of models that address the cyclical, structural and cross-sectorial dimension of systemic risk.