Governor Ismaili: Continuing professional education and the quality of financial reporting and auditing affect the financial stability maintenance and private sector development

08/11/2023

The ongoing professional education and the quality of financial reporting and auditing affect the financial stability maintenance and private sector development, the Governor of the Central Bank of the Republic of Kosovo, Ahmet Ismaili, stated.

Governor Ismaili, during the introductory speech at the conference “Creation of Values - Gate of the Future”, hosted by the Society of Certified Accountants and Auditors of Kosovo (SCAAK), added that the CBK is committed to providing a regulatory framework in line with the best international practices related to the reporting and auditing of financial institutions, as well as the approval of external auditors.

"The Central Bank of the Republic of Kosovo, according to its mandate to license, regulate and supervise financial institutions in the Republic of Kosovo, for maintaining financial stability, is committed in providing a regulatory framework in line with international standards and best practices for the purpose of reporting and auditing of financial institutions, as well as the approval of external auditors that audit these institutions", Governor Ismaili stated.

Governor Ismaili added that the CBK expects to have accurate financial statements and the highest quality audits in view of financial stability and private sector development.

"The CBK closely cooperates with the Kosovo Council for Financial Reporting to promote the improvement in the quality of supervisory functions and financial reporting, where according to the law, it also has its representative in this Council and the Public Oversight Board", Governor of the CBK added.

According to the Governor Ismaili, the CBK is committed to strengthening efforts to improve the financial system stability.

"The Central Bank of the Republic of Kosovo engages, in close cooperation with other authorities at the country level, to influence the informal economy reduction and the establishment of a stable and long-term developing economy", Governor Ahmet Ismaili emphasized.

"As part of the commitment to improve the resilience of the financial system to climate and environmental risks, we will engage in aligning the regulatory framework with European Union regulations and directives and Basel standards, strengthening supervisory practices", Governor Ismaili pointed out.

Governor Ismaili has expressed the need for the cooperation of relevant institutions, which is related to the challenge of implementing standards in the financial industry.

"The challenge of implementing new standards for the financial industry, with a focus on insurance, such as IFRS 17, reflects the need for cooperation between regulatory, policy-making institutions, the financial sector, academia and professional organizations. Application of International Financial Reporting Standards S1 and S2 for disclosure of business entities information related to climate and environmental risks management, as well as investment opportunities in view of green economy, will also be the focus of the CBK”, Governor Ismaili stated.

During this conference, the Head of the CBK called for the preservation of integrity, ethics and professionalism in order to ensure the most accurate statements and audits in view of private sector and economy development in the Republic of Kosovo in general.

"The CBK expects to have accurate financial statements and higher quality audits, in order to accurately present the actual state of the financial statements of business entities, to facilitate fair decision-making, lending from banks, the provision of insurance products and services by other financial institutions in order to develop the private sector and the economy of the Republic of Kosovo in general", the Head of the CBK called for.

Finally, the Governor Ismaili mentioned the fact that CBK is engaged in building human capacities in the field of accounting and auditing, as an added value to the sector.

"The Central Bank of the Republic of Kosovo is committed to building human capacities in the field of accounting and auditing through training and certification in specialized institutions in this field. The CBK is also focused on qualification and continuing professional education for both its personnel and the entire financial industry. Therefore, the professional capacity building and quality assurance remain our priorities, as they support the achievement of CBK objectives, and the overall development of the country", Governor Ismaili concluded.