The Governor of the Central Bank of the Republic of Kosovo, Mr. Fehmi Mehmeti said that CBK has demonstrated leadership beyond its mandate, where in the role of Regulator and Supervisor of Financial Institutions in the Republic of Kosovo it has advanced the requirements for better corporate governance
In the presentation of the "Transition Report for 2019", which also marks the 12th anniversary of the Republic of Kosovo's membership in the European Bank for Reconstruction and Development, Governor Mehmeti highlighted the CBK's commitment to continue building a more stable financial environment , the pillar of which are the best principles and standards of corporate governance.
"Our message to the financial sector has been very clear along with the need for greater clarity in the organizational structure, sharing of responsibilities and increase of professional competence, a new way of thinking is needed by their boards with a particular focus: building collective capacity for risk identification, focusing on the long-term economic viability of financial institutions, adapting a corporate governance model that adds value built on the effective organization mechanisms of a financial institution (ie, culture, business model, size, organizational needs, etc.), and above all the adoption of a model that ensures transparency, impartiality and equal treatment of all stakeholders (shareholders, customers and employees) ”, declared the Governor.
The Governor said that the Central Bank of the Republic of Kosovo enjoys functional, financial and operational independence and as such adapts a modern corporate governance not only to the internal organization but also to the regulatory requirements we have in relation to the financial institutions we supervise.
The CBK demonstrates this independence with strong accountability and transparency as a mechanism of particular importance for sound corporate governance.
“You have recently witnessed some decisions taken by the CBK in relation to financial institutions that have jeopardized the stability of the financial sector in Kosovo and have not complied with legal requirements. This speaks for the Central Bank's determination to exercise its constitutional mandate and to be governed by the best corporate governance rules and standards. We will continue to remain steadfast in our actions to provide the Kosovo economy with financial institutions and funding sources that are adapted to the development needs and stability of the economy. The Central Bank has also played a critical role in installing modern corporate governance mechanisms in two institutions of particular importance to the Kosovo economy; Deposit Insurance Fund of Kosovo and Kosovo Credit Guarantee Fund ”, said Governor Mehmeti.
In the end , the Governor Mehmeti said that in this two-decade journey, the Central Bank and other local institutions in Kosovo have enjoyed the privilege of being supported and advised by many international financial institutions, including the IMF, USAID, US Treasury, World Bank, KFW , GIZ, EBRD and others.
In particular, the special contribution in the field of corporate governance in Kosovo has our host today, the European Bank for Reconstruction and Development, not only being an active investor in the private and financial sectors, but also helping stakeholders in these two sectors and other institutions with technical assistance to advance corporate governance practices in a highly qualitative manner.