Governor of the Central Bank of the Republic of Kosovo, Fehmi Mehmeti held a lecture for the students of the University of Mitrovica “Isa Boletini” within the activities of the Global Money Week, in the function of Financial Education.
Governor Mehmeti presented to the students and the academic staff the latest developments in all financial sectors, with particular emphasis on the banking sector, which continues to be sustainable and liquid.
“The total value of banking sector assets in January 2019 amounted to EUR 4.163 billion, recording an annual growth of 7.6% compared to January 2018. Total (gross) loans in January 2019 were in the amount of EUR 2.75 billion, which recorded an annual growth of 11.4%. Total deposits in January 2019 amounted to EUR 3,334 billion, marking an annual growth of 8.4%. The non-performing loans indicator was at the rate of 2.6% in January 2019 compared to 3.1% in January 2018”, stated Governor Mehmeti, adding that currently, depositors are insured for each member bank, up to the insured amount of EUR 5,000.
According to Governor Mehmeti, the CBK plays an important role in Kosovo's economic development, in two ways: “It affects the volume of commercial banks' lending by setting minimum reserve through regulatory requirements in one hand and on the other hand it promotes and maintains a stable and efficient financial sector in Kosovo through licensing the regulation and supervision of financial institutions”.
Governor Mehmeti also talked about the legal changes that have been undertaken by the CBK, starting with the drafting of the new Law on Banks which, after being reviewed by the CBK Executive Board, is expected to be sent to the Government of Republic of Kosovo during 2019, and then be proceeded to the Assembly of the Republic of Kosovo for review and approval.
Governor Mehmeti stated that during 2018, CBK Board approved many regulations that are important for the sectors that CBK oversees, such as Regulation on International Financial Reporting Standard (IFRS) 9, Regulation on Bank Capital Adequacy, Regulation on Leverage Indicators and the Regulation on the Internal Capital Adequacy Assessment Process.
Also, Governor Mehmeti has responded to various questions by students about the sectors that CBK oversees.
On the other hand, the Acting Dean of the Faculty of Economics of the University of Mitrovica “Isa Boletini”, Besart Hajrizi, expressed his gratitude to Governor Mehmeti for the lecture and the information provided to the students.