Governor Ismaili: Innovation and Artificial Intelligence must be governed responsibly, in support of financial stability and the public interest

The Governor of the Central Bank of the Republic of Kosovo (CBK), Mr. Ahmet Ismaili, in his opening remarks on the topic “Governing Innovation: Leadership in the Age of Artificial Intelligence,” emphasized the importance of responsible governance of innovation and Artificial Intelligence, in support of preserving public trust, financial stability and the integrity of the financial system.

On his opening speech, Governor Ismaili stated that rapid technological developments, driven by Artificial Intelligence, advanced analytics and financial technologies, are changing the way institutions and economies function, requiring responsible leadership that combines innovation with effective risk management, institutional stability and the protection of the public interest.

Referring to Kosovo’s context, Governor Ismaili emphasized that Kosovo as open and euroized economy, closely linked with the European Union and its diaspora, relies on financial stability, the integrity of the system and trust in money as fundamental pillars of economic development. In this regard, digital transformation constitutes an important component of financial stability, European integration and institutional modernization.

He noted that Kosovo’s financial system has continued to grow, diversify and remain stable, with an increasing role of the banking sector, non-bank and other financial institutions of the sector. According to him, these developments are contributing to the expansion of financial intermediation, market deepening and the creation of a broader ecosystem for financial innovation.

Governor Ismaili also highlighted the advancement of payment infrastructure and digital financial services, including the growing use of e-banking, POS terminals, digital wallets and electronic payment channels, as well as improvements in the national payments infrastructure, which have contributed to increasing financial inclusion and market efficiency.

In this regard, he highlighted the progress made in the process of Kosovo’s integration into the Single Euro Payments Area (SEPA), the development of the instant payments project TIPS Clone, the advancement of Open Banking initiatives, as well as the modernization of the legal and regulatory framework for financial innovation.

Speaking about Artificial Intelligence, Governor Ismaili emphasized that it presents important opportunities for strengthening data analysis, improving financial supervision, identifying risks, increasing capacities for detecting financial fraud and strengthening resilience against cyber risks.

He underlined that the use of Artificial Intelligence in the financial sector should be based on the principles of transparency, accountability, explainability, data protection, cybersecurity and human oversight, ensuring that technology supports institutional decision-making without replacing human expertise, institutional responsibility and professional judgement.

In the area of financial innovation, the Governor emphasized the importance of creating a safe regulatory environment, including the development of the framework for licensing and supervising crypto-asset service providers, as well as the strengthening of measures for the prevention of money laundering, terrorist financing and proliferation financing.

He also emphasized that cybersecurity constitutes a fundamental pillar of financial stability in the digital age, highlighting the CBK’s commitment to strengthening capacities for incident management, operational resilience and the protection of critical financial systems.

In terms of institutional development, Governor Ismaili underlined the importance of continuous investment in human capital, particularly in the areas of data analytics, supervisory technology, financial innovation, cybersecurity and Artificial Intelligence, through cooperation with international partners and peer institutions.

Looking ahead, he emphasized that the challenge for institutions will not be only the adoption of new technologies, but the development of the governance, skills, infrastructure and regulatory capacities needed to use them responsibly. For the CBK, this means continuing to modernize payment systems, advance risk-based supervision, strengthen cybersecurity and support responsible financial innovation, in line with European standards.

In conclusion, Governor Ismaili emphasized that trust remains the fundamental element of every institutional transformation. He underlined that innovation should be measured not only through technological progress, but also through its impact on strengthening public trust, the quality of governance, financial stability and the public interest.

The CBK reaffirms its commitment to promoting responsible, secure and inclusive innovation, in line with European standards and international best practices, with the aim of strengthening financial stability, the integrity of the financial system, sustainable economic development and public trust.

These messages were conveyed during Governor Ismaili’s participation as key note speaker in the Leadership Conference organized by UBT, under the theme “Governing Innovation: Leadership in the Age of Artificial Intelligence.”