Governor Ismaili participates as a panelist at the high-level International Conference on Payments and Market Infrastructure in Ohrid

The Governor of the Central Bank of the Republic of Kosovo (CBK), Mr. Ahmet Ismaili, participated as a speaker at the 16th International Conference on Payments and Market Infrastructures, themed “Rewiring Payments for the Digital Era,” organized in Ohrid by the National Bank of the Republic of North Macedonia (NBRM) and De Nederlandsche Bank (DNB – Eurosystem). The conference was opened with introductory remarks by the Governor of NBRM, Mr. Trajko Slaveski, and Ms. Inge van Dijk, Director of Payments, Cash and Market Infrastructure at De Nederlandsche Bank.

The focus of the conference was on discussing the strengthening of the financial framework toward integration into the Single Euro Payments Area (SEPA) through the connection of the Western Balkans’ payment infrastructure with that of the European Union.

Governor Ismaili participated as a panelist in the session titled “Making SEPA Happen Before EU Accession: Aligning Infrastructure, Regulation, and Innovation,” alongside Governor of the NBRM, Mr. Trajko Slaveski, Deputy Governor of the Bank of Albania, Ms. Luljeta Minxhozi, Governor of Central Bank of Montenegro, Ms. Irena Radović, Governor of the Central Bank of Bosnia and Herzegovina, Ms. Jasmina Selimović, and Governor of the National Bank of Moldova, Ms. Anca Dragu. The session was moderated by Mr. Holti Banka from the World Bank.

In his address, Governor Ismaili emphasized the CBK’s commitment to modernizing Kosovo’s payment system, strengthening financial infrastructure, and preparing for full SEPA integration as part of the alignment process with European Union standards. He highlighted that over the past three years, Kosovo has moved from gradual reforms to a comprehensive transformation of its payment ecosystem, fully aligned with European best practices. Governor Ismaili emphasized that the preliminary SEPA membership application process took place in October 2024 and was completed in December 2024. The submission of the full application will take place at the earliest opportunity once the relevant laws are published and when 20 secondary legislative acts, approved by the CBK with World Bank support, enter into force enabling the full implementation of legal and technical reforms.

Focusing on the technical and market aspects, Governor Ismaili emphasized that banks and financial institutions in Kosovo already apply the IBAN format and use the ISO 20022 standard through the implementation of RTGS. He added that the greatest benefit, already visible both in the region and in Kosovo, is linked to the opening of the market to new FinTech players in the field of payments, which has stimulated increased competition and interest in innovation both from domestic and European service providers who view SEPA integration as a mechanism that creates a level playing field in the market.

However, Governor Ismaili also pointed out that key challenges remain, such as ensuring full operational compliance with PSD2 and PSD3 directives, strengthening supervisory capacity in the field of anti–money laundering and countering the financing of terrorism (AML/CFT), and ensuring that the payments industry is not only formally compliant with European standards but also technically and operationally synchronized with them to ensure that integration benefits are real and sustainable.

Speaking about the further modernization of payment infrastructure, Governor Ismaili stated that the CBK has integrated the SEPA process into a broader payments transformation strategy, encompassing legal harmonization, infrastructure modernization, open banking, instant payments, and financial inclusion. He underscored that the TIPS Clone project, developed in collaboration with Banca d’Italia and the World Bank, constitutes the technological backbone of this strategy. which will enable instant payments at both the national and cross-border level with regional and EU countries, including not only banks but also non-bank payment service providers to foster competition, innovation, and inclusion where they have shown strong engagement and are currently in the planning and preparation phase to adapt their core systems.

Expressing gratitude to the organizers for hosting this important conference, which enabled the exchange of experiences and best practices in the field of payments and market infrastructure, aimed at strengthening regional financial integration, fostering innovation, and advancing Kosovo’s inclusion in SEPA as a crucial step toward full European integration, Governor Ismaili praised the excellent cooperation with central banks and regulatory authorities in the region and the European Union, as well as the support of international institutions in advancing Kosovo’s payment system modernization.

This high-level conference brought together leaders and officials from international financial institutions, including the World Bank, the Bank for International Settlements (BIS), the European Commission (DG FISMA and DG ENEST), the European Payments Council (EPC), as well as governors of European and regional central banks, heads of banking institutions, payment service providers, and private sector representatives.