The Governor of the Central Bank of the Republic of Kosovo, Mr. Ahmet Ismaili, as a traditional event on the eve of the end of the year, unveiled the 2024 Annual Presentation to the media and journalists.

He began his opening remarks by expressing his gratitude to the media and journalists for their important work in informing the public about the financial sector and advancing financial education, which also contributes to the quality of financial services in the country.

The presentation began with selected macroeconomic indicators, where it was emphasized that the CBK projections are that economic growth in Kosovo is expected to be around 4.3 percent, while the inflation rate is around 1.6 percent. On the other hand, remittances by September 2024 exceeded the value of 1 billion euros, marking a new record, while Foreign Direct Investment reached the value of 657.3 million euros by September 2024.

Regarding the financial sector, it was reconfirmed that the financial system in the country is sustainable, stable, liquid and well-capitalized, with high quality assets, which is an advancement in the overall inclusion and financial access of citizens. With the measures taken by the CBK, which are also positively recognized by international assessments of the country in the integration processes, the integrity of the financial sector has been significantly increased and the money supply of the economy has been regulated, the phenomenon of counterfeit money has been combated, financial education has been advanced, and actions have been taken in terms of implementing legality in the financial sector according to the relevant legislation..

Significant progress has been made in advancing the legal and regulatory framework of the CBK, while the reforms initiated to advance financial supervision in banks, insurance, non-bank financial institutions, pension funds, and the payment system are continuing. Important decisions have been taken in these areas, while international partnership, through necessary technical assistance, is strongly supporting these reforms.

The start of the implementation of capital additions as macroprudential instruments on the one hand, alongside the substantial increase in banks’ contribution to the Deposit Insurance Fund, accompanied by the initiated reform of the relevant legislation, will have a positive impact on both the growth of the depositor base and lending and other related services.

According to Governor Ismaili, lending has increased satisfactorily, supporting the economy, while the sector is expected to further increase its competitiveness and offer as many appropriate products as possible for the local context of the country’s financial sector. The new legislation is expected to have a positive impact in this direction, along with strengthening the financial sector.

The non-performing loan (NPL) indicator continues to remain low at 2% according to November 2024 data, respectively 2.4 percent for the corporate sector and 1.5 percent for households.

In terms of financial sector performance, the number of accounts has reached 2.5 million, of which over 1 million have access to e-banking services. The number of POS transactions within a year has increased by 39%, while the number of ATM transactions by the end of November 2024 has increased by only 4%.

It is worth noting that as a result of the full implementation of the Basic Services Payment Account, around 390 thousand accounts have been converted to such accounts so far, directly impacting the cost of banking transactions for our citizens.

In presenting the internal organizational reforms, he emphasized that the organizational structure has been reviewed, focusing on the objectives and strategic plan, which emphasized that “the Executive Board has been functionalized, corporate governance has been strengthened and all necessary structures of the CBK have been functionalized, as confirmed by international reports”.

In the framework of advocacy and internationalization of the CBK and the financial sector, Governor Ismaili indicated that dozens of visits have been held with international financial institutions, as well as meetings with international representations operating in the Republic of Kosovo.

He also stressed that CBK has completed the pre-application for the Single Euro Payments Area known as SEPA with the European Commission this year. Immediately after the adoption of three important laws for the financial sector, such as: the Law on Banks, the Law on Payment Services and amendments/supplements to the Law on the Prevention of Money Laundering and Financing of Terrorism, the CBK Board approved twenty relevant regulations that were necessary for the application and which enter into force after the entry into force of the respective laws.

Speaking with regard to projects and strategic activities related to the overall financial inclusion of citizens, Governor Ismaili indicated that improvements have been made in the area of ​​consumer protection, where a new Department has been established, with the aim of reviewing market practices.

Furthermore, he emphasized that the number of publications on the CBK’s communication channels (website and social networks) has been advanced and increased, including regular publications of events, developments and infographics that are of interest to the public, therefore, in order to fulfill its vision of improving transparency, advancing communication with the public, raising awareness and promoting financial education and financial inclusion for all citizens, it has now redesigned and launched its new website.

Also, Governor Ismaili indicated that the Platform for Comparison of Financial Products and Services has already been operationalized and is being launched within the framework of financial education, developed to be used by consumers for information and comparison of the fees of products and services offered by financial institutions.

Governor Ismaili also spoke with regard to the successful conclusion of the event marking the 25th anniversary of the establishment of the CBK with a high-level International Conference, which was attended by senior leaders of the International Monetary Fund (IMF), the World Bank Group (WB), senior officials of domestic and international institutions, governors and deputy governors from central banks of the EU and beyond, as well as leaders of other financial institutions.

At this event, the CBK “Young Economist” Award was also presented, with the aim of encouraging and motivating research activity with their works.

The CBK would like to take this opportunity to express its gratitude and best wishes at this end of the year to all staff for their unwavering work and commitment, the management and the Board of the CBK, while expressing its gratitude to the institutions of the Republic of Kosovo, the institutions of the European Union, the media and the civil society, and all international partners who have contributed to achieving these results, and will support the CBK in achieving the objectives, tasks and strategic goals set.

Lajmi i kaluar IMF Report acknowledges CBK’s ambitious agenda of governance and institutional reforms to strengthen financial stability and European integration
IMF Report acknowledges CBK’s ambitious agenda of governance and institutional reforms to strengthen financial stability and European integration
Lajmi i radhës The Central Bank of the Republic of Kosovo launched the Platform for Comparison of Financial Products and Services
The Central Bank of the Republic of Kosovo launched the Platform for Comparison of Financial Products and Services
Skip to content