Governor Ismaili meets IMF Mission experts to discuss reforming banking supervision in line with European Union practices

The Governor of the Central Bank of the Republic of Kosovo (CBK), Mr. Ahmet Ismaili, accompanied by Deputy Governor Mr. Milot Cakaj and associates, held a meeting with senior experts engaged by the International Monetary Fund (IMF), including Mr. Valter Borges de Araujo Neto and Ms. Rita Tam. This meeting was part of the technical assistance requested by the CBK to advance banking supervision methodologies and practices.

During this Mission, the current supervisory process will be reviewed, and key areas for enhancing the methodology and supervisory process in line with European supervisory practices will be identified. This involves transitioning from the CAMELS model towards the Supervisory Review and Evaluation Process (SREP) methodology, as implemented by the European Central Bank and other central banks within the European Union.

As a result of this technical assistance, in coordination with international IMF experts, a roadmap for advancing the SREP supervisory methodology will be finalized. Recommendations will include updates to the supervisory manual, potential regulatory changes, a pilot implementation phase, and final implementation as a gradual process, alongside the enhancement of professional and technical capacities.

This Mission aligns with the recommendations agreed upon in the IMF’s Stand-By Arrangement (SBA) program and subsequent review processes.

The IMF values the CBK’s commitment to institutional reforms, noting that such advancements align with European Union standards. The CBK’s proactive approach aims to enhance supervisory aspects and financial stability, as well as other reforms towards harmonization with standards and practices implemented by regulatory and supervisory authorities of the European Union.

The CBK remains dedicated to fulfilling all measures outlined in the program with the IMF, as part of its reform activities in line with its objectives and Five-Year Strategic Plan, and expresses gratitude to the IMF for its continued support.