CBK Annual Report for 2025 approved: Financial stability, strengthening of financial system integrity, and institutional resilience confirmed

The Central Bank of the Republic of Kosova (CBK) has approved its Annual Report for 2025, which reflects the institutional commitments, developments, and achievements in fulfilling its mandate to safeguard financial stability, preserve public confidence, strengthen the integrity of the financial system and monetary sovereignty, as well as ensure the resilience of the CBK as an independent constitutional institution.

The Report confirms that Kosovo’s economy and financial system maintained their stability and resilience, despite challenges arising from the external economic and geopolitical environment. During 2025, Kosovo’s economy recorded real growth of 3.6%, while inflation reached 3.9%. Public debt remained low, at 16.4% of Gross Domestic Product, while remittances and foreign direct investment continued to support economic activity.

The financial system continued its sustainable expansion, with assets reaching around 14.6 billion euro. The banking sector remained the main pillar of the financial system, maintaining high levels of capitalization and liquidity. Loans reached around 6.7 billion euro, with annual growth of 14.7%, while the non-performing loan ratio remained low, at around 2%, demonstrating the high quality of the credit portfolio and the sector’s resilience to potential shocks.

During 2025, the CBK further strengthened the macroprudential framework, including through macroprudential capital buffers, and advanced the deposit insurance system by increasing banks’ contributions through premiums to the Deposit Insurance Fund of Kosovo, thereby contributing to further capitalization and to the strengthening of financial stability.

The CBK intensified the supervision of the financial system by conducting 30 on-site examinations in the banking, insurance, pension, microfinance, and non-bank financial institution sectors, with a focus on risk management, corporate governance, cybersecurity, and regulatory compliance. At the same time, the harmonization of the regulatory framework with European Union standards was advanced, including gradual progress toward the implementation of the SREP model and advanced FINREP/COREP reporting standards.

In the area of payments, 2025 was characterized by significant progress toward digitalization and European financial integration. The Kosovo Interbank Payment System (KIPS) processed over 21 million transactions with a value of more than 27 billion euro, while the use of electronic payment instruments continued to increase, including ApplePay and GooglePay services. The CBK carried out the required tasks toward Kosovo’s membership in the Single Euro Payments Area (SEPA) and advanced the instant payments project through the TIPS Clone with the Bank of Italy.

In support of increased transparency, consumer protection, and financial inclusion, the CBK approved the Regulation on the Platform for the Comparison of Financial Products and Services and launched this platform as a concrete instrument for empowering citizens and increasing transparency in the financial market.

Regarding financial innovation and the integrity of the financial system, the first regulatory framework for crypto-assets was approved, steps were undertaken toward the establishment of the Anti-Counterfeiting Unit, and a Memorandum of Cooperation was signed with the European Central Bank (ECB) to protect the integrity of the euro currency in Kosovo. In addition to ensuring the efficient supply of cash to the economy, the CBK undertook measures to formalize the economy, including the withdrawal from circulation of EUR 500 banknotes, amounting to around 170 thousand pieces, as well as the regulation of cross-border cash transportation

At the international level, the CBK secured the continuation of the 100 million euro EUREP liquidity line from the ECB, while Kosovo was removed from the World Bank’s list of countries in Fragile and Conflict-Affected Situations (FCS/FCV). In addition, the international agency Fitch Ratings affirmed Kosovo’s sovereign credit rating at “BB-”, reflecting macroeconomic stability and increased international confidence in the country. During the year, the CBK also strengthened its presence in regional and international forums and expanded cooperation through various technical assistance programs, including the advancement of international reserve management, in support of reforms, institutional capacities, and alignment with international standards.

The Annual Report also includes the audited financial statements of the CBK for 2025, which received an unmodified opinion from the external auditor. For 2025, the CBK recorded a positive financial result of 24 million euro, while, in accordance with the applicable legal framework, 50% of the profit was allocated to the budget of the Republic of Kosovo and 50% to the reserves of the CBK, contributing simultaneously to the strengthening of the institution’s financial resilience and to public finances.

The CBK expresses special appreciation to its staff for their professionalism, dedication, and continuous work in fulfilling the institutional mandate; to its governing and supervisory bodies; as well as to domestic institutional and international partners for their cooperation, support, and contribution to advancing the CBK’s reforms and strategic objectives.

The CBK remains committed to continuing with a prudent, reform-oriented approach aligned with European standards, in support of safeguarding financial stability, strengthening the integrity of the financial system, and supporting the sustainable economic development of the Republic of Kosovo.