The Central Bank of the Republic of Kosova (CBK) welcomes the publication of the International Monetary Fund’s Technical Assistance Report “Republic of Kosovo: Financial Sector Stability Review – Follow-up”, prepared by the IMF’s Monetary and Capital Markets Department following the FSSR follow-up mission conducted at the request of the CBK.

The report acknowledges the significant progress achieved by the CBK in strengthening financial sector oversight, risk-based supervision, the implementation of the Supervisory Review and Evaluation Process (SREP), stress testing, macroprudential policy, and institutional governance. It also confirms that Kosovo’s financial system remains broadly sound, with banks well-capitalized, non-performing loans at low levels, and liquidity buffers remaining above regulatory requirements.

The IMF report highlights that, since the 2019 FSSR, the CBK has advanced important reforms, including the strengthening of risk-based banking supervision, further advancement of the SREP/SRP framework, the implementation of Basel III-related regulatory standards such as the Leverage Ratio, LCR and NSFR, and the activation of macroprudential instruments. The report also recognizes progress in establishing the macroprudential framework, including the designation of Domestic Systemically Important Banks and the introduction of the Countercyclical Capital Buffer.

The report further notes the CBK’s progress in strengthening institutional arrangements, supervisory capacity, financial stability analysis, and crisis-preparedness frameworks, while providing a clear technical roadmap for the next phase of reforms. These recommendations will support the CBK’s continued efforts to further enhance supervisory effectiveness, systemic-risk monitoring, data infrastructure, macroprudential policy, and financial sector resilience.

The CBK expresses its appreciation to the International Monetary Fund, the Monetary and Capital Markets Department, the FSSR mission team, and the donors of the Financial Sector Stability Fund (FSSF), whose support has contributed to advancing technical assistance and capacity development in key areas of financial stability.

The CBK remains committed to implementing reforms in line with international standards and European Union practices, with the objective of safeguarding financial stability, strengthening institutional resilience, and supporting sustainable financial sector development in the Republic of Kosovo. The full Report is available here: https://www.imf.org/en/publications/technical-assistance-reports/issues/2026/05/01/republic-of-kosovo-technical-assistance-report-financial-sector-stability-review-follow-up-575786/

Lajmi i kaluar CBK publishes Report on IMF Central Bank Transparency Code: Findings affirm robust governance and transparency practices
CBK publishes Report on IMF Central Bank Transparency Code: Findings affirm robust governance and transparency practices
Lajmi i radhës Central Bank of the Republic of Kosova includes gold in reserve portfolio for the first time
Central Bank of the Republic of Kosova includes gold in reserve portfolio for the first time