The banking sector in Kosovo continues to consolidate

The Central Bank of the Republic of Kosovo (CBK) announces that, in accordance with applicable legislation, it has approved the acquisition of the Kosovo branch of the foreign bank Türkiye İş Bankası A.Ş. by Banka Ekonomike Sh.A. This decision follows a mutual agreement reached between the two financial institutions and the consent obtained from the relevant banking supervisory authority in Turkey, in line with legal provisions in force.

This process is in compliance with Chapter V of Law No. 04/L-093 “On Banks, Microfinance Institutions, and Non-Bank Financial Institutions,” and will be carried out within the necessary timeframes, ensuring uninterrupted banking services for all clients.

According to CBK data, following this transaction, Banka Ekonomike’s market share in the banking sector will increase by approximately 1%, without changing its position in the ranking of banks by asset size. The bank will remain within regulatory parameters following the completion of this consolidation.

Upon finalization of the acquisition process—conducted between the two banks, all assets and liabilities of İş Bank’s branch in Kosovo will be transferred to Banka Ekonomike. Existing clients (of İş Bank) will continue to receive their banking services without interruption; their accounts, savings, and cards will remain active and secure.

Clients are not required to take any action following this notice, unless instructed otherwise by their bank. For any additional clarifications, clients may contact either İş Bank or Banka Ekonomike at the addresses published by the respective institutions.

The CBK acknowledges the contribution of Türkiye İş Bankası to the banking sector and the broader economy and welcomes its commitment to an efficient and secure transfer of its portfolio and services to the acquiring bank, in accordance with the agreement and best international practices.

This development follows the previous CBK decision regarding the transformation of Ziraat Bank – Kosovo Branch, from a branch of a foreign bank into a licensed and locally established bank in Kosovo, under the name Ziraat Kosova Sh.A., which is subject to the same regulatory requirements as all other banks operating in the country. This transformation has no impact on clients, while the bank continues its internal restructuring process in line with applicable regulations.

With this latest development, the banking sector in Kosovo will no longer have foreign bank branches in operation. All banks with foreign capital will be fully established locally, creating equal operating conditions and enhancing competition in the banking sector, in line with international recommendations and practices.

Within its mandate, the CBK will closely monitor the acquisition and transformation processes, ensuring their effective and orderly implementation, with particular focus on the protection of depositors and banking clients. The CBK remains committed to advancing the stability and competitiveness of the banking sector, ensuring regulatory compliance, and contributing to the sustainable development of the country’s economy.