Functions and Responsibilities of the Central Bank of the Republic of Kosovo

On June 5, 2008, the Assembly of Kosovo approved Law No. 03/L-074 FOR THE CENTRAL BANK OF THE REPUBLIC OF KOSOVO, which was later replaced by Law No. 03/L-209, and subsequently supplemented and amended.

The objectives of the CBK according to the law in force:

Financial Stability

The primary objective of the Central Bank is to foster and maintain a stable financial system, including a safe, sound and efficient payment system.

Price Stability

An additional objective of the Central Bank, which is subordinated to its primary objective, is to contribute to achieving and maintaining domestic price stability.

Supporting the Economy

Without prejudice to attainment of these objectives, the Central Bank supports the general economic policies of the Government.

Open Market

The Central Bank acts in accordance with the principle of an open market economy with free competition, favouring an efficient allocation of resources.

Full independence of the Central Bank: Protection against external interventions.

Within the competencies defined by law, the Central Bank, the members of the Central Bank’s decision-making bodies or staff, shall not take instructions from any other person or entity, including government entities. The independence and autonomy of the Central Bank shall be respected at all times and no person or entity shall seek to influence the members of the decision-making bodies or the staff of the Central Bank in the performance of their tasks or to interfere in the activities of the Central Bank.

The tasks of the Central Bank in pursuit of the objectives set by the law in force include:

01. Support financial stability

Determine and implement financial system stability policy including oversight of a deposit insurance scheme, conducting market operations, and providing emergency liquidity.

02. Financial regulation and licensing

Regulate, license, register and supervision financial institutions as further specified in this law or any other law.

03. Payment and settlement systems

Promote and oversee safe, sound and efficient payment, clearing and securities settlement systems.

04. Manage the supply of banknotes and coins

Ensure an adequate supply of banknotes and coins in Kosovo.

05. Reserves management

Hold and manage the international reserves.

06. Collect and publish statistics

Collect and publish statistics.

07. Maintain domestic price stability

Contribute to achieving and maintaining domestic price stability.

08. Public and Government Information

Inform the Assembly of the Republic of Kosovo, the Government and the general public about its policies, tasks and operations as further specified in this law.

09. Advisor and fiscal agent.

Act as a banker, financial advisor and fiscal agent for the Government and any public bodies and public organizations of Kosovo.

10. International cooperation

Cooperate with and participate in international councils and organizations concerning matters within its area of competence; and

11. Support activities

Carry out any ancillary activities' incidental to the exercise of its tasks under this law or any other law.