Financial Stability

Maintaining the Financial Stability

Maintaining the financial stability constitutes a primary statutory and objective obligation for the Central Bank of the Republic of Kosovo (CBK). Financial stability can be defined as the situation in which all components of the financial system (financial markets, financial institutions and financial infrastructure) function without systemic break and maintain and empower system resistance.

In order to maintain financial stability, CBK, among other things, continuously identifies, monitors and analyses systemic risk. Identifying potential risks is done through continuous monitoring of cyclical and structural macroeconomic developments as well as the financial system. Whereas risks assessment and their potential impact on financial stability and consequently overall macroeconomic stability is done through regular qualitative and quantitative analysis, including the analysis of the performance of high-frequency economic and financial indicators, forecasts on key macroeconomic indicators and the application of models that address the cyclical, structural and cross-sectorial dimension of systemic risk.

Indicators of Financial Stability

Financial Stability Report

Financial Stability Report aims at informing the general public, professionals and decision-making authorities on the developments in the financial sector, with particular focus on the banking sector, identifying fragilities and risks for the stability of the sector. The report presents a detailed analysis of developments in the financial sector activity, performance, risks and financial infrastructure in Kosovo.

Also, given that the financial sector has a high degree of inter-connectedness with other sectors, this report reflects also the main developments in the global economy and other sectors of the country’s economy in order to identify the potential risks to the financial sector.

Quarterly Assessment of the Economy

Quarterly Assessment of the Economy is a periodic publication that is published on a quarterly basis, with the latest available data. The report analyzes the main macroeconomic developments in the euro area and Western Balkans, global markets and with a special focus, the Kosovo economy.

In the context of Kosovo’s economy, the report analyzes the dynamics of macroeconomic developments in the country divided into the main sectors of the economy such as the real, financial, external and the fiscal sector. The report also aims, through analysis, to elaborate on the macroeconomic expectations/forecasts for the euro area, as well as for the region and the country’s economy.

Bank Lending Survey in Kosovo

In order to increase analytical capacities for a better assessment of the credit dynamics in Kosovo and expectations for price developments, the Central Bank of the Republic of Kosovo (CEC) designs and conducts a survey with commercial banks operating in the banking market in Kosovo.

The report analyzing the results of this survey is published on the website of the CEK in order to provide a broader picture of banks' risk perception and the willingness of banks to lend, as well as the behavior of households and enterprises towards lending dynamics.