The Central Bank of Kosovo has welcomed the positive assessments of the EC, which according to the CBK confirms that the financial sector has maintained high stability, sufficient capitalization and significant progress in harmonization with European Union standards.

The CBK says that the report assessed that banks in Kosovo operate with high levels of capital and liquidity, while non-performing loans remain at historically low levels.

"The adoption of the regulation on macroprudential capital additions and the SREP implementation plan, in accordance with EBA guidelines, is also assessed. In the area of ​​payments, the Report highlights the adoption of the Law on Payment Services, the CBK's membership in EACHA and the significant increase in electronic payments, as well as the expansion of financial services in the northern municipalities.

The Commission appreciates the measures taken against euro counterfeiting, the progress in digitalisation and sustainable finance, the strengthening of access to finance for SMEs through the KGFK, as well as the advances in the AML/CFT framework and the law on Crypto-Assets, moving towards risk-based supervision.

"The report also recognizes the strengthening of the CBK's internal governance, including institutional reorganization, advanced human resources policies, and the creation of a cybersecurity division," the CBK's response states.

In addition to positive assessments, the EC recommends advancing financial data collection, developing a framework for banking recovery, and improving financial market infrastructure.

The CBK reaffirms its commitment to continue reforms and full alignment with the EU acquis, thanking the European Commission for its assessment and cooperation. /Telegraph/

financesNEWSFinance