Central Bank of the Republic of Kosovo meets IMF technical assistance mission to advance crisis management and bank resolution framework

The Central Bank of the Republic of Kosovo hosted an International Monetary Fund technical assistance mission to work on advancing its crisis management framework and strengthening financial stability, with a particular focus on developing bank recovery and resolution capabilities. The Central Bank reported progress in establishing the recovery and resolution function, including dedicated internal governance arrangements and stronger interdepartmental coordination. It noted that the new Banking Law provides the legal basis for this function, while secondary legislation and implementing regulations are still being developed and are expected to be adopted gradually in line with international standards. Discussions also highlighted the need for effective interinstitutional coordination, particularly with the Ministry of Finance and the Deposit Insurance Fund of Kosovo, supported by a dedicated structure intended to facilitate coordination of tools and efficient information-sharing in periods of financial stress, alongside further operationalisation through simulations, scenarios and operating protocols. The IMF mission confirmed it will continue technical support, focusing on further development of the regulatory framework, strengthening recovery and resolution, and making interinstitutional coordination structures operational.