Central Bank of the Republic of Kosovo Governor Ahmet Ismaili outlined a target to begin piloting the TIPS Clone (TIPS-K) instant payments system by the end of November 2026 during a briefing for diplomatic missions and international institutions. The pilot remains conditional on successful technical testing and operational readiness. Developed with the Bank of Italy, the system is intended to process payments within seconds, around the clock throughout the year. Ismaili also reiterated that Kosovo’s application to the Single Euro Payments Area (SEPA) is still being finalized. Following approval of amendments to legislation on preventing money laundering and combating terrorist financing, remaining internal procedures must be completed before formal submission to the European Payments Council. The central bank estimates that SEPA participation could generate annual savings exceeding EUR 55 million for citizens, businesses and the diaspora. The briefing placed these payments projects alongside ongoing supervisory reforms and alignment with European Union standards. Banking sector indicators included a capital adequacy ratio of 16.4%, a liquidity coverage ratio of approximately 300% and a nonperforming loan ratio of 2.0%. Continuing reforms address supervision based on risk and the macroprudential framework, alongside bank recovery and resolution mechanisms. Regulatory alignment also covers financial integrity, supervisory reporting and insurance regulation.

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