The Central Bank of the Republic of Kosovo published its Annual Presentation for 2025, reaffirming that the financial system remains stable, liquid and well capitalised, while highlighting progress in supervisory and legal reforms and setting out 2026 priorities focused on payment modernisation and further strengthening sector integrity. On the macro outlook, the central bank projects 2025 economic growth of around 3.9% and inflation of around 3.6%, with remittances expected to reach EUR 1.4bn (3.8% annual growth) and foreign direct investment EUR 950m. Reported banking indicators included non-performing loans of 2.1% (November 2025), a capital adequacy ratio of 17.6%, liquidity coverage above 216% and a loans-to-deposits ratio of 88%. The update also pointed to increased financial access and digital usage, including 2.8m accounts, more than 1.2m with e-banking access, a 33% annual rise in POS transactions, and over 413,000 accounts converted to basic accounts, mostly with no maintenance or operating fees; Google Pay and Apple Pay adoption reached over 66,000 users within four months, nearing EUR 10m in transactions. For the Single Euro Payments Area (SEPA), the central bank said it has completed preparations and the pre-application process with the European Commission, but final application is still blocked by the non-entry into force of the Law on Banks, the Law on Payment Services and amendments to the anti-money laundering and counter-terrorist financing law, which are under procedural review by the Constitutional Court. In parallel, it has launched projects to change how retail payments are made, including an instant payments system (a TIPS Clone with the Bank of Italy), alongside work on open banking and QR payments.

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