Central Bank of the Republic of Kosovo governor outlines credit guarantee capital treatment and reform priorities at Kosovo Credit Guarantee Fund anniversary conference

The Central Bank of the Republic of Kosovo published remarks by Governor Ahmet Ismaili from an international conference marking the 10th anniversary of the Kosovo Credit Guarantee Fund (KCGF), where he highlighted the role of institutional cooperation and credit guarantees in expanding access to finance, particularly for small and medium-sized enterprises. He noted that Kosovo’s financial system has grown steadily over the past decade, with banks accounting for around two thirds of total system assets and lending and deposits roughly tripling over the period. The governor also pointed to the Central Bank’s role in establishing and advancing the KCGF, including enabling a 0% risk weight for KCGF-guaranteed loans for capital requirement purposes, and reported non-performing loans of around 2%. He outlined ongoing Central Bank reforms to further strengthen the sector, including upgrading the regulatory and macroprudential framework, aligning with European Union standards, and promoting financial innovation and digitalisation, alongside initiatives to develop alternative financing and establish a capital market under a prudent regulatory approach.