Central Bank of the Republic of Kosovo highlights capital buffers and EU aligned supervisory reforms at ECOFIN dialogue

At the annual Economic and Financial Dialogue in Brussels organised by the European Commission, the Central Bank of the Republic of Kosovo presented developments in Kosovo’s financial sector and macroeconomic outlook, stating that the banking sector remains stable, well capitalised, liquid and profitable, with capacity to support financing of the economy. In that context, it highlighted preventive macroprudential action, including activation of capital buffers such as the countercyclical capital buffer and buffers for systemically important institutions. The presentation also covered progress in strengthening the supervisory framework and aligning it with European Union standards, including further implementation of risk-based supervision and harmonisation of reporting frameworks. It also pointed to reforms to strengthen crisis management capacity through advances in the bank recovery and resolution framework and the Emergency Liquidity Assistance Framework. In a thematic discussion on economic and financial conditions and the impact of current geopolitical developments, the central bank stressed the need to preserve financial stability through prudent policies and institutional coordination to address external risks in a timely way.