The Central Bank of the Republic of Kosovo has approved its 2025 annual report, which presents a picture of continued macroeconomic and financial sector stability alongside further supervisory and regulatory development. The report says Kosovo's economy grew by 3.6% in real terms in 2025, inflation was 3.9%, and public debt remained low at 16.4% of gross domestic product. The financial system continued to expand, with total assets of about EUR 14.6 billion, while the banking sector remained well capitalized and liquid. Loans reached about EUR 6.7 billion, up 14.7% year on year, and the nonperforming loan ratio stayed low at about 2%. On the policy side, the central bank strengthened the macroprudential framework, including through macroprudential capital buffers, and increased banks' contributions to the deposit insurance fund through premiums. It also intensified supervision through 30 on-site examinations across banking, insurance, pensions, microfinance and nonbank institutions, focusing on risk management, corporate governance, cybersecurity and regulatory compliance, while advancing alignment with European Union standards, including gradual implementation of the SREP model and FINREP and COREP reporting standards. In payments, the interbank payment system processed more than 21 million transactions worth over EUR 27 billion, electronic payment use continued to rise, and work progressed on Kosovo's accession to the Single Euro Payments Area and on an instant payments project via TIPS Clone with the Bank of Italy. The report also highlights wider market and institutional measures, including adoption of a regulation and launch of a platform for comparing financial products and services, approval of the first regulatory framework for crypto-assets, steps to establish an anti-counterfeiting unit, and a memorandum of cooperation with the European Central Bank on protecting the integrity of the euro in Kosovo. It notes the withdrawal from circulation of about 170,000 EUR 500 banknotes and regulation of cross-border cash transport. The audited 2025 financial statements received an unmodified external audit opinion, and the central bank reported a positive financial result of EUR 24 million, with 50% allocated to the budget of the Republic of Kosovo and 50% to central bank reserves.
Central Bank of the Republic of Kosovo2026-06-29
Central Bank of the Republic of Kosovo approves 2025 annual report highlighting financial stability and regulatory advances
The Central Bank of the Republic of Kosovo approved its 2025 annual report, which says the economy and financial system remained stable, with 3.6% real growth, 3.9% inflation and a nonperforming loan ratio of about 2%. The report also highlights stronger macroprudential and supervisory measures, progress on EU-aligned regulation and payments modernization, and a positive financial result of EUR 24 million with an unmodified audit opinion.