The Central Bank of the Republic of Kosovo has approved a roadmap for implementing the Supervisory Review and Evaluation Process (SREP) for banks, providing for a gradual transition from the current CAMELS-based assessment framework to an approach aligned with European Banking Authority principles and tailored to the size, scope and complexity of Kosovo’s banking system. SREP is positioned as the central bank’s framework for ongoing monitoring and evaluation of banks’ risk exposures and for shaping an appropriate supervisory strategy. Developed with International Monetary Fund support, the roadmap is presented as part of the central bank’s reform agenda and as fulfilling a structural benchmark under its current IMF arrangements, reflecting recommendations from the IMF’s December 2024 technical assistance mission on SREP. The roadmap also aims to strengthen risk assessment by refining evaluation criteria and guidance, underpinned by regular prudential data analysis to produce more harmonised risk assessment outcomes. Implementation planning includes staff training and structured consultations and cooperation with domestic banks and other stakeholders, alongside setting an indicative timeframe for full implementation of the SREP manual.
Central Bank of the Republic of Kosovo 2025-03-03
Central Bank of the Republic of Kosovo approves roadmap for phased rollout of the Supervisory Review and Evaluation Process for banks
The Central Bank of the Republic of Kosovo approved a roadmap for transitioning to the Supervisory Review and Evaluation Process (SREP) for banks, aligning with European Banking Authority principles. Supported by the International Monetary Fund, the roadmap aims to enhance risk assessment and supervisory strategies, fulfilling a structural benchmark under current IMF arrangements. Implementation involves staff training, consultations with banks, and setting a timeframe for full adoption of the SREP manual.