During a financial stability and regulation panel at the Istanbul Economic Forum, Central Bank of the Republic of Kosovo Governor Ahmet Ismaili reported that Kosovo’s banking sector remains stable, well capitalized and highly liquid. He cited a capital adequacy ratio of 16.4%, a liquidity coverage ratio of about 294% and a nonperforming loan ratio of 2.0%. The assessment was set against real gross domestic product growth of 4.6% in the first half of 2026 and public debt equivalent to 16.1% of GDP. Ismaili outlined how the central bank incorporates external shocks into macrofinancial stress testing and applies domestic capital and liquidity requirements, related party exposure limits and cross-border supervisory cooperation to foreign-owned banks. As nonbank financial activity expands, he emphasized systemwide risk monitoring, improved credit information and proportionate regulation based on the principle of the same activity and risk receiving the same regulatory treatment. He also highlighted oversight of sovereign-financial sector links in Kosovo’s euroized economy. The governor reported progress in implementing risk based supervision through the Supervisory Review and Evaluation Process and preparing to apply the European FINREP and COREP reporting frameworks. These efforts continue the strengthening of supervisory and macroprudential arrangements addressed by an International Monetary Fund technical assistance mission in 2025 and support gradual alignment with European Union requirements and Basel standards.

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