Governor Ismaili presents the 2025 Annual Presentation to the media: Financial stability reaffirmed, reform progress highlighted, and priorities for 2026 outlined

The Governor of the Central Bank of the Republic of Kosova (CBK), Mr. Ahmet Ismaili, presented the 2025 Annual Presentation to media representatives and journalists, as part of the traditional year-end event.

In his opening remarks, Governor Ismaili expressed his appreciation to the media and journalists for their important role in informing the public about the financial sector and in advancing financial education, which also contributes to improving the quality of financial services in the country.

The presentation began with selected macroeconomic indicators, highlighting CBK projections that economic growth in Kosovo for 2025 is expected to be around 3.9 percent, with an inflation rate of approximately 3.6 percent. Meanwhile, remittances by the end of 2025 are projected to reach EUR 1.4 billion, marking an annual increase of 3.8 percent, while Foreign Direct Investment is expected to reach EUR 950 million.

Regarding the financial sector, it was reaffirmed that Kosovo's financial system remains sound, stable, liquid, and well capitalized, with high asset quality and continued progress in access to finance and financial inclusion. Through measures undertaken by the CBK, positively recognized in international assessments related to the country's integration processes, the integrity of the financial sector has been significantly strengthened, cash supply to the economy has been regulated, counterfeit currency has been combated, financial education has been advanced, and enforcement of legality within the financial sector has been enhanced.

Notable progress has been achieved in strengthening the CBK's legal and regulatory framework, while reforms continue in enhancing financial supervision of banks, the payment system, and other areas in line with the Strategic Plan. Important decisions have been taken in these areas, supported strongly by international partnerships through technical assistance.

According to Governor Ismaili, credit growth has increased at a satisfactory pace, supporting economic activity. The sector is expected to further enhance competitiveness and offer a broader range of products tailored to the local financial context. New legislation is expected to have a positive impact in this regard, alongside strengthening the financial sector and advancing economic and financial integration with the European Union.

The non-performing loans (NPL) ratio remains low at 2.1 percent, according to November 2025 data, continuing to be the lowest compared to Western Balkan countries. Other key financial soundness indicators include a capital adequacy ratio of 17.6 percent, a liquidity coverage ratio exceeding 216 percent, and a high loan-to-deposit ratio of 88 percent, reflecting strong bank support for the private sector, as well as sustainable returns on assets and equity that have supported the sector's capitalization.

In terms of financial performance in the sector, the number of accounts has reached 2.8 million, of which over 1.2 million have access to e-banking services. The number of POS transactions increased by 33 percent within one year, while over 413,000 accounts have been converted into basic accounts, the vast majority of which are free of maintenance and operating fees.

During 2025, following the launch of global payment platforms Google Pay and Apple Pay, the number of users grew rapidly, surpassing 66,000 users within just four months of launch, with transactions approaching EUR 10 million. This development has had a positive impact and significant potential for driving digital transformation in the domestic market.

Presenting internal organizational reforms, Governor Ismaili emphasized that the CBK has advanced its governance framework, internal processes, cybersecurity framework, staff support through improved conditions and professional development programs, and financial sustainability. These improvements have enabled the fulfillment of institutional needs, infrastructure investments, and for the third consecutive year, contributions to the state budget through distributable profits.

Within the framework of CBK advocacy and internationalization of the financial sector, Governor Ismaili noted that dozens of meetings, visits, and panels have been held with international financial institutions, as well as meetings with international representations operating in the Republic of Kosovo.

He further emphasized that despite the CBK having completed all preparations and successfully finalized the pre-application process for the Single Euro Payments Area (SEPA) with the European Commission, the final application remains hindered by the non-entry into force of three key financial sector laws: the Law on Banks, the Law on Payment Services, and amendments to the Law on the Prevention of Money Laundering and Combating the Financing of Terrorism. These laws are currently under procedural review by the Constitutional Court, as part of a broader set of legislation.

In parallel, to advance cash supply to the economy and payment execution, the CBK has initiated concrete projects that will transform the way citizens and businesses carry out transactions. These include the instant payments system (Instant Payments), specifically the TIPS Clone in cooperation with the Bank of Italy, as well as additional services related to open banking, QR payments, and others. These initiatives will make the system faster, more secure, and aligned with European standards, while also improving efficiency in cross-border payments by reducing costs and increasing liquidity for businesses operating within the region and with the EU.

Furthermore, Governor Ismaili highlighted the expansion and increased frequency of publications across CBK communication channels, including regular updates on events, developments, and infographics of public interest.

The importance of operationalizing the Platform for Comparing Financial Products and Services (https://krahaso.bqk-kos.org/) was also emphasized, as part of financial education efforts. The platform is designed to help consumers obtain information and compare fees for products and services offered by financial institutions.

During the year-end presentation, the CBK awarded its traditional prizes for "Writing and Reporting in journalism on the Financial Sector", granted on the occasion of the 15 November - the Anniversary of the Establishment of the Central Bank of the Republic of Kosovo, as well as the "Young Economist" award. These awards aim to encourage high-quality financial reporting and motivate engagement in research activities through articles and academic papers.

In conclusion, the CBK took the opportunity to express sincere gratitude and extend year-end wishes to all staff for their dedication and tireless commitment, as well as to the management and the CBK Board. Appreciation was also extended to the institutions of the Republic of Kosovo, partner institutions, the media, civil society, and all collaborators who have contributed to these achievements and continue to support the CBK in fulfilling its objectives, responsibilities, and strategic goals.