Overview
The financial sector is regulated by the Central Bank of Kosovo (CBK). As of 2022, total assets reached €9.89 billion. The system is modern, with 9 out of 12 banks being foreign-owned.
Banking
Banks must be established as Joint Stock Companies or branches of foreign banks. They are subject to strict licensing regarding capital and liquidity. Foreign banks can also open representative offices for market research purposes.
Microfinance and Non-Bank Financial Institutions (NBFI)
These institutions provide loans and financial leasing. NBFIs can also engage in payment services, underwriting, and advisory services. There are specific limitations on lending exposure to single entities.
Insurance
The insurance market includes both life and non-life insurance (91.6% of the sector). Insurers must be Joint Stock Companies with a minimum capital of €2.2 million (or €3.2 million for high-risk classes). The CBK issues separate licenses for different insurance classes.