fehmi mehmeti : the financial sector is liquid and supports the economy in kosovo speech by mr fehmi mehmeti, governor of the central bank of the republic of kosovo, at the conference with the head of the imf mission for kosovo, mr gabriel di bella, pristina, 4 november 2022. * * * dear di bella - head of the imf mission for kosovo dear media first of all, allow me to thank the international monetary fund for the continuous support it has provided to kosovo, and in particular to the central bank of the republic of kosovo, in carrying out its duties in maintaining and preserving a stable and continuously growing financial system. during the meetings held with representatives of the international monetary fund, we informed them about the latest developments and data of the financial system in kosovo. the financial system in kosovo has continued to be liquid and well capitalized, where double - digit growth has been recorded in all indicators being one of the important factors in the economic growth and development of the country. in total, the means of the financial system in the country, on 31 august, 2022, have reached the total value of 9. 3 billion euros, with an annual increase of 10 percent. in the meantime, the means of the banking sector have continued the growth trend even during 2022, reaching the value of around 6. 4 billion euros in august 2022, which represents an annual increase of 11. 1 percent. in august 2022, the total value of deposits is worth 5. 2 billion euros, which represents an annual increase of 11. 8 percent, while the growth of deposits continued during the month of september, with a rate of 12. 7 percent. the banking sector continues to be stable, increasing lending activity and playing a very important role in crediting the country's economy during this year as well. the value of the credit portfolio of the banking sector at the end of august 2022 was in the amount of 4. 2 billion euros, with an annual increase of 18. 6 percent, while the average loan interest rate was 6. 0 percent. non - performing loans have continued with the downward trend and today the rate of non - performing loans is at the level of 2. 1 %, which is a significantly better indicator compared to countries in the region or even beyond. the banking sector continues to be well capitalized and liquid. the capital adequacy indicator for the banking sector stands at 16. 1 percent, which is significantly above

i am honored to be with you today, to inaugurate the opening of the new raiffeisen bank head office. your investment in this facility is a clear indicator of your commitment to continue operating successfully in kosovo's banking and non - banking systems, in the future as well. raiffeisen bank has played a very important role in creating a safe and sound financial system that has contributed to kosovo's economic growth. we are very honored with your presence and the success you have shown so far and we hope you will continue with this success in the future. raiffeisen bank has greatly contributed to the development of fair competition, continuous improvement of products and development of new products, by increasing access to finance, contributing to the development of trade relations with other countries, helping to attract more foreign investors and, as well, in improving the reputation of kosovo in general. we are thankful for this. raiffeisen bank has also helped in the development of human capital, and continues to use the potential of our youth. among other things, raiffeisen bank remains an example of a good employer, for which, we are all proud of. the cbk as a financial system supervisor will continue to work on maintaining a safe and sound financial system and will continuously improve the economic environment, in which the financial industry operates. the financial sector is a sector with great dynamic development and rapid changes in the economic environment that surrounds it. the financial systems of different countries are constantly integrating and this requires increased cooperation between these countries. the cbk remains committed to cooperating, with the aim of overcoming challenges in the future and integrating kosovo's financial system into the systems of developed economies. banks in kosovo, as in all other countries, have a special status in the economy. this status is associated with different regulatory requirements and greater requirements for social responsibility, and i am pleased to say that banks in kosovo successfully meet these requirements. today in kosovo our savings are safe and advancements in technology allow us to access them faster. banks are an example of success in kosovo, so i urge them to promote their success even further, in order to attract and increase foreign investments in other sectors as well. this would affect the economic development that is most needed for financial stability, as well as the further advancement of the banking sector in which raiffeisen bank plays a very important role. at the end, i would like to thank you for your contribution to the economic development of kosovo and wish you success in the future