of banking sector development, by providing the entire necessary both financial and regulatory infrastructure. the close cooperation between the cbk and the banking sector, facilitated to a great extent by the kosovo banking association, has allowed us to effectively address the needs for developing and maintaining the sector ’ s stability and we are therefore committed to further advance our constructive cooperation. faqe 5 nga 5

obligations from immovable property ownership. the regulatory framework applied to financial institutions aims to determine the minimum requirements and standards that must be applied by every licensed financial institution. appraisal of immovable property in relation to transactions in which immovable property is used as collateral for any credit instrument issued by financial institutions, as well as determining which immovable property transactions require the services of a licensed appraisers is of primary importance. property appraisal potentially affects capital allocation through risk - weighted assets, for loans that are collateralized by immovable property. once we have managed to have this process finalized, we will also look at the possibility of considering commercial immovable property collateral to be weighted with a smaller weight in risk weighted assets. currently these collaterals are weighted with a risk of 100 percent according to our regulation, so that when the appraisal is more accurate / fair, they will be able to be weighted with a lower weight. this would also enable the release of capital and therefore the possibility for more lending. the cbk cooperates closely with the supervisory council on licensing of immovable property assessors, established by the ministry of finance, labour and transfers, in which it also participates with its representative. in addition to the licensing by this council of a number of immovable property appraisers who carry out appraisal for the needs of the financial sector, the cbk has also licensed a number of its personnel engaged in the examination of financial institutions, who assess reports prepared by appraisers engaged for financial institutions. the cbk is committed to further advancing the regulatory and supervisory framework related to the appraisal of immovable property. we expect that through this usaidsupported project, we will be able to advance the existing legal and regulatory framework of the appraisal of immovable property, including establishing the necessary mechanisms for quality control of appraisal and adequate monitoring of appraisers. in this regard, the central bank of the republic of kosovo, through its involvement in the inter - institutional working group, within the framework of the international monetary fund program, has been involved in the preparation of the residential property price indices, a project which is being led by the kosovo agency of statistics. we expect that these changes will directly affect banks and other financial institutions to correctly implement the applicable regulatory requirements, as well as to advance their policies and procedures related to the appraisal of immovable property, in accordance with international best practices and european union standards,