Regulatory Alerts2019-01-31
Regulation on Effective Interest Rate and Disclosure Requirements for Non-Bank Financial Institutions
The Central Bank of Kosovo has issued a regulation mandating non-bank financial institutions to calculate and uniformly disclose the Effective Interest Rate (EIR) on all credit products. The rule establishes a standardized calculation methodology that includes compulsory fees while excluding optional or third-party charges, and requires transparent pre-contract disclosures, clear advertising, and accessible price lists. Institutions must submit quarterly EIR reports to the regulator and face remedial measures for non-compliance, ensuring customers receive accurate cost information and fair pricing.
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