Regulatory Alerts2016-09-29
Regulation on Large Exposures
The Central Bank of the Republic of Kosovo issued this regulation to limit credit risk concentrations by capping large exposures to single persons or related groups at ten percent of Tier 1 capital, with a maximum limit of fifteen to twenty-five percent and an absolute cap of EUR twenty-five million for foreign bank branches. It defines exposure calculations, establishes consolidation rules for banking groups, and permits specific exceptions for cash-collateralized, government-guaranteed, and money market instruments. The regulation mandates Board of Directors oversight, requires standardized regulatory reporting through a designated return form, and authorizes the CBK to enforce compliance through remedial actions and civil penalties for any statutory breaches.