Regulatory Alerts2012-11-09
Regulation on Limits to Holdings of Real Estate and Movable Property
The Board of the Central Bank of the Republic of Kosovo issued this regulation to cap bank exposure to real estate and movable property, applying to all licensed domestic banks and foreign branches. It establishes a 50 percent aggregate value limit relative to Tier 1 capital, extendable to 100 percent with CBK approval, and mandates that mortgage-held real estate be sold within five years while pledge-held movable property must be disposed of within one year. Assets acquired through debt satisfaction are exempt from the value cap for three years, and non-compliance triggers remedial measures and civil penalties under the Law on Banks.
Share