Regulatory Alerts2019-08-29
Regulation on Transactions to Bank-Related Persons and Exposures to Bank Employees
The Central Bank of the Republic of Kosovo has issued a regulation establishing monetary limits and arms-length requirements for credit transactions with bank-related persons and financial assistance to employees. The rule caps aggregate exposures to bank-related persons at ten percent of Tier 1 capital and total related-party credit at one hundred percent of bank capital, while capping employee financial assistance at 300,000 euros. Banks must secure board approval for these exposures, deduct qualifying lending from regulatory capital calculations, and maintain internal audit mechanisms to ensure ongoing compliance.
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