Regulatory Alerts2022-04-30
Regulation on Intraday and Overnight Lending
The Central Bank of the Republic of Kosovo issued this regulation to establish the conditions and procedures for providing collateralized intraday and overnight liquidity loans to eligible domestic and foreign banks. Eligible institutions must pledge government securities valued at least 110 percent of the loan amount, with borrowing limits capped at 30 percent of their minimum reserve requirements and interest rates calculated as the ECB overnight repurchase rate plus a CBK-determined margin. The framework mandates automatic overnight rollover for unsettled intraday loans, specifies repayment schedules through the Accounting Registry and Interbank Payment Systems, and grants the CBK authority to adjust fees or suspend access for banks posing market risks.