Regulation on Reporting of Banks

Pursuant to Article 35, paragraph 1, subparagraph 1.1 of the Law No. 03/L-209 on Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo, No. 77/16 August 2010), and Article 57 and 85 of the Law No. 04/L-093 on Banks, Microfinance Institutions and Non-Bank Financial Institutions (Official Gazette of the Republic of Kosovo,No. 11/11 May 2012), the Board of the Central Bank, in its meeting held on 28 February 2023 approved the following:
REGULATION ON REPORTING OF BANKS
Article 1
Purpose and scope

1. The purpose of this Regulation is to determine the terms, rules, form and manner of
   reportingof banks to the Central Bank of the Republic of Kosovo-(CBK).
2. This Regulation shall apply to all banks licensed by the CBK to operate in the Republic
   of Kosovo.
   Article 2
   Definitions
3. All terms in this Regulation shall have the same meaning as the terms defined in Article 3
   of the Law No. 04/L-093 on Banks, Microfinance Institutions and Non-Bank Financial Institutions (hereinafter: the Law on Banks) and/or as defined below for the purpose of this Regulation:
   1.1. Reporting certificate – means the unique security certificate which enables the bank
   to report to the electronic system, and certifies that the institution's data is encrypted and that at the moment the data is imported into the Off-Site Regulatory Reporting System (ORRS) the bank and the responsible persons assume the responsibility that the data are final and accurately reported.
   1.2. ORRS – means the software system for data collection and processing reported by
   financial institutions.
   1.3. Reporting instructions – means the guidelines approved by the CBK for reporting of
   financial institutions to the CBK where are specified the reporting forms, detailed instructions for completing the forms in accordance with international accounting standards (IAS) and CBK regulations.

1.4. XML (Extensible Markup Language) – means the language which defines a set of
rules of electronic reporting format and which is accepted as a form of reporting in ORRS (see: http://www.w3.org/XML/).
1.5. Collateral exchanges – means collateral-to-collateral transactions.
1.6. Financial year - means the 12-month period, which begins on January 1 and ends on
December 31. For a newly licensed bank, the financial year starts from the date of its licensing and ends on December 31 of that year, while after this period the financial year shall be from 1 January to 31 December of each year.
Article 3
General requirements

1. Each bank must submit to the CBK the reports which relate to its financial situation,
   administration and operations as well as for all its subsidiaries whether on an individual or consolidated basis. Under this regulation, a foreign bank shall consolidate the data of all branches into a single report.
2. Reports are prepared in the forms and guidelines set by the CBK and can be changed from
   time to time.
3. If the reporting date is not a working day in Kosovo, the reporting date shall be the first
   working day.
   Article 4
   Bank Reports and Reporting Terms
4. Banks must submit to the CBK, no later than fifteen (15) calendar days after the end of
   each month, the following reports:
   1.1. First page (FP);
   1.2. Statutory General Ledger (SGL);
   1.3. Balance sheet generated from SGL (BS);
   1.4. Income statement generated from SGL (IS);
   1.5. Balance Sheet (F01);
   1.6. Income statement (F02);
   1.7. Regulatory capital (F06);
   1.8. Regulatory capital (F06-1);
   1.9. Risk weights for credit risk exposures (F07);
   1.10. Classification of off-balance sheet items (F07-1);
   1.11. Market risk: Standardized approach to position risk in instruments of traded debt
   (F08);

1.12. Market risk: Standardized approach to position risk for capital instruments (F08-1);
1.13. Market risk: Standardized approach to commodity risk (F08-2);
1.14. Market risk: Simple approach to foreign exchange risk (F08-3);
1.15. Market risk: Standardized approach to settlement/delivery risk (F08-4);
1.16. Risk-weighted assets and capital requirements for operational risk (F10);
1.17. Financial assets subject to impairment (F12);
1.18. Reconciliation of credit loss provisions and credit exposures (F13);
1.19. Report on performing and non-performing exposures (F14);
1.20. Report on restructured loans (F15);
1.21. Liquid assets (F16);
1.22. Deposits and placements in banks (F17);
1.23. Investment Portfolio (F18);
1.24. Large exposures (F19);
1.25. Bank related persons (F20);
1.26. Large depositors (F21);
1.27. Deposits and placements from financial institutions (F22);
1.28. Liquidity reserve computation (F23);
1.29. Liquidity reserve maintenance (F24);
1.30. FX positions (F26).
1.31. Liquid Assets – LCR1
(31)
1.32. Outflows (31-1);
1.33. Inflows (31-2);
1.34. Collateral Exchanges (31-3);
1.35. Calculations (31-4);
1.36. Additional Outflows for Other Products and Services (31-5).
2. Banks must submit to the CBK no later than fifteen (15) calendar days after the end of each
quarter, in addition to reports specified in paragraph 1 of this Article, the following reports:
2.1. Leverage ratio (F09);
2.2. Loans and advances according to economic activity, classified and restructured loans
(F11);
2.3. Liquidity gap (F25);
2.4. Report on residential mortgage loans and commercial mortgage loans (F27);

1 Liquidity Coverage Ratio

2.5. Interest rate risk in the bank book (F28);
2.6. Collateral and received guarantees (F29);
2.7. Contingent provisions and liabilities (F30).
2.8. Required Stable Funding (RSF)2
(32);
2.9. Available Stable Funding (32-1);
2.10. NSFR Summary3
(32-2)
3. Banks must submit to the CBK no later than fifteen (15) calendar days after the end of each
semester, in addition to the reports specified in paragraphs 1 and 2 of this Article, the following reports:
3.1. Statement of comprehensive income (F03);
3.2. Statement of changes in equity (F04);
3.3. Cash flow statement (F05).
Article 5
Consolidated reporting

1. Banks which are subject to consolidated supervision according to the regulation on
   consolidated supervision of banking groups must submit to the CBK, no later than fifteen (15) calendar days after the end of each month the following reports:
   1.1. Liquid assets - LCR4
   (31);
   1.2. Outflows (31-1);
   1.3. Inflows (31-2);
   1.4. Collateral Exchanges (31-3);
   1.5. Calculations (31-4);
   1.6. Additional Outflows for Other Products and Services (31-5)
2. Banks which are subject to consolidated supervision according to the regulation on
   consolidated supervision of banking groups must submit to the CBK, no later than fifteen (15) calendar days after the end of each quarter the following reports:
   2.1. First page (FP);
   2.2. Statutory general ledger (SGL);
   2.3. Balance Sheet generated from SGL (BS);
   2.4. Income statement generated from SGL (IS);
   2.5. Balance sheet (F01);

2
Amount of Required Stable Funding
3
Net Stable Funding Ratio
4 Liquidity Coverage Ratio

2.6. Income statement (F02);
2.7. Regulatory capital (F06);
2.8. Regulatory capital (F06-1);
2.9. Risk weights for credit risk exposures (F07);
2.10. Classification of off -balance sheet items (F07-1);
2.11. Market risk: Standardized approach to position risk in traded debt instruments (F08);
2.12. Market risk: Standardized approach to position risk for equity instruments (F08-1);
2.13. Market risk: Standardized approach to commodity risk (F08-2);
2.14. Market risk: Simple approach to foreign exchange risk (F08-3);
2.15. Market risk: Standardized approach to settlement/delivery risk (F08-4);
2.16. Leverage ratio (F09);
2.17. Risk-weighted assets and capital requirements for operational risk (F10);
2.18. Loans and advances by economic activity, classified and restructured loans (F11);
2.19. Financial assets subject to impairment (F12);
2.20. Reconciliation of credit loss provisions and credit exposures (F13);
2.21. Report on performing and non-performing exposures (F14);
2.22. Report on restructured loans (F15);
2.23. Liquid assets (F16);
2.24. Large exposures (F19);
2.25. Persons related to the bank (F20);
2.26. FX positions (F26);
2.27. Collateral and received guarantees (F29);
2.28. Required Stable Funding (RSF)5
(32);
2.29. Available Stable Funding (32-1);
2.30. NSFR Summary (32-2).
3. Banks that are subject to consolidated supervision under the CBK Regulation on
Consolidated Supervision of Banking Groups must submit to the CBK, no later than fifteen

5 Amount of required stable funding.

(15) calendar days after the end of each semester of the financial year, in addition to the reports specified in point 1 of this Article also the following reports:
3.1. Statement of comprehensive income (F03);
3.2. Statement of changes in equity (F04);
3.3. Cash flow statement (F05).
Article 6
Reporting of Foreign Bank Branches for Parent Bank

1. Branches of foreign banks, in addition to reports required under Article 4 of this Regulation
   regarding their activities in Kosovo, shall also submit to the CBK, no later than thirty (30) calendar days after the end of each quarter, quarterly financial reports of the parent bank, as follows:
   1.1. Capital adequacy ratio;
   1.2. Regulatory capital (own funds)
   1.3. Problematic loans to total loans ratio
   1.4. Non-performing loans to total loans ratio
   1.5. Net problematic loans to regulatory capital (own funds) ratio;
   1.6. Ratio of the amount of reserves for losses from loans to total non-performing loans
   1.7. Return on average assets (ROAA) ratio
   1.8. Return on average equity (ROAE) ratio
   1.9. Liquid assets to total assets ratio
   1.10. Short-term liquid assets to short-term liabilities ratio - up to three months.
   Article 7
   Annual Report

2. Banks must submit the annual report to the CBK at the latest within 4 months after the end
   of the financial year, together with the opinion of the external auditor and the management letter for the previous financial year.

3. Banks after the report of the external auditor must re-submit the reports defined in Article
   4 and 5 of this regulation in accordance with the deadlines defined in paragraph 1 of this
   Article.

4. Branches of foreign banks, in addition to the obligation in paragraph 1 of this Article, must
   submit to the CBK the annual consolidated report of the parent bank together with the opinion of the external auditor, no later than 4 weeks from their issuance.

5. The CBK, in cases where it deems it necessary, may require from the branches of foreign
   banks to submit the consolidated annual report of the parent bank, together with the opinion of the external auditor.
   Article 8
   Additional Reporting
   The CBK may request, as needed and appropriate, to report more frequently, more extensively, or to request other reports when deemed necessary, in order to fulfill supervisory responsibilities.
   Article 9
   Obligations and manner of reporting of banks

6. Banks must submit reports within the deadlines and in the form set by the CBK, in
   accordance with the guidelines approved by the CBK for reporting on the ORRS system.

7. Reporting by banks under this regulation must be done electronically in the ORRS reporting
   system in XML format, using the reporting certificate set by the CBK.

8. The accompanying letter in physical form (according to Annex 1) for reports sent in
   electronic form according to paragraph 2 of this article must be submitted to the CBK sealed and signed by the Chief Executive Officer, the Chief Financial Officer and the person responsible for reporting to the system.
   Article 10
   Responsibility for the accuracy of reporting

9. Banks shall take all necessary measures to ensure the accuracy of data reported and are
   responsible for their accuracy, in accordance with Article 9 of this regulation.

10. Persons directly responsible for ensuring the accuracy of reporting, in accordance with
    Article 9 of the regulation, are the Chief Executive Officer and Chief Financial Officer.

11. If the bank identifies that there is any inaccuracy in the data reported after submitting them
    to the CBK, it shall immediately notify the CBK regarding these inaccuracies.

12. If the CBK determines that the data reported are inaccurate, it shall order the reporting
    banks to correct them and to re-report after corrections. The order for the correction of reporting according to this paragraph shall not exclude the possibility of taking remedial measures in accordance with the legislation in force

13. Pursuant to paragraph 3 of this Article bank should perform appropriate corrections and
    report them within the next working day, in accordance with Article 9 of this Regulation.
    Article 11
    Final Provisions
    Pursuant to this regulation the CBK shall issue instructions and forms that determine the manner and form of reporting.

Article 12
Enforcement, Remedial Measures and Civil Penalties Any violation of the provisions of this regulation shall be subject to the remedial and punitive measures, as defined by the Law on the Central Bank of the Republic of Kosovo and the Law on Banks.
Article 13
Repeal
With the entry into force of this Regulation, the Regulation on Reporting of Banks approved by the Board of the Central Bank of the Republic of Kosovo on 26 March 2020 and any other provision that may be contrary to this Regulation shall be repealed.
Article 14
Annex
Annex 1 shall constitute an integral part of this Regulation.
Article 15
Entry into Force
This Regulation shall enter into force fifteen (15) days after its adoption. Bashkim Nurboja Chairman of the Board of the Central Bank of the Republic of Kosovo

Annex 1
Accompanying letter in physical form
Central Bank of the Republic of Kosovo
Banking Supervision Department
Accompanying letter
Name of
Institution: Code of Institution:
Address: Type of the Institution:
Reporting period: Form (frequency) of reporting:
Date of reporting: Audited:
Date and time of report loading: Name of report:
Reporting forms:
Code Name of form √
SGL Statutory General Ledger - SGL
BS Balance sheet generated from SGL
IS Income statement generated from SGL

F01 Balance sheet
F02 Income statement
F03 Statement of comprehensive income
F04 Statement of changes in equity
F05 Cash flow statement
F06 Regulatory capital ratio
F06-1 Regulatory capital
F07 Risk weights for credit risk exposures
F07-1 Classification of off-balance sheet items F08 Market risk: Standardized approach to position risk in traded debt instruments F08-1 Market risk: Standardized approach to position risk for capital instruments F08-2 Market risk: Standardized approach to commodity risk F08-3 Market risk: Simple approach to foreign exchange risk F08-4 Market Risk: Standardized approach to settlement / delivery risk F09 Leverage Ratio F10 Risk-weighted assets and capital requirements for operational risk F11 Loans and advances according to economic activity, classified and restructured loans F12 Financial assets subject to impairment F13 Reconciliation of credit loss provisions and credit exposures F14 Report on performing and non-performing exposures F15 Report on restructured loans F16 Liquid assets F17 Deposits and placements in banks F18 Investment Portfolio F19 Large exposures F20 Bank- related persons F21 Large depositors F22 Deposits and placements from financial institutions F23 Liquidity reserve computation F24 Liquidity reserve maintenance F25 Liquidity gap F26 FX positions F27 Report on residential mortgage loans and commercial mortgage loans F28 Interest rate risk in the bank book F29 Collateral and received guarantees F30 Contingent provisions and liabilities F31 Liquid Assets (LCR) F31-1 Outflows F31-2 Inflows F31-3 Collateral exchanges F31-4 Calculations F31-5 Additional outflows for other products and services F32 Required Stable Funding (RSF)

Statement of the official responsible for reporting, Chief Executive Officer, Chief Financial Officer and the Person responsible for reporting:
Through this letter we declare that reports uploaded in ORRS are prepared in accordance with the CBK requirements and reporting instructions. Reports accurately reflect bank’s conditions until the reporting date. It is understandable that any deliberate and incorrect declaration in this report can result in sanctions in accordance with legislation in force to be applied against Chief Executive Officer, Chief Financial Officer and the person responsible for reporting and / or the reporting bank. Chief Executive Officer:
Person responsible for reporting:
(signature) (signature)
Chief Financial Officer:
(signature)