The Financial Supervision Authority and the Central Bank of the Republic of Kosovo signed today, on October 21, 2020, a Memorandum of Understanding, in the framework of cooperation between financial authorities, in order to regulate, license and supervise markets.
The Memorandum of Understanding, which replaces the one of 2008, was signed in Tirana by the General Executive Director of AFSA, Mr. Ervin Mete and the Governor of the Central Bank of the Republic of Kosovo, Mr. Fehmi Mehmeti.
In his speech at the signing ceremony of the memorandum, Mr. Mete stressed that the new cooperation agreement responds not only to current developments, but also to issues that have emerged over the years between the Financial Supervisory Authority and the Central Bank of Kosovo.
The Memorandum deepens the lines of cooperation between the two regulators in the function of integrated and effective supervision, in particular through the Supervisory Colleges of insurance groups, for local insurance and reinsurance companies, which have their investments or branches in other countries.
Also, with regard to the insurance market, the parties undertake to address specific oversight issues in both countries, such as the mutual validity of compulsory motor third party liability insurance policies, reciprocal liabilities over claims practices or the treatment and payment of damages.
Regarding the capital markets, Albania is at a more advanced stage in terms of legal framework, through recently adopted laws, as well as has created the market infrastructure, the Stock Exchange and the Registry. The Authority is ready to assist the Central Bank of the Republic of Kosovo in this regard. Also, the two regulators will cooperate in order to improve information technology and digitalization systems, responding to the continuous evolution of supervised markets.
The Governor of the Central Bank of the Republic of Kosovo, in his speech, focused on the importance of mutual cooperation between the two regulators in addressing issues of common interest, in view of the well-being and development of supervised markets.