In the course of its meeting held on August 30, 2007, the Governing Board of the Central Banking Authority of Kosovo decided to grant a branch license to Banka Kombetare Tregtare (BKT) and to Komercijalana Banka (KB).
CBAK has received different questions about these decisions. In order to give to media, as well as to the public, as precise answers as possible, the CBAK collected the most often asked questions and provides now the necessary answers, as follows:

1) Will BKT and KB be submitted to CBAK Rules?

Yes, BKT and KB will be submitted to UMNIK Regulations and namely to CBAK Rules for their activities performed in Kosovo. In particular, as branches of foreign institutions, BKT and KB will be submitted to the same Regulations Rules.

2) Do BKT and KB comply with the CBAK requirements?

Yes. They do, in particular, BKT and KB transferred a capital equivalent as requested prior being licensed.

3) Will BKT and KB report to CBAK and be submitted to its supervision?

Yes. BKT and KB will report to CBAK regarding their activities in Kosovo, and for these activities will be supervised by CBAK.
 

4)Does Komercijalna Banka “recognize the CBAK”?

By first applying for a preliminary license, and second by applying for full license, Komercijalna Banka recognizes the Regulations and Rules applicable to banking activities in Kosovo and the competences of the CBAK under the financial sector in the territory under UNMIK administration.

5) Which kind of supervision will be implemented by Bank of Albania on BKT and National Bank of Serbia on KB?

Bank of Albania in its capacity of supervisor of the mother company will conduct a “consolidated supervision” – i.e. a global oversight- on BKT, as every Banking Supervisor does on any Banking Group which Head is under his competencies. The situation will be exactly the same for National Bank of Serbia which will conduct a “consolidated supervision” on the overall activities of KB. This is in line with the requirements of the Core Principles for Effective Banking Supervision issued by the Basel Committee on Banking Supervision (the top authority regarding banking supervision).

6) Did the CBAK receive a clearance from the National Bank of Serbia prior granting Komercijalna Banka a branch license in Kosovo?

CBAK informed orally and by written the National Bank of Serbia about the application for a branch made by Komercijalna Banka, in order to let National Bank of Serbia object, if needed. National Bank of Serbia acknowledged the CBAK request, and did not send any objection for having this bank operating a branch in Kosovo.

7) Is there a need to have a “Memorandum of Understanding” (a formal agreement) between the CBAK and the National Bank of Serbia, in order to set up a formal exchange of information between the two Supervisors; that is he “home supervisor” (NBS) and the “host supervisor” (CBAK)?

The requirement of having a formally based exchange of information between the “home supervisor” (supervisor of the country of origin) and the “host supervisor” (supervisor of the country in which the branch operates) does not apply to non-EU Members. Of course, the CBAK and National Bank of Serbia could explore a way, how to cooperate.
 

8)  Were the decisions to grant BKT and KB, first a preliminary license, and than a full license, taken unanimously by the Governing Board of the CBAK?

All decisions were taken unanimously without reservation, for preliminary licenses in 2006, and for full licenses on August 30, 2007