UNMIK/PR/110
Pristina—Representatives of some 12 banks interested in operating in Kosovo attended a seminar on bank licensing held on 7 December by the Banking and Payments Authority of Kosovo (BPK).
At the seminar, the BPK announced an extension of the deadline for filing bank license applications to 15 February, 2000.
The seminar was attended by 10 banks which if approved would be based in Kosovo and two foreign banks interested in opening Kosovo branches.
The seminar covered documentation required of banks intending to operate in Kosovo. Prospective banks must be registered as joint-stock companies with limited liability. They must demonstrate they have sufficient capital to guard depositors against losses and a solid policy of governance. This includes the basic principle that ownership be separated from management and that the Managing Director be a member of the Board.
All documents must be submitted in English and Albanian. Forms must indicate the type of bank license sought; a three-year business plan indicating how the bank will achieve its growth projections; biographical and financial reports on each senior officer, organizer, director and principal shareholder; and filing fees. Fees are 10,000 DM for domestic or foreign banks. An additional fee of 1,000 DM per branch is due at the time of filing. A quarterly fee of 2,500 DM, due after the bank is licensed, will cover costs of services and salaries for BPK’s supervision department.
Once the application is received by the BPK, it will be reviewed by the appropriate authorities for completeness. A preliminary letter of approval allows the bank to begin organizational activities. The Bank will have 12 months from the date of the letter to raise the capital required to operate in Kosovo and to finalize organization. If conditions are not met within this period, the application is cancelled and the bank must re-apply if still interested in a license.
Prior to opening, each bank will be examined by the bank supervision division of the BPK. The bank’s policies and procedures for conducting business will be reviewed for consistency with its operating and business plans as well as its internal systems and controls. Qualifications of bank personnel will be evaluated to ensure that they meet requirements for effective management and a successful institution.
In reviewing all applications, the BPK will be consistent in applying the principles of fairness and transparency.
Applications should be submitted to the Bank Licensing, Supervision and Regulation Department of the BPK. Call 38 500 223 ext. 5640 for further information.
