Fehmi Mehmeti: The CBK is committed to working to the best standards of corporate governance

Speech by Mr Fehmi Mehmeti, Governor of the Central Bank of the Republic of Kosovo, at the presentation of the "Transition Report for 2019", Pristina, 17 December 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

It is my pleasure to participate in the presentation of the "Transition Report for 2019" which also marks the 12th anniversary of the Republic of Kosovo's membership in the European Bank for Reconstruction and Development. Of particular importance is the fact that this year's report on the focus has the topic of corporate governance, for which CBK has demonstrated leadership beyond its mandate, where in the role of Regulator and Supervisor of Financial Institutions in the Republic of Kosovo it has advanced the requirements for better corporate governance.

Let me first share with you some views on the importance that corporate governance has for the financial sector and the economy in general. Finance in general and banking in particular relate simply to credibility, this is especially evident in countries with not long experience with financial products, institutions and developed financial markets.The last financial crisis showed that one of the main causes of the crisis could be attributed to weaknesses in corporate governance. Many studies done so far, confirm the strong correlation of corporate governance with the performance of these banks during the financial crisis.