KCGF may register any  Financial Institution  that is licensed by Central Bank of Kosovo and operates in the Republic of Kosovo. For registration purposes, the FI shall meet the following criteria:

  • Have a sound financial condition, as evidenced by adequate capital, satisfactory asset quality, sustained profits and satisfactory liquidity;
  • Have a satisfactory corporate governance structure and sound credit underwriting policies and procedures;
  • Have adapted an Environmental and Social Management System according to IFC/World Bank Standards, which will ensure that credits will meet environmental criteria;
  • Have a satisfactory shareholder structure. FI will undergo into an Identification and Verification of Identity of Counterparty (KYC) process of the applicant and evaluation of Ultimate Beneficiary Owner (UBO) for all shareholders that own more than twenty five percent (25%) of shares at applicant FI, as per KCGF Policy on Anti-Money Laundering and Combating Terrorist Financing (hereinafter KCGF Policy on AML/CFT).
  • The FI has policies and procedures in place and a comprehensive and effective Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) compliance program and that it implements all requirements set under the applicable Law on the Prevention of Money Laundering and Combating Terrorist Financing, and KCGF AML/CFT Policy;
  • Have good reputation in the market;
  • The FI must have risk management frameworks, at acceptable levels in compliance with KCGF’s standards and requirements;
  • The FI must have satisfactory structure for managing the portfolio quality;
  • Have minimum three (3) years of existing experience in the MSME market, and have willingness and clear plan to further penetrate the MSME segment;
  • Have willingness to take more risk and improve credit terms and conditions for qualifying borrowers;
  • The FI has in place adequate MIS and the adequate staff that will enable the reporting of qualified loans on timely manner and as per the reporting requirement of KCGF. 

Following criteria can lead to rejection of the application:

If the applicant does not meet the regulatory capital requirements (as evidenced in the last audit report), unless there is a rational explanation for this mismatch;

  • If the applicants Non-Performing Loans (NPL) ratio in current outstanding business portfolio is three times higher than the market that it operates;
  • If the FI is not able to provide the necessary information for performing KYC evaluation;
  • If the applicant FI, its board or senior management, are subject to any enforcement action or sanctions by the CBK or there is incompliance with standards set from Financial Action Task Force (FATF) according to KYC assessment and other conditions set in the applicable Law on AML/CFT and KCGF Policy on AML/CFT;
  • If the applicant FI does not have minimum of three years’ operating in MSME market;
  • If the applicant FI is an MFI and has outstanding loan portfolios less than ten million (10,000,000) euro, and also operates only in one region;

If the applicant FI is an MFI and has NPL ratio higher than five percent (5%) in current outstanding business credit portfolio and its yearly written-off ration in the last three years is more than two percent (2%).

Registered Financial institutions in the Kosovo Credit Guarantee Fund are: