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 by the latest audit report, unless there is a reasonable explanation for such non-compliance.
• If the Non-Performing Loan (NPL) ratio of the applicant Financial Institution (FI) exceeds 1.5 times the market average for the active business loan portfolio, or if its annual write-off rate has been 1% or higher during the last three years.
• If the FI is unable to provide the information required to conduct the Know Your Customer (KYC) assessment.
• If the applicant FI, its Board of Directors, or senior management is subject to any enforcement action or sanction imposed by the Central Bank of the Republic of Kosovo (CBK), or does not comply with the standards established by the Financial Action Task Force (FATF), based on the KYC assessment and other requirements set out in the applicable AML/CFT legislation and the KCGF AML/CFT Policy.
• If the applicant FI has not been operating in the Micro, Small and Medium Enterprise (MSME) market for at least three years.
• If the applicant FI is a Microfinance Institution (MFI) or a Non-Bank Financial Institution (NBFI) and has an active loan portfolio of less than EUR 6,000,000.