Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated December 15, 2005 No. 37/6, March 2, 2006 No. 5/8, August 9, 2006 No. 24/5, May 11, 2007 No. 25/2, November 5, 2008 No. 40/7, October 28, 2009 No. 43/5, May 26, 2010 No. 36/15, April 25, 2012 No. 18/9, December 12, 2012 No. 48/10, December 21, 2012 No. 50/7, April 24, 2013 No. 13/10, October 23, 2013 No. 39/4, January 20, 2016 No. 4/5, January 20, 2016 No. 4/6, February 10, 2016 No. 7/2, June 15, 2017 No. 2017-P-12/25-12, August 15, 2018 No. 2018-P-33/33-8, August 21, 2019 No. 2019-P-33/43-8, June 15, 2022 No. 2022-P-33/37-2, October 5, 2022 No. 2022-P-33/61-3, December 21, 2022 No. 2022-P-12/81-7, January 22, 2025 No. 2025-P-12/2-3-(NFCC), December 24, 2025 No. 2025-P-12/69-5-(NFCC))

I. General Provisions

1.1. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-12)

1.2. The National Bank of the Kyrgyz Republic (hereinafter - the National Bank), in accordance with the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the laws of the Kyrgyz Republic "On Banks and Banking Activity", "On Credit Unions", and other normative legal acts of the Kyrgyz Republic, establishes economic norms, requirements, and restrictions mandatory for all credit unions to be performed, in order to preserve a stable financial system and protect the interests of credit union participants.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 21, 2022 No. 2022-P-12/81-7)

1.3. The National Bank establishes the following economic norms, requirements, and restrictions to reduce risks in the activities of credit unions:

• on the minimum size of the credit union's capital and the procedure for its formation;
• on the minimum size of a participant's savings share in the credit union;
• on the terms of providing loans to participants of the credit union;
• on borrowing funds from external sources;
• on investing the monetary funds of the credit union;
• on reserves created by credit unions;
• on the nature, volume, list of forms, and deadlines for providing reporting.

1.3-1. In the presence of a license from the National Bank to conduct operations in foreign currency with participants of the credit union, for credit unions having a license to attract deposits, limits are established:

• for the net currency position for each foreign currency;
• for the total currency position.

The procedure for calculating currency position limits is determined by the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 23, 2013 No. 39/4)

1.3-2. Credit unions may carry out operations (transactions) for the exchange of foreign currency with individuals and legal entities in the presence of the corresponding license of the National Bank. At the same time, operations (transactions) for the exchange of foreign currency must be carried out in accordance with the requirements of the legislation on combating the financing of terrorist activities and the legalization (money laundering) of criminal proceeds, as well as the requirements of other normative legal acts of the Kyrgyz Republic.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 23, 2013 No. 39/4, February 10, 2016 No. 7/2, August 21, 2019 No. 2019-P-33/43-8)

1.4. Credit unions may establish higher economic norms and restrictions for additional risk reduction, without violating the values of norms and restrictions established by these Rules and other normative acts of the National Bank.

II. Terms and Definitions

Total Capital is the sum of institutional and equity capital of the credit union.

Institutional Capital is the part of total capital that consists of reserves for future needs, undistributed profit/losses of previous years minus the current year's losses.

Equity Capital includes the sum of savings shares contributed by participants of the credit union for a period of 1 year or more and possessing a special withdrawal period. The withdrawal period for such shares occurs after the end of the financial year, provided that the participant submits an application no later than six months before the end of the financial year (by July 1 of the current year).

(The paragraph lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

(The paragraph lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 28, 2009 No. 43/5, June 15, 2022 No. 2022-P-33/37-2)

III. Compliance with Economic Norms and Restrictions

3.1. Credit unions are obliged to comply with the economic norms, requirements, and restrictions established by the National Bank:

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated March 2, 2006 No. 5/8)

3.1.1. Requirements and restrictions imposed on credit unions:

• minimum size of a participant's savings share at the establishment of a credit union;
• maximum permissible size of a participant's savings share in the credit union;
• minimum size of the credit union's capital;
• maximum size of the deposit base.

3.1.2. Economic norms regulating the activities of credit unions:

• norm of the maximum size of external borrowings (H1);
• norm of the maximum size of risk for one borrower (H2);
• norm of the maximum size of investments in the capital of financial and credit organizations (H3);
• norm of the maximum size of investments in fixed assets (H4);
• liquidity norm (indicator) (H5);
• capital adequacy norm (H6).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-12)

3.1.3. The economic norms specified in sub-item 3.1.2, with the exception of the norm of the maximum size of risk for one borrower and the liquidity norm (indicator), do not apply to credit unions that do not attract deposits from their participants and do not have debt to JSC "Financial Company of Credit Unions" (hereinafter - FCCU). By the time of submitting an application for a license to attract deposits from their participants and/or by the time of obtaining a loan from the FCCU, credit unions must bring their activities into compliance with the economic norms of the National Bank established in sub-item 3.1.2.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated March 2, 2006 No. 5/8, August 9, 2006 No. 24/5, December 12, 2012 No. 48/10, June 15, 2017 No. 2017-P-12/25-12, December 24 No. 2025-P-12/69-5-(NFCC))

3.2. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

3.3. The value of the liquidity norm (indicator) (H5) is determined separately by credit unions not attracting deposits (H5-1) and those attracting deposits (H5-2).

IV. Values of Requirements and Restrictions Imposed on Credit Unions

4.1. The minimum size of the savings share contributed by a participant upon joining a credit union must be no less than 1,000 (One Thousand) som.

4.2. The maximum permissible size of one participant's savings share cannot exceed 10% of the total amount of paid savings shares of the credit union.

4.3. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 5, 2022 No. 2022-P-33/61-3)

4.4. For credit unions holding a license to attract deposits (deposits) from participants of the credit union, the maximum size of the deposit base must not exceed 450% of the size of institutional capital.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 11, 2007 No. 25/2)

4.5. For credit unions holding a license to attract deposits (deposits) from participants of the credit union, the ratio of the total debt on the principal amount of loans, overdue on the principal amount and/or interest, to the loan portfolio must not exceed 5%.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated November 5, 2008 No. 40/7)

V. Procedure for Calculating Economic Norms

5.1. The norm of the maximum size of external borrowings of a credit union (H1) represents the maximum volume of external borrowings that a credit union can obtain.

When calculating the norm of the maximum size of external borrowings of a credit union, the sum of external borrowings includes borrowings of the credit union provided for by the Law of the Kyrgyz Republic "On Credit Unions", as well as borrowings under state programs.

(The paragraph lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated December 15, 2005 No. 37/6, August 9, 2006 No. 24/5, May 11, 2007 No. 25/2, October 28, 2009 No. 43/5, June 15, 2022 No. 2022-P-33/37-2)

5.1.1. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.1.2. For credit unions during the first year of activity, as well as for credit unions attracting borrowings under state programs, the norm of the maximum size of external borrowings (H1) is determined by the formula:

H1 ≤ TC x 4

The value of the norm of the maximum size of external borrowings (H1) must not exceed four times the size of total capital.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.1.3. The norm of the maximum size of external borrowings does not apply to credit unions operating for more than 1 year and/or having a license to attract deposits from participants.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 26, 2010 No. 36/15, June 15, 2022 No. 2022-P-33/37-2)

5.2. Norm of the maximum size of risk for one borrower (H2).

5.2.1. Within the framework of these Rules, a borrower is understood as a participant of the credit union or participants of the credit union related to each other, having debt on loans to the credit union.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 28, 2009 No. 43/5)

5.2.2. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.2.3. The norm of the maximum size of risk for one borrower (H2.2) is determined by the formula:

H2 = MC / TC x 100 ≤ 20%,

where:

MC - maximum size of total debt on loans issued to one borrower; TC - total capital of the credit union.

The value of the norm of maximum risk for one borrower (H2) must not exceed 20% of total capital.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.2.4. Credit unions not attracting deposits from their participants and not having debt to the FCCU must establish the maximum size of risk for one borrower in their credit policy, which is approved by the General Meeting of Participants.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated August 9, 2006 No. 24/5, December 12, 2012 No. 48/10)

5.2.5. A credit union is prohibited from issuing loans to participants for contribution to the capital of the credit union. A credit union must issue loans based on an analysis of the potential ability of the participant to repay them. This potential is determined by analyzing the profitability of the use of loan funds by the participant and the participant's ability to generate cash flows sufficient to repay the loan.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated August 9, 2006 No. 24/5)

5.2.6. A credit union is prohibited from repaying loan debt at the expense of a participant's savings share in the credit union, except in cases provided for by the Law of the Kyrgyz Republic "On Credit Unions".

5.2.7. All debt of individual borrowers when calculating the H2 norm must be summed up and considered as risk for one borrower if the non-repayment of debt by one borrower inevitably leads to problems with the repayment of debt by another borrower. In this regard, when considering the debt of various borrowers for the purpose of summing them up as a single risk, the degree of interconnection of borrowers should be taken into account:

• by the type of economic activity of participants of the credit union (for example, the business of one participant is connected by common interests or controlled by another participant of the credit union);
• by the source of loan repayment (for example, several borrowers are connected by one business or jointly conduct household activities);
• by the collateral for the loan (for example, a single collateral is provided as security for loans of several participants of the credit union).

5.3. Norm of the maximum size of investments in the capital of financial and credit organizations licensed by the National Bank (H3).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-12)

5.3.1. A credit union may carry out investments in the capital of financial and credit organizations licensed by the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-12)

5.3.2. A credit union is prohibited from carrying out investments in securities and capital of legal entities, except for investments in the capital of financial and credit organizations licensed by the National Bank, as well as investments in treasury bills and other highly liquid securities issued by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-12, December 21, 2022 No. 2022-P-12/81-7)

5.3.3. The sum of a credit union's investments in the capital of financial and credit organizations licensed by the National Bank must not exceed 15% of total capital.

The norm of the maximum size of investments in the capital of financial and credit organizations (H3) is determined by the formula:

H3 = CI / TC x 100 ≤ 15%,

where:

CI - total sum of investments in the capital of financial and credit organizations under the supervision of the National Bank, excluding investments in the capital of the FCCU; TC - total capital of the credit union.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2, January 22, 2025 No. 2025-P-12/2-3-(NFCC))

5.3.4. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 24, 2025 No. 2025-P-12/69-5-(NFCC))

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated December 21, 2012 No. 50/7, June 15, 2022 No. 2022-P-33/37-2)

5.4. Norm of the maximum size of investments in fixed assets (H4).

5.4.1. A credit union may invest free monetary funds not used for lending into fixed assets.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 28, 2009 No. 43/5)

5.4.2. The norm of the maximum size of investments in fixed assets (H4) is determined by the formula:

H4 = FA / TC x 100 ≤ 20%,

where:

FA - sum of investments in fixed assets (excluding fixed assets received as grants and donations); TC - total capital of the credit union.

The total investment of a credit union in fixed assets, such as buildings, land, furniture, and equipment (excluding fixed assets received as grants and donations), which are necessary for the credit union to conduct its business activities, cannot exceed 20% of total capital.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.4.3. (Excluded in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated March 2, 2006 No. 5/8)

5.5. Liquidity norm (indicator) (H5).

5.5.1. For credit unions not attracting deposits, the liquidity norm (indicator) (H5-1) is determined by the following formula:

H5-1 = LA / OB x 100 ≥ 2%, where:

LA

• liquid assets of the credit union, including:
• cash in the cash register of the credit union;
• monetary funds in settlement and deposit accounts in banks;
• treasury bills and other highly liquid securities issued by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank, minus pledged;

OB

• all liabilities of the credit union, excluding reserves for dividends of the current and previous years and income of future periods.

The value of the liquidity norm (indicator) (H5-1) for credit unions not attracting deposits must be no less than 2%.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2, December 21, 2022 No. 2022-P-12/81-7)

5.5.2. For credit unions attracting deposits from participants, the liquidity norm (indicator) (H5-2) is determined by the following formula:

H5-2 = (LA - STOB) / (D + SS) x 100 ≥ 15%, where:

LA

• liquid assets of the credit union, including:
• cash in the cash register of the credit union;
• monetary funds in settlement and deposit accounts in banks;
• treasury bills and other highly liquid securities issued by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank, minus pledged;

STOB

• short-term liabilities of the credit union, for which settlement will be carried out within 30 days after the reporting date;

D

• deposits of the credit union, the term of payment of which is more than 30 days;

SS

• savings shares with a withdrawal period of up to 12 months and for withdrawal, minus deposits with a payment term within 30 days after the reporting date.

For credit unions attracting deposits from participants, the value of the liquidity norm (indicator) (H5-2) must be no less than 15%.

For the purpose of managing liquidity risk, credit unions attracting deposits from their participants must calculate the liquidity norm (indicator) on a weekly basis.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated March 2, 2006 No. 5/8, January 20, 2016 No. 4/5, December 21, 2022 No. 2022-P-12/81-7)

5.6. Capital adequacy norm (H6).

5.6.1. The capital adequacy norm (H6) is determined by two coefficients:

• norm of institutional capital adequacy (H6-1);
• norm of total capital adequacy (H6-2).

5.6.2. The norm of institutional capital adequacy (H6-1) is determined by the following formula:

H6-1 = IC / TA x 100 ≥ 10%, where:

IC - institutional capital of the credit union; TA - total assets of the credit union.

The value of the norm of institutional capital adequacy (H6-1) must be no less than 10%.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.6.3. The norm of total capital adequacy (H6-2) is determined by the following formula:

H6-2 = TC / TA x 100 ≥ 15%,

where:

TC - total capital of the credit union;
TA - total assets of the credit union.

The value of the norm of total capital adequacy (H6-2) must be no less than 15%.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.6.4. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.6.5. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2022 No. 2022-P-33/37-2)

5.6.6. For credit unions holding a license to attract deposits (deposits) from participants of the credit union, the values of the norm of institutional capital adequacy (H6-1) are set at the level of 12%.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated November 5, 2008 No. 40/7)

VI. Reporting of Credit Unions

6.1. For the purpose of regulating the activities of credit unions, credit unions must submit reports to the Financial Statistics and Review Department (hereinafter - FSRD) or regional departments/Batken representation of the National Bank in the manner established by normative legal acts of the National Bank.

Credit unions located in the Chuy region and the city of Bishkek must submit reports to the FSRD of the National Bank.

Credit unions located in other regions of the republic must submit reports to the corresponding regional department/Batken representation of the National Bank.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated March 2, 2006 No. 5/8, April 25, 2012 No. 18/9, April 24, 2013 No. 13/10)

6.2. Information on compliance with economic norms, requirements, and restrictions is submitted by credit unions in accordance with the requirements of the Regulation "On Periodic Regulatory Reporting of a Credit Union", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 3/3 dated January 16, 2008.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated April 24, 2013 No. 13/10)

6.3. (Excluded in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated April 24, 2013 No. 13/10)

6.4. A credit union is obliged to ensure strict accounting and storage of documents used in accounting and when preparing reporting.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated March 2, 2006 No. 5/8)

VII. Supervision over Compliance with Economic Norms and Restrictions

7.1. Relevant structural subdivisions of the National Bank carry out supervision over the activities of credit unions.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated August 15, 2018 No. 2018-P-33/33-8)

7.2. Verification of compliance by credit unions with economic norms and restrictions may be carried out on any date by studying and analyzing their activities based on submitted reports and information, as well as by conducting on-site inspections.

7.3. Upon discovery of facts of non-compliance with economic norms and restrictions, submission of unreliable data, untimely submission or non-submission of reporting and information, or violation of banking legislation, the National Bank takes enforcement measures in accordance with the current legislation of the Kyrgyz Republic.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-12)

Appendix 1

INFORMATION on compliance with economic norms and restrictions

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 28, 2009 No. 43/5, June 15, 2017 No. 2017-P-12/25-12)

Name of norm, restriction	Formula and calculation of norm, restriction	Established value of norm, restriction	Period of operation of the credit union	Actual value of norm, restriction	Deviation
Norm of the maximum size of external borrowings of a credit union (H1)
Norm of the maximum size of risk for one borrower (H2)
Norm of the maximum size of investments in the capital of financial and credit organizations licensed by the National Bank (H3)
Norm of the maximum size of investments in fixed assets (H4)
Liquidity norm (indicator) (H5)
Norm of institutional capital adequacy (H6-1)
Norm of total capital adequacy (H6-2)
Restriction on the maximum size of the deposit base

Note: When filling out the table "Information on compliance with economic norms and restrictions", credit unions must proceed from the requirements established by these Rules.

Contacts

Public Reception
+996 (312) 61-04-86 +996 (312) 66-90-15 +1257, +1256

Department for the Protection of Consumer Rights +996 (312) 66-90-15 +1671, +1666

Report Corruption
+996 (312) 66-90-15 +2120 +996 (312) 61-04-00

Auto-informer of Official Exchange Rates
+996 (312) 61-07-11

Numismatic Museum
+996 (312) 66-90-15 +1232 +996 (312) 61-24-14

E-mail mail@nbkr.kg

For Work with Media press@nbkr.kg

720010, Kyrgyz Republic, Bishkek, Kievskaya St., 189