Regulation on Enforcement Measures Applied to Banks Licensed by the National Bank of the Kyrgyz Republic

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Creation date: 2026-05-02

Appendix
to the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-4-(NPA)

REGULATION

on enforcement measures applied to banks licensed by the National Bank of the Kyrgyz Republic

(In the edition of the Resolutions of the Board of the NB KR of October 17, 2018 No. 2018-P-12/43-3, April 24, 2019 No. 2019-P-12/22-4, August 14, 2019 No. 2019-P-12/42-1, September 9, 2019 No. 2019-P-33/47-4, February 26, 2020 No. 2020-P-12/8-8, November 25, 2020 No. 2020-P-12/67-2, December 23, 2020 No. 2020-P-33/73-13, July 14, 2021 No. 2021-P-12/38-3, December 28, 2022 No. 2022-P-12/83-6, January 17, 2024 No. 2024-P-12/1-3, May 15, 2024 No. 2024-P-12/22-1, June 27, 2025 No. 2025-P-12/31-1-(NPA), December 19, 2025 No. 2025-P-12/68-2-(NPA), December 26, 2025 No. 2025-P-12/70-5-(NPA), April 23, 2026 No. 2026-P-12/25-2-(NPA))

Chapter 1. General Provisions

The purpose of this Regulation is to establish the procedure for the application by the National Bank of the Kyrgyz Republic (hereinafter - the National Bank) of enforcement measures to commercial banks, including those conducting operations in accordance with Islamic principles of banking and financing, and banks having an "Islamic window" (hereinafter - banks).

(Absence of text in accordance with the Resolution of the Board of the NB KR of January 17, 2024 No. 2024-P-12/1-3)

The purpose of the application by the National Bank of enforcement measures with respect to banks is prompt early response, adjustment and elimination of problems to maintain the stability and resilience of banks and the banking system, counteracting the financing of criminal activities and the legalization (money laundering) of criminal proceeds, stopping monopolistic activity in the banking services market, and protecting the interests of depositors, other consumers and other creditors. For these purposes, the National Bank has the right to apply enforcement measures in cases where a bank engages in risky activity that may lead to the occurrence of risks associated with banking activity, for the purpose of taking corrective measures based on forward-looking assessments.

Enforcement measures are applied by the National Bank independently on the grounds and in the manner provided for by the legislation of the Kyrgyz Republic and this Regulation. Enforcement measures by the National Bank may be applied either in a sequential manner or selectively, depending on the nature, type of violation committed and the financial condition of the bank. The National Bank independently determines the expediency, type (combination of types) and procedure for applying enforcement measures to banks.

Violations of banking activity in the Kyrgyz Republic are considered to be actions (inaction) of banks, their shareholders and officials, contradicting the legislation of the Kyrgyz Republic, including the laws of the Kyrgyz Republic "On Banks and Banking Activity", "On Countering the Financing of Criminal Activities and Legalization (Money Laundering) of Criminal Proceeds", "On Protection of Bank Deposits (Deposits)", "On Consumer Credit", "On Restricting Usurious Activity in the Kyrgyz Republic" and normative legal acts of the National Bank.

(In the edition of the Resolutions of the Board of the NB KR of December 28, 2022 No. 2022-P-12/83-6, January 17, 2024 No. 2024-P-12/1-3, December 19, 2025 No. 2025-P-12/68-2-(NPA), April 23, 2026 No. 2026-P-12/25-2-(NPA))

Chapter 2. General Provisions on Enforcement Measures

1. Enforcement measures include:

1. order;
2. fine;
3. requirement;
4. increase in economic standards and requirements;
5. restrictions or bans;
6. dismissal or release of officials, change of management bodies;
7. introduction of a special regime;
8. revocation of license.

2. A decision on the application of a certain enforcement measure to a bank is made taking into account:

1. classification of the bank by capital adequacy (adequacy), as set out in Appendix 3 to this Regulation;
2. the following factors:

• the nature of the violation and its impact on the bank's activity;
• the frequency and duration of the violation;
• the threat to the financial condition of the bank;
• the amount of the bank's losses resulting from the violations committed;
• the awareness of the bank's officials about the violation committed;
• the ability of the bank's officials to resolve emerging problems;
• the fact of intent in committing the violation, as well as the absence/presence of personal interest (moral, material) of affiliated and other persons associated with the bank in the violation committed;
• the significance of problems in operational activity and the internal control system;
• compliance with internal procedures and policies approved by the Board of Directors and/or the Board of the bank;
• cases of application to the bank of any enforcement measure for the violation committed previously;
• the recognition by the bank's officials of the existence and significance of the problems arising;
• compliance with corporate governance requirements/principles;
• effective interaction with the banking supervisory authority;
• the performance by the bank's officials or shareholders of recommendations and/or requirements of the National Bank;
• the nature, frequency and/or volume of the operation(s) falling under the violation of the banking legislation of the Kyrgyz Republic, legislation on countering the financing of criminal activities and legalization (money laundering) of criminal proceeds and the legislation of the Kyrgyz Republic on restricting usurious activity.

In case of violation by the bank of requirements for the minimum size of authorized capital and/or compliance with the economic standard for own (regulatory) capital, enforcement measures may be applied in the manner established in Appendix 4 to this Regulation. At the same time, the procedure specified in Appendix 4 to this Regulation is not exhaustive, and any other enforcement measures may be applied to the bank in accordance with banking legislation.

(In the edition of the Resolutions of the Board of the NB KR of October 17, 2018 No. 2018-P-12/43-3, August 14, 2019 No. 2019-P-12/42-1, December 28, 2022 No. 2022-P-12/83-6, December 19, 2025 No. 2025-P-12/68-2-(NPA), April 23, 2026 No. 2026-P-12/25-2-(NPA))

3. An enforcement measure may be applied by the National Bank no later than 12 (twelve) months from the date of discovery of the violation.

4. The National Bank has the right to provide for the possibility of the bank taking voluntary commitments to eliminate deficiencies, threats/prerequisites for violation of the requirements of the legislation of the Kyrgyz Republic.

(In the edition of the Resolution of the Board of the NB KR of May 15, 2024 No. 2024-P-12/22-1)

5. The National Bank has the right to send a written warning to the bank. A written warning is not an enforcement measure of the National Bank, and is sent in case of the need to inform the bank that there are significant risks and/or a threat of violation of certain norms and rules, as well as provisions of legislation and/or normative legal acts, including on countering the financing of criminal activities and legalization (money laundering) of criminal proceeds or engaging in activity threatening its stability and reliability, and for the purpose of warning that in the future corresponding enforcement measures may be applied to it. A written warning is sent under the signature of the head of the structural unit or the Deputy Chairman/Member of the Board of the National Bank, overseeing the supervisory block.

(In the edition of the Resolutions of the Board of the NB KR of August 14, 2019 No. 2019-P-12/42-1, December 19, 2025 No. 2025-P-12/68-2-(NPA))

Chapter 3. Recognition of the activity, actions (inaction) of the bank, relating to unhealthy and unsafe banking practice

6. The activity of the bank, actions (inaction) of its officials, creating a real threat and/or high probability of losses or damages to the bank's depositors, other its creditors, shareholders, or the banking system, are considered unhealthy and unsafe banking practice.

7. The National Bank determines unhealthy and unsafe banking practice in each separate case, based on the assessment of:

• factors and circumstances accompanying it;
• potential threat to depositors' funds, the stability of the bank and/or the banking system as a whole.

8. The presence of one or more signs of the activity, actions (inaction) of the bank, which may relate to unhealthy and unsafe banking practice, is given in Appendix 1 to this Regulation, the list of which is not exhaustive.

9. Banks, their shareholders and officials must not engage in unhealthy and unsafe banking practice.

(In the edition of the Resolution of the Board of the NB KR of December 28, 2022 No. 2022-P-12/83-6)

10. The National Bank may apply enforcement measures, up to the revocation of the license in accordance with the legislation of the Kyrgyz Republic, with respect to any bank, its shareholder and official, the activity of which is recognized as unhealthy and unsafe banking practice.

(In the edition of the Resolution of the Board of the NB KR of December 28, 2022 No. 2022-P-12/83-6)

11. The activity of the bank, actions/inaction of the bank's officials are recognized as unhealthy and unsafe banking practice by the Supervisory Committee of the National Bank based on information provided by the structural units of the National Bank.

12. The Supervisory Committee of the National Bank/The Board of the National Bank, within its competence, makes a decision on the application of the corresponding enforcement measure with respect to the bank, its shareholders, bank officials, whose actions (inaction) are involved in unhealthy and unsafe banking practice.

Chapter 4. Voluntary Commitments

13. A distinctive feature of voluntary commitments is the demonstration by the bank's management of readiness to cooperate with the National Bank in order to ensure the effectiveness of eliminating identified deficiencies, as well as identified risks of violation of certain norms and rules, as well as provisions of legislation and/or normative legal acts on countering the financing of criminal activities and legalization (money laundering) of criminal proceeds, and/or threatening its stability and reliability.

(In the edition of the Resolutions of the Board of the NB KR of August 14, 2019 No. 2019-P-12/42-1, December 19, 2025 No. 2025-P-12/68-2-(NPA))

14. The following types of voluntary commitments may be used:

1. elimination of remarks within the framework of preliminary actions of the supervisory authority with respect to the bank;
2. signing a letter of commitment;
3. signing a written agreement.

15. A letter of commitment is prepared and provided by the bank, in the activity of which there are deficiencies and threats/prerequisites for violation of normative legal acts, not causing significant concern of the supervisory authority. A letter of commitment must contain specific measures to eliminate deficiencies that will be undertaken by the board of directors and the bank's management, with the establishment of deadlines and target indicators. A letter of commitment may, if necessary, contain measures to tighten internal values of economic standards and requirements. By providing a letter of commitment, the bank undertakes to fulfill the requirements provided for in the letter of commitment.

A letter of commitment is approved by the board of directors of the bank and is subject to submission to the authorized unit of the National Bank.

(In the edition of the Resolution of the Board of the NB KR of May 15, 2024 No. 2024-P-12/22-1)

16. A written agreement between the bank and the National Bank is signed only in cases where violations occur in the bank's activity, but at the same time:

1. the bank is sufficiently capitalized;
2. the Board of Directors and the Board of the bank understand the problems and are ready to take specific measures to correct existing problems;
3. deficiencies and threats/prerequisites for violation do not entail consequences threatening the financial condition of the bank.

17. The written agreement specifies the actions and deadlines for their implementation that the Board of Directors and the bank's management are to undertake. A written agreement is prepared by the National Bank and signed on the one hand by the Chairman of the Board of Directors after approval by the Board of Directors of the bank and on the other - by the Deputy Chairman/Member of the Board of the National Bank. The agreement must contain the bank's intention to eliminate deficiencies in the bank's activity and improve its financial condition. By signing a written agreement, the bank undertakes to fulfill its conditions.

18. A written agreement is not signed with problematic banks belonging to the category of undercapitalized banks.

Chapter 5. Enforcement Measures Applied by the National Bank

19. Enforcement measures of the National Bank may be applied in the form of resolutions of the Board of the National Bank, the Supervisory Committee of the National Bank, the Deputy Chairman/Member of the Board of the National Bank overseeing the supervisory block, orders or requirements of the Deputy Chairman/Member of the Board of the National Bank overseeing the supervisory block, heads of structural units of the National Bank. At the same time, the specified documents are mandatory for execution.

The National Bank has the right to apply stricter enforcement measures, up to the revocation of the license, for non-execution or improper execution of the requirements contained in the resolutions of the Board of the National Bank, the Supervisory Committee of the National Bank, orders or requirements of the Deputy Chairman/Member of the Board of the National Bank overseeing the supervisory block, and heads of structural units of the National Bank.

(In the edition of the Resolutions of the NB KR of July 14, 2021 No. 2021-P-12/38-3, December 28, 2022 No. 2022-P-12/83-6, May 15, 2024 No. 2024-P-12/22-1)

20. The exclusive competence of the Board of the National Bank includes making decisions on the application of the following types of enforcement measures:

1. introduction of a temporary administration;
2. revocation of the bank's license.

(In the edition of the Resolution of the Board of the NB KR of December 28, 2022 No. 2022-P-12/83-6)

§ 1. Order

21. An order is an enforcement measure of the National Bank containing a written instruction that is mandatory for execution within the established deadlines.

An order is applied to eliminate identified violations in the bank's activity, as well as for the purpose of early response, adjustment and prevention of problems that may arise in the bank in case of failure to take timely measures to eliminate existing deficiencies in its activity.

An order may be applied as both a main and an additional enforcement measure.

The order specifies specific references to the provisions of normative legal acts of the Kyrgyz Republic, including those of the National Bank, which were violated by the bank, its shareholders and officials, as well as the deadline for their elimination.

Depending on the identified violation, as well as identified risks threatening the stability and reliability of the bank's activity, the order may contain a requirement:

• to eliminate the violation (to bring to the established level of values of mandatory standards, limits of open currency position; fulfill obligations to creditors and depositors and others);
• to bring the bank's activity into compliance;
• to perform certain actions, including reducing/optimizing the level of risk accepted by the bank in the conduct of certain operations/deals.

(In the edition of the Resolutions of the Board of the NB KR of July 14, 2021 No. 2021-P-12/38-3, December 28, 2022 No. 2022-P-12/83-6)

22. An order must contain the following:

• date and place of issuance of the order;
• registration number;
• full name of the body/full name of the person who issued the order;
• surname, first name, patronymic of the person to whom the order is addressed/full name of the bank;
• date of entry into force;
• term of validity of the order, if it is adopted for a certain period;
• deadline for appeal and the body where this order can be appealed.

The order also contains a description of the issue, i.e., indication of the fact of violation, as well as all circumstances associated with the violation, and with the statement of corresponding references, provisions of the legislation of the Kyrgyz Republic, including normative legal acts of the National Bank, which were violated by the bank/shareholder(s)/officials in justification of sending the order. In addition, if necessary, the order may specify the surname, first name, patronymic of the responsible person(s) for the violation and/or the management body, which are determined, in accordance with the requirements of the National Bank, internal documents of the bank, as well as the practice and procedures of the organization's activity.

When issuing an order, the laws and other normative legal acts by which the National Bank was guided in issuing the order are specified, the statement of the adopted decision, the corresponding measures that must be taken by the bank/shareholder(s)/officials of the bank are specified and deadlines for their implementation are established.

The order is sealed with the seal of the National Bank in accordance with the established internal procedure.

(In the edition of the Resolution of the Board of the NB KR of November 25, 2020 No. 2020-P-12/67-2)

23. After sending the order, the responsible structural unit of the National Bank ensures control over the bank's execution of the order within the established deadlines and takes immediate subsequent measures, including the application of stricter enforcement measures in case of its non-execution or improper execution.

(In the edition of the Resolution of the Board of the NB KR of July 14, 2021 No. 2021-P-12/38-3)

§ 2. Fine

24. A fine is an enforcement measure of the National Bank in the form of a monetary penalty imposed in case of violation by the bank/bank official of norms, requirements and restrictions established by the laws of the Kyrgyz Republic "On Banks and Banking Activity", "On Countering the Financing of Criminal Activities and Legalization (Money Laundering) of Criminal Proceeds", "On Protection of Bank Deposits (Deposits)", "On Consumer Credit", "On Restricting Usurious Activity in the Kyrgyz Republic", other normative legal acts of the Kyrgyz Republic, normative legal acts of the National Bank, as well as for non-execution or improper execution of other enforcement measures of the National Bank.

A fine may be applied as both a main and an additional enforcement measure.

The Supervisory Committee of the National Bank has the right to impose a fine:

1. in an amount of not more than ten percent of the standard of the minimum size of authorized capital - with respect to the bank;
2. in an amount of not more than the average annual remuneration, including all types of payments (salary, bonuses, bonuses, etc.) - with respect to the bank official.

The amount of the average annual remuneration of an official is calculated using the following formula:

B / 3 / 29.6 * 365, where:

B - remuneration of the official for the last 3 months, including all types of payments (salary, bonuses, bonuses, etc.), minus mandatory tax payments and social contributions provided for by the legislation of the Kyrgyz Republic;

3 - number of months;

29.6 - average monthly number of calendar days;

365 - number of days in a year.

In cases provided for by the Instruction "On the procedure for compliance with the limits of the open currency position and position in precious metals by commercial banks in the territory of the Kyrgyz Republic", approved by the resolution of the Board of the National Bank, the fine is imposed by the resolution of the Deputy Chairman/Member of the Board of the National Bank overseeing the supervisory block.

(In the edition of the Resolutions of the Board of the NB KR of July 14, 2021 No. 2021-P-12/38-3, December 28, 2022 No. 2022-P-12/83-6, May 15, 2024 No. 2024-P-12/22-1, December 19, 2025 No. 2025-P-12/68-2-(NPA), April 23, 2026 No. 2026-P-12/25-2-(NPA))

25. The fine must be paid by the bank, its official within a period of no later than three months from the date of delivery of the resolution on the imposition of the fine to him.

26. For violation of currency position limits, a fine is imposed in accordance with the Instruction "On the procedure for compliance with the limits of the open currency position and position in precious metals by commercial banks in the territory of the Kyrgyz Republic", approved by the resolution of the Board of the National Bank.

27. Imposition of a fine on the bank and its officials is not a ground for not eliminating the violation committed.

(In the edition of the Resolution of the Board of the NB KR of December 28, 2022 No. 2022-P-12/83-6)

28. If the fine is not paid by the bank/its official within the established period, the fine is recovered in a compulsory order within the framework of enforcement proceedings.

29. For non-compliance by the bank with mandatory reserve requirements, a fine is recovered from the bank in accordance with the normative legal acts of the National Bank.

30. A fine may also be imposed in accordance with the Code of the Kyrgyz Republic on Offenses.

(In the edition of the Resolution of the Board of the NB KR of December 28, 2022 No. 2022-P-12/83-6)

31. A decision on the application of a penalty is made by the Commission of the National Bank for the consideration of cases of offenses in accordance with the normative legal acts of the National Bank.

(In the edition of the Resolution of the Board of the NB KR of December 28, 2022 No. 2022-P-12/83-6)

§ 3. Requirement

32. A requirement is an enforcement measure of the National Bank obliging the bank to perform an action or event on:

• conducting events on financial rehabilitation, restructuring and/or reorganization of the bank;
• conducting a repeat/special external audit of the bank;
• sale of bank shares within a certain period established by the National Bank;
• reduction of administrative expenses;
• change of the organizational structure of the bank;
• change of policies, regulations, procedures and other internal regulatory documents of the bank.

(In the edition of the Resolution of the Board of the NB KR of July 14, 2021 No. 2021-P-12/38-3)

§ 3-1. Requirement to conduct financial rehabilitation measures

33. The National Bank has the right to present a requirement to the bank to conduct financial rehabilitation measures for the bank.

The bank is obliged to have an approved by the board of directors plan for the financial rehabilitation of the bank in case of financial difficulties and problems.

The plan for the financial rehabilitation of the bank is prepared in accordance with the requirements of the Regulation "On Requirements for the Plan for the Financial Rehabilitation of the Bank".

The bank is obliged to conduct an assessment of the adequacy of the plan for the financial rehabilitation of the bank.

(In the edition of the Resolutions of the Board of the NB KR of December 28, 2022 No. 2022-P-12/83-6, December 26, 2025 No. 2025-P-12/70-5-(NPA))

34. The National Bank at any time may require the bank to apply measures provided for in the Plan for Financial Rehabilitation, as well as any other measures, in accordance with the banking legislation of the Kyrgyz Republic.

In case of issuing a requirement to the bank to conduct measures for financial rehabilitation, the Plan for Financial Rehabilitation of the bank, including the updated Plan (in case of making changes and additions to the Plan for Financial Rehabilitation at the request of the National Bank), as well as the bank's events for its implementation are subject to approval by the Supervisory Committee of the National Bank.

(In the edition of the Resolution of the Board of the NB KR of April 24, 2019 No. 2019-P-12/22-4)

35. From the day of issuing the requirement of the National Bank, the bank is not entitled to make decisions on the distribution of profit, payment of dividends (including on previously issued decisions), fulfillment of any financial obligations to shareholders, as well as on the payment of any remuneration to officials and employees of the bank, except for wages.

36. During the period of conducting measures for the financial rehabilitation of the bank, the National Bank has the right to introduce a ban or impose a restriction on the satisfaction of creditors' claims on the bank's monetary obligation, if this leads to deterioration of its financial condition or bankruptcy.

The Board of Directors of the bank is obliged to approve a program of financial rehabilitation