Regulatory Alerts2018-01-31 | 131063Rules for Regulating the Activities of Microfinance Organizations Conducting Operations Based on Islamic Principles of Banking and Finance
The National Bank of the Kyrgyz Republic establishes regulatory requirements for microfinance organizations (MFOs) operating under Islamic banking principles, including specific capital adequacy, liquidity, and risk concentration limits. The rules distinguish between MFOs that do not accept deposits and those that do, mandating Shariah-compliant financing structures, internal audit capabilities, and strict prohibitions on conventional banking activities such as issuing guarantees or dealing in precious metals. Recent amendments effective April 2026 introduce updated definitions for wholesale financing, systemically important MFOs, and enhanced sanctions compliance measures regarding the issuance of securities.
Share