Methodological Guidelines for Filling Out the Periodic Regulatory Report of a Microfinance Company

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Date of creation: 2025-03-13

APPROVED

by the resolution

of the Supervisory Committee

of the National Bank

of the Kyrgyz Republic

of June 9, 2016 No. 24/1

METHODOLOGICAL GUIDELINES

on filling out the periodic regulatory report of a microfinance company

(In the edition of the resolutions of the Supervisory Committee of the National Bank of the Kyrgyz Republic of September 1, 2016 No. 36/1, June 29, 2017 No. 22/2, February 8, 2018 No. 06/2, July 2, 2018 No. 30/5, March 28, 2019 No. 10/1, February 11, 2021 No. 05/3,

December 30, 2022 No. 43/2, March 6, 2025 No. 13/1)

Chapter 1. General Provisions

1. These Methodological Guidelines on filling out the Periodic Regulatory Report of a microfinance company (hereinafter - the Guidelines) provide an explanation of the procedure for filling out the appendices to the Regulation "On the Periodic Regulatory Report of an MFC (hereinafter - PRO MFC), submitted by microfinance companies, including microfinance companies carrying out operations in accordance with Islamic principles of banking and financing within the "Islamic window" (hereinafter - MFC), licensed by the National Bank of the Kyrgyz Republic (hereinafter - the National Bank) for the following sections:

• Title page;
• Information on members of the Board of Directors, the Board of Directors (Executive Body), major founders (shareholders), and members of the Shariah Council of the MFC;
• Information on certain officials of the MFC;
• Basic information about the MFC;
• Section 1. Regulatory report on financial position;
• Section 2. Report on total income;
• Section 3. Capital;
• Section 4. Information on overdue assets, asset classification, and off-balance sheet obligations by risk degree;
• Section 5. Deposits;
• Section 6. Sensitivity analysis of MFC assets and liabilities to changes in interest rates (GAP analysis);
• Section 7. Changes in the Reserve for Coverage of Potential Losses and Damages;
• Section 8. Information on large risks;
• Section 9. Information on transactions with employees;
• Section 10. Information on compliance with economic standards;
• Section 11. Information on loans to clients;
• Section 12. Disclosures;
• Section 13. Report on foreign assets and liabilities.

Note. Sections not described in these Guidelines are filled out in accordance with the relevant normative legal acts of the National Bank.

All amounts must be indicated in thousands of som (foreign currency in som equivalent at the official exchange rate of the National Bank on the reporting date).

(In the edition of the resolutions of the Supervisory Committee of the National Bank of the Kyrgyz Republic of September 1, 2016 No. 36/1,

December 30, 2022 No. 43/2)

1-1. Sections/subsections of the PRO intended for disclosure of information on operations conducted in accordance with Islamic principles of banking and financing are filled out only by MFCs having an "Islamic window".

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of September 1, 2016 No. 36/1)

Chapter 2. Title Page

2. The title page indicates:

• date and outgoing registration number;

• date as of which the report was prepared (for example, as of December 31, 2015, means that the report was prepared at the end of the day);

• date of completion of the report;

• periodicity - "quarterly", "annual" or "correction". When submitting a quarterly report, underline the word "quarterly". When submitting a report for the IV quarter, which is annual, underline the word "annual". Mark the word "correction" when submitting a corrected report. Correction of the report is allowed if technical errors arise. In this case, only those reporting forms in which changes were made are submitted, and the changes are marked with a marker;

• type of audit or inspection conducted - one or two of the following lines are indicated:

a) internal inspection - if the inspection was conducted by internal audit or auditors;

b) audit without conclusion - if an audit was conducted that does not provide recommendations and is limited to issuing a conclusion on the correctness of banking operations and accounting;

c) audit with conclusion - if an audit was conducted that, in addition to checking the correctness of banking operations and accounting, provides the MFC with recommendations and an action plan for improving and/or perfecting its activities;

• name of the reporting MFC, indicated in capital letters;

• whether the MFC carries out operations in accordance with Islamic principles of banking and financing within the "Islamic window" (hereinafter - under IPF) is indicated;

• external audit firm - filled out when submitting an annual report;

• certifying signatures of the Chairman of the Board of Directors of the MFC or a member of the Board of Directors replacing the Chairman in his absence; Chairman of the Board; Chief Accountant; member of the Board overseeing the preparation of the report;

• signature of the MFC employee responsible for compiling and submitting the PRO with indication of position, surname, first name, patronymic, and phone number.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of September 1, 2016 No. 36/1)

Chapter 3. Information on members of the Board of Directors, the Board of Directors (Executive Body), major founders (shareholders), and members of the Shariah Council of the MFC

(Name of the chapter in the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of September 1, 2016 No. 36/1)

3. Information on members of the supervisory body (Board of Directors) of the MFC must contain the following information:

• surname, first name, and patronymic of the member of the supervisory body;
• date of election of the member of the supervisory body;
• date of approval by the National Bank of the candidate for the member of the supervisory body (resolution of the Supervisory Committee/letter of consent);
• place of work of the member of the supervisory body;
• position held by the member of the supervisory body of the MFC (chairman, deputy chairman, member of the supervisory body);
• work phone number of the member of the supervisory body (including city/settlement code), mobile phone number of the member of the supervisory body (including operator code);
• share of the member of the supervisory body in the authorized capital of the MFC/share of the member of the supervisory body in the ownership of shares in other NFKOs;
• share of the member of the supervisory body in the authorized capital of other companies/share of the member of the supervisory body in the ownership in other companies with indication of the names of the companies;
• date of entry of the member of the supervisory body into the capital of other companies/date of acquisition by the member of the supervisory body of a share of shares in other companies;
• specimen signature of the member of the supervisory body (in paper form of the report).

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

4. Information on members of the executive body (Board) of the MFC must contain the following information:

• surname, first name, and patronymic of the member of the executive body;
• date of appointment of the member of the executive body;
• date of approval by the National Bank of the candidate for the member of the executive body (resolution of the Supervisory Committee/letter of consent);
• place of work of the member of the executive body;
• position held by the member of the executive body of the MFC (chairman, deputy chairman, member of the supervisory body); Note: Original text says "member of supervisory body" here, likely a typo in source for "member of executive body", but translated faithfully.
• work phone number of the member of the executive body (including city/settlement code), mobile phone number of the member of the executive body (including operator code);
• position held in other companies with indication of the names of the companies;
• share of the member of the executive body in the authorized capital of the MFC/share of the member of the executive body in the ownership of shares in other NFKOs;
• share of the member of the executive body in the authorized capital of other companies/share of the member of the executive body in the ownership in other companies with indication of the names of the companies;
• date of entry of the member of the executive body into the capital of other companies/date of acquisition by the member of the executive body of a share of shares in other companies;
• distribution of powers (supervised areas of activity);
• specimen signature of the member of the executive body (in paper form of the report).

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

5. Information on shareholders owning more than 1% of the shares of the MFC must contain the following information:

• surname, first name, and patronymic of the shareholder/name (for shareholders - legal entities);
• share of each shareholder in percentage terms;
• date of acquisition of shares;
• country of origin of the shareholder (for legal entities, country of registration);
• place of work of the shareholder/legal address (for shareholders - legal entities);
• type of activity of the shareholder (position held in other companies);
• work phone number of the shareholder (including city/settlement code), mobile phone number of the shareholder (including operator code);
• shares in other FCOs (foreign or local FCO and share of ownership);
• ultimate beneficiary;
• specimen signature of the shareholder and head of the shareholder - legal entity (in paper form of the report).

Note: This information is provided in the annual report, or in case of changes during the quarter, in the quarterly report.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

5-1. Information on members of the Shariah Council of the MFC must contain the following information:

• surname, first name, and patronymic of the member of the Shariah Council;
• date of election of the member of the Shariah Council;
• date of approval by the National Bank of the candidate for the member of the Shariah Council (resolution of the Supervisory Committee/letter of consent);
• place of work of the member of the Shariah Council;
• position of the member of the Shariah Council in the MFC (chairman, deputy chairman, member of the Shariah Council);
• work phone number of the member of the Shariah Council (including city/settlement code), mobile phone number of the member of the Shariah Council (including operator code);
• position held by the member of the Shariah Council in other companies/name of companies;
• share of the member of the Shariah Council in the authorized capital of the MFC/share of the member of the Shariah Council in the ownership of shares in other NFKOs;
• share of the member of the Shariah Council in the authorized capital of other companies/share of the member of the Shariah Council in the ownership in other companies with indication of the names of the companies;
• date of entry of the member of the Shariah Council into the capital of other companies/date of acquisition by the member of the Shariah Council of a share of shares in other companies;
• specimen signature of the member of the Shariah Council (in paper form of the report).

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

Chapter 4. Information on certain officials of the MFC

6. Information on certain officials of the MFC is provided in the annual report or in case of changes and contains a list of the following officials (or persons equivalent to them) of the MFC:

1. Chief Accountant;
2. Official responsible for liquidity management;
3. Official responsible for the MFC budget;
4. Official responsible for the credit activities of the MFC;
5. Chairman of the Audit Committee;
6. Head of the internal audit service/department;
7. Risk manager;
8. Compliance officer;
9. Head of the structural unit responsible for asset and liability management (or a person equivalent to him in functional duties);
10. Head of the structural unit responsible for financing in accordance with Islamic principles;
11. Head of the "Islamic window".

Officials indicated in points 2, 3, and 4 must represent the management of the MFC and be responsible for the policy conducted in the specified areas on a scale of the entire MFC.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

7. For each official, the following information must be contained:

• surname, first name, and patronymic of the official;
• for officials whose candidates are subject to mandatory approval by the National Bank, the date of approval by the National Bank (resolution of the Supervisory Committee/letter of consent);
• number of subordinates of the official;
• work phone number of the official (including city/settlement code), mobile phone number of the official (including operator code);
• specimen signature of the official (in paper form of the report).

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

8. Assignment of responsibility for certain areas of activity of the MFC to certain officials of the MFC must have documentary confirmation in the MFC.

Chapter 5.

Basic information on the MFC, information on branches/representative offices, subsidiary and affiliated companies, active committees

(Chapter in the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

9. Basic information includes information on the following subsections:

• basic information on the MFC;
• information on branches/representative offices of the MFC;
• subsidiary and affiliated companies;
• active committees.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

9-1. Basic information on the MFC includes the following information:

• full name of the reporting MFC;
• organizational and legal form of the MFC (JSC/LLC);
• address (actual and legal address, city where the head office of the MFC is located, street, house number, postal code);
• date of issuance of the license, additional licenses of the National Bank (indicated in chronological order, No., date);
• presence of restrictions in the licenses of the National Bank (yes/no);
• list of restrictions in the licenses of the National Bank;
• external audit (date of the last external audit, name of the audit organization);
• website of the MFC on the Internet (link to the website address);
• officially announced contact: work phone numbers (including city/settlement code), mobile phone (including operator code), fax, email;
• MFC personnel (total number of employees) with indication of staff units and employees under fixed-term employment contracts;
• amount of authorized capital: declared and actual;
• ordinary shares (as of December 31): nominal value, quantity, and cost;
• preferred shares (as of December 31): nominal value, quantity, and cost.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

9-2. Information on branches/representative offices of the MFC includes the following information:

• number of branches and representative offices of the MFC;
• names of branches and representative offices of the MFC;
• addresses of branches and representative offices of the MFC;
• surnames, first names, and patronymics of the heads of branches and representative offices of the MFC.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

9-3. For each subsidiary and affiliated company of the MFC, the following information must be contained:

• name of the subsidiary and/or affiliated company;
• country of origin of the subsidiary and/or affiliated company;
• type of activity of the subsidiary and/or affiliated company;
• share of the company in the subsidiary and affiliated company in percentage terms;
• share and names of other founders/shareholders in the subsidiary and affiliated company;
• strategic plans of the MFC regarding the subsidiary and affiliated company.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

9-4. For each active committee of the MFC, the following information must be contained:

• name of the committee;
• composition of committee members (Full Name), position held in the committee;
• position in the MFC;
• date of approval by the National Bank (resolution of the Supervisory Committee, letter of consent).

Note: Information indicated in other chapters must correspond to the information indicated in this chapter. On all other issues concerning the report, the National Bank will use the information presented in this chapter.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 28, 2019 No. 10/1)

Chapter 6.

Section 1. Regulatory report on financial position

10. The Regulatory report on financial position reflects the most significant items of the financial position of the MFC from the point of view of regulatory reporting.

The Regulatory report on financial position consists of three columns:

1. name of the item of the regulatory report on financial position;

2. value of the item in som;

3. in the third column, the som equivalent of balance sheet items in foreign currency is highlighted at the official exchange rate of the National Bank on the reporting date.

Amounts in the items of the financial position report (except for financing) are indicated net of corresponding amounts of reserves for coverage of potential losses and damages (hereinafter - RPPU), depreciation charges, and discount/premium (net asset value).

The Regulatory report on financial position is compiled without taking into account the amount of reciprocal assets and liabilities on financial instruments (swap - operations with commercial banks and "Back to back" operations). At the same time, the amount of netting must be disclosed and explained separately in the explanatory note to the PRO.

§ 1. Subsection 1.A. Assets

In item 1 "Cash", the amount of cash is indicated, including banknotes and coins in the circulating cash register, as well as banknotes and coins converted to som, including foreign currency in som equivalent at the official exchange rate of the National Bank on the reporting date.

In item 2 "Account at the National Bank", funds on deposits at the National Bank for the calculation of mandatory reserve requirements for MFCs attracting deposits are indicated.

In item 3 "Settlement accounts in other banks and financial institutions", the amount of funds in settlement and deposit accounts in banks or financial institutions is indicated. The balances include the amount in all types of currencies in som equivalent at the National Bank's rate on the reporting date.

In item 4 "Deposits in other banks and financial institutions", the amounts of funds on deposits are indicated, including funds on deposits pledged in banks and other financial-credit organizations, including in foreign currency.

In item 5 "Securities", the book value of securities owned by the MFC is indicated: portfolio of trading securities, securities available for sale, and securities held to maturity.

In item 6 "Loans to financial-credit organizations", the balance of the principal amount of loans (including factoring) and financial leasing to financial-credit organizations on the reporting date minus the corresponding discount is indicated.

In item 7 "Loans and financial leasing to clients", the balance of the principal amount of loans and financial leasing (leasing) to clients, except for FCOs, on the reporting date minus the corresponding discount is indicated.

In item 8 "Special reserve for coverage of potential credit and leasing losses and damages (Special RPPU)", the amount of special RPPU created for classified loans and financial leasing (leasing) to financial-credit organizations and other clients (by items 6 and 7) is indicated.

In item 9 "Net loans and financial leasing", the value of loans and financial leasing (leasing) minus the special RPPU for them (sum of items 6 and 7 minus item 8) is indicated.

In item 10 "Fixed assets", the value of land and/or land plots, buildings and other structures owned or used by the MFC, furniture and equipment, including motor vehicles, as well as the value of materials, labor, and other capitalizable expenses arising in connection with construction or major repair, minus the accumulated depreciation on fixed assets, is indicated. Fixed assets must be shown by the following groups: a) land and buildings; b) other fixed assets.

In item 11 "Disposed assets", real estate and other property of the borrower (former collateral property) accepted by the MFC in satisfaction of assets minus the corresponding RPPU, which are divided into real estate and other property of borrowers, is indicated.

(In the edition of the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of March 6, 2025 No. 13/1)

In item 12 "Capital investments in unconsolidated companies", the amount of capital investments in companies not consolidated in this report, including in branches and associated companies, is indicated.

In item 13 "Other assets", the book value of assets not indicated above, including funds in calculations:

a) accrued interest receivable - the amount of accrued interest receivable on issued loans, securities, deposits is indicated;

b) prepaid payments - the amount of advance payments made by the MFC to other parties according to contract terms is indicated;

c) unexplained debtor amounts - amounts of funds pending clarification are indicated;

d) other other assets - the amount of other other assets of the MFC not indicated above is indicated;

e) minus: reserves for coverage of possible losses and damages on other assets - the amount of special RPPU on the above-mentioned other assets of the MFC is indicated.

In item 14 "Total assets", the sum of items 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13 is indicated.

§ 2. Subsection 1.B. Liabilities

In item 15 "Term deposits of legal entities", the total amount of term deposits of legal entities is indicated.

In item 16 "Term deposits of individuals", the total amount of term deposits of individuals is indicated.

In item 17 "Received loans and borrowings", the amounts of loans and borrowings received by the MFC are indicated. Balances are indicated in conversion to som, including in foreign currency, as well as in som by the following items:

a) from banks;

b) from other financial institutions of the Kyrgyz Republic;

c) from international donor organizations and donors;

d) from international FCOs;

e) from state authorities;

f) from founders (shareholders - individuals) - the total amount of funds borrowed by the MFC from founders (shareholders) - individuals is indicated;

g) from founders (shareholders) - legal entities" - the total amount of funds borrowed by the MFC from founders (shareholders) - legal entities is indicated;

h) from other legal entities - the total amount of funds borrowed by the MFC from other, not indicated above legal entities is indicated.

In item 18 "Conditional grants", the amount of balances of received grants on the reporting date in conversion to som, including in foreign currency, is indicated.

In item 19 "Other liabilities", other liabilities not indicated in previous items, including funds in calculations, are indicated. The value for this item must be equal to the value for item 4 "Total loans" column 8 "general" reserves" Section 4.B.:

a) Accrued interest payable - the amount of accrued interest payable on deposits, received loans is indicated;

b) Taxes payable - the amount of MFC liabilities subject to payment to the budget is indicated;

c) Dividends payable - the amount of funds payable to shareholders is indicated;

d) Other - other liabilities not shown above, including RPPU on off-balance sheet obligations, are indicated.

In item 20 "Total liabilities", the sum of items 15, 16, 17, 18, and 19 is indicated.

§ 3. Subsection 1.C. Capital

In item 21 "Share capital", the value of share capital is indicated in breakdown:

a) ordinary shares - the total amount of ordinary shares of the MFC is indicated;

b) preferred shares - the total amount of preferred shares of the MFC is indicated;

c) capital invested above nominal value - the amount of funds contributed by shareholders above the nominal value of shares is indicated;

c-1) "Additional capital contributed by individuals and legal entities" - the amount of funds contributed by individuals and legal entities above the paid-up authorized capital is indicated only if the MFC has a contract with individuals and legal entities on the contribution of funds towards the acquisition of shares in the authorized capital of the MFC with conditions: irrevocability (under any circumstances), indefiniteness of the contributed funds, as well as with the condition that in case of bankruptcy of the MFC, claims on such funds will be satisfied in the same queue as shareholders of the MFC. Subsequently, funds additionally contributed by individuals and legal entities must be directed into the authorized capital (ordinary and/or preferred...)