Regulatory Alerts2019-03-13 | 128162On the Norms of Mandatory Reserve Requirements for Banks
The Board of the National Bank of the Kyrgyz Republic issued Resolution No. 2019-P-07/10-2-(DKP) establishing mandatory reserve norms for banks, setting compliance rates at 4.00 percent for national currency and certain regional currencies, 15.00 percent for other foreign currencies, and zero percent for dematerialized metal accounts. The regulation defines eligible reserve assets—including correspondent account funds, gold holdings, and ATM cash—and mandates a minimum threshold of 70.00 percent, calculable daily using London Bullion Market Association gold fixings converted via the official USD/som cross-rate. It further specifies a zero percent compensation rate, three-times-the-refinancing-rate penalties for non-compliance with reserve requirements or threshold levels, and officially repeals six prior board resolutions effective April 1, 2019.