On the Minimum Size of the Authorized Capital of Non-Bank Financial and Credit Organizations

Back Print Version Date Created: 2024-03-04

RESOLUTION OF THE BOARD OF DIRECTORS OF THE NATIONAL BANK OF THE KYRGYZ REPUBLIC dated October 5, 2022 No. 2022-P-33/61-2-(NFKU), (Amended by the Resolution of the Board of Directors of the National Bank of the Kyrgyz Republic dated February 7, 2024 No. 2024-P-17/4-4-(NFKU))

ON THE MINIMUM SIZE OF THE AUTHORIZED CAPITAL OF NON-BANK FINANCIAL AND CREDIT ORGANIZATIONS

In order to strengthen the stability, security, and reliability of the banking system, as well as to enhance public trust in non-bank financial and credit organizations, based on Articles 5, 9, and 64 of the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Board of Directors of the National Bank of the Kyrgyz Republic resolves:

1. Establish, effective July 1, 2023, the minimum authorized capital size for newly established non-bank financial and credit organizations as follows:

1. for microfinance companies (MFCs):

• not accepting deposits: at least 300 (three hundred) million soms. This requirement also applies to commercial banks intending to re-register as microfinance companies, with a restriction on accepting time deposits (deposits) for microcredit companies, microcredit agencies, and credit unions converting to MFCs;
• eligible for the right to accept time deposits from individuals and legal entities: at least 600 (six hundred) million soms. This requirement also applies to commercial banks intending to re-register as microfinance companies, without restrictions on the right to attract time deposits (deposits).;

2. for microcredit companies (MKCs): at least 50 (fifty) million soms;
3. for credit unions:

• without a license to attract deposits: at least 2 (two) million soms;
• with a license to attract deposits: at least 5 (five) million soms;

4. for housing savings credit companies: at least 600 (six hundred) million soms;
5. for guarantee funds: at least 700 (seven hundred) million soms. (Amended by the Resolution of the Board of Directors of the National Bank of the Kyrgyz Republic dated February 7, 2024 No. 2024-P-17/4-4-(NFKU))

2. Establish, effective from 2025, the minimum authorized capital size for specialized financial and credit organizations at no less than 300 (three hundred) million soms.

3. Establish the minimum authorized capital size (for credit unions - equity/capital) and the following phased implementation deadlines for existing non-bank financial and credit organizations: by October 1, 2023:

1. for microfinance companies (MFCs):

• not accepting deposits: at least 100 (one hundred) million soms;
• attracting deposits: at least 300 (three hundred) million soms;

2. for microcredit companies (MKCs): at least 10 (ten) million soms;
3. for credit unions:

• without a license to attract deposits: at least 300 (three hundred) thousand soms;
• with a license to attract deposits: at least 3 (three) million soms;

4. for housing savings credit companies: at least 200 (two hundred) million soms;
5. for guarantee funds: at least 700 (seven hundred) million soms; by October 1, 2024:
6. for microfinance companies (MFCs):

• not accepting deposits: at least 150 (one hundred fifty) million soms;
• attracting deposits: at least 350 (three hundred fifty) million soms;

2. for microcredit companies (MKCs): at least 17 (seventeen) million soms;
3. for credit unions:

• without a license to attract deposits: at least 700 (seven hundred) thousand soms;
• with a license to attract deposits: at least 4 (four) million soms;

4. for housing savings credit companies: at least 300 (three hundred) million soms; by October 1, 2025:
5. for microfinance companies (MFCs):

• not accepting deposits: at least 200 (two hundred) million soms;
• attracting deposits: at least 400 (four hundred) million soms;

2. for microcredit companies (MKCs): at least 25 (twenty-five) million soms;
3. for credit unions:

• without a license to attract deposits: at least 1.2 (one million two hundred thousand) million soms;
• with a license to attract deposits: at least 5 (five) million soms;

4. for housing savings credit companies: at least 400 (four hundred) million soms; by October 1, 2026:
5. for microfinance companies (MFCs):

• not accepting deposits: at least 250 (two hundred fifty) million soms;
• attracting deposits: at least 500 (five hundred) million soms;

2. for microcredit companies (MKCs): at least 35 (thirty-five) million soms;
3. for credit unions without a license to attract deposits: at least 1.6 (one million six hundred thousand) million soms;
4. for housing savings credit companies: at least 500 (five hundred) million soms; by October 1, 2027:
5. for microfinance companies (MFCs):

• not accepting deposits: at least 300 (three hundred) million soms;
• attracting deposits: at least 600 (six hundred) million soms;

2. for microcredit companies (MKCs): at least 50 (fifty) million soms;
3. for credit unions without a license to attract deposits: at least 2 (two) million soms;
4. for housing savings credit companies: at least 600 (six hundred) million soms.

3-1. The requirements established for the minimum authorized capital size for existing microfinance companies attracting deposits also apply to microfinance companies that plan to remove restrictions on accepting time deposits (deposits) from individuals and legal entities in their licenses. (Amended by the Resolution of the Board of Directors of the National Bank of the Kyrgyz Republic dated February 7, 2024 No. 2024-P-17/4-4-(NFKU))

4. Existing non-bank financial and credit organizations with a minimum authorized capital size below the established thresholds, together with their shareholders/founders/participants, shall develop a compliance plan for fulfilling the requirements of paragraphs 2 and 3 of this Resolution and submit it to the National Bank of the Kyrgyz Republic by November 30, 2022.

5. This Resolution shall enter into force upon the expiration of 15 days after its official publication.

6. The Legal Department, from the date of receiving the corresponding documents, within three working days:

• shall publish this Resolution on the official website of the National Bank of the Kyrgyz Republic;
• after official publication, shall forward this Resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Regulatory Legal Acts of the Kyrgyz Republic.

7. The Supervision Department for Non-Bank Financial and Credit Organizations shall, within three working days, notify the following entities of this Resolution: JSC "Financial Company of Credit Unions", OJSL "Association of Microfinance Organizations", OJSL "National Association of Credit Unions and Cooperatives", microfinance organizations, credit unions, housing savings credit companies of the Kyrgyz Republic, and JSC "Guarantee Fund".

8. The "Board Secretariat" Department shall, within three working days, notify all structural divisions, regional departments, and the National Bank of the Kyrgyz Republic representation in the Batken Region of this Resolution.

9. Control over the implementation of this Resolution is assigned to the Board Member of the National Bank of the Kyrgyz Republic overseeing the Supervision Department for Non-Bank Financial and Credit Organizations.

Chairman of the Board of Directors of the National Bank of the Kyrgyz Republic K. Bokontayev

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