Methodological Guidelines for Completing Periodic Regulatory Consolidated Reporting

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Creation date: 2024-10-31

Approved

by the resolution of the Supervisory Committee of the National Bank of the Kyrgyz Republic of 01.10.2020 No. 33/3

Methodological Guidelines for Completing Periodic Regulatory Consolidated Reporting

(Changes and additions were approved by resolutions of the Supervisory Committee of the NBKR No. 30/4 dated 19.08.2022, No. 39/1 dated 10.09.2024)

I. General Provisions

1. These Methodological Guidelines for Completing Periodic Regulatory Consolidated Reporting (hereinafter – the Guidelines) explain the procedure for completing the appendices to the Regulation on Periodic Regulatory Consolidated Reporting (hereinafter – PRCR).

PRCR is submitted to the National Bank by banks at the head of a banking group, a banking holding company, or a parent/management company belonging to a group with Structure No. 1, as determined in accordance with the Regulation "On Consolidated Supervision," including participants of the banking group whose asset share constitutes 5 percent or more of the assets of the parent company.

The requirement to submit PRCR does not apply to state bodies of the Kyrgyz Republic participating in commercial banks with 100 percent state share, nor to the National Bank.

2. When compiling PRCR, the calculation of financial indicators of the banking group includes reporting data from participants of the banking group:

• in full volume – regarding a participant of the banking group in whose capital the share of ownership by the parent/management company of the banking group constitutes 50 percent or more;
• proportionally to the share of participation of the banking group in the capital of a participant of the banking group, in whose capital the share of ownership by the parent/management company of the banking group constitutes from 5 to 50 percent.

3. PRCR is submitted to the National Bank in the following sections:

• Title page;
• Information on members of the supervisory and executive bodies of the parent/management company;
• Information on specific officials of the parent/management company;
• Basic information about the parent/management company;
• Section 1. Regulatory report on the financial condition of the banking group;
• Section 2. Income Statement;
• Section 3. Consolidated regulatory report on the financial condition of the banking group;
• Section 4. Consolidated income statement;
• Section 5. Information on the largest credit risks;
• Section 6. Information on transactions with persons affiliated with the banking group;
• Section 7. Brief information on active transactions with persons associated with the banking group;
• Section 8. Information on compliance with economic standards;
• Section 9. Calculation of capital adequacy of the banking group;
• Section 10. Calculation of the capital of the banking group:
  1. Assets;
  2. Securities portfolio;
  3. Loans and leases;
  4. Loans and leases (other assets);
  5. Off-balance sheet obligations;
  6. Subordinated debt;
  7. Capital structure report;
• Section 11. Report on open currency positions of the banking group at the end of the business day;
• Section 12. Report on transactions between participants of the banking group;
• Section 13. Report on the structure/composition of participants of the banking group;
• Section 14. Information on the activities of participants of the banking group;
• Information on the structure of the banking group.

II. Title Page

4. The title page indicates:

• date and outgoing registration number;
• date as of which the report was prepared (for example, as of January 1, 2018);
• date of preparation of the report;
• frequency – "quarterly," "annual," or "correction." Submission of a corrected report is permitted if technical errors arise. In this case, only those reporting forms in which changes were made are provided, with an explanation of which parts were changed;
• 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 the person responsible for the inspection; b) audit without opinion – if an audit was conducted that does not provide recommendations, a work plan for the future, but is limited to issuing an opinion on the correctness of the banking group's operations and accounting; c) audit with opinion – if an audit was conducted that, in addition to checking the correctness of the relevant operations and accounting, provides the parent/management company with recommendations and a plan of measures to improve and/or perfect the activities of the banking group;
• name of the reporting parent/management company, indicated in capital letters;
• external auditor;
• certifying signatures of the chairman of the supervisory body of the parent/management company or a member of the supervisory body replacing the chairman in his absence, the chairman of the executive body, the chief accountant, a member of the executive body overseeing the preparation of the report, and the person responsible for compiling and submitting the report;
• signature of the employee responsible for compiling and providing PRCR, indicating position, surname, first name, patronymic, and phone number (work/mobile).

III.

Information on members of the supervisory and executive bodies of the parent/management company.

5. Information on members of the supervisory body of the parent/management company must contain the following information:

• surname, first name, and patronymic;
• place of work;
• position;
• work/mobile phone number;
• specimen signature.

6. Information on members of the executive body of the parent/management company must contain the following information:

• surname, first name, and patronymic;
• position;
• work/mobile phone number;
• specimen signature.

IV. Information on specific officials of the parent/management company

7. Information on specific officials of the parent/management company includes information on the following specific officials of the parent/management company:

1. chief accountant;
2. official responsible for liquidity management in the parent/management company;
3. official responsible for the budget of the parent/management company;
4. official responsible for credit activities of the parent/management company;
5. chairman of the Audit Committee;
6. head of the Internal Audit Service/Department;
7. official responsible for foreign currency operations conducted by the parent/management company.

Officials indicated in sub-items 2, 3, 4, and 7 of this paragraph must represent the management of the parent/management company and be responsible for the policy conducted in the specified areas on the scale of the entire banking group.

8. Information on each official must include:

• surname, first name, and patronymic;
• position;
• work/mobile phone number;
• specimen signature.

9. Assignment of responsibility for certain areas of activity of the parent/management company to specific officials of the parent/management company must have documentary confirmation in the parent/management company.

V. Basic information about the parent/management company

10. Basic information about the parent/management company must contain the following information:

1. full name of the reporting parent/management company – the full official name of the parent/management company;
2. name for international operations, if different – the full name of the parent/management company under which the parent/management company of the bank conducts international operations is indicated;
3. address: a) name of the city where the head company is located; b) name of streets, house/building number of the head office; c) postal code – index of the post office;
4. officially announced contact: a) official phone number of the parent/management company; b) official fax number of the parent/management company; c) official email address of the parent/management company;
5. official website of the parent/management company;
6. amount of authorized (share) capital: a) amount of declared authorized capital of the parent/management company, according to constituent documents; b) amount of actually paid authorized capital of the parent/management company.

VI.

Section 1. Regulatory report on the financial condition of the banking group

11. In the regulatory report on the financial condition of the banking group, the most significant items of the financial condition of the banking group are separately highlighted from the point of view of regulatory reporting.

The regulatory report consists of the following columns:

1. name of the balance sheet item; the balance sheet report of the parent/management company, which contains columns with values of balance sheet items of the parent/management organization in som totals, as well as the som equivalent of balance sheet items in foreign currency at the official exchange rate of the National Bank on the reporting date;
2. columns 4, 5, 6, 7, 8, 9 reflect indicators of balance sheet reports of group participants, whose reporting is included in the financial reporting of the banking group. The number of columns corresponds to the number of participants whose reporting is consolidated;
3. in the "Intermediate Result" column, indicators of the parent/management organization and participants of the banking group are summed up in total in som by items (sum of columns 2, 4, 6, 8).

All sums must be indicated in thousands of som.

Note: sums in items of the regulatory report on the financial condition of the banking group (except for loans and financial leasing) are indicated net of corresponding sums of reserves for covering potential losses and losses (hereinafter – RPPU) and depreciation charges.

Subsections D and E decode some items of the regulatory report on the financial condition of the banking group.

When compiling this section, it is necessary to separately indicate assets, liabilities, capital, income, and expenses of the parent/management company and participants of the banking group. At the same time, financial data of participants of the banking group are included item by item in accordance with paragraph 2 of these Methodological Guidelines.

In the event that the parent/management company or a participant of the banking group transferred funds in the reporting period, but another participant of the banking group did not receive these funds in the reporting period, then these funds should be considered received in the reporting period by the participant of the banking group in whose favor the funds were transferred.

12. Subsection A. Assets.

Item 1 "Cash" reflects the amount of cash, including banknotes and coins in the circulating cash register, banknotes and coins in transit, banknotes and coins in savings cash registers, banknotes and coins in ATMs by type of currency: som, currency of CIS and Baltic countries, currency of OECD countries, and other currencies.

Item 2 "Current Accounts" reflects the amount:

• funds on deposit and correspondent accounts in the National Bank, including mandatory reserve requirements;
• funds on correspondent accounts in banks or financial institutions, as well as overdraft amounts of these banks or financial institutions in the bank minus the corresponding special RPPU;
• funds of participants of the banking group who are not financial and credit organizations, located on settlement accounts.

Balances are accounted for in currency breakdown: som, currency of CIS and Baltic countries, currency of OECD countries, and other currencies.

Item 3 "Deposit Accounts" reflects the amounts of funds on deposits, including funds on deposits pledged in banks and other financial and credit organizations, minus the corresponding special RPPU.

Item 4 "Securities" indicates the nominal value of securities owned by participants of the banking group, taking into account discount/premiums and minus the corresponding special RPPU. Data on securities are indicated in the breakdown "a) government securities" and "b) corporate securities."

Item 5 "Short-term Placements" reflects the amount of secured and unsecured short-term interbank placements (up to 30 days), in which participants of the banking group act as creditors, minus the corresponding special RPPU.

Item 6 "Securities purchased under REPO agreement" indicates securities purchased by participants of the banking group with an obligation to resell them through a certain period of time and at a certain price, minus the corresponding special RPPU.

Item 7 "Loans and financial leasing to financial and credit organizations" reflects the amount of loans and financial leasing to local and foreign banks and other financial and credit organizations, minus the corresponding discount.

Item 8 "Loans and financial leasing to other clients" reflects the amount of loans and financial leasing, overdraft loans, and loans issued using credit cards to local and foreign clients who are not financial institutions, minus the corresponding discount.

Item 9 "Special RPPU for loans and financial leasing" indicates the amount of special RPPU created for loans and financial leasing, financial institutions, and other clients.

Item 10 "Net loans and financial leasing" indicates the cost of loans and financial leasing, minus the special RPPU for them (item 7 + item 8 - item 9).

Item 11 "Fixed Assets" includes the cost of land and/or plots, buildings and other structures owned or used by participants of the banking group, furniture and equipment, including cars, as well as the cost of materials, labor, and other capitalized expenses arising in connection with construction, capital investments in the improvement of rented property, minus the depreciation accrued on fixed assets. Intangible assets are not included in this item. Fixed assets must be shown by the following groups: land and buildings; unfinished construction and other fixed assets.

Item 12 "Real estate accepted in settlement of assets" reflects real estate of the borrower accepted by participants of the banking group in settlement of assets, as well as real estate of inactive branches and subsidiary companies of participants of the banking group, minus the corresponding special RPPU.

Item 13 "Other property accepted in settlement of assets" reflects other assets (real and movable property) that came into the ownership of participants of the banking group, as well as other property of closed branches and subsidiary companies of participants of the banking group, minus the corresponding special RPPU.

Item 14 "Investments in other companies" indicates the amount of capital investments of participants of the banking group in companies, minus the corresponding special RPPU.

Item 15 "Difference in acquisition cost of capital shares (goodwill)" indicates the positive value of the difference in the acquisition cost of shares (stakes) of a consolidated participant by the banking group. This difference is indicated only in the balance sheet of the parent/management organization owning these shares (stakes).

Item 16 "Other assets" reflects the nominal value of assets not indicated above, including accounts receivable minus the corresponding special RPPU for them, as well as amounts for currency operations (net swap position in foreign currency, net forward position, unfinished spot purchases of foreign/national currency) and intangible assets.

Item 17 "Total Assets" indicates the sum of items 1 to 6 and 10 to 16.

13. Subsection B. Liabilities.

Item 18 "Demand deposits of legal entities" indicates the total amount of demand deposits of local and foreign legal entities, including settlement accounts. Funds on accounts and demand deposits of banks and other financial and credit organizations are not included in this item.

Item 19 "Demand deposits of individuals" indicates the total amount of demand deposits of individuals, including foreigners, including settlement accounts.

Item 20 "Demand deposits of individual entrepreneurs" indicates the total amount of demand deposits of individual entrepreneurs, including foreign individual entrepreneurs, including settlement accounts.

Item 21 "Time deposits of legal entities" indicates the total amount of time deposits of legal entities, including foreign legal entities, including deposit certificates. Time deposits of banks and other financial and credit organizations are not included in this item.

Item 22 "Time deposits of individuals" indicates the total amount of time deposits of individuals, including foreign individuals, including savings certificates.

Item 23 "Time deposits of individual entrepreneurs" indicates the total amount of time deposits of individual entrepreneurs, including foreign individual entrepreneurs, including savings certificates.

Item 24 "Liabilities to the National Bank" reflects the amount of liabilities to the National Bank and to subsidiary companies of the National Bank.

Item 25 "Correspondent Accounts" reflects the amount of funds of correspondent banks in the accounts of banks that are participants of the banking group.

Item 26 "Bank Deposits" reflects the amounts of funds of banks or other financial and credit organizations placed as demand deposits and time deposits.

Item 27 "Short-term Placements" indicates the amount of secured and unsecured short-term interbank placements (up to 30 days), in which banks that are participants of the banking group act as debtors.

Item 28 "Deposits and loans from government bodies" indicates the amount of funds in deposit accounts of government bodies and other funds received from government bodies in a breakdown into: a) government deposits; b) loans from government bodies.

Item 29 "Securities sold under REPO agreement" indicates the cost of securities sold by banks that are participants of the banking group under a repurchase agreement on a certain date in the future and at a certain price.

Item 30 "Loans received" indicates the amount of loans that are not considered as short-term placements received by participants of the banking group from: a) banks: b) other financial and credit organizations, including international financial organizations.

Item 31 "Subordinated Debt Obligations" indicates debt obligations that may be claimed against the assets of the issuer and paid after satisfaction of the claims of other creditors.

Item 32 "Difference in acquisition cost of capital shares (goodwill)" indicates the negative value of the difference from the acquisition cost of shares (stakes) of a consolidated participant by the banking group. This difference is indicated only in the balance sheet of the parent/management organization owning these shares (stakes).

Item 33 "Other Liabilities" reflects other liabilities not indicated above, including accounts payable, as well as unfinished spot sales of foreign/national currency.

Item 34 "Total Liabilities" indicates the sum of items 18 to 33.

14. Subsection C. Capital.

Item 35 "Share Capital" indicates the value of share capital in the breakdown: a) ordinary shares – the total amount of ordinary shares (capital)/equity of participants of the banking group regardless of organizational and legal form (JSC, OSOO, etc.); b) preferred shares – the total amount of preferred shares of participants of the banking group that are joint-stock companies; c) capital contributed in excess of nominal value, including additional capital contributed by shareholders – the amount of funds contributed by shareholders in excess of the nominal value of shares, as well as additional capital contributed by shareholders to meet the requirements of the National Bank on the minimum size of own (regulatory) capital; d) undistributed profit – the sum of undistributed profit of participants of the banking group, including: d1) profit of previous years – profit of previous years that remained with participants of the banking group after distribution of part of the funds to shareholders and after transfer to reserves for future needs of participants of the banking group; d2) profit of the current year – profit of the current year; d3) reserves for future needs – the sum of reserves created by participants of the banking group for future and/or unforeseen events from the distribution of profit.

Item 36 "General Reserves" indicates the amount of reserves available to participants of the banking group, created from the revaluation of assets of participants of the banking group, and the difference formed as a result of currency translation during consolidation, as well as the amount of general RPPU for loans and financial leasing and for other classified assets: a) reserve for revaluation of fixed assets – the sum of revaluation of fixed assets; b) reserve for revaluation of securities – the sum of unrealized income and losses arising from the revaluation of securities; c) general RPPU for loans and financial leasing – the sum of general RPPU for loans and financial leasing; d) general RPPU for other classified assets – the sum of general RPPU for other assets subject to classification; e) other general reserves – the sum of other general reserves.

Item 37 "Total Capital" indicates the sum of items 35 and 36.

Item 38 "Total Liabilities and Capital" indicates the sum of items 34 and 37.

15. Subsection D. Off-balance sheet obligations.

Item 39 "Obligations to issue a loan" indicates obligations to issue loans or loan substitutes in the future.

Item 40 "General guarantees and similar obligations" reflects general guarantees and similar obligations issued or confirmed by participants of the banking group.

Item 41 "Letters of Credit" reflects possible obligations of participants of the banking group under letters of credit: a) standby; b) documentary; c) other.

Item 42 "Currency Operations" reflects obligations of participants of the banking group for currency operations: a) swap operations: - purchase; - sale; b) forward operations: - purchase; - sale.

Obligations arising from swap operations for the purchase (sale) of currency that was sold (purchased) are reflected in item a) in the "purchase" ("sale") line, respectively, with simultaneous reflection of the obligation for the sale (purchase) of currency in the reverse transaction in the "sale" ("purchase") line.

Obligations for other forward operations, except for swap operations, for the purchase (sale) of currency that was sold (purchased), are reflected in item a) in the "purchase" ("sale") line, respectively, with simultaneous reflection of the obligation for the sale (purchase) of currency in the reverse transaction in the "sale" ("purchase") line.

Item 43 "Obligations for the purchase of assets" reflects obligations of participants of the banking group for the purchase of assets in the future.

Item 44 "Other off-balance sheet obligations" reflects all other off-balance sheet obligations not indicated above.

Item 45 "Total off-balance sheet obligations" indicates the sum of items 39 to 44.

Note: counter-accounts for off-balance sheet operations are not reflected.

16. Subsection E. Breakdown of other assets and liabilities.

Item 1 "Other Assets" indicates the breakdown of assets of participants of the banking group contained in the corresponding items of the balance sheet report: a) accrued interest receivable – the sum of accrued interest receivable; b) prepaid payments made – the sum of payments made by participants of the banking group to other parties, according to the terms of contracts; c) unexplained debtor amounts – amounts of funds pending clarification; d) precious metals – the cost of precious metals available to participants of the banking group; e) other other assets – amounts for currency operations (net swap position