Regulatory Alerts2017-05-31 | 129055Instruction on Requirements for Bank Operations with Affiliated and Related Parties
The National Bank of the Kyrgyz Republic issued this Instruction to establish strict regulatory requirements for banking operations involving affiliated and related parties, including those under Islamic banking principles. The document mandates the maintenance of a registry of such parties, imposes specific lending prohibitions based on capital adequacy and risk limits, and requires that all transactions be conducted on market terms without preferential treatment. Furthermore, it outlines rigorous governance procedures, including board approvals, collateral requirements, and disclosure obligations to prevent conflicts of interest and ensure financial stability.
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