Regulation on the Periodic Regulatory Report of a Microfinance Company

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Date of creation: 2025-01-28

Appendix No. 2 to the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 27, 2009 No. 25/3

REGULATION

on the periodic regulatory report of a microfinance company

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic of December 23, 2009 No. 50/6, January 18, 2012 No. 2/2, April 25, 2012 No. 18/9, April 24, 2013 No. 13/10, May 30, 2014 No. 24/10, March 11, 2015 No. 16/2, January 20, 2016 No. 4/5, January 20, 2016 No. 4/6, April 11, 2016 No. 17/2, June 15, 2016 No. 25/2, June 15, 2017 No. 2017-P-12/25-5, December 13, 2017 No. 2017-P-12/51-13, May 30, 2018 No. 2018-P-12/20-2, August 15, 2018 No. 2018-P-33/33-8, January 30, 2019 No. 2019-P-33/4-2, December 21, 2022 No. 2022-P-12/81-7, December 20, 2023 No. 2023-P-12/80-4, August 21, 2024 No. 2024-P-12/37-1, October 16, 2024 No. 2024-P-12/53-2-(NFKU), January 22, 2025 No. 2025-P-12/2-3-(NFKU))

1. General Provisions

2. This Regulation defines the unified form of periodic regulatory reporting (hereinafter referred to as PRR) of a microfinance company (hereinafter referred to as MFC).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-5)

2. The scope of this Regulation on PRR extends to all MFCs licensed by the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank), including MFCs conducting operations based on Islamic principles of banking and financing within the "Islamic window" (hereinafter referred to as IPF).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2016 No. 25/2)

3. PRR is compiled based on accounting data and off-system accounting data.

4. Goals and Objectives

5. PRR is compiled for the purpose of conducting an analysis:

a) of the financial condition of the MFC within the framework of the functions performed by the National Bank, established in the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic", and the Regulation on the registration of accounts and deposits of residents of the Kyrgyz Republic opened in foreign banks, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic;

b) of the activities of the MFC to enable company management to make managerial decisions, including decisions on ensuring liquidity, solvency, and profitability.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic of April 24, 2013 No. 13/10, June 15, 2017 No. 2017-P-12/25-5, December 21, 2022 No. 2022-P-12/81-7)

5. The main task of the PRR is to provide reliable and complete information about the economic and operational activities of the MFC to ensure the achievement of the goals specified in paragraph 4 of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of April 24, 2013 No. 13/10)

3. Content and Frequency of Submission of PRR

4. PRR represents a report on the activities of the MFC in the established form for a specific period and submitted within the established deadline.

5. The composition of the reporting in summary form, brief content, and submission deadlines are provided in Appendix 1 to this Regulation.

6. The PRR of the MFC for the 4th quarter is annual.

7. The annual PRR is submitted to the National Bank no later than February 1 of the year following the reporting year.

8. PRR consists of 13 sections:

Title page;

Information on members of the Board of Directors and the Management Board of the MFC;

Information on certain officials of the company;

Basic information on the MFC;

Section 1. Regulatory report on financial condition;

Section 2. Report on comprehensive income;

Section 3. Capital;

Section 4. Information on overdue assets, classification of assets and off-balance sheet obligations by risk level;

Section 5. Deposits broken down by amounts and maturity terms;

Section 6. Analysis of sensitivity of MFC assets and liabilities to changes in interest rates (GAP-analysis) and their maturity terms;

Section 7. Changes in reserves for possible credit losses;

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;

"Report on Private Debt Obligation/Creditor Debt" Form No. 1-ND;

"Report on Service of Debt Obligation/Creditor Debt" Form No. 2-ND;

"Notification of Account (Deposit) Opened in a Foreign Bank";

"Report on Balances of Funds in Accounts or Deposits of Residents in Foreign Banks".

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of January 18, 2012 No. 2/2)

4. Procedure for Submission of PRR

5. Each MFC must appoint an employee responsible for the completeness of content, submission deadlines, and correct completion of the PRR. This employee is also responsible for interaction with the National Bank on all matters concerning the information contained in the PRR.

6. PRR is submitted to the National Bank in the form according to Appendix 2 to this Regulation within the established deadlines for the report, on paper and electronic media. Electronic versions of PRR must be formed according to templates established by the National Bank.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic of December 23, 2009 No. 50/6, April 24, 2013 No. 13/10)

13. MFCs located in the Chuy region and the city of Bishkek must submit PRR on paper media to the General Department of the National Bank in a sealed envelope.

Electronic versions of PRR must be transmitted via email to the Technical Support Department of the Statistical Database of the Financial Statistics and Review Department (hereinafter referred to as UFCS) of the National Bank. In the absence of an email address, the MFC must submit reports on other electronic media (USB flash drive).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of April 24, 2013 No. 13/10)

14. MFCs located in other regions of the republic must submit PRR to the corresponding regional department/Batken representation of the National Bank on paper and electronic media.

Regional departments and the Batken representation of the National Bank forward PRR to UFCS in an aggregated form.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of April 24, 2013 No. 13/10)

15. In case of any discrepancies, errors, incomplete submission, or incorrect completion of PRR forms, the corresponding structural unit of the National Bank notifies the MFC in writing of the need to correct the report with reflection in the financial statements within 10 working days from the date of receipt of the report.

Corrected reports together with a cover letter from the MFC must be submitted to the National Bank within 5 working days after receiving the written notification of discrepancies in the report.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of January 20, 2016 No. 4/5)

16. In the absence of comments from the National Bank regarding the PRR or after bringing the report into compliance with the National Bank's comments and confirmation by letter from the MFC, the PRR is considered accepted by the National Bank.

17. The MFC provides PRR for the head MFC and its branches on a consolidated basis.

18. The periodic regulatory report must be submitted in the established form: bound, numbered with the indication of the number of pages of the PRR sections, sealed with a stamp, and signed by MFC employees responsible for compiling and submitting the PRR.

19. The PRR must contain reliable information about the state of the MFC as of the reporting date. The correctness of reflecting the state of the MFC in the monthly/quarterly and annual PRR is certified by the Chairman of the Board of Directors of the MFC or a member of the Board of Directors replacing the Chairman in his absence, the Chairman of the Management Board of the MFC, the Chief Accountant of the MFC, and a member of the Management Board of the MFC overseeing the work on preparing the PRR.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of January 20, 2016 No. 4/5)

5. Final Provisions

6. For untimely and/or unreliable submission of information, failure to submit information, incomplete and/or incorrect completion of the PRR by the MFC, as well as the Chairman of the Management Board and the Chief Accountant of the MFC bear responsibility in accordance with the normative legal acts of the Kyrgyz Republic.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic of January 20, 2016 No. 4/5)

21. The MFC must keep second copies of PRRs submitted to the National Bank.

Appendix 1 to the Regulation "On the Periodic Regulatory Report of a Microfinance Company", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 27, 2009 No. 25/3

COMPOSITION

of the periodic regulatory report of a microfinance company

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic of June 15, 2016 No. 25/2, June 15, 2017 No. 2017-P-12/25-5, December 13, 2017 No. 2017-P-12/51-13, January 30, 2019 No. 2019-P-33/4-2, January 22, 2025 No. 2025-P-12/2-3-(NFKU))

No.

Section

Name

Frequency

Submission Deadlines

Note or reference to Regulatory Legal Act

1

Title Page

Annually

by February 1, following the reporting year

Attached to 13 sections

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

2

Information on members of the Board of Directors, Management Board, major founders (shareholders), and members of the Shariah Council of the MFC

Annual

by February 1, following the reporting year

Attached to 13 sections

Quarterly

in case of changes during the quarter

3

Information on certain officials of the MFC

Annual

by February 1, following the reporting year

Attached to 13 sections

Quarterly

in case of changes during the quarter

4

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

Annual

by February 1, following the reporting year

Attached to 13 sections

Quarterly

in case of changes during the quarter

5

Section 1.

Regulatory report on financial condition

A. Assets

B. Liabilities

C. Capital

C-1. Off-balance sheet liabilities

C-2. Report on operations conducted under IPF

D. Breakdown of liabilities

D-1. Breakdown of liabilities accepted under IPF

E. Breakdown of credit portfolio

E-1. Breakdown of portfolio for financing provided under IPF

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

6

Section 2.

Report on comprehensive income

A. Interest Income

B. Interest Expenses

C. Non-interest Income

D. Non-interest Expenses

E. Operational and Administrative Expenses

F. Profit and Loss Report on operations conducted under IPF

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

7

Section 3.

Capital

A. Changes in Capital Structure

B. Reference Information on Shares and Other Securities of the MFC

C. Changes in Undistributed Profit

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

8

Section 4.

Information on overdue assets, classification of assets and off-balance sheet obligations by risk level

A. Information on overdue assets

4. A-1. Information on overdue assets carrying credit risk, issued under IPF

B. Classification of assets and off-balance sheet obligations by risk level

4. B-1. Classification of assets and off-balance sheet obligations under IPF by risk level

C. Information on issued loans

4. C-1. Information on financing provided under IPF

D. Information on issued loans by region

E. Lending Methods

F. On MFC Clients

G. Classification of loans by risk level by region of the Kyrgyz Republic

H. Other Information by Region of the Kyrgyz Republic

I. Information on Problem Borrowers

J. Information on Parallel Loans

K. Restructured Loans

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

9

Section 5.

Deposits

A. Deposits broken down by amounts

B. Movement of deposits during the reporting period

C. Deposits by maturity terms

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

10

Section 6.

A. Analysis of sensitivity of assets and liabilities to changes in interest rates (GAP-analysis)

6. A-1. Analysis of sensitivity of assets and liabilities under IPF to changes in yield rates (GAP-analysis)

B. Analysis of assets and liabilities by maturity terms

B-1. Analysis of assets/liabilities under IPF by maturity terms

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

11

Section 7.

Changes in Provisions for Possible Credit Losses (PPCL)

A. Changes in reserves for possible credit losses

B. Information on assets and off-balance sheet obligations written off against PPCL and returned (previously written off)

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

12

Section 8.

A. Information on large risks

B. General Information on Transactions with Affiliated Persons

C. Funds Borrowed from Founders (Shareholders)

Annually

by February 1, following the reporting year

Instructions "On Requirements for Operations of Microfinance Companies Attracting Deposits with Affiliated and Related Persons".

Quarterly.

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

13

Section 9.

Information on Transactions with Employees

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

14

Section 10.

Information on Compliance with Economic Standards

Annually

by February 1, following the reporting year

Rules for Regulating the Activities of MFOs in the Territory of the Kyrgyz Republic

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

15

Section 11.

Information on Loans to Clients

A. Information on Loans to Clients

A-1. Information on Financing Provided to Clients under IPF

B. Information on Loan Terms

C. Information on MFC Personnel

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

16

Section 12.

Disclosures

A. Information on Retail Banking Services Conducted under Agency Agreement with a Bank

B. Breakdown of Placement and Investment Operations

C. Currency Operations

Annually

by February 1, following the reporting year

Quarterly

For MFCs attracting deposits, monthly

within 12 calendar days following the reporting period

17

Section 13.

Report on Foreign Assets and Liabilities

Quarterly

within 12 calendar days following the reporting period

Note:

For the "Islamic Window" of the MFC:

Borrower - a client to whom the MFC has provided financing in accordance with Islamic principles of banking and financing.

Credit - funds provided to clients in accordance with Islamic principles of banking and financing.

Creditor - a person who provided funds to the MFC under Islamic principles of banking and financing.

Deposit - funds attracted by the MFC from clients under a mudaraba contract.

Interest Rate - the size of the markup/income for financing provided in accordance with Islamic principles of banking and financing.

Appendix 2 to the Regulation "On the Periodic Regulatory Report of a Microfinance Company", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 27, 2009 No. 25/3

PERIODIC REGULATORY REPORT OF THE MFC

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic of January 18, 2012 No. 2/2, May 30, 2014 No. 24/10, March 11, 2015 No. 16/2, January 20, 2016 No. 4/5, January 20, 2016 No. 4/6, April 11, 2016 No. 17/2, June 15, 2016 No. 25/2, June 15, 2017 No. 2017-P-12/25-5, December 13, 2017 No. 2017-P-12/51-13, May 30, 2018 No. 2018-P-12/20-2, August 15, 2018 No. 2018-P-33/33-8, January 30, 2019 No. 2019-P-33/4-2, December 20, 2023 No. 2023-P-12/80-4, August 21, 2024 No. 2024-P-12/37-1, October 16, 2024 No. 2024-P-12/53-2-(NFKU), January 22, 2025 No. 2025-P-12/2-3-(NFKU))

See attached file.

Appendix 2 (Quarterly)

Appendix 2 (Monthly)

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