Regulatory Alerts2022-09-19
Instruction No. 239 on Requirements for Credit Organizations' Investments in the Capital of Other Legal Entities
The National Bank of Tajikistan issued Instruction No. 239 to establish comprehensive requirements and procedures for credit organizations making long-term investments in shares, stakes, and convertible bonds of other legal entities. The regulation mandates prior consent or formal notification for investments exceeding specific thresholds, strictly defines affiliated and subsidiary entities, caps non-credit entity investments at 10% of regulatory capital, and requires robust risk management, detailed reporting, and active monitoring. It further outlines the documentation standards, rejection criteria, and the National Bank's authority to cancel or restrict investments that threaten financial stability or effective supervision.
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