Regulatory Alerts2024-01-17 | 88421Regulation on the Calculation of the Effective Annual Percentage Rate When Disseminating Information on Bank Service Fees
The National Bank of the Kyrgyz Republic mandates that commercial banks and other regulated financial institutions calculate and disclose the Annual Percentage Rate (APR) for all credit and deposit services to ensure transparent and comparable pricing for consumers. The regulation defines specific calculation methodologies, including the inclusion of all associated fees and charges in the APR formula, and requires banks to display this rate prominently in contracts, advertisements, and upon client request. It further stipulates that the APR must be rounded to one decimal place and presented alongside the total cost of credit to prevent misleading information regarding the true cost of banking services.
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