Regulatory Alerts2018-03-28 | 131855Regulation on Operations Conducted by Microfinance Organizations and Credit Unions in Accordance with Islamic Principles of Banking and Finance
The National Bank of the Kyrgyz Republic issued this regulation to establish the operational framework for microfinance organizations and credit unions conducting business under Islamic banking principles. The document mandates strict adherence to Shariah standards, prohibiting interest-based transactions and requiring oversight by independent Shariah boards to ensure compliance. It further details permissible contract structures, including Mudaraba and Musharaka, while enforcing rigorous consumer protection, accessibility, and transparency requirements for all financial agreements.
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