Regulatory Alerts2022-12-14 | 127382Procedure for Determining Capital Levels Required to Cover Banks' Operational Risks
The National Bank of the Kyrgyz Republic issued this procedure to mandate the calculation of capital reserves for operational risks using the Basic Indicator Approach. It defines operational risk, specifies the formula based on average annual net income over three years multiplied by a 15% coefficient, and establishes reporting obligations for banks to submit revised calculations to the Board of Directors and the regulator. The document also references external instructions for calculating overall capital adequacy ratios and provides illustrative calculation examples in its appendices.
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