Regulatory Alerts2023-12-20 | 131854Regulation on Minimum Requirements for Standard Contracts of Microfinance Organizations and Credit Unions Concluded in Accordance with Islamic Principles of Banking and Finance
The National Bank of the Kyrgyz Republic issued this regulation to standardize contracts between microfinance organizations and clients that comply with Islamic banking principles. It mandates that all agreements must adhere to Shariah standards, prohibit interest-based income, and ensure transparency in profit-sharing and pricing structures. The document further establishes specific operational requirements for Mudaraba, Murabaha, and Salam contracts, including provisions for early repayment without penalties and accessibility accommodations for clients with disabilities.
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