Regulatory Alerts2004-07-21 | 132403Regulation on Asset Classification and Corresponding Provisions for Potential Losses and Losses
The National Bank of the Kyrgyz Republic issued this regulation to establish mandatory requirements for commercial banks and guarantee funds to classify assets and create provisions for potential losses. The document defines credit risk, specifies asset categories ranging from normal to loss, and mandates the maintenance of adequate reserves based on rigorous financial analysis and collateral evaluation. It further outlines specific classification criteria, including rules for related borrowers, cross-institutional credit discipline, and special provisions for government-backed or internationally guaranteed loans.
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