Regulatory Alerts2008-08-27 | 131860Regulation on the Calculation of the Effective Annual Percentage Rate in the Disclosure of Information on the Size of Remuneration for Banking Services
The National Bank of the Kyrgyz Republic mandates that commercial banks and other regulated financial institutions calculate and disclose the Effective Annual Percentage Rate (APR) for all credit and deposit services to ensure transparent and comparable cost information for consumers. The regulation defines specific calculation methodologies, including the inclusion of all associated fees and the use of iterative algebraic methods, while specifying strict formatting and disclosure requirements for contracts and marketing materials. It also establishes exemptions for Islamic banking products and provides detailed examples to illustrate the application of these calculation standards.
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