Regulatory Alerts2017-06-15 | 111915Instruction on Requirements for Operations of Microfinance Companies Attracting Deposits with Affiliated and Related Persons
The National Bank of the Kyrgyz Republic issued this Instruction to regulate operations between microfinance companies (MFCs) and housing savings credit companies (HSCCs) and their affiliated or related parties. It mandates strict non-preferential lending terms, establishes specific risk limits such as a 5% capital cap for single borrowers, and requires detailed board approvals and conflict-of-interest disclosures for significant transactions. The regulation also imposes rigorous internal controls, record-keeping obligations, and penalties for violations to protect the financial stability of these institutions.
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