Regulatory Alerts2020-12-28 | 125985Regulation on the Classification of Assets and Formation of Reserves to Cover Potential Losses and Shortfalls by Non-Bank Financial-Credit Organizations
The National Bank of the Kyrgyz Republic issued this Regulation to establish uniform requirements for non-bank financial-credit organizations (NFCOs) to classify assets and form reserves covering potential losses and shortfalls. It mandates monthly asset assessments, defines specific classification categories (normal, substandard, doubtful, losses, and assets under supervision), and sets reserve contribution rates based on asset performance, collateral quality, and borrower income structures. The framework additionally incorporates specialized rules for Islamic financing principles, foreign currency exposures, and off-balance sheet obligations to ensure systemic stability and accurate financial reporting.
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