Regulatory Alerts2023-04-12 | 129052Instruction on Lending Restrictions
The National Bank of the Kyrgyz Republic issued this Instruction to establish maximum risk limits for individual borrowers and connected groups, requiring commercial banks to calculate exposure against their net aggregate capital. The regulation defines specific exclusions for risk calculations, including sovereign guarantees and high-rated interbank placements, while mandating strict collateral requirements and board approval for large exposures exceeding 10% of capital. It further imposes obligations on banks to identify connected borrower groups, maintain comprehensive reporting databases, and hold directors personally liable for approving loans that violate these concentration and lending restrictions.
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