Regulation on the Periodic Regulatory Report of Microfinance Companies Operating in Accordance with Islamic Principles of Banking and Finance

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Date of Creation: 2025-04-11

Appendix 1

to the Resolution of the Board of Directors

of the National Bank

of the Kyrgyz Republic

of October 17, 2014, No. 45/1

Regulation

on the periodic regulatory report of microfinance companies, carrying out operations in accordance with Islamic principles of banking and finance

(Amendments and additions approved by the Resolution of the Board of Directors of the National Bank of the Kyrgyz Republic dated January 20, 2016, No. 4/6; June 15, 2016, No. 25/2; June 15, 2017, No. 2017-P-12/25-12-(NPA); December 13, 2017, No. 2017-P-12/51-13-(NPA); May 30, 2018, No. 2018-P-12\20-2-(NF KU); August 21, 2024, No. 2024-P-12/37-1-(NPA))

1. General Provisions

1. This Regulation, in accordance with the Laws of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activity," "On Microfinance Organizations in the Kyrgyz Republic," and the Regulation "On the Registration of Accounts and Deposits of Residents of the Kyrgyz Republic Opened in Foreign Banks," approved by the Resolution of the Board of Directors of the National Bank of the Kyrgyz Republic dated July 5, 2000, No. 26/2 (hereinafter referred to as the legislation), establishes a unified form of periodic regulatory reporting (hereinafter referred to as PRR) for microfinance companies carrying out operations in accordance with Islamic principles of banking and finance (hereinafter referred to as MFCs).

(In the edition of the Resolution of the Board of Directors of the National Bank dated June 15, 2017, No. 2017-P-12/25-12-(NPA))

2. The PRR is compiled based on data from accounting and off-system accounting.

3. (Lost force in accordance with the Resolution of the Board of Directors of the National Bank dated June 15, 2017, No. 2017-P-12/25-12-(NPA))

2. Goals and Objectives

4. The PRR is compiled for the purpose of conducting an analysis of:

a) the financial condition of the MFC within the framework of the functions performed by the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank), as established by legislation;

b) the activities of the MFC to enable company management to make managerial decisions, including decisions on ensuring liquidity, solvency, and profitability.

5. The main task of the PRR is to present reliable and complete information about the economic and operational activities of the MFC to ensure the achievement of the objectives specified in paragraph 4 of this Regulation.

3. Content and Frequency of Submission of PRR

6. The PRR represents a report on the activities of the MFC in a prescribed form for a specific period and submitted within a prescribed timeframe.

7. The PRR consists of 13 sections:

• Title Page;
• Section 1. Regulatory Report on Financial Condition;
• Section 2. Report on Comprehensive Income;
• Section 3. Capital;
• Section 4. Information on Overdue Assets, Classification of Assets and Off-Balance Sheet Obligations by Risk Level;
• Section 5. Deposits;
• Section 6. Sensitivity Analysis of Assets and Liabilities to Changes in Yield Rates (GAP Analysis);
• Section 7. Changes in RPPU;
• Section 8. Risk Information;
• Section 9. Information on Transactions with Employees;
• Section 10. Information on Compliance with Economic Normatives:
• Section 11. Information on Financing Provided to Clients;
• Section 12. Disclosures;
• Section 13. Report on Foreign Assets and Liabilities;
• "Report on Private Debt Obligation/Accounts Payable" Form No. 1-ND;
• "Notification of Account (Deposit) Opened in a Foreign Bank";
• "Report on Service of Debt Obligation/Accounts Payable" Form No. 2-ND;
• "Report on Balances of Funds in Accounts or Deposits of Residents in Foreign Banks";
• Information on members of the Board of Directors, Management Board, major founders (shareholders), and members of the Shariah Council of the MFC;
• Information on specific officials of the company;
• Basic information about the MFC, information on branches/representative offices/structural units (offices), subsidiary and affiliated companies, active committees.

The composition of the PRR, brief content, and submission deadlines are provided in Appendix 1 to this Regulation.

(In the edition of the Resolution of the Board of Directors of the National Bank dated August 21, 2024, No. 2024-P-12/37-1-(NPA))

8. The PRR of the MFC for the IV quarter of the current year is annual. The annual PRR is submitted to the National Bank no later than February 1 of the year following the reporting year.

(In the edition of the Resolution of the Board of Directors of the National Bank dated August 21, 2024, No. 2024-P-12/37-1-(NPA))

4. Procedure for Submission of PRR

9. Each MFC must appoint an employee responsible for the completeness of content, submission deadlines, and correct completion of the PRR. This employee is also responsible for interaction with the National Bank on all matters concerning the information contained in the PRR.

10. The PRR is submitted to the National Bank in the form according to Appendix 2 to this Regulation within the established deadlines for the report, on paper and electronic media. Electronic versions of the PRR must be formed according to templates established by the National Bank.

11. MFCs located in the Chuy Region and the city of Bishkek must submit the PRR on paper media to the National Bank in a sealed envelope.

12. Electronic versions of the PRR must be transmitted via email to the Technical Support Department of the Statistical Database of the Financial Statistics and Review Department (hereinafter referred to as UFSo) of the National Bank. In the absence of an email address, the MFC must submit reports on other electronic media (USB flash drive).

13. MFCs located in other regions of the republic must submit the PRR to the corresponding regional department/Batken representation of the National Bank on paper and electronic media.

Regional departments and the Batken representation of the National Bank forward the PRR to the UFSo in an aggregated form.

14. In the event of any discrepancies, errors, incomplete submission, or incorrect completion of PRR forms, the corresponding structural unit of the National Bank notifies the MFC of the need to correct the report with reflection in the financial statements within 10 working days from the date of receipt of the report.

Corrected reports, along with a cover letter from the MFC, must be submitted to the National Bank within 5 working days after receiving notification of discrepancies in the report.

15. In the absence of comments from the National Bank regarding the PRR, or after bringing the report into compliance with the National Bank's comments and confirmation by letter from the MFC, the PRR is considered accepted by the National Bank.

(In the edition of the Resolution of the Board of Directors of the National Bank dated August 21, 2024, No. 2024-P-12/37-1-(NPA))

16. The MFC provides the PRR for the head MFC and its branches on a consolidated basis.

17. The PRR must be submitted in the prescribed form: bound, numbered with the indication of the number of pages of the PRR sections, sealed with a stamp, and signed by MFC employees responsible for compiling and submitting the PRR.

18. The PRR must contain reliable information about the state of the MFC as of the reporting date. The correctness of reflecting the state of the MFC in the monthly, quarterly, and annual PRR is certified by the Chairman of the Board of Directors of the MFC or a member of the Board of Directors replacing the Chairman in his absence, the Chairman of the Management Board of the MFC, the Chief Accountant of the MFC, and a member of the Management Board of the MFC overseeing the work on preparing the PRR.

5. Final Provisions

19. For untimely and/or unreliable submission of information, for failure to submit information within established deadlines, for incomplete and/or incorrect completion of the PRR by the MFC, as well as the Chairman of the Management Board and the Chief Accountant of the MFC bear responsibility in accordance with the normative legal acts of the Kyrgyz Republic.

(In the edition of the Resolution of the Board of Directors of the National Bank dated August 21, 2024, No. 2024-P-12/37-1-(NPA))

20. MFCs must keep second copies of the PRRs submitted to the National Bank.

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Appendix 1

to the Regulation "On the Periodic Regulatory Report of Microfinance Companies Operating in Accordance with Islamic Principles of Banking and Finance", approved by the Resolution of the Board of Directors of the National Bank

of October 17, 2014, No. 45/1

COMPOSITION

of the periodic regulatory report of microfinance companies operating in accordance with Islamic principles of banking and finance

No.	Section	Name	Frequency	Submission Deadlines	Note or Reference to NPA
1	Title Page	Annually	Until February 1 of the year following the reporting year	Attached to 13 sections
		Quarterly	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
2	Section 1	Regulatory Report on Financial Condition<br>A. Assets<br>B. Liabilities<br>C. Capital<br>D. Off-Balance Sheet Obligations<br>E. Breakdown of Other Assets and Other Liabilities<br>F. Breakdown of Liabilities<br>G. Breakdown of Financing Portfolio	Annually	Until February 1 of the year following the reporting year.
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
3	Section 2	Report on Comprehensive Income<br>A. Income from Operations<br>B. Expenses from Operations<br>C. Other Income from Operations<br>D. Other Expenses from Operations<br>E. Operational and Administrative Expenses and Zakat and Charity Expenses	Annually	Until February 1 of the year following the reporting year.
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
4	Section 3	Capital<br>A. Changes in Capital Structure<br>B. Reference Information on Shares and Other Securities of the MFC<br>C. Changes in Undistributed Profit	Annually	Until February 1 of the year following the reporting year.
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
5	Section 4	Information on Overdue Assets, Classification of Assets and Off-Balance Sheet Obligations by Risk Level<br>A. Information on Overdue Assets<br>B. Classification of Assets and Off-Balance Sheet Obligations by Risk Level<br>C. Information on Provided Financing<br>D. Information on Provided Financing by Regions<br>E. Financing Methods<br>F. About MFC Clients<br>G. Classification of Provided Financing by Risk Level by Regions of the Kyrgyz Republic<br>H. Other Information by Regions of the Kyrgyz Republic<br>I. Information on Problematic Clients<br>J. Information on Parallel Financing<br>K. Restructured Assets	Annually	Until February 1 of the year following the reporting year.
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
6	Section 5	Deposits<br>A. Deposits Broken Down by Amounts<br>B. Movement of Deposits During the Reporting Period<br>C. Deposits by Maturity Terms	Annually	Until February 1 of the year following the reporting year
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
7	Section 6	Sensitivity Analysis of Assets and Liabilities to Changes in Yield Rates (GAP Analysis)<br>A. Sensitivity Analysis of Assets and Liabilities to Changes in Yield Rates (GAP Analysis)<br>B. Analysis of Assets and Liabilities by Maturity Terms	Annually	Until February 1 of the year following the reporting year
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
8	Section 7	Changes in RPPU<br>A. Changes in RPPU<br>B. Information on Assets and Off-Balance Sheet Obligations Written Off Against RPPU and Returned (Previously Written Off)	Annually	Until February 1 of the year following the reporting year.
		Quarterly.	For MFCs attracting funds, monthly	Within 12 calendar days following the reporting period
9	Section 8	Risk Information<br>A. Information on Major Risks<br>B. General Information on Transactions with Affiliated Persons<br>C. Loans from Founders/Shareholders/Participants	Annually	Until February 1 of the year following the reporting year.	Instruction<br>"On Requirements for Operations of Microfinance Companies Attracting Deposits with Affiliated and Related Persons to the Microfinance Company and Housing Credit Company"
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
10	Section 9	Information on Transactions with Employees	Annually	Until February 1 of the year following the reporting year.
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
11	Section 10	Information on Compliance with Economic Normatives	Annually	Until February 1 of the year following the reporting year.	Rules for Regulating the Activities of Microfinance Organizations Carrying Out Operations According to Islamic Principles of Banking and Finance
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
12	Section 11	Information on Financing Provided to Clients	Annually	Until February 1 of the year following the reporting year.
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
13	Section 12	Disclosures<br>A. Information on Retail Banking Services Under Agency Agreement with Bank<br>B. Breakdown for FCO Operations and Investments<br>C. Derivative Financial Instruments	Annually	Until February 1 of the year following the reporting year.
		Quarterly.	For MFCs attracting deposits, monthly	Within 12 calendar days following the reporting period
14	Section 13	Report on Foreign Assets and Liabilities	Quarterly	Within 12 calendar days following the reporting period	Attached to 13 sections
15	Information on Members of the Board of Directors, Management Board, Major Founders (Shareholders), and Members of the Shariah Council of the MFC	Annually	Until February 1 of the year following the reporting year.	Attached to 13 sections
		Quarterly	In case of changes during the quarter
16	Information on Specific Officials of the MFC	Annually	Until February 1 of the year following the reporting year.	Attached to 13 sections
		Quarterly	In case of changes during the quarter
17	Basic Information about the MFC, Information on Branches/Representative Offices, Subsidiary and Affiliated Companies, Active Committees	Annually	Until February 1 of the year following the reporting year.	Attached to 13 sections
		Quarterly	In case of changes during the quarter

(In the edition of the Resolution of the Board of Directors of the National Bank dated August 21, 2024, No. 2024-P-12/37-1-(NPA))

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Appendix 2

to the Regulation "On the Periodic Regulatory Report of Microfinance Companies Operating in Accordance with Islamic Principles of Banking and Finance", approved by the Resolution of the Board of Directors of the National Bank of October 17, 2014, No. 45/1

Periodic Regulatory Report of MFCs Operating in Accordance with Islamic Principles of Banking and Finance

(In the edition of the Resolutions of the Board of Directors of the National Bank of the Kyrgyz Republic dated January 20, 2016, No. 4/6; June 15, 2016, No. 25/2; December 13, 2017, No. 2017-P-12/51-13-(NPA); August 21, 2024, No. 2024-P-12/37-1-(NPA))

Appendix 2

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