Regulation on the Credit Register (Approved by Resolution No. 34/3 of the Board of the National Bank of the Kyrgyz Republic dated July 11, 2007)

Registered in the Ministry of Justice of the Kyrgyz Republic

August 7, 2007. Registration number 78-07

	Approved by Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 11, 2007 No. 34/3

REGULATION on the credit register

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic dated

December 12, 2012 No. 48/10)

1. General Provisions

2. Goals and Objectives of the Credit Register

3. Rights and Obligations of Parties in the Formation and
   Maintenance of the Credit Register

4. Procedure for Providing Credit Information
   by Banks for the Formation and Maintenance of the Credit Register

5. Liability of Participants in Relations
   for the Formation of the Credit Register

Appendix No. 1.

This Regulation is developed in accordance with the Laws of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic" and "On Banks and Banking Activity in the Kyrgyz Republic". The purpose of this Regulation is to reduce systemic credit risk in the banking system of the republic, using a centralized electronic database on borrowers of banks and other financial and credit institutions licensed by the NBKR, to increase the efficiency and quality of banking supervision.

The action of this Regulation extends to all commercial banks, the specialized financial and credit institution JSC "Financial Company of Credit Unions" (hereinafter - FKKS), Microfinance Companies (MFCs), licensed by the National Bank of the Kyrgyz Republic, as well as the State Development Bank of the Kyrgyz Republic.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 12, 2012 No. 48/10)

1. General Provisions

1.1. Concepts used in this Regulation:

loans - borrowed funds provided by a commercial bank, the State Development Bank of the Kyrgyz Republic, FKKS and MFCs based on repayability, costliness, and term (loans, leases, as well as loans provided in the form of overdraft, factoring, forfaiting (by discounting a bill of exchange or other debt obligation), issued letters of credit and other types of loans);

recipient of credit information - the authorized body, represented by the National Bank of the Kyrgyz Republic (hereinafter - NBKR), which has the right, in accordance with this Regulation and the legislation of the Kyrgyz Republic, to collect, store and use credit information for supervisory purposes;

provider of credit information - all commercial banks and the State Development Bank of the Kyrgyz Republic carrying out their activities in the Kyrgyz Republic, as well as FKKS and MFCs (hereinafter - banks and other FIs), providing credit information for the formation and maintenance of the credit register in accordance with this Regulation;

credit information - information about loans transmitted by information providers to the NBKR in electronic form and certified by an electronic digital signature;

subject of credit information - a natural or legal person regarding whom credit information is formed;

credit history - the aggregate of credit information about the subject of credit information;

credit register - a centralized database formed by the National Bank of the Kyrgyz Republic, located in the National Bank of the Kyrgyz Republic and containing information on borrowers of the banking system and other financial and credit institutions;

formation and maintenance of the credit register - an action or a set of actions carried out by the NBKR regarding credit information received by it from providers of credit information in accordance with this Regulation, for its storage, monitoring, clarification and updating;

conditional and possible obligations - uncovered letters of credit, issued or confirmed guarantees and sureties.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 12, 2012 No. 48/10)

2. Goals and Objectives of the Credit Register

2.1. The main goal of forming and maintaining the credit register is to reduce systemic credit risk in the banking system of the republic, using a centralized electronic database on borrowers of banks and other FIs licensed by the NBKR, to increase the efficiency and quality of banking supervision.

2.2. Participants in relations for the formation and maintenance of the credit register are providers of credit information and recipients of credit information.

2.3. Tasks of the credit register:

2.3.1. creation of a single database of all borrowers of banks and other FIs;

2.3.2. the ability to conduct an analysis of the credit portfolio of banks and other FIs;

2.3.3. receipt, sorting and combination of credit information on various indicators for banks and other FIs as a whole and in the breakdown by banks and FIs, the ability to generate reports on the credit part in the PRBO;

2.3.4. monitoring of loan collateral;

2.3.5. preliminary assessment of the credit portfolio of a bank and other FIs before and during on-site inspections;

2.3.6. reduction of time costs for conducting a credit portfolio inspection of a bank on-site by NBKR inspectors, improvement of inspection quality and increase in the share of inspected loans;

2.3.7. increasing the efficiency of external supervision, assessment of credit risks, borrower interconnectedness and collateral;

2.3.8. reduction of time costs for banks in preparing and filling out PRBO sections related to the credit portfolio;

2.4. Information from the credit register must be used exclusively for the purpose of increasing supervisory efficiency, as well as reducing systemic credit risks in the banking system. Access to the credit register database is strictly limited and regulated by internal normative documents of the NBKR.

3. Rights and Obligations of Parties in the Formation and

Maintenance of the Credit Register

3.1. The recipient of credit information has the right:

• to demand from providers of credit information the provision of complete and reliable information forming the credit register, in the volume and order provided by this Regulation (Appendix 1);

• to properly form credit histories;

• to use the data of the credit register for the purposes defined by this Regulation.

3.2. The recipient of credit information must:

• use data from the credit register strictly for the purposes defined by this Regulation;

• observe the confidentiality of information;

• ensure effective protection against unauthorized access to the credit register database and corresponding information systems;

• to form credit information, ensure the provision and installation of specialized software "Credit Register" to providers of credit information, if necessary, train a bank employee or other FI staff at the user level of the specified software.

3.3. The provider of credit information has the right:

• to demand from the recipient of credit information the use of the provided information in accordance with this Regulation;

• to use the specialized software "Credit Register" to systematize, monitor and analyze its own credit portfolio and prepare other credit reports within the framework of its credit portfolio;

3.4. The provider of credit information must:

• provide information to the credit register on the terms, in the volume and order provided by this Regulation and other normative legal acts of the NBKR;

• provide information to the credit register in exact accordance with the available information about the subject of credit information;

• allocate computer equipment meeting the necessary requirements for the installation and operation of the specialized software "Credit Register", ensure labor resources for working with the program and data transmission;

• ensure the safety of the software, do not distribute, do not copy the software and use it only for the purposes provided by this Regulation.

4. Procedure for Providing Credit Information by Banks

for the Formation and Maintenance of the Credit Register

For the formation and maintenance of the credit register, banks and other FIs must monthly provide information to the NBKR on all issued loans, conditional and possible obligations, as well as changes in their current state on the first day of each month, from the moment of commissioning of the Automated System "Credit Register".

4.1. Information provided by banks to the credit register, with the exception of loans issued as part of salary projects, i.e., loans within the monthly salary of bank clients, must contain:

1) data on the subject of credit information (for legal entities - full name, organizational and legal form, location, number and date of state registration as a legal entity, OKPO code, taxpayer registration number, surname, first name, patronymic of managers, their taxpayer registration numbers;

for natural persons - surname, first name, patronymic, date of birth, place of residence, name and details of the document confirming identity, as well as for natural persons engaged in entrepreneurial activity without forming a legal entity - INN code (taxpayer identification number) and OKPO code);

2) data on loans obtained by the subject of credit information in the bank (loan amount, total debt amount on the loan obtained by them, conditional and possible obligations; date of issuance, date (according to the schedule and actual) repayment of loans, as well as conditional and possible obligations;

3) full information on the fulfillment by the subject of credit information of obligations under the loan;

4) information on changes in the current state of all issued loans, conditional and possible obligations;

5) information on loans issued during the reporting period, conditional and possible obligations;

6) information on loans written off from the balance sheet, conditional and possible obligations for this period;

7) other information required in accordance with Appendix 1 to this Regulation.

For loans issued as part of salary projects, information is provided only on the total amount of loans (converted to national currency) and their quantity.

4.2. Banks and other FIs must provide information for the formation and maintenance of the credit register to the NBKR no later than the 12th day of the month following the reporting month.

4.3. Upon concluding a new credit agreement with a borrower, credit information must be entered into the database of the specialized software "Credit Register", in the volume and order provided by normative documents of the NBKR and the requirements of this Regulation according to Appendix 1.

4.4. Information provided to the NBKR in accordance with this Regulation must be stored by banks and other FIs in the form of an electronic database. The storage period is determined by the internal regulations of the bank and other FIs. The minimum storage period is 3 years.

4.5. Information provided by banks and other FIs in accordance with this Regulation is stored in the NBKR in the form of a centralized electronic database. The storage period is established in accordance with the current List of documents formed in the activities of the NBKR, with indication of storage periods.

5. Liability of Participants in Relations

for the Formation of the Credit Register

5.1. The subject of credit information bears responsibility in accordance with the legislation of the Kyrgyz Republic for the completeness and reliability of the information provided to the provider of credit information.

5.2. Responsibility for the timeliness, reliability and completeness of data obtained from the subject of credit information and transmitted by banks and other FIs to the NBKR is borne directly by the Head of the executive body of the bank or other FI.

5.3. In case of violation by banks or other FIs of the conditions of this Regulation, the NBKR has the right to apply appropriate measures and sanctions in accordance with the current banking legislation of the Kyrgyz Republic.

5.4. The recipient of credit information bears responsibility for the disclosure of credit information provided for by the legislation of the Kyrgyz Republic.

	Appendix No. 1 to the Regulation on the credit register

┌─────────────────────┐

│ Borrower │

└──────────┬──────────┘

┌────────────────────┴───────────────────┐

V V

┌──────────────────┐ ┌─────────────────┐

│ Legal Entity │ │ Natural Person │

└──────────────────┘ └─────────────────┘

┌──────────────────────────────┐ ┌───────────────────────────────┐

│1. Information about the borrower:│ │1. Information about the borrower: │

│- full name of the legal │ │- Surname, first name, patronymic; │

│ entity; │ │- date of birth; │

│- legal address, resident - │ │- OKPO code or INN; │

│ non-resident; │ │- for private entrepreneurs;│

│- OKPO code or INN; │ │- passport data; │

│- information on executive officials│ │- borrower's interconnectedness with the bank│

│of the borrower, influencing the│ │(if any, then the percentage of participation│

│decision-making process │ │in the bank). │

│(passport data); │ │2. Information on collateral: │

│- borrower's interconnectedness with│ │- pledge, guarantee, │

│the bank (if any, then percentage│ │surety or other │

│of participation in the bank). │ │3. Information on the surety, │

│2. Information on collateral: │ │guarantor (in accordance with │

│- pledge, guarantee, │ │point 1) │

│surety or other │ │4. Information on the pledge: │

│3. Information on the surety, │ │- name of the pledge; │

│guarantor (in accordance with │ │- legal address of the pledge; │

│point 1) │ │- proper registration of the pledge│

│4. Information on the pledge: │ │(yes, no); │

│- name of the pledge; │ │- appraised value on the date │

│- legal address of the pledge; │ │of the last revision (with │

│- proper registration │ │date); │

│of the pledge (yes, no); │ │- market value on the date │

│- appraised value on the date │ │of the last revision (with │

│of the last revision (with │ │date); │

│date); │ │- place of storage of the pledge (also,│

│- market value on the date │ │whether the pledge is sealed); │

│of the last revision (with │ │- monitoring of the pledge (date │

│date); │ │of the last revaluation and new │

│- place of storage of the pledge │ │appraised value); │

│(also, whether the │ │- if the pledgor and borrower│

│pledge is sealed); │ │are different persons, then information about │

│- monitoring of the pledge (date │ │the pledgor according to point 1.│

│of the last revaluation and new │ │5. Purpose of the loan: │

│appraised value); │ │- industry of loan placement; │

│- if the pledgor and │ │- industry of activity │

│borrower are different persons, then │ │of the borrower; │

│information on the pledgor │ │- monitoring of the purpose │

│according to point 1. │ │use (date). │

│5. Purpose of the loan:│ │6. Loan amount: │

│- industry of loan placement; │ │- initial loan amount │

│- industry of activity │ │in som (if the loan is issued in │

│of the borrower; │ │foreign currency, then │

│- monitoring of the purpose │ │the amount in the │

│use (date). │ │nominal of the issued currency); │

│6. Loan amount: │ │- remaining debt on the │

│- initial loan amount│ │reporting date (principal amount and │

│in som (if the loan is issued in │ │accrued interest). │

│foreign currency, then │ │7. Date of loan issuance │

│the amount in the │ │8. Initial date │

│nominal of the issued currency); │ │repayment │

│- remaining debt │ │9. Interest rate on the loan│

│on the reporting date │ │and repayment conditions │

│(principal amount and accrued interest). │ │10. Extension: │

│7. Date of loan issuance │ │- number of extensions; │

│8. Initial date │ │- date of the last extension; │

│repayment │ │- changes in the conditions │

│9. Interest rate on the │ │of repayment. │

│loan and repayment conditions │ │11. Restructuring: │

│10. Extension: │ │- change in the principal amount and │

│- number of extensions; │ │date; │

│- date of the last extension; │ │- change in the interest rate; │

│- changes in the conditions │ │- change in other conditions. │

│of repayment. │ │12. Overdue: │

│11. Restructuring: │ │- principal amount (in days and │

│- change in the principal amount and │ │amount); │

│date; │ │- on interest (in days and │

│- change in the interest rate;│ │amount). │

│- change in other conditions. │ │13. Classification │

│12. Overdue: │ │14. *Reference information │

│- principal amount (in days and │ │(provision by the borrower │

│amount); │ │of unreliable information and etc. │

│- on interest (in days and │ │etc.) │

│amount). │ │15. Written-off loans (transferred│

│13. Classification │ │to court? Is the pledge seized?) │

│14. * Reference information │ │ │

│(provision by the borrower │ │ │

│of unreliable information and │ │ │

│etc.) │ │ │

│15. Written-off loans │ │ │

│(transferred to court? Is the pledge │ │ │

│seized?) │ │ │

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