Regulation on the Periodic Regulatory Report of Banks Conducting Operations in Accordance with Islamic Principles of Banking and Financing

ATTENTION!
Changes introduced by the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 29, 2021 No. 2021-P-12/75-3, enter into force on January 1, 2023

		Approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic
of March 30, 2011 No. 20/4

REGULATION on the periodic regulatory report of banks conducting operations in accordance with Islamic principles of banking and financing

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of April 25, 2012 No. 18/9, December 23, 2015 No. 78/23, February 5, 2016 No. 5/1, September 28, 2016 No. 40/3, November 16, 2016 No. 44/3, June 15, 2017 No. 2017-P-12/25-5, August 16, 2017 No. 2017-P-12/34-1, September 27, 2017 No. 2017-P-10/42-4, December 13, 2017 No. 2017-P-12/51-13, April 10, 2019 No. 2019-P-12/19-3, September 25, 2019 No. 2019-P-12/49-4, December 11, 2019 No. 2019-P-10/62-3, January 20, 2021 No. 2021-P-10/2-1, September 15, 2021 No. 2021-P-12/51-2, December 15, 2021 No. 2021-P-12/70-2, December 15, 2021 No. 2021-P-12/70-3, December 29, 2021 No. 2021-P-12/75-3)*

1. General Provisions

1. This Regulation defines the unified form of periodic regulatory reporting of banks conducting operations in accordance with Islamic principles of banking and financing (hereinafter - PRBR).

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-5)*

2. The action of this Regulation extends to all commercial banks conducting operations in accordance with Islamic principles of banking and financing (hereinafter - banks).

3. PRBR is compiled based on accounting data and off-balance sheet accounting.

2. Goals and Objectives

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

a) of the financial condition of the bank within the framework of the functions performed by the National Bank of the Kyrgyz Republic (hereinafter - National Bank), established in the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, banks and banking activity";

b) of the bank's activities for the adoption of managerial decisions by the bank's management, including decisions on ensuring liquidity, solvency, and profitability.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-5)*

5. The main task of PRBR is to provide accurate and complete information about the economic and operational activities of the bank to ensure the achievement of the goals specified in paragraph 4 of this Regulation.

3. Content and Frequency of Submission of PRBR

6. PRBR represents a report on the bank's activities, compiled in the established form for a specific period and submitted within the established deadline.

7. The composition of the reporting in summary form, brief content, and submission deadlines for reports are provided in Appendix 1 to this Regulation.

8. PRBR consists of 31 sections.

4. Procedure for Submission of PRBR

9. In each bank, an employee must be appointed responsible for the completeness and accuracy of the content, submission deadlines, and correct completion of PRBR. This employee is also responsible for interaction with the National Bank on all issues concerning the information contained in PRBR and for conducting internal approval of reports where the signature of several officials is required when submitting reports in electronic format.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 15, 2021 No. 2021-P-12/70-2)*

10. PRBR is submitted to the National Bank in the form according to Appendix 2 to this Regulation and in accordance with the requirements of the Regulation "On the activities of the National Bank of the Kyrgyz Republic as a certification center for open keys of electronic digital signature", approved by the Resolution of the Board of the National Bank of June 15, 2016 No. 25/6, within the deadlines established for each report via the electronic communication system (electronic information carriers), signed by the electronic signature of the responsible official.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 15, 2021 No. 2021-P-12/70-2)*

11. Reports in electronic format, signed by the electronic signature of the responsible official, are submitted to the National Bank within the established deadlines.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 15, 2021 No. 2021-P-12/70-2)*

12. Electronic versions of sections 1-31 of PRBR are transmitted to the National Bank. Electronic versions of sections 19-31 of PRBR must be accompanied by an electronic signature (ES). Cover letters of the established format for all sections of PRBR must also be signed with ES and submitted in electronic format.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 15, 2021 No. 2021-P-12/70-2)*

13. In the event of any discrepancies, errors, incomplete submission, or incorrect completion of PRBR forms, the corresponding structural subdivision of the National Bank notifies the bank of the need to correct the report with reflection in financial reporting within the following deadlines:

• for daily and weekly reports - within 2 working days;

• for monthly reports - within 10 working days;

• for quarterly reports - within 10 working days;

• for semi-annual reports - within 15 working days;

• for annual reports - within 30 working days.

Corrected reports together with the bank's cover letter must be submitted to the National Bank: daily and weekly reports within 2 working days, monthly and quarterly reports within 3 working days, semi-annual and annual reports within 5 working days after receiving notification of discrepancies.

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

15. Bank branches located in regions submit monthly information concerning their activities to the corresponding regional (regional) department of the National Bank by the 15th of the month following the reporting period, after the consolidated PRBR has been submitted by the bank's head office. The list of PRBR sections submitted by bank branches to regional departments of the National Bank, in agreement with the supervising Deputy Chairman/Member of the Board of the National Bank, is established by the corresponding structural subdivision of the National Bank.

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of February 5, 2016 No. 5/1, September 28, 2016 No. 40/3)

16. The annual PRBR is submitted to the National Bank no later than February 15 of the year following the reporting year.

17. A copy of the published financial report with the conclusion of an independent audit company, after approval by the shareholders' meeting, is submitted to the National Bank within two working days.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of September 28, 2016 No. 40/3)

18. PRBR must include and present information for weekends and holidays declared and recommended as working days for the National Bank and commercial banks by the Government of the Kyrgyz Republic, regardless of whether the bank operated during this period or not. In this case, reports containing information in foreign currency in som equivalent must be compiled using the exchange rate of the National Bank on the date of report preparation.

19. PRBR must be submitted in the established form: bound, numbered with the indication of the number of pages of PRBR sections, sealed, and signed by a bank employee responsible for compiling and submitting PRBR.

20. PRBR must contain accurate information about the state of the bank as of the reporting date. The correctness of reflecting the bank's state in the monthly, quarterly, and annual PRBR is certified by the Chairman of the Bank's Board of Directors or a member of the Board of Directors replacing the Chairman in his absence, the Chairman of the Board of the Bank, the Chief Accountant of the Bank, and a member of the Board of the Bank supervising the work on report preparation.

5. Final Provisions

21. For untimely and/or inaccurate submission of information, non-submission of information, as well as incorrect completion of PRBR, the bank bears responsibility in accordance with the legislation of the Kyrgyz Republic.

Appendix 1

COMPOSITION of the periodic regulatory report of an Islamic bank

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of December 23, 2015 No. 78/23, September 28, 2016 No. 40/3, June 15, 2017 No. 2017-P-12/25-5, August 16, 2017 No. 2017-P-12/34-1, April 10, 2019 No. 2019-P-12/19-3, September 15, 2021 No. 2021-P-12/51-2)

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№	Section	Title	Frequency	Submission Deadline	Notes or Reference to Legal Act
1		Title Page	Monthly, Quarterly, and Annually	Within 5 working days after the end of the reporting period	Attached only to the first 18 sections
2		Information on Members of the Board of Directors, the Bank's Management Board, and the Shariah Board	Annually and upon changes		Attached only to the first 18 sections
3		Information on Certain Bank Officials	Annually and upon changes		Attached only to the first 18 sections
4		Basic Bank Information	Annually and upon changes		Attached only to the first 18 sections
5	Section 1	Balance Sheet A. Assets B. Liabilities C. Capital D. Off-Balance Sheet Liabilities	Monthly	Within 5 working days after the end of the reporting period
D. Breakdown of other assets and other liabilities of the bank E. Liabilities to the National Bank F. Asset placement of the bank by country G. Attraction of liabilities of the bank by country H. Attraction of liabilities of the bank by country (in foreign currency) I. Attraction of capital of the bank by country J. Volume of financing by industries in the regions of the Kyrgyz Republic	Quarterly
K. Classification of provided financing by risk level in the regions of the Kyrgyz Republic	Quarterly
L. Volume of cash (by sources of attraction) in client accounts in the regions of the Kyrgyz Republic	Quarterly
M. Other bank information in the regions of the Kyrgyz Republic	Quarterly
N. Information on client account database	Monthly	Within 5 working days after the end of the reporting period
6	Section 2	Income Statement and Comprehensive Income Report Income Statement A. Income from operations B. Expenses from operations C. Other income from bank operations D. Other expenses from bank operations E. Other operating and administrative expenses Comprehensive Income Report	Monthly	Within 5 working days after the end of the reporting period
7	Section 3	Capital Structure A. Changes in capital structure B. Reference information on shares and other securities of the bank	Monthly	Within 5 working days after the end of the reporting period
8	Section 4	Changes in Undistributed Profit	Monthly	Within 5 working days after the end of the reporting period
9	Section 5	Securities Portfolio	Monthly	Within 5 working days after the end of the reporting period
10	Section 6	Information on Overdue Assets A. Information on overdue assets (in som) B. Information on overdue assets (in foreign currency)	Monthly	Within 5 working days after the end of the reporting period
11	Section 7	Classification of Assets and Off-Balance Sheet Liabilities by Risk Level A. Classification of assets and off-balance sheet liabilities by risk level (in som) B. Classification of assets and off-balance sheet liabilities by risk level (in foreign currency)	Monthly	Within 5 working days after the end of the reporting period
12	Section 8	Changes in Provision for Possible Losses A. Information on assets and off-balance sheet liabilities written off against provisions and returned (previously written off) B. Changes in provisions for provided financing, except for financing provided to banks C. Changes in provisions for assets other than financing and off-balance sheet liabilities D. Changes in provisions for financing provided to banks and other financial and credit organizations	Monthly	Within 5 working days after the end of the reporting period
13	Section 9	Information on Large Risks A. Information on large risks A-1. Information on 15 largest sources of financing, including financial and credit organizations and state institutions (Social Fund of the Kyrgyz Republic, etc.) B. Information on balances in correspondent accounts B-1. Information on funds placed in deposit accounts C. Information on the broker/dealer/depository servicing the bank D. Information on transactions with corporate and state securities E. Bank's portfolio of corporate and state securities F. Clients' portfolio of corporate and state securities	Monthly	Within 5 working days after the end of the reporting period	Appendix No. 1 to the Instruction on Limits of Financing Conducted in Accordance with Islamic Banking Principles and Financing. Appendix No. 2 to the Instruction on Limits of Financing Conducted in Accordance with Islamic Banking Principles and Financing
14	Section 10	Information on Affiliated Persons A. Brief information on active transactions with affiliated persons	Monthly	Within 5 working days after the end of the reporting period
		B. General information on transactions with affiliated persons C. Information on affiliated persons of the bank	Semi-annually	Within 5 working days after the end of the reporting period
15	Section 11	Information on Persons Related to the Bank A. Brief information on active transactions with persons related to the bank	Monthly	Within 5 calendar days from the end of the reporting period
		B. General information on transactions with persons related to the bank C. Information on close relatives of bank officials D. Information on other persons related to the bank E. Information on legal entities in which bank officials and their close relatives or other persons related to the bank hold control	Semi-annually	Within 5 calendar days from the end of the reporting period
16	Section 12	Sensitivity Analysis of Bank Assets and Liabilities to Changes in Market Yield Rates and Maturity Dates of Assets/Liabilities A. Sensitivity analysis of bank assets and liabilities to changes in market yield rates	Quarterly	Within 5 calendar days from the end of the reporting period
		B. Maturity of assets/liabilities	Monthly
17	Section 13	Client Accounts by Amounts	Monthly	Within 5 calendar days from the end of the reporting period
18	Section 14	Information on Compliance with Economic Standards and Requirements for Supporting Additional Capital Buffer (Capital Buffer Index)	Monthly	Within 5 calendar days from the end of the reporting period	Appendix 1 to the Regulation "On Economic Standards and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic"
		A. Daily report on compliance with the maximum risk size standard for one borrower	Daily	By 9:00 as of the end of the last operating day
		B. Report on compliance with economic adequacy (sufficiency) capital standards and liquidity standards and requirements for supporting additional capital buffer (Capital Buffer Index)	Monthly	Within 5 calendar days from the end of the reporting period
		C. Daily report on compliance with the maximum risk size standard for term accounts and other liabilities to individuals	Daily	By 9:00 as of the end of the last operating day
		D. Report on compliance with the maximum risk size standard for demand accounts of individuals	Monthly
		E. Report on fulfillment of National Bank requirements	Monthly
		F. Report on compliance with the short-term liquidity standard (K3.2)	Weekly	By 9:00 on the first working day of the week following the reporting week
		G. Daily report on compliance with the instant liquidity standard (K3.3)	Daily	By 9:00 as of the end of the last operating day
		H. Information on the volume of financing provided to members of the State Financial Reserve	Monthly	Within 5 calendar days from the end of the reporting period
19	Section 15	Bank Capital Calculation 1. Assets 2. Securities Portfolio 3. Financing 4. Financing (continued)/other assets 5. Off-Balance Sheet Liabilities 6. Subordinated Debt 7. Capital and Capital Adequacy Coefficients	Monthly	Within 5 calendar days from the end of the reporting period	Instruction on Determining Capital Adequacy (Sufficiency) Standards for Banks Conducting Operations in Accordance with Islamic Banking Principles and Financing
20	Section 16	Report on Open Currency Positions	Daily	By 9:00 as of the end of the last operating day	Appendix to the Instruction "On the Procedure for Compliance with Open Currency Position Limits by Banks Conducting Operations in Accordance with Islamic Banking Principles and Financing"
21	Section 17	Information on Bank Trust Management Operations	Quarterly	Within 5 calendar days from the end of the reporting period
22	Section 18	Other Information A. Average value of assets and liabilities for the month B. Other information on bank operations C. Bank Personnel D. Information on clients with the largest account turnover E. Information on the number and amount of messages in the Financial Reporting System	Monthly	Within 5 working days after the end of the reporting period
F. Information on other property (real estate) accepted by commercial banks onto the balance sheet in settlement of debt on problematic loans	Quarterly	Within 5 working days after the end of the reporting period
G. Information on balances in accounts of state enterprises, economic entities with state participation, and state authorities	Monthly	Within 5 working days after the end of the reporting period
H. Information on the maximum and minimum markup on active financing and deposits, including those established individually	Monthly	Within 5 working days after the end of the reporting period
		I. Information on bank risk events	Monthly	Within 5 working days after the end of the reporting period
23	Section 19	Bank Services			If the bank's tariffs in the head office and all its branches are the same, a single report is prepared on a monthly basis
A. Main bank services in head offices	Monthly	By the 5th day of the month following the reporting period
B. Bank services by branches	Monthly	By the 10th day of the month following the reporting period
C. Reward (markup) accrued on funds attracted (placed) in accordance with Islamic financing principles	Monthly	By the 5th day of the month following the reporting period
D. Markup by financing types as a percentage of the financing amount		By the 5th day of the month following the reporting period
24	Section 20	Transactions with Traveler's Checks and Card Issuance/Acquiring
A. Transactions with traveler's checks	Quarterly	By the 10th day of the month following the reporting period
B1. Card issuance/acquiring transactions (individuals)	Monthly	By the 15th day of the month following the reporting period
B2. Card issuance/acquiring transactions (legal entities)	Monthly	By the 15th day of the month following the reporting period
C. Peripheral Devices	Monthly	By the 15th day of the month following the reporting period
25	Section 21	Payment Information
A. Intra-branch outgoing client payments	Quarterly	By the 10th day of the month following the reporting period
B. Intra-bank inter-branch payments	Quarterly	By the 10th day of the month following the reporting period
C. Inter-bank payments of the bank by branches	Quarterly	By the 10th day of the month following the reporting period
D. Payments by payment instrument types	Monthly	Monthly - by the 15th day of the month following the reporting period
D1. Electronic payments	Monthly	Monthly - by the 15th day of the month following the reporting period
E. Cross-border money transfers by system types by country	Monthly	By the 10th day of the month following the reporting period
F. Cross-border money transfers by system types by region	Quarterly	By the 10th day of the month following the reporting period
G. Cross-border payments by system types and by country	Quarterly	By the 10th day of the month following the reporting period
H. Report on the number and volume of payments (transfers) in the payment system (PS)	Quarterly	By the 15th day of the month following the reporting period
I. Report on the number and volume of payments (transfers) not accepted for processing	Quarterly	By the 15th day of the month following the reporting period
K. Report on abnormal situations in the system	Monthly	By the 10th day of the month following the reporting period
L. Report on fraudulent transactions in the system for __________ month 20__ year	Monthly	By the 10th day of the month following the reporting period
26	Section 22	Report on Foreign Currency Operations	Daily	By 11:00 AM
A. Report on non-cash foreign currency operations
B. Report on cash foreign currency operations
C. Report on cash foreign currency operations in exchange offices serviced by commercial banks
27	Section 23	Information on Interbank Credit Market Operations	Weekly	Every Friday by 10:00 AM
28	Section 24	Report on Attracted and Placed Funds and Applied Rewards/Markups	Monthly	By the 5th day of the month following the reporting period
A. Financing provided at the end of the period
B. Financing provided during the period
C. Balance of funds in client accounts at the end of the period
D. Funds received in client accounts during the period
29	Section 25	Information on Attracted Funds from Clients by Economic Sectors A. Balance of funds in client accounts by economic sectors at the end of the period B. Funds attracted to client accounts by economic sectors during the period	Quarterly	By the 10th day of the month following the reporting period
30	Section 26	Reporting Form for International Operations	Quarterly	By the 20th day of the month following the reporting period
31	Section 27	Information on Payment Designations in Banks
A. Form PB - 1		By the 15th day of the month following the reporting period
B. Form PB - 2	Quarterly	By the 15th day of the month following the reporting period
32	Section 28	Daily Report on Assets, Liabilities, and Capital	Daily	By 12:00 of the next working day
33	Section 29	Monthly Cash Turnover Report	Monthly	By the 4th day of the month following the reporting period
34	Section 30	Weekly Cash Turnover Report	Weekly	Every Friday by 14:00	The report contains information on the volume of cash received and issued during the reporting week
35	Section 31	Daily Trial Balance A. Daily Trial Balance B. Daily Trial Foreign Currency Balance	Daily	By 12:00 of the next working day	Regulation "On Requirements for the Formation of Financial Reporting of Commercial Banks Conducting Operations in Accordance with Islamic Banking Principles and Financing," approved by the Resolution of the Board of the NBKR No. 47/3 dated 25.11.2009

Appendix 2

PERIODIC REGULATORY REPORT OF AN ISLAMIC BANK

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic dated December 23, 2015 No. 78/23, September 28, 2016 No. 40/3, November 16, 2016 No. 44/3, June 15, 2017 No. 2017-P-12/25-5, August 16, 2017 No. 2017-P-12/34-1, September 27, 2017 No. 2017-P-10/42-4, December 13, 2017 No. 2017-P-12/51-13, April 10, 2019 No. 2019-P-12/19-3, September 25, 2019 No. 2019-P-12/49-4, December 11, 2019 No. 2019-P-10/62-3, January 20, 2021 No. 2021-P-10/2-1, September 15, 2021 No. 2021-P-12/51-2, December 15, 2021 No. 2021-P-12/70-3, December 29, 2021 No. 2021-P-12/75-3)

Note:

Appendix 2 is presented in the edition approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated March 30, 2011 No. 20/4.

Paper versions in the archive of the Ministry of Justice of the Kyrgyz Republic