Resolution of the Board of the National Bank of the Kyrgyz Republic No. 1/4 of January 24, 2001 on Amendments and Additions to the Regulation on the Procedure for Creating Banks and Features of Their Activities in the Kyrgyz Republic

LAPSED

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of March 2, 2006 No. 5/7)

Registered in the Ministry of Justice of the Kyrgyz Republic February 1, 2001. Registration number 15 Bishkek January 24, 2001 No. 1/4

RESOLUTION OF THE BOARD OF THE NATIONAL BANK OF THE KYRGYZ REPUBLIC

On Amendments and Additions to the Regulation "On the Procedure for Creating Banks and Features of Their Activities on the Territory of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 19/2 of August 12, 1998

Having considered the proposed project of amendments and additions to the Regulation "On the Procedure for Creating Banks and Features of Their Activities on the Territory of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 19/2 of August 12, 1998, the Board of the National Bank of the Kyrgyz Republic resolves:

1. Approve the attached amendments and additions to the Regulation "On the Pro-
   cedure for Creating Banks and Features of Their Activities on the Territory of Kyrg- yzstan", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 19/2 of August 12, 1998, and bring them into force from the moment of state registration.

2. The Legal Department of the NBKR to conduct state registration
   of the attached amendments and additions to the Regulation on the creation of banks and features of their activities on the territory of the Kyrgyz Republic in the Ministry of Justice of the Kyrgyz Republic.

3. The Banking Supervision Department of the NBKR to bring this Resolution
   to the attention of the regional departments of the NBKR, commercial banks, and JSC "RSK", CSFC.

4. Control over the implementation of this Resolution is assigned to
   Sharshekееva K.Sh., Deputy Chairman of the National Bank of the Kyrgyz Republic.

Chairman of the Board of the National Bank of the Kyrgyz Republic U. Sarbanov

Approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of January 24, 2001 No. 1/4

AMENDMENTS AND ADDITIONS to the Regulation "On the Procedure for Creating Banks and Features of Their Activities on the Territory of the Kyrgyz Republic"

1. Make the following changes to Section 5:

Paragraph 28 is to be worded as follows:
"Banks may open separate subdivisions (branches, representative offices, savings cash desks, exchange points, terminals);

Paragraph 29 is to be worded as follows:
"To open branches, representative offices, savings cash desks, ex- change points, terminals, banks must have internal documents, adequate to the intended direction of business expansion".

Paragraph 30 is to be deleted.

2. Make the following changes to Chapter 1 of Section 5:

Paragraph 32 is to be worded as follows:
"A bank opens its branches on the territory of the Kyrgyz Republic after thirty days have passed from the moment of notification to the National Bank of the Kyrgyz Republic.

To open a branch, the following documents are provided to the National Bank of the Kyrgyz Republic:

1. notification of opening a branch, which must specify
   the postal address of the branch, its powers and functions, the scale and nature of planned operations, rights and obligations are provided for, a list of bank operations delegated to the branch (Appendix 12);

2. decision of the relevant body of the bank to open a branch;

3. personal personnel files with information on the professional
   suitability of the head and chief accountant of the branch;

4. power of attorney from the bank, listing operations and other actions
   for which the head of the branch is authorized".

Paragraph 33 is to be worded as follows: "Unsatisfactory fi- nancial position of the bank, creating a threat to its creditors and depositors may entail the introduction by the National Bank of restrictions on the open- ing of a branch of the bank in accordance with the legislation. Unsatisfactory financial position of the bank is characterized by systematic vio- lations of economic standards (at least one over the last three months), violation of economic standards on the date of notification of opening a branch, failure to comply with mandatory reserve requirements on the date of notification of opening a branch, negative value of bank capital, presence of losses. Within 10 days from the moment of receipt of the notif- cation of opening a branch, a written conclusion on the fi- nancial position of the bank is prepared".

Paragraph 34 - after the words "provide to the National Bank" add the following: "one copy of the regulation on the branch and" and further in the text.

Paragraphs 36, 39 are to be deleted.

3. Make the following changes to Appendix 12:

Delete the words "Regulation on the branch" in paragraph 4;

Add to paragraph 4 after the words "(personal personnel files)" the word "power of attorney".

4. Delete Appendix 13.