Resolution of the Board of the National Bank of the Kyrgyz Republic No. 16/5 of 23 April 2014 on Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic on Approval of the Regulation on Required Reserves No. 8/2 of 19 March 2010

REPEALED

by resolution of the Board of the National Bank of the Kyrgyz Republic No. 2019-P-07/10-1-(DKP) of 13 March 2019

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 23 April 2014 No. 16/5

On Amendments to the Resolution of the Board

of the National Bank of the Kyrgyz Republic

"On Approval of the Regulation "On Required Reserves" of 19 March 2010 No. 8/2

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 14 November 2014 No. 50/1)

In accordance with Articles 7, 22 and 43 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To introduce amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Required Reserves" of 19 March 2010 No. 8/2 (attached).

2. (Repealed in accordance with resolution of the Board of the National Bank of the Kyrgyz Republic of 14 November 2014 No. 50/1)

3. To the Legal Department:

• publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

• after official publication, send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

4. This resolution enters into force on 5 May 2014.

5. To assign control over the execution of this resolution to the Deputy Chairman of the National Bank of the Kyrgyz Republic Zheenbaeva B.Zh.

For the ChairmanDeputy Chairman	Z.L. Chokoev

	Annex to resolution of the Board of the National Bank of the Kyrgyz Republic of 23 April 2014 No. 16\5

AMENDMENTS

to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation

"On Required Reserves" of 19 March 2010 No. 8/2

To introduce to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Required Reserves" of 19 March 2010 No. 8/2, the following amendments:

in the Regulation "On Required Reserves" approved by the above-mentioned resolution:

• paragraph 2.1. shall be set out in the following wording:

"2.1. Required reserves are calculated once per period of four weeks, on the first business day of the current base period and are determined on the basis of the average daily calculation base for the previous base period, and the amount of required reserves established by the Board of the National Bank. The established value of required reserves is effective throughout the four weeks of the base period. The som equivalent of foreign currency liabilities included in the calculation base is calculated at the rate established by the Board of the National Bank.";

• paragraphs three to seven of paragraph 2.4. shall be set out in the following wording:

"ORt – required reserves for the current base period;

OBt-1 – liabilities of the bank included in the calculation base, for each day of the previous base period;

At-1 – assets of the bank, by the amount of which, by decision of the Board of the National Bank, the calculation base is reduced, for each day of the previous base period;

Dt-1 – the number of calendar days of the previous base period taken into account in calculating required reserves, i.e. 28 days.";

• the first sentence of paragraph 2.5. shall be set out in the following wording:

"The calculation made in accordance with paragraph 2.4. of this Regulation, certified by the signature of the head of the bank, shall be submitted in the form according to Annex 1 to the National Bank, on the first business day of the new base period before 12:00.";

• the first sentence of paragraph 2.6. shall be set out in the following wording:

"Control over the fulfillment of ORT is carried out at the end of the four-week base period.";

• paragraph 2.8. shall be recognized as repealed;

• paragraph six of paragraph 3.2. shall be set out in the following wording:

"D – the number of calendar days of the base period, i.e. 28 days.";

• Annexes 1 and 2 of the Regulation shall be set out in the following wording:

	Annex 1 to the Regulation on Required Reserves approved by resolution of the Board of the NBKR No. 16/5 of 23 April 2014

Calculation of required reserves for the period from ___ to ___

______

(name of commercial bank)

	Liabilities	Balance according to form 36 PRBO				Average for the base period
Day 1	Day 2	…	Day 28
1	Settlement (current) accounts
2	Demand deposits
3	Time deposits
4	Accounts and deposits of the Government of the Kyrgyz Republic and local government bodies
5	Calculation base (1+2+3+4)
6	Deposits in foreign currency in the NBKR used for calculating required reserves
7	Total (5-6)
8	Required reserves(*)

Notes: (*) Required reserves are calculated in accordance with paragraph 2.4. of this Regulation.

Shaded cells are not filled in.

Signature of the head of the commercial bank

Seal

	Annex 2 to the Regulation on Required Reserves approved by resolution of the Board of the NBKR No. 16/5 of 23 April 2014

Example of calculating the fee for non-compliance with ORT

(soms)

No.	Reporting period	Correspondent account in the NBKR (K)	Required reserves (R)	Deviation from required reserves (K-R)	Minimum level of ORT (R*Mort)	Deviation from minimum required reserves (Om)
1	2	3	4	5	6	7
1	24.03.2014	159495187	191782938	-32287751	134248057	25247131
2	25.03.2014	185474061	191782938	-6308877	134248057	51226004
3	26.03.2014	106536087	191782938	-85246851	134248057	-27711970
4	27.03.2014	194090715	191782938	2307777	134248057	59842658
5	28.03.2014	191346946	191782938	-435992	134248057	57098889
6	29.03.2014	191346946	191782938	-435992	134248057	57098889
7	30.03.2014	191346946	191782938	-435992	134248057	57098889
8	31.03.2014	166066879	191782938	-25716059	134248057	31818822
9	01.04.2014	164756914	191782938	-27026024	134248057	30508857
10	02.04.2014	205058890	191782938	13275952	134248057	70810833
11	03.04.2014	249696970	191782938	57914032	134248057	115448914
12	04.04.2014	206221430	191782938	14438492	134248057	71973373
13	05.04.2014	206221430	191782938	14438492	134248057	71973373
14	06.04.2014	206221430	191782938	14438492	134248057	71973373
15	07.04.2014	165661072	191782938	-26121866	134248057	31413015
16	08.04.2014	163311661	191782938	-28471277	134248057	29063604
17	09.04.2014	186628282	191782938	-5154656	134248057	52380225
18	10.04.2014	226704663	191782938	34921725	134248057	92456606
19	11.04.2014	174580129	191782938	-17202809	134248057	40332072
20	12.04.2014	174580129	191782938	-17202809	134248057	40332072
21	13.04.2014	174580129	191782938	-17202809	134248057	40332072
22	14.04.2014	158676243	191782938	-33106695	134248057	24428186
23	15.04.2014	173937123	191782938	-17845815	134248057	39689067
24	16.04.2014	202036501	191782938	10253563	134248057	67788444
25	17.04.2014	214485670	191782938	22702732	134248057	80237613
26	18.04.2014	207158161	191782938	15375223	134248057	72910104
27	19.04.2014	207158161	191782938	15375223	134248057	72910104
28	20.04.2014	207158161	191782938	15375223	134248057	72910104
Total				-109385351
Average daily deviation (Os)				-3906620
Fee for non-compliance with ORT (Pn)				54693		13856

Formula for calculating deviation from required reserves:

O = K – R, where:

K - correspondent account in the NBKR;

R - required reserves.

Formula for calculating the fee for non-compliance with ORT:

Pn = Os * Sp / 100 / 360 * D, where:

Pn - fee for non-compliance with required reserves;

Os – average daily deviation of the correspondent account in the NBKR from required reserves;

Sp - rate of the fee for non-compliance with ORT (in this case 18%);

D - number of calendar days of the base period (in this case 28 days).

Formula for calculating deviation from the minimum level of required reserves:

Om = K – R * Mort, where:

K - correspondent account in the NBKR;

R - required reserves;

Mort - minimum level of the volume of required reserves (in this case 70%).

Formula for calculating the fee for non-compliance with the minimum level of ORT:

Pn = Om * Sp / 100 / 360 * D, where:

Pn - fee for non-compliance with required reserves;

Om - daily deviation of the correspondent account in the NBKR from required reserves;

Sp - rate of the fee for non-compliance with ORT (in this case 18%);

D – number of days of non-compliance with the minimum level of ORT.

For reference:

The rate of the fee for non-compliance with ORT is established at three times the average discount rate of the NBKR for the base period.".