Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2/6 of January 29, 2014 on Amendments to the Regulation on National Bank Deposit Operations

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of January 29, 2014 No. 2/6

On Amendments and Additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On the Procedure for Conducting Deposit Operations in National Currency by the National Bank of the Kyrgyz Republic' dated March 28, 2013 No. 10/11"

In accordance with Articles 5, 26, 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 make amendments and additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On the Procedure for Conducting Deposit Operations in National Currency by the National Bank of the Kyrgyz Republic' dated March 28, 2013 No. 10/11" (attached).

2. To the Legal Department:

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

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

3. This resolution enters into force on February 17, 2014.

4. The Monetary and Credit Operations Department is to bring this resolution to the attention of commercial banks, corresponding structural subdivisions of the National Bank of the Kyrgyz Republic, regional departments, and the Representative Office of the National Bank of the Kyrgyz Republic in the Batken region.

5. Control over the execution of this resolution is entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic, S. Abdybaly Tegin.

Chairman	Z. Asankhozheva

				---	---			Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated January 29, 2014 No. 2/6

AMENDMENTS AND ADDITIONS to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On the Procedure for Conducting Deposit Operations in National Currency by the National Bank of the Kyrgyz Republic' dated March 28, 2013 No. 10/11"

To make the following amendments and additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On the Procedure for Conducting Deposit Operations in National Currency by the National Bank of the Kyrgyz Republic' dated March 28, 2013 No. 10/11":

in the Regulation on the procedure for conducting deposit operations by the National Bank of the Kyrgyz Republic, approved by the aforementioned resolution:

• paragraph 4 is to be worded as follows:

"4. Deposit operations in national currency are conducted by decision of the Monetary and Credit Regulation Committee of the National Bank (hereinafter - MCR).";

• in paragraph 9, the word "movement" is replaced with the word "transfer";

• to add paragraph 11-1 as follows:

"11-1. Overnight deposit is a deposit operation by which a Participant transfers funds in national currency from a correspondent account to the corresponding account of the National Bank for 1 (one) night. The return of funds in national currency, including accrued interest, is made by the National Bank to the Participant's correspondent account in the National Bank on the date of completion of the deposit operation.";

• in paragraph 12, after the words "Term of deposit operation", add the words ", except for overnight deposit";

• to add paragraph 13-1 as follows:

"13-1. For the accrual of interest on an overnight deposit, 1 (one) day is taken into account in the calculation, and it is calculated using the simple interest formula based on 360 days in a year. In cases where an overnight deposit is concluded on the last trading day of the week and/or on the day preceding a holiday, the interest accrual period is calculated as the time interval expressed in calendar days, calculated starting from the day following the day of concluding the overnight deposit, and up to the day preceding the day of returning the overnight deposit, inclusive.";

• paragraph 16 is to be worded as follows:

"16. The MCR of the National Bank, in accordance with paragraph 4 of this Regulation, determines the following conditions:

Type of deposit operation:

• auction with maximum interest rate;

• auction with fixed interest rate;

• overnight deposit.

Parameters of the deposit operation:

• interest rate (maximum/fixed and overnight deposit rate);

• volume of funds, with the volume for overnight deposit being unlimited;

• term of the deposit operation";

• in paragraph 25, after the words "Deposit operation", add the words ", except for overnight deposit";

• paragraph 29 is to be worded as follows:

"29. A Participant may submit only 1 (one) application for an overnight deposit and for an auction with a fixed interest rate, and no more than 5 (five) applications for an auction with a maximum interest rate. In this case, subsequent applications from the Participant will be rejected and not accepted.";

• paragraph 30 is to be worded as follows:

"30. When conducting an auction with a fixed interest rate, applications from Participants are accepted at the fixed interest rate announced by the National Bank, and applications are satisfied proportionally to their relative weights.";

• paragraph 31 is to be worded as follows:

"31. In an auction with a maximum interest rate, applications from Participants with an interest rate lower than or equal to the maximum interest rate announced by the National Bank are accepted. Applications from Participants offering the lowest (below the maximum interest rate announced by the National Bank) interest rates are satisfied first. Thus, application satisfaction is carried out from the lowest offered interest rate and then in ascending order, up to the maximum interest rate of the National Bank. In case of coincidence in Participants' applications of the offered interest rates, applications are satisfied proportionally to their relative weights.";

• paragraph 32 is to be worded as follows:

"32. When conducting an overnight deposit, from 15:00 to 16:00, applications from Participants at the overnight deposit rate announced by the National Bank are accepted.";

• paragraph 35 is to be supplemented with the following sentence:

"For overnight deposits, the deduction of funds is carried out by the Automated Trading System (ATS) from 16:00 to 17:00.";

• in paragraph 36, after the words "deposit operation", add the words ", including overnight deposits, by the ATS from 09:00 to 09:30.".