Resolution of the Board of the National Bank of the Kyrgyz Republic of 12 April 2024 No. 2024-П-12/17-3-(НПА)

On amending certain normative legal acts

of the National Bank of the Kyrgyz Republic

on the issue of recognition of rating agencies

In accordance with Articles 5, 9 and 64 of the Constitutional 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 amend the following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

  • "On approval of the Regulation "On classification of assets and corresponding allocations to the reserve for covering potential losses and damages" of 21 July 2004 No. 18/3;

  • "On certain normative legal acts of the National Bank of the Kyrgyz Republic" of 14 September 2011 No. 52/4;

  • "On approval of the Instruction "On requirements for bank operations with affiliated and connected persons of the bank" of 31 May 2017 No. 21/5;

  • "On approval of the Regulation "On calculation of the liquidity coverage ratio of commercial banks" of 27 December 2019 No. 2019-П-12/68-4-(НПА);

  • "On approval of the Instruction on determining standards of capital sufficiency (adequacy) of commercial banks of the Kyrgyz Republic" of 12 October 2022 No. 2022-П-12/63-1-(НПА);

  • "On approval of the Regulation "On economic norms and requirements mandatory for commercial banks of the Kyrgyz Republic" of 14 December 2022 No. 2022-П-12/78-7-(НПА);

  • "On approval of the Instruction "On lending restrictions" of 12 April 2023 No. 2023-П-12/23-5-(НПА).

• 2. This resolution enters into force upon expiry of 15 (fifteen) days from the day of official publication.

• 3. To the Legal Department:

  • from the day of receipt of the relevant documents, within 3 (three) working days, 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. To the Supervision Methodology Department, after official publication, within 3 (three) working days, bring this resolution to the attention of the Legal Entity Association "Union of Banks of Kyrgyzstan", commercial banks, structural subdivisions, regional departments and the Representative Office of the National Bank of the Kyrgyz Republic in Batken region.

• 5. To entrust control over the execution of this resolution to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Supervision Methodology Department.

Chairman K. Bokontaev

Annex
to the resolution of the Board of the National Bank of the Kyrgyz Republic of 12 April 2024 No. 2024-П-12/17-3-(НПА)

Amendments to certain normative legal acts

of the National Bank of the Kyrgyz Republic

on the issue of recognition of rating agencies

• 1. To make the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On classification of assets and corresponding allocations to the reserve for covering potential losses and damages" of 21 July 2004 No. 18/3:

in the Regulation on classification of assets and corresponding allocations to the reserve for covering potential losses and damages, approved by the above-mentioned resolution:

• to supplement paragraph 10.6 with a subparagraph of the following content:

"Non-market investments in securities are classified at least as an "asset under supervision" with the creation of RPPU in the amount of 5% to 15% in the case of availability of information about the invested company, its financial statements and if an analysis of future cash flows, the company's position in the market, the company's business plan, as well as other information that will allow assessing the quality of these investments with documentary confirmation has been conducted.";

• to restate the second subparagraph of paragraph 10.8 as follows:

"Note: The equivalent rating that is assigned by the rating agency Standard & Poors (USA), or an equivalent rating that is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Ratings Service (DBRS) and other rating agencies meeting the criteria established by paragraph 3 of the Regulation "On economic norms and requirements mandatory for commercial banks of the Kyrgyz Republic".";

• in Annex 1 to the Regulation:

  • to restate paragraph 1 as follows:

"1. The issuer/originator of securities has an investment rating not lower than "BBB" or "Baa2", which is assigned by one of the rating agencies Standard and Poor's, Fitch Ratings, Moody's Investors Service and other rating agencies meeting the criteria established by paragraph 3 of the Regulation "On economic norms and requirements mandatory for commercial banks of the Kyrgyz Republic".".

• 2. To make the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On certain normative legal acts of the National Bank of the Kyrgyz Republic" of 14 September 2011 No. 52/4:

in the Regulation "On banks' operations with securities", approved by the above-mentioned resolution:

• to restate paragraph 24 as follows:

"24. A bank may acquire shares of private issuers:

    - residents of the Kyrgyz Republic – only in the case of inclusion of the issuer in the stock exchange listing under the highest category;

    - non-residents of the Kyrgyz Republic – if the issuer has a long-term creditworthiness rating of a category not lower than the highest and the one following the highest, which is assigned by the rating agency Moody's Investors Service (USA), or an equivalent rating that is assigned by the rating agencies Standard & Poors (USA), Fitch IBCA (United Kingdom) and other rating agencies meeting the criteria established by paragraph 3 of the Regulation "On economic norms and requirements mandatory for commercial banks of the Kyrgyz Republic".

At the same time, the bank has the right to acquire shares of private issuers – non-residents of the Kyrgyz Republic that do not have long-term creditworthiness ratings, subject to compliance with the requirements of the Regulation on classification of assets and corresponding deductions to the reserve for covering potential losses and damages.;

• paragraph a) of item 25 shall be amended to read as follows:

«a) by an issuer/originator – a non-resident of the Kyrgyz Republic, provided there is a rating not lower than «BBB» or «Baa2», which is assigned by one of the rating agencies Standard and Poor’s, Fitch Ratings, Moody’s Investors Service and other rating agencies that meet the criteria established by item 3 of the Regulation «On economic standards and requirements mandatory for commercial banks of the Kyrgyz Republic»;».

• 3. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Instruction «On requirements for operations of a bank with affiliated and connected persons of the bank» dated 31 May 2017 No. 21/5:

in the Instruction «On requirements for operations of a bank with affiliated and connected persons of the bank», approved by the above-mentioned resolution:

• item 2 shall be supplemented with paragraphs of the following content:

«A bank with a 100% state share of participation, within the framework of maintaining the register of affiliated and connected persons of the bank, has the right not to include in the register persons who do not exercise control over the bank and do not influence their activities.

At the same time, a bank with a 100% state share of participation shall include in the register, on a mandatory basis, persons affiliated and connected with the bank specified in items 4, 5 and 6 of part 1 of article 52 of the Law of the Kyrgyz Republic «On banks and banking activity» under the following conditions:

    - when granting loans and credit substitutes to affiliated and connected persons of the bank;

    - when concluding transactions carrying credit risk with affiliated and connected persons of the bank.»;

• item 21 shall be amended to read as follows:

«21. Each loan granted to an affiliated or connected person of the bank (except for an interbank loan in the course of ordinary correspondent activity) must be secured by collateral, the realizable value of which is not less than:

    - 1) 100 percent of the loan amount, if the loan is secured by a guarantee issued by a decision of the Cabinet of Ministers of the Kyrgyz Republic to subjects of the national economy aimed at ensuring the national and food security of the country in order to provide support to subjects of the national economy;

    - 2) 120 percent of the loan amount, if the loan is secured by securities of the Cabinet of Ministers of the Kyrgyz Republic or a linked deposit in the bank granting the loan.

A linked deposit means a separate time deposit (deposit) that is not a correspondent account:

      - with a term not less than the term of the loan granted;

      - duly formalized as collateral;

      - for which movement of funds is prohibited;

      - inaccessible to the client until the obligations under the loan are fulfilled.

The market value of collateral in the form of securities must be revalued by the bank monthly; in the form of a contribution (deposit) in foreign currency – weekly/daily.

    - 3) 140 percent of the loan amount in the case of any other type of collateral.».

• 4. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Regulation «On calculation of the liquidity coverage ratio of commercial banks» dated 27 December 2019 No. 2019-П-12/68-4-(НПА):

in the Regulation «On calculation of the liquidity coverage ratio of commercial banks», approved by the above-mentioned resolution:

• subitems 3 and 4 of item 12 shall be amended to read as follows:

«3) funds in correspondent accounts with commercial banks that have a long-term credit rating not lower than «A-», which is assigned by the rating agency Standard and Poor’s, or an equivalent rating assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by item 3 of the Regulation «On economic standards and requirements mandatory for commercial banks of the Kyrgyz Republic»;

4) securities issued by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic, including securities guaranteed by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic;»;

• paragraph a) of subitem 5 of item 12 shall be amended to read as follows:

«a) issuers have a long-term sovereign credit rating not lower than «AA-», which is assigned by the rating agency Standard & Poor's, or an equivalent rating assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by item 3 of the Regulation «On economic standards and requirements mandatory for commercial banks of the Kyrgyz Republic»;»;

• subitems 1 and 2 of item 14 shall be amended to read as follows:

«1) securities issued by governments of foreign states and central banks of foreign states, international financial organizations, or guaranteed by them, having a long-term sovereign credit rating not lower than «A-», which is assigned by the rating agency Standard & Poor's, or an equivalent rating assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody’s Investors Service and other rating agencies that meet the criteria established by item 3 of the Regulation «On economic standards and requirements mandatory for commercial banks of the Kyrgyz Republic», whose issuers are not affiliated organizations in relation to the bank;

2) securities whose issuers are not organizations affiliated with the bank, having a long-term credit rating not lower than "AA-", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic".";

• subparagraphs 1 and 2 of paragraph 15 shall be stated as follows:

"1) securities issued by governments of foreign states and central banks of foreign states, international financial organizations, or guaranteed by them and having a long-term sovereign credit rating not lower than "BBB-", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic";

2) securities whose issuers are not financial organizations or organizations affiliated with them, having a long-term credit rating from "A+" to "A-", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic";";

• in the third row of the first column of the table in paragraph 41, the word "Government" shall be replaced by the words "Cabinet of Ministers".

• in the third row of the first column of the table in paragraph 46, the word "Government" shall be replaced by the words "Cabinet of Ministers".

• 5. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Instruction on determining standards of sufficiency (adequacy) of capital of commercial banks of the Kyrgyz Republic" dated 12 October 2022 No. 2022-П-12/63-1-(НПА):

in the Instruction on determining standards of sufficiency (adequacy) of capital of commercial banks of the Kyrgyz Republic, approved by the above-mentioned resolution:

• in paragraph 25:

  • in subparagraph 1:

    • paragraph a) shall be stated as follows:

"a) banknotes and coins of the Kyrgyz Republic, states that are members of the EAEU and OECD, and states having a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic".

Note: OECD – Organization for Economic Cooperation and Development. The list of OECD member states is posted on the official website www.oecd.org;";

      - paragraphs g) and d) shall be stated as follows:

"g) claims on central (national) banks of states having a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are members of the OECD;

d) claims on governments of states having a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are members of the OECD (securities issued by governments);";

      - paragraph zh) shall be stated as follows:

"zh) assets (or part thereof) with collateral denominated in the currency of states that are members of the EAEU and OECD, as well as states having a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", and also held in a separate deposit account;";

      - paragraph b) of subparagraph 2 shall be stated as follows:

b) assets (or part thereof) secured by securities at the current market price and issued by governments of states that have a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating that is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are members of the OECD;»;

    - in subparagraph 3:

      - paragraph c) shall be stated as follows:

"c) monetary assets in settlements with banks and other financial and credit organizations of states that have a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating that is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are members of the OECD;";

      - paragraph d) shall be stated as follows:

"d) claims on banks and other financial and credit organizations of states that have a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating that is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are members of the OECD, which are not affiliated organizations in relation to the reporting bank, as well as all assets based on guarantees of these institutions;";

      - paragraphs b), c), d) and e) of subparagraph 5 shall be stated as follows:

"b) claims on governments and central banks of states that have a long-term sovereign credit rating lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating that is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are not members of the OECD (securities issued by the governments of these states and other claims);

c) monetary assets in settlements with banks and other financial and credit organizations of states that have a long-term sovereign credit rating lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating that is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are not members of the OECD;

d) claims on banks and other financial and credit organizations of states that have a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating that is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are members of the OECD, which are affiliated organizations in relation to the reporting bank;

e) claims on banks and other financial and credit organizations of states that have a long-term sovereign credit rating lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating that is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies that meet the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", or that are not members of the OECD;".

• 6. To introduce the following changes to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic" dated 14 December 2022 No. 2022-П-12/78-7-(НПА):

in the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic", approved by the above-mentioned resolution:

• paragraph 3 shall be stated as follows:

"3. In order to comply with the economic norms and requirements specified in this Regulation and reduce risks, banks are recommended to establish internal limits for economic norms and requirements, which should be below the maximum and above the minimum limits established by the National Bank of the Kyrgyz Republic (hereinafter – the National Bank).

The Bank has the right to recognize rating assessments of rating agencies – of EAEU member states, subject to regulation in the country of origin and whose assessments are recognized within the framework of prudential regulation, as well as those meeting the following criteria:

    - 1) objectivity:

      - the methodology applied by the rating agency is reliable and subject to verification based on historical and (or) expected default data, and also contains a detailed description of all key quantitative and qualitative factors determining the ability of the rated entity to fulfill its assumed financial obligations, and a description of their impact on credit ratings and credit rating outlooks;

    - 2) independence:

      - the rating agency is not controlled by state bodies or officials of state bodies, quasi-state organizations or political parties, which do not interfere in the activities of the rating agency and do not have influence on the rating assignment processes;

      - legal entities to which the rating agency assigns, confirms or revises a rating are not affiliates of the rating agency;

      - the rating analysts of the rating agency participating in rating actions in respect of the rated entity are not and have not been in labor or business relations with the rated entity during the last 3 (three) years prior to the date of the rating action, and also do not own directly or indirectly, including through close relatives, securities, other financial instruments or other property of the rated entity or persons exercising control over the rated entity or exerting significant influence on such entity;

      - the rating agency has an internal audit or internal control service, including one performing internal audit functions, accountable to the Board of Directors;

      - in the rating agency at least one third, but not less than two members of the Board of Directors are independent members who do not carry out rating actions, advertising of the rating agency's services and other actions to attract clients;

      - the share of direct or indirect ownership of shares by each shareholder of the rating agency does not exceed 50 (fifty) percent of the total number of voting shares of this rating agency;

      - the internal procedures of the rating agency provide for measures to prevent misuse and disclosure of information and ensure the protection and confidentiality of information;

    - 3) international access/transparency:

• the rating agency ensures disclosure on the rating agency's internet resource of the following information:

  • the methodology applied by the rating agency in determining the rating;

  • a list of credit ratings assigned over the last year, as well as rated entities and other entities whose share of monetary receipts amounted to five or more percent in the annual volume of revenue of the rating agency as of the end of the last completed calendar year;

• 4) disclosure of information:

the rating agency discloses the following information:

• its professional code of conduct;

• the general nature of its compensation agreements with rated organizations;

• any conflict of interest, compensation mechanisms of the rating agency, its rating assessment methodologies, including the definition of default, the time horizon and the meaning of each rating;

• actual default rates for each rating category and rating transitions, for example, the probability that an 'AA' rating will become 'A' over time.

The rating must be disclosed as soon as possible after its issuance. When disclosing a rating, information must be provided in simple language indicating the nature and limitations of credit ratings, as well as the risk of unjustified use of them in making investments.

• 5) reliability of ratings and resources:

  • the rating agency carries out rating activities on a regular basis for at least the last five years;

  • the number of organizations to which the rating agency has assigned and revised a credit rating is at least thirty, including over the last three years – at least twenty, of which at least five were financial organizations;

  • the rating agency continuously monitors assigned ratings, and also ensures timely response to changing factors related to changes in the financial position, corporate governance or other aspects of the rated entity's activities, changes in macroeconomic conditions or financial market conditions, which is confirmed by actual updates of ratings no later than a calendar year from the date of assignment or last revision of the rating or the date of the last revision of the applied methodology.»;

in paragraph 15:

• the eleventh paragraph shall be amended to read as follows:

  • «- deposits in banks having a long-term credit rating not lower than 'BB' or 'Ba2', which is assigned by one of the rating agencies Standard and Poor’s, Fitch Ratings, Moody’s Investors Service, Japan Credit Rating Agency (JCR), Dominion Bond Rating Service (DBRS) and other rating agencies meeting the criteria established by paragraph 3 of this Regulation, except for affiliated banks, if the terms of the contract provide for the possibility of withdrawing the deposit within 7 (seven) days;»;

• the thirteenth paragraph shall be amended to read as follows:

  • «- government securities having a long-term sovereign credit rating not lower than 'A', which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody’s Investors Service and other rating agencies meeting the criteria established by paragraph 3 of this Regulation;»;

in paragraph 22:

• paragraphs c) and d) shall be amended to read as follows:

  • c) funds in correspondent accounts, including in precious metals, in banks having a long-term credit rating not lower than "BB" or "Ba2", which is assigned by one of the rating agencies Standard and Poor's, Fitch Ratings, Moody's Investors Service, Japan Credit Rating Agency (JCR), Dominion Bond Rating Service (DBRS) and other rating agencies meeting the criteria established by paragraph 3 of this Regulation, except for affiliated banks;

  • d) deposits in banks having a long-term credit rating not lower than "BB" or "Ba2", which is assigned by one of the rating agencies Standard and Poor's, Fitch Ratings, Moody's Investors Service, Japan Credit Rating Agency (JCR), Dominion Bond Rating Service (DBRS) and other rating agencies meeting the criteria established by paragraph 3 of this Regulation, except for affiliated banks, if the terms of the agreement provide for the possibility of withdrawing the deposit within 7 (seven) days;»;

• subparagraph l) shall be stated as follows:

  • «l) government securities issued by states having a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies meeting the criteria established by paragraph 3 of this Regulation;»;

in paragraph 26:

• the seventh subparagraph shall be stated as follows:

  • «- funds in correspondent accounts in banks having a long-term credit rating not lower than "BB" or "Ba2", which is assigned by one of the rating agencies Standard and Poor's, Fitch Ratings, Moody's Investors Service, Japan Credit Rating Agency (JCR), Dominion Bond Rating Service (DBRS) and other rating agencies meeting the criteria established by paragraph 3 of this Regulation, except for affiliated banks;»;

• the twelfth subparagraph shall be stated as follows:

  • «- overnight deposits in banks having a long-term credit rating not lower than "BB" or "Ba2", which is assigned by one of the rating agencies Standard and Poor's, Fitch Ratings, Moody's Investors Service, Japan Credit Rating Agency (JCR), Dominion Bond Rating Service (DBRS) and other rating agencies meeting the criteria established by paragraph 3 of this Regulation, except for affiliated banks, repayment of which occurs within the next (one) business day;»;

paragraph 53 shall be stated as follows:

• «53. The total amount of a bank's investments in securities of governments and central banks of states having a long-term credit rating not lower than "A" or "A2", which is assigned by one of the rating agencies Standard and Poor's, Fitch Ratings, Moody's Investors Service and other rating agencies meeting the criteria established by paragraph 3 of this Regulation, shall not exceed 100% of the bank's net total capital.».

7. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Instruction 'On credit restrictions'" dated 12 April 2023 No. 2023-P-12/23-5-(NPA):

in the Instruction "On credit restrictions" approved by the above-mentioned resolution:

in paragraph 8:

• subparagraph 2 shall be stated as follows:

  • «2) Funds placed in commercial banks having a long-term credit rating not lower than "BBB", which is assigned by the rating agency Standard and Poor's, or an equivalent rating which is assigned by one of the rating agencies Fitch Ratings, Moody's Investors Service, Japan Credit Rating Agency (JCR), Dominion Bond Rating Service (DBRS) and other rating agencies meeting the criteria established by paragraph 3 of the Regulation "On economic standards and requirements mandatory for commercial banks of the Kyrgyz Republic", as well as loans guaranteed by such banks. In order to fall under this exception, the bank must have appropriate documentation confirming the assigned rating, in particular the name of the rating agency, the dates of the initial assignment of the rating and the last confirmation of the assigned rating, an acceptable source of information about the rating, as well as the latest annual report of the correspondent bank.»;

• subparagraph 4 shall be stated as follows:

  • «4) Claims on governments or central banks having a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies meeting the criteria established by paragraph 3 of the Regulation "On economic standards and requirements mandatory for commercial banks of the Kyrgyz Republic".»;

in paragraph 9:

• subparagraph 5 shall be stated as follows:

  • «5) Claims guaranteed by governments or central banks having a long-term sovereign credit rating not lower than "A", which is assigned by the rating agency Standard & Poor's, or an equivalent rating which is assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies meeting the criteria established by paragraph 3 of the Regulation "On economic standards and requirements mandatory for commercial banks of the Kyrgyz Republic", or guaranteed by international financial institutions (EBRD, ADB, etc.).»;

• subparagraph 6 shall be stated as follows:

  • 6) Off-balance-sheet obligations assumed by the bank for which the beneficiary is a central bank or government having a long-term sovereign credit rating of not lower than "A", assigned by the rating agency Standard & Poor's, or an equivalent rating assigned by one of the rating agencies Japan Credit Rating Agency (JCR), Fitch Ratings, Dominion Bond Rating Service (DBRS), Moody's Investors Service and other rating agencies meeting the criteria established by paragraph 3 of the Regulation "On Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic".