Resolution of the Board

of the National Bank

of the Kyrgyz Republic

of 12 March 2025
No. 2025-П-12/10-2-(НПА)

On Amendments to Certain Regulatory Legal Acts

of the National Bank of the Kyrgyz Republic

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 make amendments to the following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

• "On Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" of 30 June 2010 No. 52/4;

• "On Approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Operations Conducted in Accordance with Islamic Principles of Banking and Financing'" of 25 September 2013 No. 35/13;

• "On Approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Microfinance Organizations Not Attracting Deposits'" of 25 September 2013 No. 35/14.

2. This resolution shall enter into force 15 (fifteen) days after the date of official publication.

3. The Legal Department:

• within 3 (three) working days from the date of receipt of the relevant documents, 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.

4. The Supervision Methodology Department shall, within 3 (three) working days from the date of publication of this resolution, bring it to the attention of commercial banks, the Legal Entity "Union of Banks of Kyrgyzstan", the Legal Entity "Association of Microfinance Organizations", and microfinance organizations.

5. The "Board Secretariat" Department shall, within 3 (three) working days from the date of adoption of this resolution, bring it to the attention of the Banking Supervision Department, the Supervision of Non-Banking Organizations Department, the Legal Department, the Consumer Rights Protection Department, the regional departments, and the Representative Office of the National Bank of the Kyrgyz Republic in Batken Region.

6. Control over the execution of this resolution shall be assigned to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Supervision Methodology Department.

Chairman M. Turgunbaev

Annex
to the resolution of the Board of the National Bank of the Kyrgyz Republic of 12 March 2025 No. 2025-П-12/10-2-(НПА)

Amendments to Certain Regulatory Legal Acts

of the National Bank of the Kyrgyz Republic

1. To make the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" of 30 June 2010 No. 52/4:

In the Regulation "On Minimum Requirements for Credit Risk Management in Commercial Banks and Other Financial and Credit Organizations Licensed by the National Bank of the Kyrgyz Republic", approved by the above-mentioned resolution:

paragraph 34-3 shall be worded as follows:

"34-3. The bank shall be entitled to issue loans through a remote/distant service channel provided that the requirements set forth in the Regulation "On Minimum Requirements for the Provision of Remote/Distant Services in the Kyrgyz Republic", approved by the resolution of the Board of the National Bank of 15 April 2015 No. 22/3, other regulatory legal acts of the National Bank are complied with and in accordance with the bank's internal policies and procedures.

The amount of a loan issued through a remote/distant service channel shall not exceed 200,000 soms (equivalent in foreign currency) for an agreement signed with a simple electronic signature, and 300,000 soms (equivalent in foreign currency) for an agreement signed with an enhanced electronic signature.

The amount of a loan issued through a remote/distant service channel shall not exceed 500,000 soms (equivalent in foreign currency) for an agreement signed with an enhanced electronic signature, for loans that must meet conditions where funds are not disbursed to the borrower but are transferred to the seller/supplier, excluding the direct disbursement of funds to the borrower (instalment purchase of goods or services, etc.). At the same time, the bank must have established contractual partnership relations with the seller/supplier, who is a legal entity or an individual entrepreneur, in the manner established by legislation.

For loans issued through a remote/distant service channel by signing a loan agreement with an electronic signature, the following minimum cooling-off period is established, during which the bank may not transfer funds to the borrower:

• for loans from 50,001 soms to 100,000 soms – 4 hours;

• for loans from 100,001 soms – 12 hours.

At the same time, the bank must additionally carry out a control call procedure within the above-mentioned cooling-off period for loans from 100,001 soms in order to obtain the client's confirmation for processing a loan issued through a remote/distant service channel, taking into account the client's risk profile in accordance with the bank's internal anti-fraud system policy.

The cooling-off period does not apply to loans issued through remote/distant service channels if funds under such loans are transferred directly to the seller/supplier, excluding the direct disbursement of funds to the borrower (instalment purchase of goods or services, etc.). At the same time, the bank must have established contractual partnership relations with the seller/supplier, who is a legal entity or an individual entrepreneur, in the manner established by legislation.

The amounts of loans for clients identified remotely are established in the Procedure for Remote Identification and Verification of Clients, approved by the resolution of the Board of the National Bank of 13.05.2020 No. 2020-П-12/27-1-(НПА).".

2. Make the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Operations Conducted in Accordance with Islamic Principles of Banking and Financing'" dated 25 September 2013 No. 35/13:

in the Regulation 'On Minimum Requirements for Credit Risk Management in Operations Conducted in Accordance with Islamic Principles of Banking and Financing', approved by the above-mentioned resolution:

subclause 38-3 shall be worded as follows:

"38-3. The Bank shall be entitled to issue an asset carrying credit risk through a remote/distant service channel, subject to compliance with the requirements set out in the Regulation 'On Minimum Requirements for the Provision of Remote/Distant Services in the Kyrgyz Republic', approved by the resolution of the Board of the National Bank dated 15 April 2015 No. 22/3, other normative legal acts of the National Bank, and in accordance with the Bank's internal policies and procedures.

The amount of the asset carrying credit risk issued through a remote/distant service channel shall not exceed 200,000 soms (equivalent in foreign currency) per agreement signed with a simple electronic signature and 300,000 soms (equivalent in foreign currency) per agreement signed with an enhanced electronic signature.

The amount of the asset carrying credit risk issued through a remote/distant service channel shall not exceed 500,000 soms (equivalent in foreign currency) per agreement signed with an enhanced electronic signature, under which funds are transferred to the seller's/supplier's account, excluding the direct issuance of funds to the client (instalment purchase of goods or services, etc.). At the same time, the bank must have contractual partnership relations established with the seller/supplier, who is a legal entity or individual entrepreneur, in the manner established by legislation.

For an asset carrying credit risk issued remotely through a remote/distant service channel by signing an agreement with an electronic signature, the following minimum cooling-off period is established, during which the bank may not transfer funds to the client/partner:

• for an asset carrying credit risk from 50,001 soms to 100,000 soms – 4 hours;

• for an asset carrying credit risk from 100,001 soms – 12 hours.

At the same time, the bank must additionally carry out a control call procedure within the above-mentioned cooling-off period for an asset carrying credit risk from 100,001 soms in order to obtain confirmation from the client/partner for the execution of an asset carrying credit risk and issued through a remote/distant service channel, taking into account the client's risk profile in accordance with the bank's internal policy on anti-fraud systems.

The cooling-off period does not apply to assets carrying credit risk and issued through remote/distance service channels if the funds for such assets are transferred directly to the seller/supplier, excluding direct issuance of funds to the client (installment purchase of goods or services, etc.). At the same time, the bank must have established contractual partnership relations with the seller/supplier, who is a legal entity or individual entrepreneur, in the manner established by legislation.

The amounts of assets that carry credit risk for clients identified remotely are established in the Procedure for identification and verification of clients in remote mode, approved by resolution of the Board of the National Bank of 13.05.2020 No. 2020-P-12/27-1-(NPA).".

3. 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 minimum requirements for credit risk management in microfinance organizations that do not attract deposits" of 25 September 2013 No. 35/14:

in the Regulation "On minimum requirements for credit risk management in microfinance organizations that do not attract deposits", approved by the above-mentioned resolution:

paragraph 10-1 shall be set out in the following wording:

"10-1. An MFO has the right to issue loans through a remote/distance service channel, subject to compliance with the requirements specified in the Regulation "On minimum requirements for the provision of remote/distance services in the Kyrgyz Republic", approved by resolution of the Board of the National Bank of 15 April 2015 No. 22/3, other regulatory legal acts of the National Bank and in accordance with the internal policies and procedures of the MFO.

The amounts of loans issued through a remote/distance service channel must not exceed 15 000 soms (equivalent in foreign currency – for microfinance companies) under agreements signed with a simple electronic signature, and 150 000 soms (equivalent in foreign currency – for microfinance companies) – under agreements signed with an enhanced unqualified electronic signature.

For loans issued through a remote/distance service channel by signing a loan agreement with an electronic signature, the following minimum cooling-off period is established, during which the MFO may not transfer funds to the borrower:

• for loans from 50 001 soms to 100 000 soms – 4 hours;

• for loans from 100 001 soms – 12 hours.

At the same time, the MFO must additionally conduct a verification call procedure during the above-mentioned cooling-off period for loans from 100 001 soms in order to obtain confirmation from the client for the issuance of the loan issued through a remote/distance service channel.

The cooling-off period does not apply to loans issued through remote/distance service channels if the funds for such loans are transferred directly to the seller/supplier, excluding direct issuance of funds to the borrower (installment purchase of goods or services, etc.). At the same time, the MFO must have established contractual partnership relations with the seller/supplier, which is a legal entity or an individual entrepreneur, in the manner established by legislation.».