Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2026-P-12/33-4-(BS) on Amendments to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

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

of May 29, 2026 No. 2026-P-12/33-4-(BS)

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

1) "On Approval of the Regulation "On Asset Classification and Corresponding Provisions to Cover Potential Losses and Damages" dated July 21, 2004 No. 18/3;

2) "On Approval of the Instruction on Determination of Standards of Sufficiency (Adequacy) of Capital of Commercial Banks of the Kyrgyz Republic" dated October 12, 2022 No. 2022-P-12/63-1-(NPA).

2. Recognize as invalid paragraph 4 of the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on Determination of Standards of Sufficiency (Adequacy) of Capital of Commercial Banks of the Kyrgyz Republic" dated October 12, 2022 No. 2022-P-12/63-1-(NPA).

3. To the Legal Department:

• from the day of receipt of the corresponding 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 Regulatory Legal Acts of the Kyrgyz Republic.

4. This resolution enters into force after the expiration of 15 (fifteen) days from the date of official publication.

5. The Supervision Methodology Department, within 3 (three) working days from the date of official publication of this resolution, bring it to the attention of commercial banks, the Non-Commercial Legal Entity "Union of Banks of Kyrgyzstan", JSC "Financial Company of Credit Unions", and guarantee funds.

6. The "Board Secretariat" Department, within 3 (three) working days from the adoption of this resolution, bring it to the attention of the Supervision Methodology Department, the Banking Supervision Department, the Financial Stability Monitoring and Analysis Department, the Financial Statistics and Review Department, the Licensing Department, the Monetary Policy Department, the Department for Counteracting the Financing of Criminal Activities and Money Laundering, the Digital Financial Technologies Department, and the Legal Department.

7. Control over the implementation of this resolution is entrusted to the Member of the Board of the National Bank of the Kyrgyz Republic, overseeing the Supervision Methodology Department.

Chairman		A. Baketaev

		Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 29, 2026 No. 2026-P-12/33-4-(BS)

AMENDMENTS

to certain regulatory legal acts

of the National Bank of the Kyrgyz Republic

1. Make the following amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Asset Classification and Corresponding Provisions to Cover Potential Losses and Damages" dated July 21, 2004 No. 18/3:

in the Regulation "On Asset Classification and Corresponding Provisions to Cover Potential Losses and Damages", approved by the aforementioned resolution:

1) supplement paragraph 4.2 with sub-paragraph 4.2.8 as follows:

"4.2.8. The Bank may classify a loan in foreign currency as a 'satisfactory asset' if it complies with the norms specified in sub-paragraphs 4.2.1 and 4.2.2 of paragraph 4.2 of this Regulation, as well as subject to the simultaneous fulfillment of the following conditions:

• the loan is provided in foreign currency by a branch of a commercial bank located outside the Kyrgyz Republic;

• the loan is provided and serviced within the territory of the country of the branch's location;

• the country of the branch's location has a long-term sovereign credit rating of at least 'BBB', assigned by the Standard & Poor's rating agency, 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;

• the currency of the loan corresponds to the currency of the borrower's income (at least 75 percent of the borrower's income is formed in the currency of the loan).";

2) rephrase paragraph 11.1 as follows:

"11.1. Cross-border loans and loans secured by collateral located outside the Kyrgyz Republic must be classified by the bank as at least 'assets under supervision', except for the case provided for in sub-paragraph 4.2.8 of paragraph 4.2 of this Regulation.".

2. Make the following amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on Determination of Standards of Sufficiency (Adequacy) of Capital of Commercial Banks of the Kyrgyz Republic" dated October 12, 2022 No. 2022-P-12/63-1-(NPA):

in the Instruction on Determination of Standards of Sufficiency (Adequacy) of Capital of Commercial Banks of the Kyrgyz Republic, approved by the aforementioned resolution:

1) rephrase sub-paragraph 2 of paragraph 21 as follows:

"2) intangible assets, except:

a) intangible assets representing software solutions aimed at combating fraud (anti-fraud systems) and meeting the requirements of the National Bank, with prior notification to the National Bank providing supporting documents;

b) intangible assets intended for the establishment and operation of branches abroad, whereby such assets include exclusively software solutions arising from the acquisition or development of identifiable intangible assets recognized in accordance with International Financial Reporting Standards (hereinafter - IFRS), subject to the simultaneous fulfillment of the following conditions:

• such assets are used exclusively to ensure the activities of the corresponding branch and are not used by other departments of the bank, except for intangible assets intended for the collection, structuring, processing, storage of data, including data of the branch abroad, as well as for the formation of consolidated reporting;

• the costs are one-time and do not include expenses related to technical support, updates and operation, as well as staff training;

• the assets are subject to amortization in accordance with IFRS, with an amortization period not exceeding 5 (five) years;

• there are no signs of impairment of such assets;

• the bank ensures separate accounting of such assets;

• with prior notification to the National Bank providing supporting documents.

In case of non-compliance with the specified conditions, such assets must be deducted in accordance with this paragraph.";

2) in paragraph 25:

• supplement sub-paragraph 4 with paragraphs as follows:

"d) loans to legal entities having a credit rating of at least 'BBB', assigned by the Standard & Poor's rating agency, 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 Compliance by Commercial Banks of the Kyrgyz Republic", provided that the sovereign credit rating of the country in which the legal entity operates is not lower than the aforementioned rating and the currency of the loan corresponds to the currency of the borrower's income.

If such loans are overdue for more than 30 days and/or restructured, they are indicated in category 5 with a credit risk degree of 100%.";

• supplement sub-paragraph 5 with paragraphs as follows:

"k) loans provided in foreign currency by a branch of a commercial bank located outside the Kyrgyz Republic, except for loans specified in the first paragraph of sub-paragraph 'd' of sub-paragraph 4 of paragraph 25, subject to the simultaneous fulfillment of the following conditions:

• the loan is provided and serviced within the territory of the country of the branch's location;

• the country of the branch's location has a long-term sovereign credit rating of at least 'BBB', assigned by the Standard & Poor's rating agency, 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;

• the currency of the loan corresponds to the currency of the borrower's income (at least 75 percent of the borrower's income is formed in the currency of the loan).";

• in the second paragraph of sub-paragraph 6, replace the words "category 4" with the words "categories 4 and 5".