Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2026-P-12/20-5-(NPA) of April 2, 2026 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 April 2, 2026 No. 2026-P-12/20-5-(NPA)

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 Instruction on Determining Capital Adequacy (Adequacy) Standards for Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance" dated December 28, 2009 No. 51/4;

2. "On Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" dated December 28, 2009 No. 51/6;

3. "On Approval of the Instruction 'On the Limits of Financing Carried Out in Accordance with Islamic Principles of Banking and Finance'" dated October 12, 2012 No. 40/1;

4. "On Approval of the 'Regulation on Minimum Requirements for Credit Risk Management in Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance'" dated September 25, 2013 No. 35/13;

5. "On Approval of the Instruction on Working with Bank Accounts, Bank Deposit (Deposit) Accounts Opened in Accordance with Islamic Principles of Banking and Finance" dated June 13, 2019 No. 2019-P-12/31-2-(NPA);

6. "On Approval of the Regulation 'On Operations of Commercial Banks with Precious Metals Carried Out in Accordance with Islamic Principles of Banking and Finance'" dated November 15, 2019 No. 2019-P-12/56-3-(NPA).

2. The Legal Department:

• from the day of receipt of the relevant documents, publish this Resolution on the official website of the National Bank of the Kyrgyz Republic within 3 (three) working days;

• 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.

3. This Resolution enters into force after 15 (fifteen) days from the date of its official publication.

4. 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, microfinance organizations, credit unions, the Legal Entity Association "Union of Banks of Kyrgyzstan", the Legal Entity Association "Association of Microfinance Organizations", JSC "Financial Company of Credit Unions", and the Legal Entity Association "National Association of Credit Unions and Cooperatives".

5. The "Board Secretariat" Department, within 3 (three) working days from the adoption of this Resolution, bring it to the attention of structural subdivisions, regional departments, and the Representation of the National Bank of the Kyrgyz Republic in the Batken Region.

6. 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 of the National Bank of the Kyrgyz Republic		A. Baketaev

		Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic of April 2, 2026 No. 2026-P-12/20-5-(NPA)

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 Instruction on Determining Capital Adequacy (Adequacy) Standards for Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance" dated December 28, 2009 No. 51/4:

in the Instruction on Determining Capital Adequacy (Adequacy) Standards for Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance, approved by the aforementioned Resolution:

1. supplement sub-item 3 of item 17 with a third paragraph as follows:

"At the same time, other capital instruments may be included in the composition of additional Tier 1 capital with the permission of the National Bank upon a written application of the Bank's Board of Directors.";

2. supplement item 24 with a thirteenth paragraph as follows:

"i) assets or their part, secured by guarantees of international financial organizations having a long-term sovereign credit rating not lower than the "AAA" level, which is 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 corresponding to the criteria established by item 3 of the Regulation "On Economic Norms and Requirements Mandatory for Compliance by Commercial Banks of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of December 14, 2022 No. 2022-P-12/78-7-(NPA).".

2. Make the following amendment 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" dated December 28, 2009 No. 51/6:

in the Regulation "On the Classification of Assets and Corresponding Provisions for Potential Losses and Losses in Reserves in Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance", approved by the aforementioned Resolution:

• supplement item 42 with a paragraph as follows:

"The Bank has the right to classify off-balance sheet obligations in the "normal" category, for which the Bank has the right of unconditional recall/cancellation at any time without prior notice to the client.".

3. Make the following amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction 'On the Limits of Financing Carried Out in Accordance with Islamic Principles of Banking and Finance'" dated October 12, 2012 No. 40/1:

in the Instruction "On the Limits of Financing Carried Out in Accordance with Islamic Principles of Banking and Finance", approved by the aforementioned Resolution:

• in item 9:

reword sub-item 2 as follows:

"2) Claims or off-balance sheet obligations accepted by the Bank, for which there is a state guarantee or surety issued by decision of the Cabinet of Ministers of the Kyrgyz Republic to a subject of the national economy, including for the purpose of assisting in ensuring the national and food security of the country.";

reword the second paragraph of sub-item 3 as follows:

"Claims specified in items 8 and 9 of this Instruction, and guarantees/sureties issued by decision of the Cabinet of Ministers of the Kyrgyz Republic, must be properly documented, including confirmation of their reflection in the budget of the Kyrgyz Republic in accordance with the legislation of the Kyrgyz Republic. At the same time, the total amount of guarantees/sureties issued by decision of the Cabinet of Ministers of the Kyrgyz Republic must not exceed 60% of the size of the Bank's net aggregate capital.".

4. 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 Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance'" dated September 25, 2013 No. 35/13:

in the "Regulation on Minimum Requirements for Credit Risk Management in Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance", approved by the aforementioned Resolution:

1. in the twenty-ninth paragraph of item 12, replace the number "250000" with the number "300000";

2. in the tenth paragraph of item 29, replace the words "in the person of" with the words ", determined by decision";

3. reword the third paragraph of item 68-1 as follows:

"- not less than once a year for other assets, except for assets up to 500,000 soms, for which during the last calendar year there were no violations of contract terms and/or no restructuring was carried out. For assets up to 500,000 soms, for which during the last calendar year there were no violations of contract terms and/or no restructuring was carried out, payment monitoring is carried out, which implies analysis based on payments made on the asset.";

4. reword the eleventh paragraph of item 70 as follows:

"- assessment of the targeted use of the asset carrying credit risk, which is confirmed by documents (contracts, acceptance acts, invoices, waybills, etc.) if available, depending on the financing purposes, except for an asset of no more than 300,000 soms and an asset of no more than 500,000 soms when the Bank transfers funds in non-cash form to the account of the seller/supplier of goods and/or services.";

5. reword item 73 as follows:

"73. In order to constantly monitor the safety of pledged property and identify possible changes in its current value, the Bank must conduct collateral monitoring, including by visiting its storage location and/or by using video and photography that allow checking the collateral in real time. At the same time, the Bank must ensure the storage of the monitoring report conducted, including via video and photography, in accordance with the established deadlines for storing the client's file.

The frequency and methods of collateral monitoring are determined by the Bank independently in accordance with the financing policy/collateral policy and depend on the quality of the asset and other factors, including the type of collateral taking into account the risk of loss. Monitoring of collateral in the form of movable property must be conducted for an asset with a value of less than 300,000 soms not less than once a year.

For an asset carrying credit risk with a value of 300,000 soms and more, monitoring of collateral in the form of movable property must be conducted:

• not less than once every six months, if the asset is secured by 30 percent or more by movable property;

• not less than once a year, if the asset is secured by less than 30 percent by movable property.

An obligatory condition must be the Bank's control over the safety of the pledged property. At the same time, special attention must be paid to the following points:

• has the market value of the collateral decreased;

• are there any factors that have reduced the liquidity of the collateral since the last check;

• is the safety of the collateral ensured.

All these measures will help the Bank identify possible trends in the deterioration of the client's/partner's condition, and consequently, the asset carrying credit risk. The sooner these trends are identified and determined, the more promptly the Bank can take the necessary measures to correct the situation and protect its interests.";

6. in Appendix 1 to the Regulation:

• supplement item 1 with an eighteenth paragraph as follows:

"- consent of the client's spouse to receive financing (for financing exceeding 300,000 soms per one borrower and when receiving financing, if there are existing loans/financing);";

• reword item 19 as follows:

"19. Report on the targeted use of financing, confirmed by documents (contracts, acceptance acts, invoices, waybills, etc.) if available, depending on the financing purposes, except for financing of no more than 300,000 soms and financing of no more than 500,000 soms when the Bank transfers funds in non-cash form to the account of the seller/supplier of goods and/or services.".

5. Make the following amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on Working with Bank Accounts, Bank Deposit (Deposit) Accounts Opened in Accordance with Islamic Principles of Banking and Finance" dated June 13, 2019 No. 2019-P-12/31-2-(NPA):

in the Instruction on Working with Bank Accounts, Bank Deposit (Deposit) Accounts Opened in Accordance with Islamic Principles of Banking and Finance, approved by the aforementioned Resolution:

1. supplement item 9 with a twelfth paragraph as follows:

"Escrow account for virtual assets - a special account opened on the basis of a tripartite agreement concluded between the provider of virtual asset services, the client, and the Bank, intended for accounting and blocking funds until the occurrence of circumstances or fulfillment of obligations provided for by the agreement, after which the Bank transfers funds to the seller of virtual assets. At the same time, virtual assets are understood in the meaning of the Law of the Kyrgyz Republic "On Virtual Assets", and the Bank's operations are carried out within the services related to virtual assets in accordance with the Procedure for Providing Services Related to Virtual Assets, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of February 3, 2023 No. 2023-P-14/8-2-(NPA).";

2. reword the second paragraph of item 13 as follows:

"Special accounts may include an escrow account, a targeted reclamation account, a notary's deposit, an escrow account for virtual assets.".

6. Make the following amendment to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Operations of Commercial Banks with Precious Metals Carried Out in Accordance with Islamic Principles of Banking and Finance'" dated November 15, 2019 No. 2019-P-12/56-3-(NPA):

in the Regulation "On Operations of Commercial Banks with Precious Metals Carried Out in Accordance with Islamic Principles of Banking and Finance", approved by the aforementioned Resolution:

• supplement item 15 with a paragraph as follows:

"From the calculation of the maximum volume of assets in precious metals and the amount of funds for carrying out operations with precious metals, assets and funds in precious metals within the framework of providing financial services related to the primary placement of virtual assets of the issuer in accordance with the Law of the Kyrgyz Republic 'On Virtual Assets' are excluded.".