Resolution of the Board of the National Bank of the Kyrgyz Republic No. 26/2 of 10 June 2009 on Amendments and Additions to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 10 June 2009 No. 26/2

On Amendments and Additions to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

In accordance with the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic" and the Law of the Kyrgyz Republic "On Banks and Banking Activity in the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic of 21 July 2004 No. 18/1 "On approval of the Regulation on economic ratios and requirements mandatory for commercial banks and financial-credit institutions licensed by the National Bank of the Kyrgyz Republic", registered with the Ministry of Justice of the Kyrgyz Republic on 23 August 2004, registration number 93-04, the amendments and additions in accordance with the appendix to this resolution.

2. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic of 21 July 2004 No. 18/2 "On approval of the new edition of the Instruction on determining capital adequacy standards of commercial banks of the Kyrgyz Republic", registered with the Ministry of Justice of the Kyrgyz Republic on 23 August 2004, registration number 94-04, the amendments in accordance with the appendix to this resolution.

3. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic of 10 December 2003 No. 34/10 "On requirements for operations with insiders and affiliated persons of commercial banks and other financial-credit institutions licensed by the NBKR", registered with the Ministry of Justice of the Kyrgyz Republic on 5 January 2004, registration number 2-04, the amendments in accordance with the appendix to this resolution.

4. The Supervision and Licensing Methodology Department, together with the Legal Department, shall in the established procedure send this resolution for state registration to the Ministry of Justice of the Kyrgyz Republic.

5. This resolution enters into force after state registration with the Ministry of Justice of the Kyrgyz Republic and subsequent official publication.

Published in the journal "Regulatory Acts of the National Bank of the Kyrgyz Republic", No. 2009/8

6. After publication of the registered regulatory legal act, the Legal Department shall inform the Ministry of Justice of the Kyrgyz Republic of the source of publication (name of the publication, its number and date).

7. Control over the execution of this resolution shall be assigned to the Deputy Chairman of the National Bank of the Kyrgyz Republic Bokontaev K.K.

Chairman of the Board of the National Bank	M. Alapaev
	Appendix to the resolution of the Board of the National Bank of the Kyrgyz Republic of 10 June 2009 No. 26/2

AMENDMENTS AND ADDITIONS to certain regulatory legal acts of the National Bank of the Kyrgyz Republic

1. To introduce into the Regulation on economic ratios and requirements mandatory for commercial banks and financial-credit institutions licensed by the National Bank of the Kyrgyz Republic, approved by resolution of the Board of the National Bank of the Kyrgyz Republic of 21 July 2004 No. 18/1 "On approval of the Regulation on economic ratios and requirements mandatory for commercial banks and financial-credit institutions licensed by the National Bank of the Kyrgyz Republic", registered with the Ministry of Justice of the Kyrgyz Republic on 23 August 2004, registration number 93-04, the following amendments and additions:

• the name of the Regulation shall be stated in the following wording:

"Regulation on economic ratios and requirements mandatory for commercial banks of the Kyrgyz Republic";

• in paragraph 1.1. of section 1, the words "and the Settlement-Savings Company" shall be excluded;

• in paragraph 2.4. of section 2, after the words "to operations" add the word "of banks" and after the words "affiliated persons" exclude the words "of commercial banks and other financial-credit institutions licensed by the NBKR";

• in subparagraphs 3.1.1. and 3.1.2. of paragraph 3.1. of section 3, the words "for newly opened" shall be excluded;

• in paragraph 3.4., after the words "commercial banks" add the words "of the Kyrgyz Republic." and exclude the words "approved by the NBKR";

• in paragraph 5.2. of section 5, the word "conduct" shall be replaced by the word "compliance";

• in paragraph 9.1. of section 9, the words "must not exceed 15%" shall be replaced by the words "must be less than 20%";

• paragraph 9.4. shall be considered paragraph 9.5. and after the words "On Banks and Banking Activity in the Kyrgyz Republic" shall be supplemented with the words "and regulatory legal acts of the NBKR determining the procedure for the creation and/or acquisition by a bank of a subsidiary or dependent company";

• paragraph 9.5. shall accordingly be considered paragraph 9.4.;

• paragraphs 10.5.-10.6. of section 10 shall be excluded;

• paragraph 10.7. shall be stated in the following wording:

"When conducting a revaluation of the value of banking premises, as a result of which the maximum amount of investments in banking premises (fixed assets) will be violated, the bank shall provide to the NBKR a letter of commitment that within 12 months from the moment of the revaluation it will bring the amount of investments in banking premises (fixed assets) into compliance with the requirements of the NBKR";

• paragraph 10.8. shall be excluded;

• paragraph 10.9. shall be stated in the following wording:

"Property received by a bank in repayment of debt on issued loans may be accepted by the bank as a fixed asset subject to compliance with the requirements of legislation and the following conditions:

• acceptance of the property as a fixed asset will not entail violation of the maximum amount of investments in banking premises;

• this property will be used for the purposes of banking activity;

• the period for putting it into operation must not exceed 18 months.

Property received in repayment of debt on issued loans may be accepted as a fixed asset only on the basis of a decision of the Board of Directors, if the value of the accepted property exceeds 10% of net total capital.";

• paragraph 10.7. shall be considered paragraph 10.5., paragraph 10.9. shall be considered paragraph 10.6. accordingly;

• footnote No. 3 shall be supplemented with the words ", registration number of the Ministry of Justice of the Kyrgyz Republic 94-04 of 23.08.04";

• footnote No. 6 shall be stated in the following wording:

"approved by resolution of the Board of the NBKR No. 36/13 of 29.12.2004, registration number of the Ministry of Justice of the Kyrgyz Republic 16-05 of 1.02.05";

• footnote No. 7 shall be stated in the following wording:

"In accordance with the Instruction "On requirements for banks' operations with insiders and affiliated persons" (see footnote 2)";

• footnote No. 10 shall be stated in the following wording:

"In accordance with paragraph 2.1. of the Instruction on lending restrictions, approved by resolution of the Board of the NBKR No. 24/4 of 15.09.04, registration number of the Ministry of Justice of the Kyrgyz Republic 109-04 of 7.10.04".

2. To introduce into the Instruction on determining capital adequacy standards of commercial banks of the Kyrgyz Republic, approved by resolution of the Board of the National Bank of the Kyrgyz Republic of 21 July 2004 No. 18/2 "On approval of the new edition of the Instruction on determining capital adequacy standards of commercial banks of the Kyrgyz Republic", registered with the Ministry of Justice of the Kyrgyz Republic on 23 August 2004, registration number 94-04, the following amendments:

• in paragraph 1.1. of section 1, the words ", SSC and KSFC" shall be excluded;

• in subparagraph 2.1.1. of paragraph 2.1. of section 2, the words "for newly opened in the Kyrgyz Republic" shall be excluded.

3. To introduce into the Instruction on requirements for banks' operations with insiders and affiliated persons, approved by resolution of the Board of the National Bank of the Kyrgyz Republic of 10 December 2003 No. 34/10 "On requirements for operations with insiders and affiliated persons of commercial banks and other financial-credit institutions licensed by the NBKR", registered with the Ministry of Justice of the Kyrgyz Republic on 5 January 2004, registration number 2-04, the following amendments:

• in the preamble of the Instruction, the words "OJSC "Settlement-Savings Company"," shall be excluded;

• in paragraph 2.15. of section 2, the words "must not exceed 15 percent" shall be replaced by the words "must be less than 20 percent".