Resolution of the Board of the National Bank of the Kyrgyz Republic No. 26/3 of October 23, 2004 on Amendments and Additions to Certain Regulatory Acts of the National Bank of the Kyrgyz Republic

Registered in the Ministry of Justice of the Kyrgyz Republic

November 19, 2004. Registration number 132-04

Bishkek

October 23, 2004 No. 26/3

RESOLUTION OF THE BOARD OF THE NATIONAL BANK

OF THE KYRGYZ REPUBLIC

ON AMENDMENTS AND ADDITIONS TO CERTAIN

REGULATORY ACTS OF THE NATIONAL BANK

OF THE KYRGYZ REPUBLIC

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 20, 2018 No. 2018-P-12/24-2)

In order to ensure the accuracy of financial reporting of commercial banks and financial-credit institutions licensed by the NBKR, guided by the Laws of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic" and "On Banks and Banking Activity in the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

1. Approve the attached amendments and additions to the Instruction on conducting on-site inspections, approved by the Resolution of the Board of the NBKR of February 4, 2004 No. 2/2 (registration number of the Ministry of Justice of the Kyrgyz Republic of March 15, 2004 No. 30-04), the Instruction "On Credit Limitations", approved by the Resolution of the Board of the NBKR of September 15, 2004 No. 24/4 (registration number of the Ministry of Justice of the Kyrgyz Republic of October 7, 2004 No. 109-04), the Regulation on economic standards and requirements mandatory for compliance by commercial banks and financial-credit institutions licensed by the NBKR, approved by the Resolution of the Board of the NBKR of July 21, 2004 No. 18/1 (registration number of the Ministry of Justice of the Kyrgyz Republic of August 23, 2004 No. 93-04), the Instruction on determining the standards of capital adequacy of commercial banks of the Kyrgyz Republic, approved by the Resolution of the Board of the NBKR of July 21, 2004 No. 18/2 (registration number of the Ministry of Justice of the Kyrgyz Republic of August 23, 2004 No. 94-04).

2. The Department of Supervision and Licensing Methodology together with the Legal Department to carry out the state registration of this Resolution in the Ministry of Justice of the Kyrgyz Republic in the established order.

3. The Department of External and Public Relations to publish this Resolution in the official edition of the National Bank of the Kyrgyz Republic within 30 days after state registration in the Ministry of Justice of the Kyrgyz Republic.

4. This Resolution enters into force from the moment of publication after state registration in the Ministry of Justice of the Kyrgyz Republic.

Published in the journal "Regulatory Acts of the National Bank of the Kyrgyz Republic", No. 12, 2004.

5. From the moment of entry into force of this Resolution, recognize as invalid the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 18/4 of July 21, 2004.

6. The Department of Supervision and Licensing Methodology to bring this Resolution to the attention of the regional (regional) departments and the Batken representation of the National Bank of the Kyrgyz Republic, commercial banks, JSC RSK, KSFU, FKPRKS.

7. Control over the implementation of this Resolution is entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic G.M. Omurzakova.

Chairman of the Board of the National Bank of the Kyrgyz Republic U. Sarbanov

Approved

by the Resolution of the Board of the National Bank of the Kyrgyz Republic of October 23, 2004 No. 26/3

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

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 20, 2018 No. 2018-P-12/24-2)

I. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 20, 2018 No. 2018-P-12/24-2)

II. Make the following changes to the Instruction "On Credit Limitations", approved by the Resolution of the Board of the NBKR of September 15, 2004 No. 24/4 (registered in the Ministry of Justice of the Kyrgyz Republic on October 7, 2004 registration number No. 109-04):

1. In the third paragraph of point 6 of the Resolution of the Board of the NBKR of September 15, 2004 No. 24/4 "On the new edition of the Instruction "On Credit Limitations" replace the number and date of the Resolution of the Board of the NBKR "No. 18/4 of July 21, 2004" with "No. 24/4 of September 15, 2004".

2. In point 8.2 of section 8 "Reporting" replace the words: "of each quarter" with: "of each month".

3. In point 8.4 of section 8 "Reporting" replace the words: "on the last day of the following month" with: "on the last day of each month".

III. Make the following change to the Regulation on economic standards and requirements mandatory for compliance by commercial banks and financial-credit institutions licensed by the NBKR, approved by the Resolution of the Board of the NBKR of July 21, 2004 No. 18/1 (registered in the Ministry of Justice of the Kyrgyz Republic on August 23, 2004 registration number No. 93-04):

1. In point 2.3 of section 2 "Maximum size of risk for one borrower" rephrase footnote 1 in the following edition: "approved by the Resolution of the Board of the NBKR No. 24/4 of 15.09.2004, registration number of the Ministry of Justice of the Kyrgyz Republic of October 7, 2004 No. 109-04".

IV. Make the following changes to the Instruction on determining the standards of capital adequacy of commercial banks of the Kyrgyz Republic, approved by the Resolution of the Board of the NBKR of July 21, 2004 No. 18/2 (registered in the Ministry of Justice of the Kyrgyz Republic on August 23, 2004, registration number No. 94-04):

1. Throughout the text of the Instruction replace the words: "reserve for covering potential credit and lease losses" with: "reserve for covering potential losses and losses" in the corresponding cases.

2. In point 7.3 of section 7 "Procedure for filling out reporting on compliance with capital adequacy standards" in the last sentence replace the words: "without deduction" with: "after deduction".

3. Exclude the expression "Appendix: on 8 (eight) sheets" at the end of the Instruction.

4. The Appendix to the Instruction on determining the standards of capital adequacy of commercial banks of the Kyrgyz Republic, approved by the Resolution of the Board of the NBKR of July 21, 2004 No. 18/2 (registration number of the Ministry of Justice of the Kyrgyz Republic of August 23, 2004 No. 94-04), is rephrased in the following edition.

Appendix
to the Instruction on determining the standards of capital adequacy of commercial banks of the Kyrgyz Republic, approved by the Resolution of the Board of the NBKR of July 21, 2004 No. 18/2

Assets

(thousand som)

N	Articles	Balance	Credit risk, %	Weighted value
10	Banknotes and coins	0		0
10.1			0%
10.2			10%	0
10.3			20%	0
10.4			50%	0
10.5			100%	0
20	Monetary assets in settlements	0		0
20.1			0%
20.2			10%	0
20.3			20%	0
20.4			50%	0
20.5			100%	0
30	Correspondent account in NBKR		0%
40	Correspondent accounts in	0		0
	commercial banks of the Kyrgyz
	Republic
40.1			0%
40.2			10%	0
40.3			20%	0
40.4			50%	0
40.5			100%	0
50	Correspondent accounts in	0		0
	commercial banks of CIS countries
50.1			0%
50.2			10%	0
50.3			20%	0
50.4			50%	0
50.5			100%	0
60	Correspondent accounts in	0		0
	foreign banks, except for CIS
	countries
60.1			0%
60.2			10%	0
60.3			20%	0
60.4			50%	0
60.5			100%	0
70	Gold and other precious	0		0
	metals
70.1			0%
70.2			10%	0
70.3			20%	0
70.4			50%	0
70.5			100%	0
80	Interbank deposits in	0		0
	commercial banks of the Kyrgyz
	Republic
80.1			0%
80.2			10%	0
80.3			20%	0
80.4			50%	0
80.5			100%	0
90	Interbank deposits in banks and	0		0
	financial organizations of CIS
	countries
90.1			0%
90.2			10%	0
90.3			20%	0
90.4			50%	0
90.5			100%	0
100	Interbank deposits in	0		0
	foreign banks and financial
	organizations, except for CIS
	countries
100.1			0%
100.2			10%	0
100.3			20%	0
100.4			50%	0
100.5			100%	0
110	Short-term interbank	0		0
	placements up to 7 days
110.1			0%
110.2			10%	0
110.3			20%	0
110.4			50%	0
110.5			100%	0
120	Operations under REPO agreements	0		0
120.1			0%
120.2			10%	0
120.3			20%	0
120.4			50%	0
120.5			100%	0

Securities portfolio

(thousand som)

N	Articles	Balance	Credit risk, %	Weighted value
130	Securities issued by	0		0
	Government of KR and/or NBKR
130.1			0%
130.2			10%	0
130.3			20%	0
130.4			50%	0
130.5			100%	0
140	Securities issued by local	0		0
	authorities
140.1			0%
140.2			10%	0
140.3			20%	0
140.4			50%	0
140.5			100%	0
150	Securities issued by	0		0
	Governments of CIS countries
150.1			0%
150.2			10%	0
150.3			20%	0
150.4			50%	0
150.5			100%	0
160	Securities issued by	0		0
	foreign Governments
	of countries, except for Governments
	of CIS countries
160.1			0%
160.2			10%	0
160.3			20%	0
160.4			50%	0
160.5			100%	0
170	Debt securities of Kyrgyz	0		0
	companies
170.1			0%
170.2			10%	0
170.3			20%	0
170.4			50%	0
170.5			100%	0
180	Debt securities of companies	0		0
	of CIS countries
180.1			0%
180.2			10%	0
180.3			20%	0
180.4			50%	0
180.5			100%	0
190	Debt securities of foreign	0	100%	0
	companies, except for CIS
	countries
190.1			0%
190.2			10%	0
190.3			20%	0
190.4			50%	0
190.5			100%	0
200	Equity securities	0		0
	of Kyrgyz companies
200.1	Equity securities of banks and		Deduction
	financial institutions of KR		from capital
	(less than 20%)
200.2	The rest of the equity securities		0%
200.3	The rest of the equity securities		10%	0
200.4	The rest of the equity securities		20%	0
200.5	The rest of the equity securities		50%	0
200.6	The rest of the equity securities		100%	0
210	Equity securities of companies	0		0
	of CIS countries
210.1	Equity securities of banks and		Deduction
	financial institutions of CIS		from capital
	countries (less than 20%)
210.2	The rest of the equity securities		0%
210.3	The rest of the equity securities		10%	0
210.4	The rest of the equity securities		20%	0
210.5	The rest of the equity securities		50%	0
210.6	The rest of the equity securities		100%	0
220	Equity securities of companies	0		0
	of KR and CIS countries, not
	subject to amortization
220.1	Equity securities of banks and		Deduction
	financial institutions of KR and		from capital
	CIS countries, not subject to
	amortization (less than 20%)
220.2	The rest of the equity securities		0%
220.3	The rest of the equity securities		10%	0
220.4	The rest of the equity securities		20%	0
220.5	The rest of the equity securities		50%	0
220.6	The rest of the equity securities		100%	0
230	Equity securities	0		0
	of foreign companies, except for
	CIS countries
230.1	Equity securities		Deduction
	of foreign banks and financial		from capital
	institutions, except for CIS
	countries (less than 20%)
230.2	The rest of the equity securities		0%
230.3	The rest of the equity securities		10%	0
230.4	The rest of the equity securities		20%	0
230.5	The rest of the equity securities		50%	0
230.6	The rest of the equity securities		100%	0

Credits and Leases

(thousand som)

N	Articles	Balance	Credit risk, %	Weighted value
240	Credits to banks of the Kyrgyz	0		0
	Republic
240.1			0%
240.2			10%	0
240.3			20%	0
240.4			50%	0
240.5			100%	0
250	Credits to banks and financial	0		0
	organizations of CIS countries
250.1			0%
250.2			10%	0
250.3			20%	0
250.4			50%	0
250.5			100%	0
260	Credits to foreign banks and	0		0
	financial organizations, except
	for CIS countries
260.1			0%
260.2			10%	0
260.3			20%	0
260.4			50%	0
260.5			100%	0
270	Credits to the public sector	0

270.1			0%
270.2			10%	0
270.3			20%	0
270.4			50%	0
270.5			100%	0
280	Loans to the non-state sector	0		0
280.1			0%
280.2			10%	0
280.3			20%	0
280.4			50%	0
280.5			100%	0
290	Loans to individuals for personal purposes	0		0
290.1			0%
290.2			10%	0
290.3			20%	0
290.4			50%	0
290.5			100%	0
300	Mortgage loans to the state sector		100%	0
310	Mortgage loans		100%	0
	to the non-state sector
320	Mortgage loans to individuals	0		0
320.1			50%	0
320.2			100%	0
└─────┴──────────────────────────────────┴───────┴─────────┴──────────┘

Loans and Leases (continued)/Other Assets

(thousand som)

┌─────┬──────────────────────────────────┬───────┬─────────┬──────────┐ │ N │ Articles │ Balance │ Credit │ Weighted │ │ │ │ value │ risk, % │ value │ ├─────┼──────────────────────────────────┼───────┼─────────┼──────────┤ │330 |Loans for construction| 0 | | 0 |
| |to the state sector| | | |
│330.1| | | 0% | |
│330.2| | | 10% | 0 |
│330.3| | | 20% | 0 |
│330.4| | | 50% | 0 |
│330.5| | | 100% | 0 |
│340 |Loans for construction| 0 | | 0 |
| |to the non-state sector| | | |
│340.1| | | 0% | |
│340.2| | | 10% | 0 |
│340.3| | | 20% | 0 |
│340.4| | | 50% | 0 |
│340.5| | | 100% | 0 |
│350 |Loans for construction| 0 | | 0 |
| |to individuals| | | |
│350.1| | | 0% | |
│350.2| | | 10% | 0 |
│350.3| | | 20% | 0 |
│350.4| | | 50% | 0 |
│350.5| | | 100% | 0 |
│360 |Loans for capital lease| 0 | | 0 | │360.1| | | 0% | | │360.2| | | 10% | 0 | │360.3| | | 20% | 0 | │360.4| | | 50% | 0 | │360.5| | | 100% | 0 | │370 |Fixed assets| | 100% | 0 | │380 |Other bank property| | 100% | 0 | │390 |Investments and financial participation in| | Deduction from | |
| |unconsolidated banks| | capital | |
│400 |Investments and financial participation in| | Deduction from | |

	unconsolidated financial		capital
	organizations, except banks
│410	Investments and financial participation in		100%	0
	unconsolidated non-financial
---	---	---	---	---
	institutions
│420	Accrued interest receivable	0		0
			capital
│430.2	Remaining part of other assets		100%	0
	items 10-430)
│450	Total for category 1	0	0%

Off-Balance Sheet Obligations

(thousand som)

┌─────┬───────────────────────┬───────┬──────────┬─────────┬──────────┐ │ N │ Articles │ Balance │ Credit │ Credit │ Weighted │ │ │ │ value │ conversion │ risk, % │ value │ │ │ │ │ factor, │ | | | │ │ │ | % | | | ├─────┼───────────────────────┼───────┼──────────┼─────────┼──────────┤ │510 |Obligations to issue| 0 | | | 0 |
| |loans| | | | |
│510.1| | | 100% | 0% | |
│510.2| | | 100% | 10% | 0 |
│510.3| | | 100% | 20% | 0 |
│510.4| | | 100% | 50% | 0 |
│510.5| | | 100% | 100% | 0 |
│520 |General guarantees for| 0 | | | 0 |

	loans and securities,
	reserve letters of
	credit and guarantees
│520.1			100%	0%
│520.2			100%	10%	0
│520.3			100%	20%	0
│520.4			100%	50%	0
│520.5			100%	100%	0
│530	Obligations related to	0			0
	specific transactions
│530.1			50%	0%
│530.2			50%	10%	0
│530.3			50%	20%	0
│530.4			50%	50%	0
│530.5			50%	100%	0
│540	Obligations related to	0			0
	trading transactions
│540.1			50%	0%
│540.2			50%	10%	0
│540.3			50%	20%	0
│540.4			50%	50%	0
│540.5			50%	100%	0
│550	Sale agreements with	0			0
	subsequent repurchase
│550.1			100%	0%
│550.2			100%	10%	0
│550.3			100%	20%	0
│550.4			100%	50%	0
│550.5			100%	100%	0
│560	Forward purchase of	0			0
	assets
│560.1			100%	0%
│560.2			100%	10%	0
│560.3			100%	20%	0
│560.4			100%	50%	0
│560.5			100%	100%	0
│570	Foreign exchange operations	0			0
			2%	20%	0
---	---	---	---	---	---
			2%	100%	0
│570.2	from 1 to 2 years	0			0
			5%	20%	0
---	---	---	---	---	---
			5%	100%	0
│570.3	for each subsequent year	0			0
				20%	0
---	---	---	---	---	---
				100%	0
│580	Interest rate operations	0			0
│580.1	less than 1 year	0			0
			0.5%	20%	0
---	---	---	---	---	---
			0.5%	100%	0
│580.2	from 1 to 2 years	0			0
			1%	20%	0
---	---	---	---	---	---
			1%	100%	0
│580.3	for each subsequent year	0			0
				20%	0
---	---	---	---	---	---
				100%	0
│590	Other off-balance sheet	0			0
	obligations
│590.1					0
│590.2					0
│590.3					0
│600	Total off-balance sheet	0			0
	obligations (sum
---	---	---	---	---	---
	items 510-590)
│610	Total reserves for	0
	potential and lease losses and
---	---	---	---	---	---
	losses (general reserves,
	not included in the capital
	of the Second Tier plus
	special reserves), hereinafter reserves
	for loss coverage
│610.1	Reserve for loss coverage	0
	for balance sheet assets
│610.2	Reserve for loss coverage	0
	for off-balance sheet
---	---	---	---	---	---
	obligations
│620	Total balance sheet				0
	assets and off-balance sheet
---	---	---	---	---	---
	obligations weighted by
	risk degree less
	reserves for loss coverage
	(item 440 plus item 600
	minus 610)
└─────┴───────────────────────┴───────┴──────────┴─────────┴──────────┘

Subordinated Debt

(thousand som)

┌───┬───────────────────────────────────┬──────────┬───────┬──────────┐ │ N │ Articles │ Balance │ Share, % │ Weighted │ │ │ │ value | | value │ ├───┼───────────────────────────────────┼──────────┼───────┼──────────┤ │630|Perpetual subordinated debt| | | | │640|With remaining maturity of more than| | 100% | 0 |
| |5 years| | | |
│650|With remaining maturity of 4 to 5 years| | 80% | 0 |
| | | | | |
│660|With remaining maturity of 3 to 4 years| | 60% | 0 |
| | | | | |
│670|With remaining maturity of 2 to 3 years| | 40% | 0 |
| | | | | |
│680|With remaining maturity of 1 to 2 years| | 20% | 0 |
| | | | | |
│690|With remaining maturity of| | 0% | |
| |less than 1 year| | | |
│700|Total| 0 | | 0 |
└───┴───────────────────────────────────┴──────────┴───────┴──────────┘

Capital and Capital Adequacy Ratios

(thousand som)

┌───┬───────────────────────────────────────────────────────────┬─────┐ │ N │ Articles │ Sum │ ├───┼───────────────────────────────────────────────────────────┼─────┤
| |Tier 1 Capital| | |
├───┼───────────────────────────────────────────────────────────┼─────┤ │710|Ordinary shares| | | │720|Preferred shares (eligible for inclusion in Tier 1 capital)| | |
| | | | |
│730|Capital contributed in excess of par value| | | │740|Additional capital contributed by individuals and| | |
| |legal entities| | |
│750|Reserves for future bank needs| | | │760|Undistributed profit (losses) of previous years| | | │770|(-) Current year losses| 0 | │780|Total Tier 1 capital (sum of items 710-770)| 0 | │790|Intangible assets (item 430.1)| 0 | │800|Total net Tier 1 capital (item 780 minus item 790)| 0 | ├───┼───────────────────────────────────────────────────────────┼─────┤
| |Tier 2 Capital| | |
├───┼───────────────────────────────────────────────────────────┼─────┤ │810|Current year profit| 0 | │820|General reserves (eligible for inclusion)| 0 | │830|Reserves for revaluation of securities| | | │840|Reserves for foreign currency translation upon consolidation| 0 | │850|Other capital instruments (item 630 plus item 970)| 0 | │860|Mature subordinated debt (eligible for inclusion)| 0 | │870|Total Tier 2 capital (eligible for inclusion)| 0 | │880|Total aggregate capital (item 800 plus item 870)| 0 | │890|Investments in unconsolidated banks,| 0 |

	financial-credit institutions and non-bank institutions
	(items 200.1-230.1, item 390, item 400)
│900	Total net aggregate capital (item 880 minus item 890)	0	├───┼───────────────────────────────────────────────────────────┼─────┤
	Capital Surplus
├───┼───────────────────────────────────────────────────────────┼─────┤ │910	General reserves (not included in item 820)	0	│920
	(item 900/item 620)
│950	Tier 1 capital adequacy ratio
	(item 800/item 620)
├───┼───────────────────────────────────────────────────────────┼─────┤
	For Information
├───┼───────────────────────────────────────────────────────────┼─────┤ │960	General reserves (balance sheet value)	0	│970