Resolution of the Board of the National Bank of the Kyrgyz Republic No. 43/1 of November 16, 2012 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 November 16, 2012 No. 43/1

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

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of May 17, 2017 No. 19/12, May 17, 2017 No. 19/13, May 31, 2017 No. 21/5, June 8, 2017 No. 2017-P-12/23-1, June 8, 2017 No. 2017-P-12/23-6, June 8, 2017 No. 2017-P-12/23-8, June 15, 2017 No. 2017-P-12/25-2, June 15, 2017 No. 2017-P-12/25-4, June 15, 2017 No. 2017-P-12/25-8, June 15, 2017 No. 2017-P-12/25-9, June 20, 2018 No. 2018-P-12/24-2, March 13, 2019 No. 2019-P-07/10-1-(DCP), December 22, 2021 No. 2021-P-20/72-8)

In order to bring the regulatory legal acts of the National Bank of the Kyrgyz Republic into compliance with the Law of the Kyrgyz Republic "On the State Development Bank of the Kyrgyz Republic", guided by Articles 7 and 43 of the 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. Approve the attached amendments and additions to certain regulatory legal acts of the National Bank of the Kyrgyz Republic.

2. Publish this Resolution on the official website of the National Bank of the Kyrgyz Republic.

3. 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 through the Legal Department.

4. Send this Resolution of the Board to the Government of the Kyrgyz Republic through the Supervision and Licensing Methodology Department.

5. This Resolution shall enter into force after the expiration of 15 days from the date of official publication.

Published in the journal "Regulatory Acts of the National Bank of the Kyrgyz Republic", No. 8/2012

6. Entrust the Deputy Chairman of the National Bank of the Kyrgyz Republic Z.L. Chokoev with control over the implementation of this Resolution.

| Chairman of the Board of the National Bank of the Kyrgyz Republic | | Z. Asankozhoeva |

| | | Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic of November 16, 2012 No. 43/1 |

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

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of May 17, 2017 No. 19/12, May 17, 2017 No. 19/13, May 31, 2017 No. 21/5, June 8, 2017 No. 2017-P-12/23-1, June 8, 2017 No. 2017-P-12/23-6, June 8, 2017 No. 2017-P-12/23-8, June 15, 2017 No. 2017-P-12/25-2, June 15, 2017 No. 2017-P-12/25-4, June 15, 2017 No. 2017-P-12/25-8, June 15, 2017 No. 2017-P-12/25-9, June 20, 2018 No. 2018-P-12/24-2, March 13, 2019 No. 2019-P-07/10-1-(DCP), December 22, 2021 No. 2021-P-20/72-8)

1. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 8, 2017 No. 2017-P-12/23-1)

2. Make the following amendments and additions to the Regulation on economic standards and requirements mandatory for commercial banks of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 18/1 of July 21, 2004, registered in the Ministry of Justice of the Kyrgyz Republic on August 23, 2004, registration number 93-04:

1. in paragraph 1.1, after the words "commercial banks", add the words "and the State Development Bank of the Kyrgyz Republic";

2. supplement paragraph 6.3 with a second paragraph of the following content:

"These standards do not apply to the State Development Bank of the Kyrgyz Republic.";

3. in paragraph 9.3, exclude the word "commercial".

3. Make the following amendments and additions to the Instruction on determining capital adequacy standards for commercial banks of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 18/2 of July 21, 2004, registered in the Ministry of Justice of the Kyrgyz Republic on August 23, 2004, registration number 94-04:

1. in paragraph 1.1, replace the words "(hereinafter referred to as "banks")" with the words "and the State Development Bank of the Kyrgyz Republic (hereinafter - banks)";

2. supplement paragraph 8.1 with a second paragraph of the following content:

"Dividends of the State Development Bank of the Kyrgyz Republic are distributed in the manner provided for by the Law of the Kyrgyz Republic "On the State Development Bank of the Kyrgyz Republic"."

4. (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)

5. Make the following addition to the Regulation on the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 42/1 of November 30, 2000, registered in the Ministry of Justice of the Kyrgyz Republic on December 15, 2000, registration number 201:

supplement the preamble with a second paragraph of the following content:

"This Regulation applies to the State Development Bank of the Kyrgyz Republic taking into account the features provided for by the Law "On the State Development Bank of the Kyrgyz Republic"."

6. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-4)

7. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 17, 2017 No. 19/13)

8. Make the following changes to the Regulation on direct banking supervision, approved by Resolution of the National Bank of the Kyrgyz Republic of May 28, 2008 No. 22/4, registered in the Ministry of Justice of the Kyrgyz Republic on June 26, 2008, registration number 47-08:

1. in paragraph 1.1, after the words "licensed by the National Bank", add the words ", and the State Development Bank of the Kyrgyz Republic";

2. reword paragraph 1.2 as follows:

"This Regulation also applies to the specialized financial-credit institution JSC "Financial Company of Credit Unions" (hereinafter - FKKC) and credit unions attracting deposits from participants and/or having indebtedness to FKKC (hereinafter - bank/banks), in part not contradicting regulatory legal acts regulating the activities of these institutions, as well as taking into account their specifics, in accordance with the Law of the Kyrgyz Republic "On Credit Unions"."

9. Make the following changes to the Rules for regulating operations of a commercial bank on fiduciary management, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 34/9 of December 14, 1998:

1. in the second paragraph of Chapter 1, after the words "commercial bank", add the words "and the State Development Bank of the Kyrgyz Republic (hereinafter - bank)";

2. in the third paragraph of Chapter 1, replace the words "commercial banks (hereinafter in the text "bank")" with the word "banks";

3. throughout the text of the Rules, replace the words "commercial bank" with the word "bank" in the corresponding numerical and case forms.

10. Make the following change to the Regulation on periodic regulatory consolidated reporting, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 52/3 of June 30, 2010:

reword paragraph 4 as follows:

"4. The PRCR is compiled and submitted by one of the following legal entities:

1. a bank located at the head of a banking group and having a license from the National Bank;

2. a banking holding company - a resident of the Kyrgyz Republic;

3. an authorized legal entity (engaged in banking and/or financial activities), with the agreement of the National Bank.

This Regulation also applies to the State Development Bank of the Kyrgyz Republic if it is a participant in a banking group.

Within the framework of this Regulation, the above-mentioned legal entities are hereinafter referred to as the parent company.".

11. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 8, 2017 No. 2017-P-12/23-8)

12. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/5)

13. Make the following change to the Procedure for the work of commercial banks and other financial-credit institutions licensed and regulated by the National Bank of the Kyrgyz Republic with collateral property, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 28/7 of July 4, 2012:

reword paragraph 2 as follows:

"The purpose of this Procedure is to fulfill the minimum requirements for commercial banks, the State Development Bank of the Kyrgyz Republic, and other financial-credit institutions (hereinafter - banks/FKUs) to strengthen credit discipline and real security for the return of issued loans.".

14. Make the following additions to the Policy and basic principles of antimonopoly regulation, development of competition, and protection of consumer rights in the market of banking services of the Kyrgyz Republic provided by commercial banks and other financial-credit institutions licensed and regulated by the National Bank of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 4/1 of March 2, 2005, registered in the Ministry of Justice of the Kyrgyz Republic on April 1, 2005, registration number 44-05:

1. in paragraph 1.2, after the words "issued by the National Bank of the Kyrgyz Republic", add the words "and the State Development Bank of the Kyrgyz Republic";

2. in paragraph 1.3, after the words "licensed and regulated by NBKR", add the words ", as well as the State Development Bank of the Kyrgyz Republic".

15. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-2)

16. Make the following change to the Regulation on the Periodic Regulatory Banking Report, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 26/5 of August 25, 2005, registered in the Ministry of Justice of the Kyrgyz Republic on September 16, 2005, registration number 132-05:

in paragraph 1.2, replace the words "and other financial-credit institutions (hereinafter in the text "banks"), licensed by the National Bank of the Kyrgyz Republic (hereinafter in the text "National Bank")" with the words "and other financial-credit institutions licensed by the National Bank of the Kyrgyz Republic (hereinafter - National Bank), and the State Development Bank of the Kyrgyz Republic (hereinafter - banks)".

17. Make the following addition to the Regulation on determining a dominant position in the market of banking services, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 16/5 of March 28, 2007, registered in the Ministry of Justice of the Kyrgyz Republic on April 26, 2007, registration number 46-07:

in paragraph 1.2, after the words "licensed and regulated by NBKR", add the words ", and the State Development Bank of the Kyrgyz Republic".

18. Make the following addition to the Regulation on the calculation of the effective interest rate when disseminating information about the size of remuneration for banking services, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 33/4 of August 27, 2008, registered in the Ministry of Justice of the Kyrgyz Republic on September 29, 2008, registration number 119-08:

in paragraph 1.2, after the words "National Bank of the Kyrgyz Republic", add the words ", and the State Development Bank of the Kyrgyz Republic".

19. Make the following changes to the Instruction on the procedure for observing limits of open currency position by commercial banks on the territory of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 36/13 of December 29, 2004, registered in the Ministry of Justice of the Kyrgyz Republic on February 1, 2005, registration number 16-05:

1. in the first paragraph of the preamble, exclude the word "commercial";

2. reword the second paragraph of the preamble as follows: "This procedure for observing limits of open currency position applies to all commercial banks having a license to carry out operations in foreign currency, and to the State Development Bank of the Kyrgyz Republic (hereinafter - banks)".

20. Make the following changes to the Regulation on minimum requirements for credit risk management in commercial banks and other 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 No. 52/4 of June 30, 2010:

1. reword paragraph 1 as follows:

"This regulatory act is developed in accordance with the Laws of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", "On Banks and Banking Activity in the Kyrgyz Republic", and "On Microfinance Organizations". This Regulation applies to all commercial banks, the State Development Bank of the Kyrgyz Republic, the specialized financial-credit institution JSC "Financial Company of Credit Unions", and microfinance companies attracting term deposits (hereinafter - banks).";

2. in paragraph 20, exclude the words "commercial" and "commercial";

3. in paragraph 24, exclude the word "commercial".

21. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 8, 2017 No. 2017-P-12/23-8)

22. Make the following change to the Regulation on requirements for the formation of financial reporting of commercial banks of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 6/2 of March 12, 2010:

in the first paragraph of paragraph 1, replace the words "Financial Company for Support and Development of Credit Unions, Special Refinancing Fund of Banks" with the words "State Development Bank of the Kyrgyz Republic, specialized financial-credit institution JSC "Financial Company of Credit Unions".

23. Make the following changes to the Regulation on requirements for the accounting policy of commercial banks and other 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 No. 26/2 of October 23, 2004, registered in the Ministry of Justice of the Kyrgyz Republic on November 19, 2004, registration number 133-04:

1. in the preamble, replace the word "FKPRKS" with the words "State Development Bank of the Kyrgyz Republic, specialized financial-credit institution JSC "Financial Company of Credit Unions" (hereinafter - FKKC)";

2. in the fifth paragraph of sub-item 2 of paragraph 3.5-1, exclude the word "commercial";

3. in the fifth paragraph of sub-item 2 of paragraph 3.5-1, exclude the word "commercial";

4. reword paragraph 4.1 as follows:

"The accounting policy of banks, FKKC, and microfinance organizations must be approved by the Board of Directors of the FKU (Supervisory Body).";

5. throughout the text of the Regulation, replace the word "FKPRKS" with the word "FKKC".

24. Make the following changes to the Instruction on lending restrictions, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 24/4 of September 15, 2004, registered in the Ministry of Justice of the Kyrgyz Republic on October 7, 2004, registration number 109-04:

1. reword the second sentence of paragraph 1.1 as follows:

"This Instruction applies to all commercial banks and the State Development Bank of the Kyrgyz Republic (hereinafter - banks).";

2. reword paragraph 2.3 as follows: "The limits and procedure for lending to persons associated with the bank are determined in accordance with the Instruction "On Requirements for Operations with Insiders and Affiliated Persons", approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 34/10 of December 10, 2003.".

25. Make the following change to the Procedure for granting the status of non-accrual of interest income, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 11/2 of April 28, 2004, registered in the Ministry of Justice of the Kyrgyz Republic on June 10, 2004, registration number 70-04:

reword paragraph 1.1 as follows:

"This Procedure determines the procedure for granting the status of non-accrual of interest income on loans and assets carrying credit risk (hereinafter - loans) in commercial banks, the State Development Bank of the Kyrgyz Republic, and other financial-credit institutions regulated by the National Bank of the Kyrgyz Republic, except for pawnshops and exchange offices (hereinafter - credit institutions).".

26. Make the following changes and additions to the Procedure for organizing video surveillance in commercial banks, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 28/10 of July 4, 2012:

1. in paragraph 1, after the words "at commercial bank facilities", add the words "and the State Development Bank of the Kyrgyz Republic";

2. in paragraph 24, replace the number "7.2" with the number "26".

27. Make the following change to the Rules for the creation and/or acquisition of subsidiary or dependent companies by commercial banks of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 26/3 of June 10, 2009, registered in the Ministry of Justice of the Kyrgyz Republic on July 14, 2009, registration number 74-09:

reword paragraph 1.1 as follows:

"These Rules are developed in accordance with the Law of the Kyrgyz Republic "On Banks and Banking Activity in the Kyrgyz Republic", regulatory legal acts of the National Bank of the Kyrgyz Republic (hereinafter - National Bank), and apply to all commercial banks and the State Development Bank of the Kyrgyz Republic (hereinafter - bank).".

28. Make the following change to the Resolution of the Board of the National Bank of the Kyrgyz Republic on establishing requirements for determining subjects and the list of offshore zones No. 13/2 of April 16, 2003, registered in the Ministry of Justice of the Kyrgyz Republic on April 22, 2003, registration number 37-03:

reword paragraph 5 as follows:

"This regulatory legal act applies to banks and other financial-credit institutions operating on the territory of the Kyrgyz Republic, and enters into force after the expiration of 30 calendar days from the moment of publication in the official edition of the NBKR.".

29. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 17, 2017 No. 19/12)

30. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-8)

31. Make the following changes to the Regulation on minimum requirements for operational risk management in commercial banks of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 37/5 of December 15, 2005, registered in the Ministry of Justice of the Kyrgyz Republic on February 4, 2005, registration number 18-05:

1. in paragraph 1.1, exclude the words "On minimum requirements for operational risk management in commercial banks of the Kyrgyz Republic" (hereinafter in the text - Regulation);

2. in paragraph 1.2, replace the words "JSC "Settlement and Savings Company" and CJSC "Kyrgyz Agricultural Financial Corporation" with the words "State Development Bank of the Kyrgyz Republic".

32. Make the following change to the Regulation on minimum requirements for market risk management in commercial banks and other 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 No. 19/2 of June 28, 2006, registered in the Ministry of Justice of the Kyrgyz Republic on August 4, 2006, registration number 85-06:

in paragraph 1.1, replace the words "JSC "Settlement and Savings Company" and CJSC "Kyrgyz Agricultural Financial Corporation (hereinafter in the text "banks")" with the words "State Development Bank of the Kyrgyz Republic (hereinafter - banks)".

33. Make the following changes and additions to the Regulation on minimum requirements for country risk management in commercial banks and other 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 No. 19/3 of June 28, 2006, registered in the Ministry of Justice of the Kyrgyz Republic on August 4, 2006, registration number 86-06:

1. in paragraph 1.2, after the words "in commercial banks", add the words "and the State Development Bank of the Kyrgyz Republic";

2. in paragraph 3.2, exclude the word "commercial".

34. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of June 8, 2017 No. 2017-P-12/23-6)

35. Make the following addition to the Regulation on minimum requirements for the organization of internal control in commercial banks for countering the financing of terrorism (extremism) and legalization (money laundering) of proceeds obtained criminally, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 96/2 dated 29.12.2010:

paragraph 2 after the words "having an Islamic window" add the words ", State Development Bank of the Kyrgyz Republic".

36. Make the following amendments and additions to the Regulation on banks' operations with securities, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 52/4 dated 14.09.2011:

1. in the first paragraph of paragraph 1 after the words "commercial banks of the Kyrgyz Republic" add the words ", State Development Bank of the Kyrgyz Republic";

2. in paragraph 2, exclude the words "commercial" and "commercially";

3. rephrase the first paragraph of paragraph 3 as follows:

"Before carrying out operations and transactions with any securities issued by non-residents of the Kyrgyz Republic and non-state securities issued by residents of the Kyrgyz Republic, banks must submit the following information to the External Supervision Department of the National Bank:".

37. Make the following additions to the Regulation on certain transactions/operations of commercial banks and microfinance companies of the Kyrgyz Republic with real estate, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 36/2 dated 29.08.2012:

1. in paragraph 2 after the words "to commercial banks" add the words ", to the State Development Bank of the Kyrgyz Republic.";

2. in paragraph 2 after the words "(hereinafter - banks)" insert the sign ",".

38. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2021-P-20/72-8 dated December 22, 2021)

39. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2017-P-12/25-9 dated June 15, 2017)

40. Make the following amendments to the Regulation on requirements for the Chart of Accounts in commercial banks and other financial and credit institutions of the Kyrgyz Republic, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 54/9 dated December 20, 2007:

1. rephrase paragraph 1.1 as follows:

"This Regulation establishes requirements for the formation of the Chart of Accounts (hereinafter - Chart of Accounts) in commercial banks, the State Development Bank of the Kyrgyz Republic, and other financial and credit institutions (hereinafter - banks) in accordance with the Laws of the Kyrgyz Republic "On Banks and Banking Activity in the Kyrgyz Republic" (https://cbd.minjust.gov.kg/560) and "On Accounting" (https://cbd.minjust.gov.kg/1032) in connection with the transition of banks to the Chart of Accounts approved by them";

2. rephrase paragraph 2.1 as follows:

"Requirements for the Chart of Accounts apply to banks operating within the territory of the Kyrgyz Republic.".

41. Make the following amendments and additions to the Regulation on asset classification and corresponding contributions to reserves for potential losses and losses, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 18/3 dated 21.07.2004:

1. rephrase the second sentence of paragraph 1.1 as follows:

"Regulation applies to all commercial banks, microfinance companies authorized to attract deposits, the State Development Bank of the Kyrgyz Republic, and the specialized financial and credit institution JSC "Financial Company of Credit Unions" (hereinafter - banks).";

2. supplement paragraph 13.4 with the following paragraph:

"The State Development Bank of the Kyrgyz Republic forms and accrues the Provision for Potential Losses (PPL) in accordance with the Law "On the State Development Bank of the Kyrgyz Republic".".

42. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2019-P-07/10-1-(DCP) dated March 13, 2019)

2. in paragraph 1.1 after the words "order of performance by commercial banks" add the words ", by the State Development Bank of the Kyrgyz Republic";

3. throughout the text of the Regulation, replace the words "commercial banks" with the word "bank" in the corresponding numerical and case forms.

43. Make the following amendment to the Basic Requirements for the Audit Committee, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 32/7 dated 20.11.2003, registered in the Ministry of Justice of the Kyrgyz Republic on 29.12.2003, registration number 32-07:

in paragraph 1.1, replace the words "(hereinafter in the text - bank)" with the words ", and the State Development Bank of the Kyrgyz Republic (hereinafter - bank)".