Resolution of the Board of the National Bank of the Kyrgyz Republic No. 45/7 of November 23, 2002 on Amendments and Additions to the Regulation on the Procedure for Creating Banks and Features of Their Activities in the Kyrgyz Republic

EXPIRED

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of March 2, 2006 No. 5/7)

Registered in the Ministry of Justice of the Kyrgyz Republic December 27, 2002. Registration number 162-02 Bishkek November 23, 2002 No. 45/7

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

On Amendments and Additions to the Regulation
"On the Procedure for Creating Banks and Features of Their Activities in the Territory of the Kyrgyz Republic"

Having considered the draft amendments and additions to the Regulation "On the Procedure for Creating Banks and Features of Their Activities in the Territory of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of August 12, 1998 No. 19/2, the Board of the National Bank of the Kyrgyz Republic resolves:

1. Approve the amendments and additions to the Regulation "On the Procedure for Creating
   Banks and Features of Their Activities in the Territory of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of August 12, 1998 No. 19/2 (attached) and bring them into force from the date of state registration in the Ministry of Justice of the Kyrgyz Republic.

2. The Legal Department of the National Bank of the Kyrgyz Republic
   to carry out state registration of the approved amendments and additions to the Regulation "On the Procedure for Creating Banks and Features of Their Activities in the Territory of the Kyrgyz Republic" in the Ministry of Justice of the Kyrgyz Republic.

3. The Supervision and Licensing Methodology Department of the National
   Bank of the Kyrgyz Republic to bring this resolution to the attention of commercial banks and JSC "RSK", after registration of the amendments and additions to the Regulation "On the Procedure for Creating Banks and Features of Their Activities in the Territory of the Kyrgyz Republic" in the Ministry of Justice of the Kyrgyz Republic.

4. Control over the implementation of this resolution is assigned to
   Sharshekееva K.Sh., Deputy Chairman of the National Bank of the Kyrgyz Republic.

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 November 23, 2002 No. 45/7

AMENDMENTS AND ADDITIONS to the Regulation "On the Procedure for Creating Banks and Features of Their Activities in the Territory of the Kyrgyz Republic"

1. Paragraph 28 of Section V is supplemented with a paragraph of the following content:

• "The names of separate structural subdivisions must reflect the full registered legal name of the bank. Below, in small print, the name of the separate subdivision and its registration number must be indicated."

2. Chapter 1 Procedure for Opening Branches is supplemented with paragraph 32.1 of the following content:

• "When replacing the head and/or chief accountant of a branch, the bank
  is obliged within a period not exceeding three working days to notify the National Bank with the attachment of documents provided for in sub-items 3, 4 of paragraph 32 of this Regulation (depending on the change)."

3. Chapter 3 "Opening Savings Offices" is to be rewritten in the following version:

56. A bank may open savings offices on the territory of the Kyrgyz Republic for the purpose of providing banking services. A savings office is a structural subdivision of the bank and must have a name fully matching the name of the bank.

57. A savings office of a bank is opened on the basis of a decision of the authorized body of the bank. The head (cashier) of the savings office is appointed by order of the head of the bank and acts on the basis of a power of attorney issued in the established order. The power of attorney must list the types of operations for which the head of the savings office is authorized to act on behalf of the bank.

58. A savings office is entitled to carry out only the following operations for the service of individuals:

• acceptance of deposits, according to the standard deposit agreement;
• acceptance of payments for utility services;
• purchase and sale of government securities, if the bank has a license;
• conducting exchange operations with cash foreign currency, if the bank has a license;
• acceptance of payments to the budget of the Kyrgyz Republic in cash.

58.1 A savings office is entitled to carry out only the following operations for the service of legal entities and individual entrepreneurs without legal entity status:

• acceptance of payments to the budget of the Kyrgyz Republic in cash;
• acceptance of payments for utility services.

59. Savings offices of a bank are subject to mandatory registration with the National Bank. The bank notifies the National Bank in writing no later than three working days from the date of the decision to open a savings office. The activity of a savings office ceases on the basis of a decision of the authorized body of the bank. The bank notifies the National Bank in writing within a period not exceeding three working days from the date of the decision to close the savings office. The bank is responsible for the accuracy of the information indicated in the notification. For failure to notify or notification with violation of the established deadlines, the National Bank has the right to apply sanctions against the bank provided for by banking legislation.

60. Registration with the National Bank is the basis for the commencement of activity of a savings office. The National Bank carries out registration of a savings office within a period not exceeding ten working days from the moment of receipt of satisfactory documents specified in paragraph 62 of this Regulation. For the accounting of savings offices, the National Bank assigns a sequential registration number to the savings office upon registration, according to Appendix 21 of this Regulation, and sends a letter to the bank regarding the inclusion of information in the register of savings offices of banks.

61. The letter on the registration of a savings office is signed by the head of the corresponding department of the National Bank. Until receipt of the letter on registration, a savings office is not entitled to conduct operations specified in paragraph 58 of this Regulation.

62. For the registration of a savings office, the following documents must be submitted to the National Bank:
1. notification on the opening of a savings office, according to Appendix 15 of this Regulation;
2. a copy of the lease agreement or a document confirming the bank's ownership rights to the premises where the savings office will be located, certified by the bank;
3. a copy of the decision of the authorized body on the opening of the savings office, certified by the bank;
4. a copy of the power of attorney, certified by the bank;
5. the personal file sheet of the head (cashier) of the savings office.

63. The National Bank has the right to refuse the bank in the registration of a savings office in case of non-compliance of the submitted documents with the established requirements and the presence of restrictions on the bank's activity regarding operations specified in paragraph 58 of this Regulation.

63.1. In case of changes in the address or head of the savings office, the bank is obliged within a period not exceeding three working days to notify the National Bank with the attachment of documents provided for in sub-items 2, 5 of paragraph 62 of this Regulation (depending on the change).

63.2. The National Bank has the right to check the activity of the savings office of the bank upon presentation of a document. In case of violation by the savings office of the procedure for conducting operations established by the National Bank, the latter notifies the bank's management of the identified violations and establishes a certain period for their elimination depending on the type of violation, at the same time the activity of the savings office may be suspended.

63.3. Conditions and order of functioning of savings offices:

63.3.1. The cash room of savings offices located in the premises of a trading organization, hotel, airport, and other premises must meet the requirements imposed on the cash room of the Bank.

63.3.2. Exchange operations with cash foreign currency conducted in a savings office must be carried out in accordance with the Regulation on the Procedure for Conducting Exchange Operations with Cash Foreign Currency in the Kyrgyz Republic, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 42/1 of November 30, 2000.

63.3.3. Savings offices must be equipped with stands (size not less than 40x60 cm) containing information: on interest rates on deposits, interest rates on government securities, on buy, sell, and exchange rates of cash foreign currency.
In each savings office, in a place visible to clients, the following information must be located:

• the name of the bank that opened the savings office;
• the working hours of the savings office;
• the letter on the registration of the savings office;
• information for clients and the procedure for their service, moreover, when conducting exchange operations with cash foreign currency by the savings office, there must be information in accordance with Appendices 8 and 9 of the Regulation on the Procedure for Issuing a License for the Right to Conduct Exchange Operations with Cash Foreign Currency, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 42/2 of November 30, 2000.

63.3.4. The procedure and conditions for conducting operations by a savings office must be fixed in the standard regulation "On the Savings Office of the Bank", approved by the authorized body. The general conditions for conducting operations by a bank's savings office are open information and cannot be the subject of commercial or banking secrecy. The working hours, number of employees, and range of official duties in savings offices are established in accordance with the internal regulations approved by the heads of the bank."