Resolution of the Board of the National Bank of the Kyrgyz Republic No. 47/4 of 25 November 2009 on Amending and Supplementing the Resolution of the Board of the National Bank of the Kyrgyz Republic on Requirements for Operations with Insiders and Affiliated Persons of Commercial Banks and Other Financial and Credit Institutions Licensed by the NBKR No. 34/10 of 10 December 2003, Registered with the Ministry of Justice of the Kyrgyz Republic on 5 January 2004, Registration Number 2-04

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 25 November 2009 No. 47/4

On Amending and Supplementing the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Requirements for Operations with Insiders and Affiliated Persons of Commercial Banks and Other Financial and Credit Institutions Licensed by the NBKR" No. 34/10 of 10 December 2003, Registered with the Ministry of Justice of the Kyrgyz Republic on 5 January 2004, Registration Number 2-04

In accordance with Articles 7 and 43 of 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 Activities in the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To approve the amendments and supplements to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Requirements for Operations with Insiders and Affiliated Persons of Commercial Banks and Other Financial and Credit Institutions Licensed by the NBKR" No. 34/10 of 10 December 2003, registered with the Ministry of Justice of the Kyrgyz Republic on 5 January 2004, registration number 2-04 (annexed).

2. This resolution enters into force upon the expiry of one month after official publication.

Published in the journal "Normative Acts of the National Bank of the Kyrgyz Republic", No. 2009/13

3. The Legal Department shall, after publication, send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

4. 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
	Annex to the Resolution of the Board of the National Bank of the Kyrgyz Republic of 25 November 2009 No. 47/4

AMENDMENTS AND SUPPLEMENTS

to 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 and Credit Institutions Licensed by the NBKR", registered with the Ministry of Justice of the Kyrgyz Republic on 5 January 2004, registration number 2-04

To introduce into the Instruction "On Requirements for Operations of Banks 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 and Credit Institutions Licensed by the National Bank of the Kyrgyz Republic", registered with the Ministry of Justice of the Kyrgyz Republic on 5 January 2004, registration number 2-04, the following amendments and supplements:

1. The preamble of the Instruction after the words "requirements for the activities of banks" shall be supplemented with the words "including those operating in accordance with Islamic principles of banking and financing, banks having an Islamic window,".

2. The definition "Insiders" in section 1 after the words "members of the Board of Directors" shall be supplemented with the words "members of the Sharia board,".

3. Section 1 shall be supplemented with a new definition "Operations with affiliated persons and insiders - the transfer of resources or obligations conducted between "related" parties, regardless of whether a fee is charged for this.".

4. In paragraph 8 of section 1 of the definition "Affiliated persons are:" the words "- granting a loan (credit substitute)" shall be supplemented with footnote 1 of the following content: "For Islamic banks - transactions under the terms of which the Islamic bank provides monetary funds.".

5. The first paragraph of the definition "Low-quality assets" in section 1 shall be restated as follows: "- assets classified as substandard, doubtful and loss, in accordance with the NBKR requirements on classification of assets and creation of a reserve to cover potential losses and damages.".

6. The word "interest" in the second paragraph of the definition "Low-quality assets" in section 1 shall be supplemented with footnote 2 of the following content: "For Islamic banks - markup, principal amount and/or other payments stipulated by the agreement between the bank and the client.".

7. Section 1 shall be supplemented with a paragraph of the following content: "The definitions "Islamic bank", "Bank having an "Islamic window"", "Islamic principles of banking and financing", "Sharia standards", "Sharia board" - correspond to the norms of the conceptual apparatus of the Law of the Kyrgyz Republic "On Banks and Banking Activities in the Kyrgyz Republic".".

8. The word "deposits" in subparagraph (2) of paragraph 2.7 A shall be supplemented with footnote 3 of the following content: "A deposit for Islamic banks is the monetary funds of clients placed in an Islamic bank on the basis of mudaraba, qard hasan and wadia yad daman contracts.".