Resolution of the Board of the National Bank of the Kyrgyz Republic No. 5/8 of March 2, 2006 on Amendments and Additions to the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic

Registered in the Ministry of Justice of the Kyrgyz Republic

April 4, 2006. Registration number 32-06

Bishkek

from March 2, 2006 No. 5/8

RESOLUTION OF THE BOARD OF THE NATIONAL BANK

OF THE KYRGYZ REPUBLIC

ON AMENDMENTS AND ADDITIONS

to the "Rules Regulating the Activities

of Credit Unions in the Kyrgyz Republic"

In order to develop the system of regulation and supervision of credit unions, having considered the proposed amendments and additions to the "Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic",

The Board of the National Bank of the Kyrgyz Republic resolves:

1. Approve the proposed amendments and additions to the "Rules Regulating Credit Unions in the Kyrgyz Republic", approved by Resolution No. 14/2 of the Board of the NCBR dated May 4, 2005 (reg. number MJ KR No. 73-05 of June 6, 2005) (attached).

2. The Department of Supervision and Licensing Methodology, together with the Legal Department, shall carry out the state registration of this resolution in the Ministry of Justice of the Kyrgyz Republic in the established manner.

3. This resolution enters into force from the moment of official publication after state registration in the Ministry of Justice of the Kyrgyz Republic.

4. The Department of Supervision of Non-Banking Institutions shall bring this resolution to the attention of regional departments and the Representative Office of the National Bank of the Kyrgyz Republic in the Batken Region.

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

6. Control over the implementation of this resolution is entrusted to the Deputy Chairman of the NCBR S.E. Zhanibekova.

Acting Chairman of the Board of the National
Bank of the Kyrgyz Republic M. Isenbaev

Published in the journal "Normative Acts of the National Bank of the Kyrgyz Republic", No. 4, 2006.

Appendix
to the Resolution of the Board of the National Bank of the Kyrgyz Republic

dated March 2, 2006 No. 5/8

@1 AMENDMENTS AND ADDITIONS to the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic

Make the following amendments and additions to the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic, approved by Resolution No. 14/2 of the Board of the NCBR dated May 4, 2005, registered by the Ministry of Justice of the Kyrgyz Republic on June 6, 2005, registration number 73-05:

1. In paragraph 3.1, exclude the words "mandatory for all credit unions to comply with".

2. Supplement paragraph 3.1 with sub-paragraph 3.1.3 of the following content:

"The economic indicators specified in sub-paragraph 3.1.2, with the exception of the maximum risk size indicator for one borrower (N2), do not apply to credit unions that do not attract deposits from their members and do not have debt to the Limited Liability Company Financial Company for Support and Development of Credit Unions in the Kyrgyz Republic."

3. Rephrase paragraph 4.4 of Section IV as follows:

"For credit unions holding a license to attract deposits (deposits) from members of the credit union, the maximum size of the deposit base is determined as the ratio of the deposit base to the institutional capital of the credit union according to the following table:

---

|Period of credit union operations| 1 year | 2 year | 3 year | 4 years and beyond |

on attracting deposits (deposits)
total deposits	300 %	350 %	400%	450 %
--------------- X 100
institutional capital

---

4. In sub-paragraphs 5.2.2 and 5.2.3 of paragraph 5.2, replace the figures "15%" with figures "20%".

5. In the second and sixth paragraphs of sub-paragraph 5.4.2 of paragraph 5.4, replace the figures "10%" with figures "20%".

6. Exclude sub-paragraph 5.4.3 of paragraph 5.4.

7. Supplement sub-paragraph 5.5.2 of paragraph 5.5 with a new paragraph of the following content: "For the purpose of liquidity risk management, credit unions attracting deposits from their members must calculate the liquidity indicator on a weekly basis."

8. In paragraph 6.1, replace the word "Department" with "Department"; replace the abbreviation "ONNU" with "UNNU"; replace the words: "in accordance with normative documents of the NCBR" with: "in the manner established by normative legal acts of the NCBR".

9. Rephrase paragraph 6.2 as follows: "Information on compliance with economic indicators, requirements and restrictions is provided by credit unions in accordance with the requirements of Resolution No. 20/7 of the Board of the NCBR dated 24.06.2005 'On Temporary Forms of Periodic Regulatory Report of a Credit Union and Instructions for Filling Temporary Forms of Periodic Regulatory Report of a Credit Union'."

10. Exclude paragraphs 6.3 and 6.5 of Section VI. Consider paragraph 6.4 as paragraph 6.3 respectively, and in this paragraph, exclude the words: "according to NCBR requirements".

11. In paragraph 7.1, replace the abbreviation "ONNU" with "UNNU".