Resolution of the Board of the National Bank of the Kyrgyz Republic No. 78/23 of December 23, 2015 on Amendments and Additions to Certain Resolutions of the Board of the National Bank of the Kyrgyz Republic

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

of December 23, 2015 No. 78/23

On Amendments and Additions to Certain Resolutions of the Board of the National Bank of the Kyrgyz Republic

In accordance with Articles 7 and 43 of the Law "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

1. Make amendments and additions to the following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

• "On Approval of the Regulation on Economic Norms and Requirements Mandatory for Commercial Banks and Financial-Credit Institutions Licensed by the National Bank of the Kyrgyz Republic" dated July 21, 2004 No. 18/1;

• "On Approval of the New Edition of the Instruction on Determining Capital Adequacy Standards for Commercial Banks of the Kyrgyz Republic" dated July 21, 2004 No. 18/2;

• "On Approval of the Instruction on Determining Capital Adequacy Standards for Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance" dated December 28, 2009 No. 51/4;

• "On Approval of the New Edition of the Regulation 'On Classification of Assets and Corresponding Provisions for Potential Losses and Write-offs'" dated July 21, 2004 No. 18/3;

• "On Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" dated December 28, 2009 No. 51/6;

• "On Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" dated August 25, 2005 No. 26/5;

• "On Approval of the Regulation 'On Periodic Regulatory Reporting of Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance'" dated March 30, 2011 No. 20/4.

2. This resolution enters into force after the expiration of fifteen days from the day of official publication, except for amendments and additions to the resolutions of the Board of the National Bank of the Kyrgyz Republic "On Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" dated August 25, 2005 No. 26/5 and "On Approval of the Regulation 'On Periodic Regulatory Reporting of Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance'" dated March 30, 2011 No. 20/4, which enter into force on May 1, 2016.

Paragraph 4.3.5 of the Regulation "On Classification of Assets and Corresponding Provisions for Potential Losses and Write-offs" in accordance with the Resolution of the Board of the National Bank "On Approval of the New Edition of the Regulation 'On Classification of Assets and Corresponding Provisions for Potential Losses and Write-offs'" dated July 21, 2004 No. 18/3 enters into force within 6 months from the date of entry into force of this resolution.

3. Legal Department:

• publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

• 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.

4. The Supervision and Licensing Methodology Department shall bring this resolution to the attention of commercial banks, the CJSC "Union of Banks of Kyrgyzstan", regional departments, and the representative office of the National Bank of the Kyrgyz Republic in the Batken region.

5. Control over the execution of this resolution is entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic L. Orozbaeva.

Chairman	T. Abdygulov

Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 23, 2015 No. 78/23

AMENDMENTS AND ADDITIONS
to certain resolutions of the Board of the National Bank of the Kyrgyz Republic

1. Make the following amendments and additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation on Economic Norms and Requirements Mandatory for Commercial Banks and Financial-Credit Institutions Licensed by the National Bank of the Kyrgyz Republic" dated July 21, 2004 No. 18/1:

in the Regulation on Economic Norms and Requirements Mandatory for Commercial Banks of the Kyrgyz Republic, approved by the aforementioned resolution:

1. in paragraph 1.1, after the words "for all commercial banks", add the words ", including commercial banks carrying out operations in accordance with Islamic principles of banking and finance, taking into account the special terminology used by them in carrying out banking operations,";

2. rephrase paragraph 4.1 as follows:

"4.1. The liquidity ratio (K3.1) must be maintained at a level of not less than 45%.";

3. rephrase paragraph 4.2 as follows:

"4.2. The liquidity ratio is determined by the formula:

K3.1 = (LA / OB) * 100%, where:

1. LA - liquid assets, which include:

• cash in the bank's vault in national and foreign currency;

• funds in correspondent accounts in the National Bank of the Kyrgyz Republic;

• funds in correspondent accounts in banks;

• interbank deposits with a maturity of 7 days;

• state treasury bills and other highly liquid securities issued by the Government of the Kyrgyz Republic and the National Bank (hereinafter - highly liquid securities). These securities in the calculation of the liquidity ratio are taken net of premium (discount) and unrealized profit (loss);

• highly liquid securities purchased under a repurchase agreement.

2. OB - bank liabilities, which for the calculation of the liquidity ratio include:

• demand deposits of legal and natural persons in national and foreign currency, as well as funds in settlements;

• the amount of a term deposit (deposit), if the terms of the contract provide for the possibility of partial replenishment and/or withdrawal of funds by the client before the expiration of the term or before the occurrence of other obligations, without the need to terminate the contract and pay a penalty interest rate, except for the non-withdrawable balance;

• any other liabilities, including bills of exchange and other securities issued by the bank, liabilities on securities sold under a reverse repurchase agreement, as well as off-balance sheet liabilities, settlements on which occur within 30 days after the reporting date.";

4. rephrase paragraph 4.4 as follows:

"4.4. Any liquid assets that serve as collateral for bank liabilities, as well as highly liquid securities sold under a repurchase agreement, are excluded from the composition of liquid assets.";

5. add paragraphs 4.8-4.17 of the following content:

"4.8. The short-term liquidity ratio (K3.2) must be maintained at a level of not less than 35%.

4.9. The short-term liquidity ratio (K3.2) is determined by the formula:

K3.2 = (HLA / STOB) * 100, where:

1. HLA - highly liquid assets, which include:

a) cash in the bank's vault in national and foreign currency;

b) funds in the correspondent and other accounts in the National Bank of the Kyrgyz Republic;

c) funds in correspondent accounts in banks having a long-term credit rating of not less than category "BB", assigned by the rating agency "Standard & Poor's" (USA) or an equivalent credit rating assigned by other international rating agencies, excluding affiliated banks;

d) deposits in banks having a long-term credit rating of not less than category "BB", assigned by the rating agency "Standard & Poor's" (USA) or an equivalent credit rating assigned by other international rating agencies, excluding affiliated banks, if the terms of the contract provide for the possibility of withdrawal of the deposit within 7 days;

e) notes of the National Bank of the Kyrgyz Republic;

f) state securities issued by the Government of the Kyrgyz Republic with a maturity of up to 7 days;

g) the share of state securities issued by the Government of the Kyrgyz Republic (excluding state securities specified in sub-paragraph "f" of paragraph 4.9 of this Regulation), in an amount not exceeding 50% of the total amount of liabilities to the Social Fund of the Kyrgyz Republic;

h) highly liquid securities purchased under a repurchase agreement.

2. STOB - short-term liabilities:

a) demand deposits of legal and natural persons in national and foreign currency, funds in settlements;

b) the amount of a term deposit (deposit), if the terms of the contract provide for the possibility of partial replenishment and/or withdrawal of funds by the client before the expiration of the term or before the occurrence of other obligations, without the need to terminate the contract and pay a penalty interest rate, except for the non-withdrawable balance;

c) other liabilities, including off-balance sheet ones, settlements on which occur within 7 days;

d) 50% of the total amount of liabilities to the Social Fund of the Kyrgyz Republic, not included in paragraphs "a"-"c" of this sub-paragraph.

4.10. Any liquid assets that serve as collateral for bank liabilities, as well as highly liquid securities sold under a repurchase agreement, are excluded from the composition of liquid assets.

4.11. In order to reduce the risk of short-term liquidity, the bank's management must carry out daily asset and liability management. The bank must comply with the short-term liquidity ratio during the reporting week (7 calendar days) based on weekly average data, including working days, weekends, and holidays. When calculating weekly average data, daily data as of the end of the business day are taken into account. Average indicators are calculated using the arithmetic mean method.

4.12. The instant liquidity ratio (K3.3) must be maintained by banks whose deposit base (accounts of legal entities, natural persons, and the Social Fund of the Kyrgyz Republic) constitutes 8% or more of the deposit base of the banking system as a whole.

4.13. The instant liquidity ratio (K3.3) is determined by the formula:

K3.3 = (HLA / STOB) * 100%, where:

1. HLA - highly liquid assets:

• cash in the bank's vault in national and foreign currency, excluding funds in ATMs;

• funds in the correspondent and other accounts in the National Bank of the Kyrgyz Republic;

• funds in correspondent accounts in banks having a long-term credit rating of not less than category "BB", assigned by the rating agency "Standard & Poor's" (USA) or an equivalent credit rating assigned by other international rating agencies, excluding affiliated banks;

2. STOB - short-term liabilities:

• demand deposits of legal and natural persons in national and foreign currency, funds in settlements;

• other liabilities, including off-balance sheet ones, settlements on which occur during the reporting business day.

4.14. In order to reduce liquidity risk, the bank's management must carry out daily asset and liability management. The bank must comply with the instant liquidity ratio at the end of the reporting business day.

4.15. The bank's risk management policy must contain provisions on the management of short-term and instant liquidity risk, which must include at least the following:

• daily measurement and monitoring of fund inflows and outflows, as well as daily monitoring of maturity gaps in highly liquid assets and short-term bank liabilities to control daily needs for short-term and instant liquidity and ensure fulfillment of short-term obligations;

• forecasting of the required short-term and instant liquidity;

• structure and assessment of the stability of the deposit base;

• cost of resources;

• ability to borrow in the money market;

• asset quality;

• fulfillment of off-balance sheet obligations;

• liquidity crisis planning;

• liquidity management in foreign currencies;

• internal control over the management of short-term and instant liquidity risk;

• necessary managerial reporting.

4.16. The list of banks required to comply with the instant liquidity ratio (K3.3), as well as the value of the ratio (K3.3) for a specific bank, is established by the Supervision Committee of the National Bank of the Kyrgyz Republic.

4.17. The ratios (K3.1), (K3.2), and (K3.3) do not apply to the State Development Bank of the Kyrgyz Republic.";

6. rephrase paragraph 11.1 as follows:

"11.1. The total amount of the bank's investments in securities of Governments and Central Banks of member states of the Organization for Economic Cooperation and Development (OECD) must not exceed 100% of the size of the bank's total net capital. The list of OECD member states is posted on the official website www.oecd.org.";

7. in the name of section 13, after the words "economic norms", add the words "and support of the bank's additional capital reserve (indicator 'capital buffer')";

8. rephrase paragraph 13.1 as follows:

"13.1. Banks must comply with all economic norms on a daily basis (except for the liquidity ratio, the short-term liquidity ratio, and the maximum risk size ratio for demand deposits of natural persons). Liquidity ratios and the maximum risk size ratio for demand deposits of natural persons are complied with during the reporting period (one month). The short-term liquidity ratio is complied with during the reporting period (one week). Banks must maintain the bank's additional capital reserve (indicator 'capital buffer') on a daily basis.

Verification of compliance by banks with economic norms and requirements, support of the bank's additional capital reserve (indicator 'capital buffer'), which must be calculated daily/weekly, may be carried out as of any date based on the balance sheet.";

9. recognize Note 4 as having lost force;

10. in [Appendix 1]:

• in the first table:

• rephrase the row "Name of economic norms and requirements" as follows:

"| | | | | | |

---	---	---	---	---	---
Name of economic norms and requirements, additional capital reserve of the bank (indicator 'capital buffer')	Designation	Calculation of the ratio and additional capital reserve of the bank (indicator 'capital buffer')	Actual value of the ratio and additional capital reserve of the bank (indicator 'capital buffer')	Established value of the ratio and additional capital reserve of the bank (indicator 'capital buffer')	Deviation from the established ratio and additional capital reserve of the bank (indicator 'capital buffer')

";

• rephrase the row "Liquidity Ratio" as follows:

"| | | | | | |

---	---	---	---	---	---
Liquidity Ratio	K3.1	LA ----- ---- OB		not less than 45%

";

• add the tenth row of the following content:

"| | | | | | |

---	---	---	---	---	---
Additional capital reserve of the bank (indicator 'capital buffer')		TNC ----- ---- TNA		not less than __% (indicate value)

";

• in the second table:

• replace the row "Ratio K3 = LA / OB" with the row "Ratio K3.1 = (LA / OB) * 100%";

• add tables "G and D" of the following content:

"G. Report on Compliance with the Short-Term Liquidity Ratio (K3.2)

Date	K3.2
HLA	STOB	Actual Value
dd.mm.yyyy
dd.mm.yyyy
dd.mm.yyyy
...
Weekly Average

position	signature	surname, first name, patronymic
__________________________	___________________	______________________________

D. Daily Report on Compliance with the Instant Liquidity Ratio (K3.3)

Date	K3.3
HLA	STOB	Actual Value
1.10.20__ y.
2.10.20__ y.
3.10.20__ y.
...
...
...
30.10.20__ y.

position	signature	surname, first name, patronymic
__________________________	___________________	______________________________";

11. in [Appendix 2]:

• in the name of the table, after the words "economic norms", add the words "and support of the bank's additional capital reserve (indicator 'capital buffer');

• in the table:

• rephrase the row

"| | | |

---	---	---
Bank Liquidity Ratio (K3)	not less than 30%

"

as follows:

"| | | |

---	---	---
Bank Liquidity Ratio (K3.1)	not less than 45%

";

• add the twelfth row of the following content:

"| | | | | | |

---	---	---	---	---	---
Additional capital reserve of the bank (indicator 'capital buffer')		TNC ----- ---- TNA		not less than __% (indicate value)

".

2. Make the following additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the New Edition of the Instruction on Determining Capital Adequacy Standards for Commercial Banks of the Kyrgyz Republic" dated July 21, 2004 No. 18/2:

in the Instruction on Determining Capital Adequacy Standards for Commercial Banks of the Kyrgyz Republic, approved by the aforementioned resolution:

Add the Instruction with paragraphs 2.4-2.6 of the following content:

"2.4. In order to preserve the financial stability of the bank and the stability of its activities, a requirement is established for supporting the 'additional capital reserve of the bank' (indicator 'capital buffer') for dividend payments. The 'capital buffer' indicator is determined similarly to the calculation of the total capital adequacy coefficient. The value of the 'capital buffer' is set at 18%. For banks whose share of customer deposits and loans constitutes 8% and more, respectively, of the total amount of customer deposits and loans of the banking system as a whole, the requirement to maintain the 'capital buffer' at a level of not less than 20% is established by the Supervision Committee of the National Bank.

For the purposes of this paragraph, 'deposits' are understood as accounts of legal entities, natural persons, and the Social Fund of the Kyrgyz Republic.

2.5. Until the established values of the 'capital buffer' indicator are reached, the bank has no right to pay dividends.

2.6. Upon reaching the established values of the 'capital buffer' indicator, the bank has no right to pay dividends without obtaining written consent from the National Bank.".

3. Make the following additions to the Resolution of the National Bank of the Kyrgyz Republic "On Approval of the Instruction on Determining Capital Adequacy Standards for Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance" dated December 28, 2009 No. 51/4:

in the Instruction on Determining Capital Adequacy Standards for Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance, approved by the aforementioned resolution:

Add the Instruction with paragraphs 9-1-9-3 of the following content:

"9-1. In order to preserve the financial stability of the bank and the stability of its activities, a requirement is established for supporting the 'additional capital reserve of the bank' (indicator 'capital buffer') for dividend payments. The 'capital buffer' indicator is determined similarly to the calculation of the total capital adequacy coefficient. The value of the 'capital buffer' is set at 18%. For banks whose share of deposits and financing constitutes 8% and more, respectively, of the total amount of customer deposits and financing of the banking system as a whole, the requirement to maintain the 'capital buffer' at a level of not less than 20% is established by the Supervision Committee of the National Bank.

For the purposes of this paragraph, 'deposits' are understood as accounts of legal entities, natural persons, and the Social Fund of the Kyrgyz Republic.

9-2. Until the established values of the 'capital buffer' indicator are reached, the bank has no right to pay dividends.

9-3. Upon reaching the established values of the 'capital buffer' indicator, the bank has no right to pay dividends without obtaining written consent from the National Bank.".

4. Make the following amendments and additions to the Resolution of the National Bank of the Kyrgyz Republic "On Approval of the New Edition of the Regulation 'On Classification of Assets and Corresponding Provisions for Potential Losses and Write-offs'" dated July 21, 2004 No. 18/3:

in the Regulation "On Classification of Assets and Corresponding Provisions for Potential Losses and Write-offs", approved by the aforementioned resolution:

1. supplement paragraph 4.3.2 with the eleventh paragraph of the following content:

"- repeated restructuring of a loan by converting the currency of this loan from foreign currency to national currency in the event that this loan previously did not belong to the category of 'classified loans' and provided that the restructuring is not associated with a deterioration in the financial condition of the client.";

2. supplement the Regulation with paragraph 4.3.5 of the following content:

"4.3.5. In the event that the repayment schedule of an existing loan provides for repayment of the principal amount not on a monthly basis, provided that the loan maturity is more than two years (from the date of entry into force of this norm) and in the event of prolongation of such a loan (from the date of entry into force of this norm), such a loan, provided that there is no deterioration in asset quality, must be classified as 'asset under supervision', with the formation of a provision for potential losses and write-offs (PPLW) in the amount of 15% within 6 months from the moment of entry into force of the Resolution of the Board of the National Bank (approval of this norm), except for loans:

---

• loans issued under targeted state programs of the Government of the Kyrgyz Republic providing for a grace period for loan repayment;

• with an amount less than 1% of Core Capital (CK), where the repayment schedule provides for the repayment of the majority of the principal amount (more than 80%) at the end of the loan term (7/8 of the total loan term);

• interbank placements, including loans issued to microfinance organizations;

• belonging to the category of "classified" assets.

After the entry into force of this norm, all loans, including all tranches issued under one credit line, issued before the entry into force of this norm, must be classified in accordance with the above requirement."

3. Supplement the Regulation with paragraph 5.1.3 of the following content:

"5.1.3. In the event that the repayment schedule of a newly issued loan provides for repayment of the principal amount not on a monthly basis, such a loan must be classified as "substandard", with the formation of a Provision for Potential Losses (PPL) in the amount of 25%, except for loans:

• issued under targeted state programs of the Government of the Kyrgyz Republic providing for a grace period for loan repayment;

• with an amount less than 1% of Core Capital (CK), where the repayment schedule provides for the repayment of the majority (more than 80%) of the principal amount at the end of the loan term (7/8 of the total loan term);

• interbank loans, including loans issued to microfinance organizations;

• belonging to the category of "classified" assets.

After the entry into force of this norm, all newly issued loans, including all tranches issued under one credit line, must be classified in accordance with the above requirement."

4. Redraft paragraph 7.1 as follows:

"7.1. Re-restructured loans, in the presence of regular repayments of the principal amount and interest on it over the last six months, must be immediately classified as "substandard", with the PPL amount being 15%, until confirmation of:

• the presence of stable payment flows for the principal amount of the asset and interest on it for 180 days in accordance with the terms of the real restructuring plan;

• satisfactory condition of the borrower ensuring the repayment of debt in accordance with the restructuring plan.

An exception is the re-restructuring specified in paragraph 4.3.2 of this Regulation."

5. Redraft paragraph 13.4 as follows:

"13.4. The National Bank establishes the following sizes of contributions to the Provision for Potential Losses (PPL) for assets:

General Reserves		Special Reserves
Normal	0%	Substandard	15%/25%;
Satisfactory	2/2.5%	Doubtful	50%;
Assets under supervision	5/10/15%	Loss	100%.

For "satisfactory" assets, the bank must form a PPL in the amount of 2%, except for assets specified in subparagraph 4.2.3 of paragraph 4.2 of this Regulation, for which the PPL amount must be 2.5%.

For "assets under supervision", the bank must form a PPL in the amount of 5%, except for assets specified in subparagraph 4.3.4 of paragraph 4.3 of this Regulation, for which the PPL amount must be 10%.

The State Development Bank of the Kyrgyz Republic forms and accrues PPL in accordance with the Law "On the State Development Bank of the Kyrgyz Republic"."

5. Make the following additions and changes to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" dated December 28, 2009 No. 51/6:

in the Regulation "On the Classification of Assets and Corresponding Contributions to the Reserve for Covering Potential Losses and Losses in the Conduct of Operations in Accordance with Islamic Principles of Banking and Finance", approved by the above-mentioned Resolution:

1. Supplement paragraph 23 with the thirteenth paragraph of the following content:

"- re-restructuring of an asset by converting the currency of this asset from foreign currency to national currency in the event that this asset did not previously belong to the category of "classified assets" and at the same time the restructuring is not associated with a deterioration in the financial condition of the client.";

2. Supplement the Regulation with paragraph 23-3 of the following content:

"23-3. In the event that the repayment schedule of an existing asset carrying credit risk provides for repayment of the principal amount not on a monthly basis, at the same time the repayment term of the asset is more than two years (from the date of entry into force of this norm) and in the event of prolongation of such an asset (from the date of entry into force of this norm), then for such an asset, provided that no deterioration in asset quality is observed, it is necessary to increase the PPL by 2% every six months from the moment of entry into force of the Resolution of the Board of the National Bank (upon approval of this norm), except for assets:

• issued under targeted state programs of the Government of the Kyrgyz Republic providing for a grace period for asset repayment;

• with an amount less than 1% of Core Capital (CK), where the repayment schedule provides for the repayment of the majority of the principal amount (more than 80%) at the end of the asset term (7/8 of the total asset term);

• with an amount less than 10% of Core Capital (CK) under mudaraba, shariika, and istisna contracts, where the repayment schedule provides for the repayment of the majority of the principal amount (more than 80%) at the end of the asset term (7/8 of the total asset term);

• interbank placements, including assets issued to microfinance organizations;

• belonging to the category of "classified" assets.

After the entry into force of this norm, for all assets, including all tranches within one credit line, issued before the entry into force of this norm, it is necessary to create a PPL in accordance with the above requirement."

3. Supplement the Regulation with paragraph 24-1 of the following content:

"24-1. In the event that the repayment schedule of a newly issued asset carrying credit risk provides for repayment of the principal amount not on a monthly basis, then for such an asset, provided that no deterioration in asset quality is observed, it is necessary to increase the PPL by 2% every six months, except for assets:

• issued under targeted state programs of the Government of the Kyrgyz Republic providing for a grace period for asset repayment;

• with an amount less than 1% of Core Capital (CK), where the repayment schedule provides for the repayment of the majority (more than 80%) of the principal amount at the end of the asset term (7/8 of the total asset term);

• with an amount less than 10% of Core Capital (CK) under mudaraba, shariika, and istisna contracts, where the repayment schedule provides for the repayment of the majority of the principal amount (more than 80%) at the end of the asset term (7/8 of the total asset term);

• interbank assets, including assets issued to microfinance organizations;

• belonging to the category of "classified" assets.

After the entry into force of this norm, for all newly issued assets, including all tranches within one credit line, it is necessary to create a PPL in accordance with the above requirement."

4. Redraft paragraph 33 as follows:

"33. Re-restructured assets, in the presence of regular repayments of the principal amount and interest on it over the last six months, must be immediately classified as "substandard", with the PPL amount being 15%, until confirmation of:

• the presence of stable payment flows for the principal amount of the asset and interest on it for 180 days in accordance with the terms of the real restructuring plan;

• satisfactory condition of the client ensuring the repayment of debt in accordance with the restructuring plan.

An exception is the re-restructuring specified in paragraph 23 of this Regulation."

5. Redraft paragraph 47 as follows:

"47. The National Bank establishes the following sizes of contributions to the Provision for Potential Losses (PPL) for assets:

General Reserves		Special Reserves
Normal	0%	Substandard	15%/25%;
Satisfactory	2/2.5%	Doubtful	50%;
Assets under supervision	5/10%	Loss	100%.

For "satisfactory" assets, the bank must form a PPL in the amount of 2%, except for assets specified in paragraph 22-1 of this Regulation, for which the PPL amount must be 2.5%.

For "assets under supervision", the bank must form a PPL in the amount of 5%, except for assets specified in paragraph 23-2 of this Regulation, for which the PPL amount must be 10%."

6. Make the following changes and additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic" dated August 25, 2005 No. 26/5:

in the Regulation on the Periodic Regulatory Bank Report, approved by the above-mentioned Resolution:

1. in Appendix 1:

• in the table "Composition of the Periodic Regulatory Bank Report", line 18 is redrafted as follows:

"

18	Section 14	Information on compliance with economic standards and support for the bank's additional capital reserve (indicator "capital buffer")	Monthly	Within 12 calendar days from the end of the reporting period	Appendix No. 1 of the Regulation on economic standards and requirements mandatory for commercial banks and FCU licensed by the National Bank, approved by the Resolution of the Board of the National Bank No. 18/1 dated 21.07.04, reg. number MJ No. 93-04 dated 23.08.04
A. Daily report on compliance with the maximum risk size standard for term deposits and other liabilities to individuals (K5.1)	Daily	By 9:00 as of the end of the last operating day
B. Report on compliance with the maximum risk size standard for demand deposits of individuals (K5.2)	Monthly
C. Report on fulfillment of National Bank requirements	Monthly
D. Report on compliance with the short-term liquidity standard (K3.2)	Weekly	By 9:00 on the first working day of the week following the reporting week
E. Daily report on compliance with the instant liquidity standard (K3.3)	Daily	By 9:00 as of the end of the last operating day

";

2. in Appendix 2:

• in the name of Section 14, after the words "economic standards", add the words "and support for the bank's additional capital reserve (indicator "capital buffer")";

• in Section 14:

• redraft the line "Liquidity Standard" as follows:

"

Liquidity Standard	K3.1	LA ---- ---- OB		not less than 45% -

";

• supplement with the tenth line of the following content:

"

Additional capital reserve of the bank (indicator "capital buffer")		CK ---- ---- CRA		not less than __% (indicate value)

";

• supplement Section 14 with Section 14G "Section 14G Report on Compliance with the Short-Term Liquidity Standard (K3.2)" and Section 14D "Section 14D Daily Report on Compliance with the Instant Liquidity Standard (K3.3)" of the following content:

"SECTION 14G
REPORT ON COMPLIANCE WITH THE SHORT-TERM LIQUIDITY STANDARD (K3.2)

Date	K3.2
LA	OB	Actual Value
dd.mm.yyyy
dd.mm.yyyy
dd.mm.yyyy
...
Weekly Average

position	signature	surname, first name, patronymic
__________________________	___________________	______________________________

SECTION 14D
DAILY REPORT ON COMPLIANCE WITH THE INSTANT LIQUIDITY STANDARD (K3.3)

Date	K3.3
LA	OB	Actual Value
1.10.20__
2.10.__
3.10.__
...
...
...
30.10.20__

position	signature	surname, first name, patronymic
__________________________	___________________	______________________________".

7. Make the following changes to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On the Periodic Regulatory Report of Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance" dated March 30, 2011 No. 20/4:

in the Regulation "On the Periodic Regulatory Report of Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Finance", approved by the above-mentioned Resolution:

1. in Appendix 1, redraft line 18 as follows:

"

18	Section 14	Information on compliance with economic standards and support for the bank's additional capital reserve (indicator "capital buffer")			Appendix No. 1 of the Regulation on economic standards and requirements mandatory for commercial banks and FCU licensed by the NBRK, approved by the Resolution of the Board of the NBRK No. 18/1 dated 21.07.04, reg. number MJ No. 93-04 dated 23.08.04
A. Daily report on compliance with the maximum risk size standard for one borrower	Daily	By 9:00 as of the end of the last operating day
B. Report on compliance with the economic capital adequacy standard and liquidity standard	Monthly	Within 12 calendar days from the end of the reporting period
C. Daily report on compliance with the maximum risk size standard for term accounts and other liabilities to individuals	Daily	By 9:00 as of the end of the last operating day
D. Report on compliance with the maximum risk size standard for demand accounts of individuals	Monthly
E. Report on fulfillment of NBRK requirements	Monthly
F. Report on compliance with the short-term liquidity standard (K3.2)	Weekly	By 9:00 on the first working day of the week following the reporting week
G. Daily report on compliance with the instant liquidity standard (K3.3)	Daily	By 9:00 as of the end of the last operating day

";

2. in Appendix 2:

• in the name of Section 14, after the words "economic standards", add the words "and support for the bank's additional capital reserve (indicator "capital buffer")";

• in the name of table B. of Section 14, supplement the words "liquidity standard" with the words "and support for the bank's additional capital reserve (indicator "capital buffer")";

• in table B. of Section 14, redraft the line "Liquidity Standard" as follows:

"

Liquidity Standard	K3.1	LA ---- ---- OB		not less than 45% -

";

• supplement table B. of Section 14 with the sixth line of the following content:

"

Additional capital reserve of the bank (indicator "capital buffer")		CK ---- ---- CRA		not less than __% (indicate value)

";

• supplement with tables 14.E. "Report on Compliance with the Short-Term Liquidity Standard (K3.2)" and 14.G. "Daily Report on Compliance with the Instant Liquidity Standard (K3.3)" of the following content:

"14.E. REPORT ON COMPLIANCE WITH THE SHORT-TERM LIQUIDITY STANDARD (K3.2)

Date	K3.2
LA	OB	Actual Value
dd.mm.yyyy
dd.mm.yyyy
dd.mm.yyyy
...
Weekly Average

position	signature	surname, first name, patronymic
__________________________	___________________	______________________________

14.G. DAILY REPORT ON COMPLIANCE WITH THE INSTANT LIQUIDITY STANDARD (K3.3)

Date	K3.3
LA	OB	Actual Value
1.10.20__
2.10.20__
3.10.20__
...
...
...
30.10.20__

position	signature	surname, first name, patronymic
__________________________	___________________	______________________________".