Regulatory Alerts2017-06-15 | 133311Added · Updated
Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic
The National Bank of the Kyrgyz Republic establishes economic norms and restrictions for credit unions, including a minimum savings share of 1,000 som and a maximum share limit of 10% of total paid shares. Credit unions must adhere to specific risk and liquidity ratios, such as a maximum single borrower risk of 20% of total capital, a liquidity ratio of at least 2% for non-deposit-taking unions and 15% for those accepting deposits, and capital adequacy ratios of 10% for institutional capital and 15% for total capital. Deposit-taking unions face stricter requirements, including a deposit base limit of 450% of institutional capital and an institutional capital adequacy ratio of 12%. Credit unions are prohibited from investing in securities or capital of non-licensed entities, except for treasury bills and licensed financial organizations, and must report compliance to the National Bank.