Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic

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Date of creation: 2026-08-04

Registered in the Ministry of Justice of the Kyrgyz Republic

June 6, 2005. Registration number 73-05

Approved

by the resolution of the Board of the National Bank of the Kyrgyz Republic

of May 4, 2005 No. 14/2

RULES

for regulating the activities of credit unions in the Kyrgyz Republic

(In the edition of the resolutions of the Board of the NBKR of December 15, 2005 No. 37/6, March 2, 2006 No. 5/8, August 9, 2006 No. 24/5, May 11, 2007 No. 25/2, November 5, 2008 No. 40/7, October 28, 2009 No. 43/5, May 26, 2010 No. 36/15, April 25, 2012 No. 18/9, December 12, 2012 No. 48/10, December 21, 2012 No. 50/7, April 24, 2013 No. 13/10, October 23, 2013 No. 39/4, January 20, 2016 No. 4/5, January 20, 2016 No. 4/6, February 10, 2016 No. 7/2, June 15, 2017 No. 2017-P-12/25-12, August 15, 2018 No. 2018-P-33/33-8, August 21, 2019 No. 2019-P-33/43-8, June 15, 2022 No. 2022-P-33/37-2, October 5, 2022 No. 2022-P-33/61-3, December 21, 2022 No. 2022-P-12/81-7, January 22, 2025 No. 2025-P-12/2-3-(NFKU), December 19, 2025 No. 2025-P-12/68-2-(NPA), December 24, 2025 No. 2025-P-12/69-5-(NFKU))

I. General Provisions

1.1. (Lost force in accordance with the resolution of the Board of the NBKR of June 15, 2017 No. 2017-P-12/25-12)

1.2. The National Bank of the Kyrgyz Republic (hereinafter - the National Bank), in accordance with the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the laws of the Kyrgyz Republic "On Banks and Banking Activity", "On Credit Unions" and other normative legal acts of the Kyrgyz Republic, establishes economic norms, requirements and restrictions mandatory for all credit unions to comply with, in order to maintain a stable financial system and protect the interests of credit union participants.

(In the edition of the resolution of the Board of the NBKR of December 21, 2022 No. 2022-P-12/81-7)

1.3. The National Bank establishes the following economic norms, requirements and restrictions to reduce risks in the activities of credit unions:

on the minimum size of the capital of a credit union and the procedure for its formation;
on the minimum size of the savings share of a credit union participant;
on the terms of providing loans to credit union participants;
on borrowing funds from external sources;
on investing the funds of a credit union;
on reserves created by credit unions;
on the nature, volume, list of forms and deadlines for providing reporting.

1.3.-1. In the presence of a license from the National Bank to carry out operations in foreign currency with credit union participants, for credit unions having a license to attract deposits, limits are established:

net currency position for each foreign currency;
total currency position.

The procedure for calculating currency position limits is determined by the National Bank.

(In the edition of the resolution of the Board of the NBKR of October 23, 2013 No. 39/4)

1.3.-2. Credit unions may carry out operations (transactions) for the exchange of foreign currency with individuals and legal entities in the presence of the corresponding license of the National Bank. At the same time, operations (transactions) for the exchange of foreign currency must be carried out in accordance with the requirements of the legislation on combating the financing of criminal activities and the legalization (money laundering) of criminal proceeds, as well as the requirements of other normative legal acts of the Kyrgyz Republic.

(In the edition of the resolutions of the Board of the NBKR of October 23, 2013 No. 39/4, February 10, 2016 No. 7/2, August 21, 2019 No. 2019-P-33/43-8, December 19, 2025 No. 2025-P-12/68-2-(NPA))

1.4. Credit unions may establish higher economic norms and restrictions for additional risk reduction, without violating the values of norms and restrictions established by these Rules and other normative acts of the National Bank.

II. Terms and Definitions

Total capital is the sum of institutional and equity capital of a credit union.

Institutional capital is the part of total capital that consists of reserves for future needs, undistributed profit/losses of previous years minus the current year's losses.

Equity capital includes the sum of savings shares contributed by credit union participants for a period of 1 year or more and having a special withdrawal period. The withdrawal period for such shares occurs after the end of the financial year, provided that the participant submits an application no later than six months before the end of the financial year (by July 1 of the current year).

(Paragraph lost force in accordance with the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

(In the edition of the resolutions of the Board of the NBKR of October 28, 2009 No. 43/5, June 15, 2022 No. 2022-P-33/37-2)

III. Compliance with Economic Norms and Restrictions

3.1. Credit unions are obliged to comply with economic norms, requirements and restrictions established by the National Bank:

(In the edition of the resolution of the Board of the NBKR of March 2, 2006 No. 5/8)

3.1.1. Requirements and restrictions imposed on credit unions:

minimum size of the savings share of a participant at the establishment of a credit union;
maximum permissible size of the savings share of a credit union participant;
minimum size of the capital of a credit union;
maximum size of the deposit base.

3.1.2. Economic norms regulating the activities of credit unions:

norm of the maximum size of external borrowings (H1);
norm of the maximum size of risk for one borrower (H2);
norm of the maximum size of investments in the capital of financial and credit organizations (H3);
norm of the maximum size of investments in fixed assets (H4);
norm (indicator) of liquidity (H5);
norm of capital adequacy (H6).

(In the edition of the resolution of the Board of the NBKR of June 15, 2017 No. 2017-P-12/25-12)

3.1.3. The economic norms specified in sub-item 3.1.2, except for the norm of the maximum size of risk for one borrower and the norm (indicator) of liquidity, do not apply to credit unions that do not attract deposits from their participants and do not have indebtedness to JSC "Financial Company of Credit Unions" (hereinafter - FKKS). By the time of submitting an application for a license to attract deposits from their participants and/or by the time of obtaining a loan from FKKS, credit unions must bring their activities into compliance with the economic norms of the National Bank established in sub-item 3.1.2.

(In the edition of the resolutions of the Board of the NBKR of March 2, 2006 No. 5/8, August 9, 2006 No. 24/5, December 12, 2012 No. 48/10, June 15, 2017 No. 2017-P-12/25-12, December 24, 2025 No. 2025-P-12/69-5-(NFKU))

3.2. (Lost force in accordance with the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

3.3. The value of the norm (indicator) of liquidity (H5) is determined separately by credit unions not attracting deposits (H5-1) and those attracting deposits (H5-2).

IV. Values of Requirements and Restrictions Imposed on Credit Unions

4.1. The minimum size of the savings share contributed by a participant upon joining a credit union must be not less than 1,000 (One thousand) som.

4.2. The maximum permissible size of the savings share of one participant may not exceed 10% of the sum of all paid savings shares of the credit union.

4.3. (Lost force in accordance with the resolution of the Board of the NBKR of October 5, 2022 No. 2022-P-33/61-3)

4.4. For credit unions holding a license to attract deposits (deposits) from participants of the credit union, the maximum size of the deposit base must not exceed 450% of the size of institutional capital.

(In the edition of the resolution of the Board of the NBKR of May 11, 2007 No. 25/2)

4.5. For credit unions holding a license to attract deposits (deposits) from participants of the credit union, the ratio of the total indebtedness on the principal amount of loans overdue on the principal amount and/or interest to the loan portfolio must not exceed 5%.

(In the edition of the resolution of the Board of the NBKR of November 5, 2008 No. 40/7)

V. Procedure for Calculating Economic Norms

5.1. The norm of the maximum size of external borrowings of a credit union (H1) represents the maximum volume of external borrowings that a credit union can obtain.

When calculating the norm of the maximum size of external borrowings of a credit union, the borrowings of the credit union provided for by the Law of the Kyrgyz Republic "On Credit Unions" are included in the sum of external borrowings, as well as borrowings under state programs.

(Paragraph lost force in accordance with the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

(In the edition of the resolutions of the Board of the NBKR of December 15, 2005 No. 37/6, August 9, 2006 No. 24/5, May 11, 2007 No. 25/2, October 28, 2009 No. 43/5, June 15, 2022 No. 2022-P-33/37-2)

5.1.1. (Lost force in accordance with the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.1.2. For credit unions during the first year of activity, as well as for credit unions attracting borrowings under state programs, the norm of the maximum size of external borrowings (H1) is determined by the formula:

H1 ≤ SK x 4

The value of the norm of the maximum size of external borrowings (H1) must not exceed four times the size of total capital.

(In the edition of the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.1.3. The norm of the maximum size of external borrowings does not apply to credit unions operating for more than 1 year and/or having a license to attract deposits from participants.

(In the edition of the resolutions of the Board of the NBKR of May 26, 2010 No. 36/15, June 15, 2022 No. 2022-P-33/37-2)

5.2. Norm of the maximum size of risk for one borrower (H2).

5.2.1. Within the framework of these Rules, a borrower is understood as a participant of a credit union or participants of a credit union related to each other, having indebtedness on loans to the credit union.

(In the edition of the resolution of the Board of the NBKR of October 28, 2009 No. 43/5)

5.2.2. (Lost force in accordance with the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.2.3. The norm of the maximum size of risk for one borrower (H2.2) is determined by the formula:

H2 = MK / SK x 100 ≤ 20%,

where:

MK - maximum size of total indebtedness on loans issued to one borrower; SK - total capital of the credit union.

The value of the norm of maximum risk for one borrower (H2) must not exceed 20% of total capital.

(In the edition of the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.2.4. Credit unions that do not attract deposits from their participants and do not have indebtedness to FKKS must establish the maximum size of risk for one borrower in their credit policy, which is approved by the General Meeting of participants.

(In the edition of the resolutions of the Board of the NBKR of August 9, 2006 No. 24/5, December 12, 2012 No. 48/10)

5.2.5. A credit union is prohibited from issuing loans to participants for contribution to the capital of the credit union. A credit union must issue loans based on an analysis of the potential ability of the participant to repay them. This potential is determined by analyzing the profitability of the use of credit funds by the participant and the ability of the participant to generate cash flows sufficient to repay the loan.

(In the edition of the resolution of the Board of the NBKR of August 9, 2006 No. 24/5)

5.2.6. A credit union is prohibited from repaying loan indebtedness at the expense of the savings share of a credit union participant, except in cases provided for by the Law of the Kyrgyz Republic "On Credit Unions".

5.2.7. All indebtedness of individual borrowers when calculating the H2 norm must be summed up and considered as risk for one borrower if the non-repayment of indebtedness by one borrower inevitably entails problems with the repayment of indebtedness by another borrower. In this case, when considering the indebtedness of various borrowers for the purpose of summing them up as a single risk, the degree of interconnection of borrowers should be taken into account:

by the type of economic activity of credit union participants (for example, the business of one participant is linked by common interests or controlled by another participant of the credit union);
by the source of loan repayment (for example, several borrowers are linked by one business or jointly conduct household activities);
by the collateral for the loan (for example, a single collateral is provided as security for loans of several participants of the credit union).

5.3. Norm of the maximum size of investments in the capital of financial and credit organizations licensed by the National Bank (H3).

(In the edition of the resolution of the Board of the NBKR of June 15, 2017 No. 2017-P-12/25-12)

5.3.1. A credit union may carry out investments in the capital of financial and credit organizations licensed by the National Bank.

(In the edition of the resolution of the Board of the NBKR of June 15, 2017 No. 2017-P-12/25-12)

5.3.2. A credit union is prohibited from carrying out investments in securities and capital of legal entities, except for investments in the capital of financial and credit organizations licensed by the National Bank, as well as investments in treasury bills and other highly liquid securities issued by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank.

(In the edition of the resolutions of the Board of the NBKR of June 15, 2017 No. 2017-P-12/25-12, December 21, 2022 No. 2022-P-12/81-7)

5.3.3. The sum of investments of a credit union in the capital of financial and credit organizations licensed by the National Bank must not exceed 15% of total capital.

The norm of the maximum size of investments in the capital of financial and credit organizations (H3) is determined by the formula:

H3 = SI / SK x 100 ≤ 15%,

where:

SI - total sum of investments in the capital of financial and credit organizations supervised by the National Bank, excluding investments in the capital of FKKS; SK - total capital of the credit union.

(In the edition of the resolutions of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2, January 22, 2025 No. 2025-P-12/2-3-(NFKU))

5.3.4. (Lost force in accordance with the resolution of the Board of the NBKR of December 24, 2025 No. 2025-P-12/69-5-(NFKU))

5.4. Norm of the maximum size of investments in fixed assets (H4).

5.4.1. A credit union may invest free funds not used for lending into fixed assets.

(In the edition of the resolution of the Board of the NBKR of October 28, 2009 No. 43/5)

5.4.2. The norm of the maximum size of investments in fixed assets (H4) is determined by the formula:

H4 = OS / SK x 100 ≤ 20%,

where:

OS - sum of investments in fixed assets (excluding fixed assets received as grants and donations); SK - total capital of the credit union.

Total investments of a credit union in fixed assets, such as buildings, land, furniture and equipment (excluding fixed assets received as grants and donations), which are necessary for the credit union to conduct its economic activity, cannot exceed 20% of total capital.

(In the edition of the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.4.3. (Excluded in accordance with the resolution of the Board of the NBKR of March 2, 2006 No. 5/8)

5.5. Norm (indicator) of liquidity (H5).

5.5.1. For credit unions not attracting deposits, the norm (indicator) of liquidity (H5-1) is determined by the following formula:

H5-1 = LA / OB x 100 ≥ 2%, where:

liquid assets of the credit union, including:

cash in the cash register of the credit union;
cash in settlement and deposit accounts in banks;
treasury bills and other highly liquid securities issued by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank, minus pledged;

all obligations of the credit union, except for reserves for dividends of the current and previous years and income of future periods.

The value of the norm (indicator) of liquidity (H5-1) for credit unions not attracting deposits must be not less than 2%.

(In the edition of the resolutions of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2, December 21, 2022 No. 2022-P-12/81-7)

5.5.2. For credit unions attracting deposits from participants, the norm (indicator) of liquidity (H5-2) is determined by the following formula:

H5-2 = (LA - KOB) / (D + SP) x 100 ≥ 15%, where:

liquid assets of the credit union, including:

cash in the cash register of the credit union;
cash in settlement and deposit accounts in banks;
treasury bills and other highly liquid securities issued by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank, minus pledged;

KOB

short-term obligations of the credit union, the settlement of which will be carried out within 30 days after the reporting date;

deposits of the credit union, the term of payment of which is more than 30 days;

savings shares with a withdrawal term of up to 12 months and for withdrawal minus deposits with a payment term of within 30 days after the reporting date.

For credit unions attracting deposits from participants, the value of the norm (indicator) of liquidity (H5-2) must be not less than 15%.

For the purpose of liquidity risk management, credit unions attracting deposits from their participants must calculate the norm (indicator) of liquidity on a weekly basis.

(In the edition of the resolutions of the Board of the NBKR of March 2, 2006 No. 5/8, January 20, 2016 No. 4/5, December 21, 2022 No. 2022-P-12/81-7)

5.6. Norm of capital adequacy (H6).

5.6.1. The norm of capital adequacy (H6) is determined by two coefficients:

norm of adequacy of institutional capital (H6-1);
norm of adequacy of total capital (H6-2).

5.6.2. The norm of adequacy of institutional capital (H6-1) is determined by the following formula:

H6-1 = IK / SA x 100 ≥ 10%, where:

IK - institutional capital of the credit union; SA - total assets of the credit union.

The value of the norm of adequacy of institutional capital (H6-1) must be not less than 10%.

(In the edition of the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.6.3. The norm of adequacy of total capital (H6-2) is determined by the following formula:

H6-2 = SK / SA x 100 ≥ 15%,

where:

SK - total capital of the credit union;
SA - total assets of the credit union.

The value of the norm of adequacy of total capital (H6-2) must be not less than 15%.

(In the edition of the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.6.4. (Lost force in accordance with the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.6.5. (Lost force in accordance with the resolution of the Board of the NBKR of June 15, 2022 No. 2022-P-33/37-2)

5.6.6. For credit unions holding a license to attract deposits (deposits) from participants of the credit union, the values of the norm of adequacy of institutional capital (H6-1) are set at the level of 12%.

(In the edition of the resolution of the Board of the NBKR of November 5, 2008 No. 40/7)

VI. Reporting of Credit Unions

6.1. For the purpose of regulating the activities of credit unions, credit unions must submit reports to the Financial Statistics and Review Department (hereinafter - UFSD) or regional departments/Batken representation of the National Bank in the manner established by the normative legal acts of the National Bank.

Credit unions located in the Chuy region and the city of Bishkek must submit reports to the UFSD of the National Bank.

Credit unions located in other regions of the republic must submit reports to the corresponding regional department/Batken representation of the National Bank.

(In the edition of the resolutions of the Board of the NBKR of March 2, 2006 No. 5/8, April 25, 2012 No. 18/9, April 24, 2013 No. 13/10)

6.2. Information on compliance with economic norms, requirements and restrictions is submitted by credit unions in accordance with the requirements of the Regulation "On Periodic Regulatory Reporting of a Credit Union", approved by the resolution of the Board of the National Bank of the Kyrgyz Republic No. 3/3 of January 16, 2008.

(In the edition of the resolution of the Board of the NBKR of April 24, 2013 No. 13/10)

6.3. (Excluded in accordance with the resolution of the Board of the NBKR of April 24, 2013 No. 13/10)

6.4. A credit union is obliged to ensure strict accounting and storage of documents used in accounting and when preparing reporting.

(In the edition of the resolution of the Board of the NBKR of March 2, 2006 No. 5/8)

VII. Supervision over Compliance with Economic Norms and Restrictions

7.1. Relevant structural subdivisions of the National Bank carry out supervision over the activities of credit unions.

(In the edition of the resolution of the Board of the NBKR of August 15, 2018 No. 2018-P-33/33-8)

7.2. Checking compliance by credit unions with economic norms and restrictions may be carried out on any date by studying and analyzing their activities based on submitted reports and information, as well as by conducting on-site inspections.

7.3. Upon discovery of facts of non-compliance with economic norms and restrictions, submission of unreliable data, untimely submission or non-submission of reporting and information, or violation of banking legislation, the National Bank takes enforcement measures in accordance with the current legislation of the Kyrgyz Republic.

(In the edition of the resolution of the Board of the NBKR of June 15, 2017 No. 2017-P-12/25-12)

Appendix 1

INFORMATION

on compliance with economic norms and restrictions

(In the edition of the resolutions of the Board of the NBKR of October 28, 2009 No. 43/5, June 15, 2017 No. 2017-P-12/25-12)

Name of the norm, restriction

Formula and calculation of the norm, restriction

Established value of the norm, restriction

Period of operation of the credit union

Actual value of the norm, restriction

Deviation

Norm of the maximum size of external borrowings of a credit union (H1)

Norm of the maximum size of risk for one borrower (H2)

Norm of the maximum size of investments in the capital of financial and credit organizations licensed by the National Bank (H3)

Norm of the maximum size of investments in fixed assets (H4)

Norm (indicator) of liquidity (H5)

Norm of adequacy of institutional capital (H6-1)

Norm of adequacy of total capital (H6-2)

Restriction on the maximum size of the deposit base

Note: When filling out the table "Information on compliance with economic norms and restrictions", credit unions must proceed from the requirements established by these Rules.

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