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Appendix

to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 23, 2015 No. 78/26

REGULATIONS  

on licensing the activities of microfinance companies 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, May 17, 2017 No. 19/14, June 15, 2017 No. 2017-P-12/25-11, August 15, 2018 No. 2018-P- 33/33-8, October 17, 2018 No. 2018-P-33/43-4, February 27, 2019 No. 2019-P-33/9-7, August 21, 2019 No. 2019-P-33/43-8 , June 29, 2020 No. 2020-P-33/38-5, July 8, 2020 No. 2020-P-12/39-1) 

The Regulation "On Licensing the Activities of Microfinance Companies" (hereinafter referred to as the "Regulation") defines the procedure for establishing and licensing microfinance companies in the territory of the Kyrgyz Republic, including microfinance companies carrying out operations in accordance with the Islamic principles of banking and financing (taking into account the special terminology provided for by the banking legislation), as well as establishes requirements for officials of microfinance companies and the procedure for their approval, the procedure for expanding the activities of microfinance companies, creating separate structural divisions, introducing amendments and additions to the charter, the procedure for reorganizing non-banking financial and credit organizations into microfinance companies and re-registering a commercial bank in microfinance company.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, October 17, 2018 No. 2018-P-33/43-4) 

Chapter 1. General Provisions 

1. A microfinance company (hereinafter - MFC) is created in the legal form of an open or closed joint stock company and operates on the basis of constituent documents that meet the requirements of the legislation of the Kyrgyz Republic and a license from the National Bank of the Kyrgyz Republic (hereinafter - the National Bank).

2. MFC receives the status of a legal entity from the moment of state registration in accordance with the legislation of the Kyrgyz Republic. State registration/re-registration of MFCs is carried out on the basis of the written consent of the National Bank.

3. The authorized capital of the MFC is formed only in the national currency at the expense of the funds of the founders (shareholders).

Formation of authorized capital at the expense of fixed assets and intangible assets is prohibited.

4. The basis of the MFC's capital is the fully paid authorized capital. The composition of the capital includes only such authorized capital, for which the MFC has no obligation to return the funds invested by its founders (shareholders).

5. The minimum amount of the authorized capital of an MFC that does not carry out operations for accepting term deposits from individuals and legal entities is set at no less than 50 (fifty) million soms.

This requirement also applies to microcredit companies (hereinafter referred to as MCCs), microcredit agencies (hereinafter referred to as MCAs) and credit unions (hereinafter referred to as CUs) transforming into MFCs.

6. An MFC applying for the right to receive time deposits from individuals and legal entities must have a minimum authorized capital of at least 100 (one hundred) million soms.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

7. To carry out its activities, the MFC is obliged to obtain from the National Bank a license of a microfinance company for the right to carry out certain banking operations (hereinafter referred to as the license).

In the presence of an appropriate license (indication in the license), the MFC has the right to carry out operations in accordance with Islamic principles of banking and financing (with the exception of raising funds under the Qard Al-Hassan transaction).

The MFC license is inalienable (nominal). The rights arising from the license are not transferable to third parties. Such a transfer leads to the withdrawal of the license by the National Bank with the prohibition of the activity of the legal entity as an MFC.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

8. The MFC may carry out the following banking operations, subject to the restrictions established by the National Bank, and provided that such operations are specified in the license:

1) issuance of secured and unsecured microcredits;

2) acceptance of time deposits from individuals and legal entities on a repayment basis in order to accumulate customer savings;

3) purchase and subsequent sale of debt obligations (factoring);

4) provision of retail banking services under an agency agreement with a bank - without opening accounts for clients with the MFC;

5) purchase and sale of foreign currency on its own behalf, in accordance with the regulatory legal acts of the National Bank (if there is an additional license / indication in the license);

6) issuance of guarantees in an amount not exceeding, together with a microcredit (leasing), the standard of the maximum loan amount per borrower.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, October 17, 2018 No. 2018-P-33/43-4) 

9. The MFC may carry out the following operations in accordance with the Islamic principles of banking and finance, subject to the restrictions established by the National Bank, and provided that such operations are indicated in the license:

1) - "Mudaraba" (only for the issuance of microfinance);

- "Sharika/Musharakah and Sharika/Musharakah Muntahiya Bittamlik";

- "Murabaha";

- "Ijara and Ijara Muntahiya Bittamlik";

- "Qard Al-Hassan" (only for issuing microfinance);

- "Salam";

- "Istisnaa"/"Parallel Istisnaa"

2) accepting deposits from individuals and legal entities under the Mudaraba transaction in order to accumulate customer savings;

3) provision of retail banking services under an agency agreement with a bank - without opening accounts for clients in a microfinance company;

4) purchase and sale of foreign currency on its own behalf, in accordance with the regulatory legal acts of the National Bank (if there is an additional license / indication in the license);

5) issuance of guarantees in an amount not exceeding, together with microfinance (leasing), the standard of the maximum loan amount per borrower.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, October 17, 2018 No. 2018-P-33/43-4) 

10. If there is an additional license (indication in the license) of the National Bank, the MFC is entitled to carry out all or some of the operations listed in subparagraphs 1-3 and 6 of paragraph 8 or in subparagraphs 1, 2 and 5 of paragraph 9 of these Regulations, in foreign currency.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

11. Before obtaining a license, it is prohibited to engage in any activity as an MFC, with the exception of organizational activities related to the establishment of an MFC.

12. The MFC is prohibited from participating in all gambling activities, including the organization and conduct of lotteries and cash and clothing lotteries, including the holding of cash and clothing lotteries on the premises of the MFC or their advertising.

13. The MFC cannot use as a name designations that are identical or confusingly similar to the names of financial and credit organizations previously created or being created in the territory of the Kyrgyz Republic.

This prohibition does not apply to subsidiaries of microfinance organizations when they use the names of parent companies.

14. When creating an MFC, as well as subsequently when changing its location, the premises of the MFC, including the premises of the branches of the MFC, must comply with the requirements for technical strength, equipment, fire safety established by the Instruction "On uniform requirements for the technical strength of financial and credit organizations and the procedure for their protection in the Kyrgyz Republic", about which appropriate acts should be drawn up between the MFC and authorized state bodies.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

15. Each CUy of the founding document or decision of the MFC, submitted to the National Bank in accordance with the requirements of this Regulation, containing more than one sheet, must be individually stitched, numbered and signed by the head of the MFC and affixed with the seal of the MFC (if any).

16. Documents provided by foreign founders (shareholders) must be legalized in accordance with the procedure established by the legislation of the Kyrgyz Republic, including international agreements that have entered into force in accordance with the procedure established by law, to which the Kyrgyz Republic is a party, and translated into the state and/or official languages of the Kyrgyz Republic. Republic (a notarized translation is provided).

CUies of documents submitted to the National Bank must be certified in accordance with the established procedure.

17. MFC documents submitted to the National Bank in accordance with the requirements of this Regulation shall be submitted at the location of the MFC:

- to the central office of the National Bank - MFC, located in Bishkek and Chui region;

- to the regional departments of the National Bank - MFC, located in the regions of the Kyrgyz Republic, except for the Chui and Batken regions;

- to the Representative Office of the National Bank in Batken region - MFC located in Batken region.

18. In the event that the MFC provides the documents established by this Regulation to the National Bank not in full or if the documents do not comply with the requirements established by the legislation of the Kyrgyz Republic and this Regulation, the National Bank has the right to return the documents for revision with a written statement of the reasons within the period allotted for consideration of the submitted package of documents.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

19. If the MFC submits finalized documents to the National Bank on the grounds specified in paragraph 18 of this Regulation, or if additional documents are submitted during the period of consideration of the documents by the National Bank, then the countdown of the period for consideration of documents begins again, from the date of receipt of documents that meet the requirements of this Provisions.

In case of withdrawal of the application (application) and documents for obtaining a license (additional license) or if the National Bank refuses to issue a license (additional license/removal of restriction in the license), one CUy of the documents submitted by the MFC is not returned.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

20. In case of change during the period of consideration by the National Bank of the documents of the name, location, composition of the founders (shareholders) of the MFC, etc., requiring amendments and / or additions to the constituent documents of the MFC, the applicant must, within 3 (three) business days from the date of adoption by the authorized management body of the MFC of such a decision to notify the National Bank and submit the constituent documents with the amendments and/or additions.

20-1. The decision or information on the decisions taken by the National Bank within the framework of these Regulations are brought to the attention of the applicants (MFC, MCC/MCA and CC) in writing, within three working days from the date of such a decision, unless otherwise provided in this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

20-2. Acts of the National Bank adopted within the framework of this Regulation (with the exception of licenses, resolutions of the Board of the National Bank and the Supervisory Committee of the National Bank) do not require certification with the seals of the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

21. The types of financial activities and activities related to banking and / or financial activities, for the purposes of this Regulation, are the types of activities specified in the regulatory legal acts of the National Bank on licensing the activities of banks.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

Chapter 2. Requirements for MFC founders/shareholders 

22. The founders and shareholders of the MFC may be individuals and legal entities - residents or non-residents of the Kyrgyz Republic.

Legal entities not engaged in banking and/or financial activities may not, alone or jointly with other entities (together with the share of any other legal entity that controls it, is controlled by it, or is under common control with it), own more than 20 (twenty) percent voting shares of MFC.

The specified restriction does not apply to a foreign non-profit organization if it meets the requirements of the National Bank.

23. The founders or shareholders of the MFC cannot be persons who have one or more of the following characteristics:

1) financial insolvency (bankruptcy) of the founder or shareholder.

The National Bank may consider the financial condition of the founder (shareholder) unsatisfactory if one of the following signs is present:

- liabilities of the founder (shareholder) exceed its assets as of the last reporting date;

- the total amount of liabilities, including off-balance sheet liabilities of the founder (shareholder), may pose a significant risk to the stability of the MFC;

- confirmation was not received or the information provided indicates that the founder (shareholder) is not able to provide additional capital to the MFC if necessary;

- on other grounds indicating the possibility of causing damage to the MFC or its contributors as a result of the satisfaction of the application, including the presence of outstanding debts to the budget and tax authorities of the Kyrgyz Republic as of the date of application;

2) the founder or shareholder has a conviction in the field of financial and/or economic crimes that has not been withdrawn and not extinguished in accordance with the procedure established by law;

3) existence of a court decision prohibiting the founder or shareholder from engaging in banking and/or financial activities;

4) legal entities registered in offshore zones or having as participants persons and/or affiliated persons registered in offshore zones, or individuals residing in offshore zones, the list of which is established by the National Bank;

5) individuals who are residents of offshore zones, residing in the territory of offshore zones, the list of which is established by the National Bank;

6) legal entities registered or having as participants persons and/or affiliated persons registered in high-risk countries that do not apply the recommendations of international organizations on the development and implementation of international standards for combating money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction and do not participate in international cooperation in the field of combating the financing of terrorist activities and the legalization (laundering) of criminal proceeds, or individuals residing in the territory of these states, as well as legal entities included in the Sanctions Lists and the List of persons, groups and organizations in respect of which there is information on their participation in the legalization (laundering) of criminal proceeds, the formation and updating of which is the responsibility of the financial intelligence body;

7) individuals who are residents and / or residing in the territory of high-risk countries who do not apply the recommendations of international organizations on the development and implementation of international standards for countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds, as well as countering the financing of extremist activities and financing proliferation of weapons of mass destruction and do not participate in international cooperation in the field of combating the financing of terrorist activities and the legalization (laundering) of criminal proceeds, as well as individuals included in the Sanctions Lists and the List of individuals, groups and organizations in respect of which there is information about their participation in legalization (laundering) of criminal proceeds, the responsibility for the formation and updating of which is the financial intelligence body;

8) legal entities registered or having as participants persons and/or affiliated persons registered in states in respect of which decisions (resolutions) of international organizations to which the Kyrgyz Republic has joined, on the application of sanctions that provide for a ban and/or restrictions on cooperation with individuals and legal entities from these states. The authorized state body in the field of foreign affairs and other state bodies of the Kyrgyz Republic provide, at the request of the National Bank, the available information on international sanctions;

9) individuals who are residents and / or residing in the territory of states in respect of which decisions (resolutions) of international organizations, to which the Kyrgyz Republic has joined, have been adopted on the application of sanctions that provide for a ban and / or restrictions on cooperation with individuals and legal entities from these states. The authorized state body in the field of foreign affairs and other state bodies of the Kyrgyz Republic provide, at the request of the National Bank, the available information on international sanctions.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, October 17, 2018 No. 2018-P-33/43-4, August 21, 2019 No. 2019-P-33/43-8) 

24. The founders of the MFC are prohibited from purchasing shares at their initial issue at a price below par.

Chapter 3. Requirements for officials and the procedure for their approval 

25. The officials of the MFC, whose candidatures are subject to mandatory approval by the National Bank, are the Chairman and members of the Board of Directors, the Chairman and members of the Board, the Chairman and members of the Sharia Council, the chief accountant, the head of the structural unit responsible for internal organizational measures to counter financing terrorist activities and legalization (laundering) of criminal proceeds (compliance officer), and heads of the credit unit, the unit for financing in accordance with the principles of Islamic banking and financing / "Islamic window" of the unit responsible for managing assets and liabilities (if any), internal audit services (hereinafter referred to as heads of structural divisions).

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, October 17, 2018 No. 2018-P-33/43-4, August 21, 2019 No. 2019-P-33/43-8, June 29, 2020 year No. 2020-P-33/38-5) 

26. The officials of the MFC, specified in paragraph 25 of this Regulation, must meet the minimum requirements of the National Bank and have an impeccable business reputation in accordance with the requirements of the National Bank.

27. Candidates for the positions of the Chairman and members of the Board of Directors must meet the following requirements:

1) the presence of higher education;

2) knowledge of the legislation regulating the activities of microfinance organizations, banking legislation and corporate governance, confirmed by a certificate or other document confirming the completion of training in this area;

3) for a candidate for the position of the Chairman of the Board of Directors - at least 1 (one) year of work experience in senior positions in the banking and/or financial system.

For the purposes of this paragraph, a managerial position means a position not lower than the head of a structural unit of a financial and credit organization and / or a company whose activities are subject to paragraph 21 of this Regulation, and / or an organization in the field of regulation of financial services. At the same time, work experience does not include work in departments of the above organizations / companies that are not related to the implementation of the main activities of the organization / company (security, business activities, personnel management, office work, etc.).

One of the members of the Board of Directors of an MFC that has an "Islamic window" and members of the Board of Directors of an MFC that operates in accordance with Islamic principles of banking and finance, in addition to the requirements of this paragraph, must have certificates and / or other documents confirming their training in areas of Islamic principles of banking and finance.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, June 29, 2020 No. 2020-P-33/38-5) 

28. An MFC operating in accordance with Islamic principles of banking and financing, including through an Islamic window, must have a Shariah Council consisting of at least 3 (three) members elected for a period of 5 (five) years. At least one third of the composition of the Sharia Council must be made up of independent members of the Sharia Council. Independence criteria are determined by banking legislation. At least 1 (one) member of the Sharia Council must be a citizen of the Kyrgyz Republic who speaks the state and / or official language.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 8, 2020 No. 2020-P-12/39-1) 

29. The MFC has the right to apply to the services of the Sharia Council established by associations (associations) of microfinance organizations / credit unions if the members of such Sharia Council meet the minimum requirements of this Regulation (in the absence of a Sharia Council in the MFC).

30. Candidates for the positions of Chairman and members of the Sharia Council must meet the following requirements:

1) for members of the Sharia Council - a diploma of higher education; for the Chairman - the presence of a diploma of higher education in the field of Sharia in the direction of law and / or financial activity;

2) availability of knowledge in the field of banking legislation on Islamic principles of banking and financing, including the main regulatory legal acts of the National Bank;

3) for members of the Sharia Council - the availability of certificates and / or other documents confirming their training in the field of Islamic principles of banking and financing.

The Chairman of the Sharia Council, in addition to the requirements of this paragraph, must have at least 1 (one) year of work experience in a bank or other financial and credit organization carrying out operations in accordance with the Islamic principles of banking and financing, including through the "Islamic window", or have experience in teaching or researching Islamic principles of banking and finance for at least 4 (four) years (availability of scientific papers, articles, reports, etc.).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

31. Candidates for the positions of the Chairman and members of the Management Board, chief accountant, heads of structural divisions must meet the following requirements:

1) the presence of higher education;

2) work experience:

a) Chairman of the Board of the MFC - at least 3 (three) years of experience in the banking and / or financial system, including in senior positions - at least 1 (one) year.

For the purposes of this paragraph, a managerial position means a position not lower than the head of a structural unit of a financial and credit organization and / or a company whose activities are subject to paragraph 21 of this Regulation, and / or an organization in the field of regulation of financial services. At the same time, the work experience does not include work in the subdivisions of the above organizations / companies related to the implementation of economic activities.

b) members of the Management Board - at least 2 (two) years of experience in the banking and/or financial system;

c) chief accountant, heads of structural divisions - at least 1 (one) year in the banking and/or financial system;

3) availability of knowledge in the field of legislation regulating the activities of banks and microfinance organizations, risk management and corporate governance, confirmed by a certificate or other document on completion of training in this area.

One of the Board members of an MFC operating an Islamic window and members of the Board of an MFC operating in accordance with Islamic principles of banking and finance, the head of the Islamic window and the finance unit in accordance with Islamic principles of banking and finance, must have certificates and/or other documents in the field of Islamic principles of banking and finance.

The work experience of the candidate is confirmed by a CUy of the work book or other documents.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

32. A candidate for the position of chief accountant, in addition to the requirements of paragraph 31 of these Regulations, must have a certificate confirming that he has knowledge of International Accounting and Financial Reporting Standards.

At the same time, the chief accountant of an MFC that has an "Islamic window" and an MFC that operates in accordance with Islamic principles of banking and finance must have a certificate and / or other document confirming that he has knowledge of the standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) or have at least 1 (one) year of experience as an accountant in a financial and credit organization carrying out operations in accordance with Islamic principles of banking and financing, including through the "Islamic window".

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

33. A candidate for the position of the head of the internal audit service, in addition to the requirements of paragraph 31 of these Regulations, must have certificates in the field of International Standards on Auditing and Financial Reporting.

A candidate for the position of Head of Internal Audit of an MFC with an Islamic Window and an MFC operating in accordance with Islamic Banking and Finance principles must have a certificate or other document confirming that he has knowledge of the Accounting and Auditing Organization standards for Islamic financial institutions (AAOIFI) or have at least 1 (one) year of work experience as an auditor/accountant in a financial and credit organization carrying out operations in accordance with the Islamic principles of banking and financing, including through the "Islamic window".

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

34. The head of the "Islamic window" and the head of the division for financing in accordance with the Islamic principles of banking and financing of the MFC, in addition to the requirements of paragraph 31 of this Regulation, must have experience in the Islamic principles of banking and financing - at least 1 (one) year in a financial and credit organization operating in accordance with the Islamic principles of banking and financing.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

35. The head of the structural unit responsible for internal organizational measures to counter the financing of terrorist activities and the legalization (laundering) of criminal proceeds (compliance officer), in addition to the requirements of paragraph 31 of this Regulation, must have a certificate of training in the field of countering the financing of terrorist activities and legalization (laundering) of criminal proceeds.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, August 21, 2019 No. 2019-P-33/43-8) 

36. In case of dismissal of officials (dismissal from their positions) specified in paragraph 25 of this Regulation, the MFC is obliged, within 3 (three) business days from the date of the decision, to notify the National Bank of this, indicating the reasons for dismissal and attaching a CUy of the relevant decision of the authorized governing body of the MFC.

37. Within 10 (ten) working days from the date of election/appointment of a candidate, as well as in case of changes in the composition of officials, the MFC is obliged to submit to the National Bank at its location a notification of election/appointment and/or changes with the following documents attached:

1) decision of the authorized management body of the MFC on the election/appointment (CUy certified by the seal of the MFC);

2) order on appointment as acting (CUy certified by the seal of the MFC). The officials specified in paragraph 25 of this Regulation, with the exception of the chairmen and members of the Board of Directors, the Sharia Council, for the period of agreement with the National Bank, are appointed to the position as acting. Subsequently, after the National Bank makes a decision on the candidate's compliance with the established requirements, the MFC submits to the National Bank an order on his appointment (a CUy certified by the seal of the MFC) within 10 (ten) calendar days from the date of appointment;

3) questionnaires in the prescribed form (Appendix 1);

4) other required documents in accordance with this Chapter (certificates and / or other documents confirming the completion of training in specific areas, and others).

Candidates for the positions of Chairman of the Board and Chief Accountant of the MFC are additionally provided with at least 2 (two) recommendations from persons who have worked or are working in the banking or financial sector.

The chairmen and members of the Board of Directors, the Shariah Council, the Board, re-elected for a new term in the same MFC for the same position, are not approved by the National Bank.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, June 29, 2020 No. 2020-P-33/38-5) 

38. If the information provided is not sufficient to make a decision, the National Bank may request additional information (documents) from the MFC, the candidate or third parties.

As part of the consideration of candidates for the positions specified in paragraph 25 of this Regulation, the National Bank has the right to invite candidates for an interview. The results of the interview are documented in a protocol signed by representatives of the National Bank and may serve as a basis for refusing to approve the candidate. During the interview, audio and video recordings may be used.

The failure of the candidate to appear for an interview is the basis for suspending the consideration of documents. If a candidate fails to appear more than twice without good reason for an interview, the National Bank may refuse to approve his candidacy. Valid reasons may be illness, being on a business trip, absence from the city, etc.

During the interview, the candidate is asked questions to assess his knowledge of banking legislation, the activities of microfinance companies, as well as questions in any other areas affecting the process of approving a candidate for a position, including, but not limited to questions about the candidates business reputation, his previous activities, business and related connections.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

39. The submitted documents are considered by the National Bank within 30 (thirty) calendar days from the date of submission of documents for consideration, and within 60 (sixty) calendar days if the candidate is a non-resident of the Kyrgyz Republic.

If it is necessary to obtain additional information or documents, the National Bank has the right to extend the period for consideration of documents up to 20 (twenty) working days.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

40. Notification of approval / refusal to approve the submitted candidacy by the National Bank shall be sent to the MFC within 3 (three) business days from the date of the relevant decision.

Decisions on approval/denial of approval of candidates for the positions of Chairman of the Board of Directors, Chairman of the Board of the MFC are made by the Deputy Chairman/Member of the Board of the National Bank in charge of supervision and licensing issues.

Decisions on approval / refusal to approve candidates for the positions of members of the Board of Directors, members of the Board, chairman and members of the Sharia Council, chief accountant and heads of structural divisions of the MFC are made by the structural division of the National Bank responsible for licensing the MFC.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, October 17, 2018 No. 2018-P-33/43-4) 

41. In case of non-compliance of the submitted documents with the established requirements and / or the provision of an incomplete package of documents, they may be returned for revision. The countdown of the period for consideration of newly received documents begins from the day the documents satisfying the requirements are submitted to the National Bank.

When submitting documents that do not meet the requirements of this Regulation, or not in full more than 3 (three) times, the candidate's documents may not be accepted for approval by the National Bank.

42. When agreeing on candidates, information obtained in the course of external supervision and inspections of the National Bank, as well as inspections conducted in relation to candidates by any state body, may be taken into account.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

43. The National Bank has the right to refuse to approve candidates for the positions specified in paragraph 25 of this Regulation if:

1) in relation to the candidate there is a court decision prohibiting him to work in the financial and credit system;

2) the person has an unexpunged and outstanding conviction for committing crimes against property, the procedure for carrying out economic activities and / or for corruption and other crimes against the interests of the state and municipal service;

3) the candidates were previously officials in a bank and/or other financial and credit organization licensed (regulated) by the National Bank, and there are decisions of the Supervisory Committee of the National Bank, instructions or other acts of the National Bank recognizing them as involved in actions (inaction), as a result of which the license (certificate) was revoked from the bank and/or other financial and credit organization;

4) candidates do not meet the requirements of the laws "On Microfinance Organizations in the Kyrgyz Republic", "On the National Bank of the Kyrgyz Republic, Banks and Banking Activities" and this Regulation.

5) there is an opinion, decision or other acts of the National Bank (decision of the Supervisory Committee of the National Bank, instructions, audit reports, etc.) recognizing that the candidate:

a) is involved in actions (inaction), as a result of which a regime of temporary administration was introduced in the bank/financial-credit organization;

b) is involved in activities classified as unhealthy and/or unsafe banking practices;

c) committed violations of the legislation of the Kyrgyz Republic and other illegal actions in the field of financial, economic and/or business activities;

6) there are materials of inspections of regulatory bodies, indicating the occurrence of financial and / or administrative problems in the areas for which the candidate was responsible;

7) negative results of the interview, where it is indicated that the candidate does not have sufficient knowledge in the area where he intends to work;

8) failure of the candidate to appear more than 2 times for an interview without good reason.

At the same time, the grounds specified in the fourth paragraph ("c") of subparagraph 5 and subparagraph 6 of this paragraph may not be taken into account in the approval process, if the violation of the law committed by the candidate did not cause serious financial problems (losses/shortage of income), significant risks for a bank/financial-credit organization, was not systematic and was insignificant according to the National Bank.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11, October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38 -5) 

43-1. The candidate does not have the right to hold the positions specified in paragraph 25 of these Regulations in the MFC, if there are facts indicated:

- in subparagraph 2 of paragraph 43 of this Regulation - within seven years from the date of removal or cancellation of a criminal record;

- in subparagraph 3 and paragraph three ("b") of subparagraph 5 of paragraph 43 of these Regulations - within five years from the date of entry into force of the relevant decision;

- in paragraph two ("a") of subparagraph 5 of paragraph 43 of these Regulations - within seven years from the date of the decision on the existence of a violation;

- in the fourth paragraph ("c") of subparagraph 5 of paragraph 43 of these Regulations - within three years from the date of the decision on the existence of a violation;

- in subparagraph 6 of paragraph 43 of these Regulations - within three years from the date of detection of the violation;

- in subparagraph 7 of paragraph 43 of these Regulations - until the provision of supporting documents on the availability of relevant knowledge.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

44. Approval of candidates against whom a criminal case has been initiated is suspended from the moment the relevant supporting documents are received. A notification of this is sent to the MFC within 3 (three) business days from the moment of suspension of the procedure for agreeing on a candidate for compliance with the requirements of the National Bank.

45. In the event that the fact of providing false information or deliberate distortion of information by the candidate and / or the MFC is established, the National Bank has the right to refuse to approve candidates or demand their removal from their positions, if it was agreed.

46. When changing the information contained in the questionnaire (Appendix 1), the officials specified in paragraph 25 of this Regulation are obliged to notify the National Bank in writing within 10 (ten) business days after the changes occur, attaching a new questionnaire.

47. The National Bank has the right to demand the removal of officials if later, after making a decision on the candidate's compliance with the requirements of the National Bank, the grounds specified in paragraph 43 of this Regulation are revealed.

48. (No longer valid in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

Chapter 4. Documents submitted to the National Bank for the creation of the MFC 

49. After making a decision on the establishment of the MFC, in order to prepare the necessary documents for the creation of the MFC, its founders determine an authorized person for contacts with the National Bank on the consideration of documents (hereinafter referred to as the authorized person).

50. In order to obtain an MFC license (including an MFC that carries out operations in accordance with Islamic principles of banking and financing), the following documents must be submitted to the National Bank at its location:

1) an application for a license, signed by the Chairman of the Board of Directors, or another person authorized by the founder (with a single founder) or the general meeting of founders (Appendix 2);

2) decision (with a single founder) or minutes of the meeting of the general meeting of founders on the establishment of the MFC, approval of the charter, appointment/election of officials of the MFC (two CUies);

3) memorandum of association (if the number of founders is more than one) (two CUies). An approximate list of issues that need to be reflected in the memorandum of association is given in Appendix 3;

4) charter of the MFC (two CUies). An indicative list of issues that should be contained in the articles of association is given in Appendix 4;

5) information about the shareholders of the MFC (Appendix 5) with the application of the questionnaires of shareholders (Appendix 13);

6) business plan, including the questions given in Appendix 6;

7) information about the general organizational structure of the MFC (governing bodies, structural divisions (departments, departments), their functional duties, the range of issues under consideration or a list of operations that they are authorized to perform, subordination);

8) questionnaires (Appendix 1) and information (documents) confirming the compliance of the officials specified in paragraph 25 of this Regulation with the requirements of this Regulation and regulatory legal acts of the National Bank;

9) information that allows determining the sources of origin of funds contributed by the founders to the authorized capital of the MFC in the amount of more than 2% of the minimum amount of the authorized capital established by the National Bank for the MFC that does not accept term deposits from individuals and legal entities:

a) legal entities must submit:

- financial statements for the last financial year (balance sheet and income statement for the last financial year), tax returns and/or other documents on financial condition or their CUies;

- audit report (if available or if this requirement is established by law) or a CUy thereof;

b) individuals can be represented by:

- certificates, income tax returns, sales/donation contracts, the right to inherit the amount, property, etc. or CUies thereof.

Legal entities and individuals may also submit other documents confirming the sources of origin of funds contributed to the authorized capital, which are not prohibited by the legislation of the Kyrgyz Republic.

The National Bank may request additional information (documents) confirming the sources of origin of funds contributed to the authorized capital.

10) an act on the compliance of the premises (premises) of the MFC with the requirements for technical strength and equipment, drawn up by the authorized body.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

51. In the constituent documents specified in subparagraphs 2 and 3 of paragraph 50 of this Regulation, the signatures of the founders - individuals must be notarized, the signatures of authorized persons who are representatives of the founders - legal entities must be sealed by a legal entity or certified by a notary.

52. In order to obtain a license in case of acquisition of MFC shares by foreign investors, in addition to the documents listed in paragraph 50 of these Regulations, the following documents legalized in the prescribed manner are provided:

1) legal entities - non-residents:

- a document certifying registration as a legal entity;

- a CUy of the decision of the authorized management body of the legal entity on the acquisition of the declared block of shares of the MFC (or the establishment of the MFC);

- CUies of the charter and financial statements prepared in accordance with the International Accounting Practice for the previous 2 (two) years;

- a CUy of the conclusion of the audit organization on the financial position as of the last reporting date (if any) or other information on the financial position of this person;

- information regarding the supervisory regime to which it is subject, including a written confirmation from the supervisory authority of the country of origin (registration) of a foreign legal entity that the applicant is authorized to carry out financial, banking or other activities, or a written confirmation that such consent is not required under the laws of the country of origin and on the readiness of the supervisory authority to cooperate with the National Bank on an ongoing basis;

2) individuals - non-residents:

- a CUy of the passport or other identity document;

- documents reflecting the financial position of the person.

53. The National Bank has the right to request additional information that applicants must submit in order to obtain an MFC license.

54. Prior to signing the constituent agreement, the authorized person for the creation of the MFC may preliminarily agree with the National Bank on the proposed full and abbreviated name of the MFC.

55. The National Bank reviews the documents submitted for obtaining a license from the MFC within a period not exceeding 2 (two) months from the date of receipt of all documents that meet the established requirements. The term for consideration of documents may be extended by the Deputy Chairman/member of the Board of the National Bank in charge of supervision and licensing issues by 10 (ten) calendar days.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, May 17, 2017 No. 19/14) 

56. If the issue of issuing a license to the MFC is positively resolved, the National Bank issues a written consent for the state registration of the MFC in accordance with the requirements of the legislation of the Kyrgyz Republic with the attachment of one CUy of the submitted constituent documents specified in subparagraphs 2-4 of paragraph 50 of these Regulations.

57. The National Bank has the right to suspend consideration or withdraw consent to the state registration of the MFC for the following reasons:

1) if there have been such changes in the financial or legal status of the applicant that may become the basis for refusing to issue a license to the MFC;

2) if false information was revealed, including information about the founders and officials of the MFC;

3) on other grounds provided for by the legislation of the Kyrgyz Republic and these Regulations.

The National Bank notifies the MFC in writing of the suspension or withdrawal of consent to the state registration of the MFC.

58. The MFC, after receiving the certificate of state registration of the MFC, within 10 (ten) calendar days, must submit the following documents to the National Bank at its location:

1) an application for a license;

2) a CUy of the certificate of state registration of the MFC, certified by the seal of the MFC;

3) notarized CUies of constituent documents with a mark of state registration;

4) register of shareholders;

5) a document confirming the deposit of funds as the authorized capital of the MFC in accordance with paragraph 5 of these Regulations to a savings account in a commercial bank of the Kyrgyz Republic. The funds on the savings account cannot be used by the founders (shareholders) for any purpose before obtaining a license;

6) a document confirming the payment of the state fee for the issuance of a license in the amount established by the legislation of the Kyrgyz Republic.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 27, 2019 No. 2019-P-33/9-7) 

59. The license (Appendices 7 and 8) is issued within 10 (ten) calendar days after the submission of the documents specified in paragraph 58 of this Regulation.

60. An integral part of the license is a list of restrictions to the license to conduct certain banking operations.

When an MFC license is issued upon its creation (Appendices 7 and 8), the list of restrictions to the license establishes a limitation for the MFC on the right to accept time deposits from individuals and legal entities on a repayment basis in order to accumulate customer savings / on the right to accept deposits from individuals and legal entities on a Mudaraba transaction in order to accumulate customer savings.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

Chapter 5 

(Chapter name  

as amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

61. In order to obtain a license for the right to carry out operations specified in paragraphs 8 or 9 of this Regulation in foreign currency or to remove restrictions on the license, the MFC submits the following documents to the National Bank at its location:

1) an application for an MFC license for the right to carry out certain banking operations in foreign currency / for the removal of restrictions on the license;

2) a decision (with a sole shareholder) or minutes of a meeting of the general meeting of shareholders containing a decision to carry out an operation requiring an additional license (indications in the license), and a CUy of such a decision or minutes (certified with the seal of the MFC);

3) the charter of the MFC, which provides for the implementation of an operation requiring an additional license (indication in the license), and a CUy of the charter (certified by the seal of the MFC) (if necessary or if such operations are not provided for by the current charter);

4) a business plan developed taking into account the implementation of an operation requiring an additional license (indications in the license);

5) information about the organizational structure of the MFC (governing bodies, structural divisions (departments, departments), their functional responsibilities, the range of issues under consideration or a list of operations that they are authorized to perform, subordination).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

62. The National Bank has the right to request additional information, which MFC must provide in order to obtain an additional license.

63. The National Bank, within a period not exceeding 2 (two) months from the date of receipt of all documents that meet the established requirements:

- issues a written consent to the state re-registration of the MFC with the attachment of one CUy of the constituent documents specified in subparagraphs 2 and 3 of paragraph 61 of these Regulations - if it is necessary to make changes and / or additions to the charter in connection with the implementation of additional operations;

- issues an additional license (Appendices 9 and 10); banking operations (Appendixes 7, 8, 9 and 10).

The period for consideration of documents may be extended by the Deputy Chairman/member of the Board of the National Bank in charge of supervision and licensing issues by 10 (ten) calendar days.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, October 17, 2018 No. 2018-P-33/43-4) 

64. In case of passing the state re-registration of the MFC, within 10 (ten) calendar days after receiving the certificate of state re-registration, the MFC is obliged to submit the following documents to the National Bank at its location:

1) an application for the issuance of an additional license/replacement of the restriction sheet to the license;

2) a CUy of the certificate of state re-registration of the MFC, certified by the seal of the MFC;

3) a CUy of the charter with a mark of state re-registration, certified by the seal of the MFC;

4) a document confirming the payment of the state fee for the issuance of a license in the amount established by the legislation of the Kyrgyz Republic in the event of issuance of an additional license / replacement of a restriction sheet to a license).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4, February 27, 2019 No. 2019-P-33/9-7) 

65. An additional license (Appendices 9 and 10) is issued or a restriction sheet for the MFC license is replaced with the removal of restrictions on certain banking operations (Appendices 7, 8, 9 and 10) within 10 (ten) calendar days after the submission of the documents specified in paragraph 64 of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

66. An integral part of the additional license is a list of restrictions to the additional license for the right to conduct certain banking operations.

Chapter 6 

(Chapter name  

as amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

67. The MFC may apply for the removal of restrictions in the license on the operation of accepting term deposits from individuals and legal entities (on terms of repayment, urgency and payment) for the purpose of accumulating customer savings, including in accordance with Islamic principles of banking and financing under the Mudaraba deal (hereinafter referred to as the removal of the restriction on the right to attract deposits) after 2 (two) years from the date of commencement of its activities as an MFC.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

68. An MFC planning to attract term deposits, at least 1 (one) year before filing an application for lifting the restriction, must submit to the National Bank at its location a letter of intent of the MFC to accept term deposits from individuals and legal entities ( on terms of repayment, urgency and payment), which must also contain an obligation to fulfill the requirements of paragraphs 70 and 71 of these Regulations.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

69. The following documents must be attached to the letter of intent specified in paragraph 68 of these Regulations:

- decision of a shareholder (with a sole shareholder) or minutes of a meeting of the general meeting of shareholders of the MFC and a resolution of the Board of Directors of the MFC on the intention of the MFC to attract deposits (a CUy certified by the seal of the MFC);

- a business plan that reveals the strategy, sCUe of activities, forecast calculations of economic results over the next 3 (three) years of operation, including 1 (one) year of the transition period until the restriction on the right to attract deposits is lifted and 2 (two) years in the conditions of operations to attract deposits;

- a plan to achieve and comply with economic standards and other requirements of the National Bank in the amount and amount established for MFCs that attract deposits in accordance with the regulatory legal acts of the National Bank, disclosing the timing and planned level of compliance with standards and other requirements;

- a plan to increase capital up to the level of the minimum authorized capital established for MFCs that have the right to accept deposits, in accordance with the regulatory legal acts of the National Bank, indicating the timing, achievable values and sources of capital increase.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

70. From the moment of submission of the letter of intent, the MFC assumes obligations to comply with all economic standards and other requirements for MFCs that accept deposits, as well as to comply with the minimum equity ratio, which is determined by the formula:

 

SC/UK * 100% 100%, where:

 

SC - MFC's equity as of the valuation date;

UK - the minimum authorized capital established for MFCs that do not attract deposits.

71. By the time an application is submitted to remove the restriction on the right to attract deposits, the MFC must:

- have an authorized capital in the amount established in paragraph 6 of these Regulations;

- comply with all economic standards and requirements specified in the regulatory legal acts of the National Bank in the amount and amount established for MFCs that have the right to attract deposits;

- the ratio of classified loans to the loan portfolio for the last year should not exceed 5%;

- to confirm the compliance of the MFC with the principles of corporate governance (the presence of an appropriate organizational structure, the management structure of the MFC, the qualifications of the personal and business nature of the management team of the MFC).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

72. When considering the MFC's application to lift the restriction on the right to accept deposits, the National Bank will take into account the fulfillment by the MFC of its obligations under the letter of intent.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

73. The National Bank, within 1 (one) year from the date of submission of the letter of intent by the MFC, conducts an inspection of the activities of the MFC.

74. To remove the restriction on the right to attract deposits, the MFC, in addition to the documents specified in paragraph 61 of this Regulation, submits to the National Bank at its location:

- a document confirming the deposit of funds as the authorized capital of the MFC in accordance with paragraph 6 of these Regulations to a savings account in a commercial bank of the Kyrgyz Republic;

- a document confirming payment of the state fee for a license in accordance with the legislation of the Kyrgyz Republic on non-tax income.

The MFC must provide a CUy of the application for joining the Deposit Protection Fund of the Kyrgyz Republic and a document confirming the payment of the entrance fee to the Deposit Protection Fund within three working days from the date of removal of the restriction on the right to attract deposits (except in cases of re-registration of a commercial bank in the MFC).

The funds in the savings account cannot be used by shareholders for any purpose until the restriction is lifted, with the exception of the main statutory purposes of the MFC (lending, financing in accordance with Islamic principles of banking and financing).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

75. The National Bank considers the MFC documents submitted to remove the restriction on the right to attract deposits in the manner and terms established in Chapter 5 of this Regulation, subject to the requirements of this Chapter, and if the MFC and the submitted documents comply with the requirements of this Regulation and regulatory legal acts of the National Bank, as well as if there is sufficient justification from the MFC to remove the restriction, the National Bank replaces the restriction sheet for the license of the MFC with the removal of the restriction on the right to attract deposits (Appendices 7, 8, 9 and 10).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

Chapter 7. Opening branches and representative offices 

76. The MFC may open branches and representative offices, whose activities are carried out in accordance with the legislation of the Kyrgyz Republic.

The activity of branches and representative offices of the MFC in the territory of foreign states is carried out on the basis of the legislation of the country in which they are opened, and / or international agreements that have entered into force in accordance with the procedure established by law, to which the Kyrgyz Republic is a party, based on the permission of the National Bank, obtained in accordance with requirements of these Regulations for opening a branch and representative office.

77. Information about the branch and representative office (including the location) must be contained in the charter of the MFC. The MFC is obliged at the first general annual meeting of shareholders, held after the opening of the branch and representative office, to approve the inclusion of relevant information about the branch and representative office in the charter of the MFC.

78. An MFC branch is its separate subdivision, which is not a legal entity, located outside its location, and carrying out all and / or part of the operations on the basis of the Regulations on the branch, and acting within the powers granted to it by the MFC.

79. The branch has the same authorized capital as the MFC, the balance sheet, as well as the name, which completely coincides with the name of the MFC, with the addition of the word "branch".

80. The head of the branch is appointed by the authorized management body of the MFC and acts on the basis of a power of attorney issued in the prescribed manner. The power of attorney must list the list of transactions and other actions that the head of the branch is authorized to carry out on behalf of the MFC.

81. To open a branch, the MFC submits the following documents to the National Bank at its location:

1) application for opening a branch (Appendix 11);

2) the decision of the authorized management body of the MFC to open a branch and a CUy of such a decision (certified by the seal of the MFC);

3) Regulations on the branch, which, at a minimum, must indicate the objectives of the establishment of the branch, the list of banking operations delegated to the branch, the sCUe and nature of the planned operations, the powers and functions of the head of the branch, and a CUy of the Regulations (certified by the seal of the MFC);

4) CUies of personal sheets on personnel records of the head and chief accountant of the branch;

5) a power of attorney issued to the head of the branch, signed by the head of the MFC and sealed with the seal of the MFC, indicating the operations and transactions for which he is authorized (CUy certified by the seal of the MFC);

6) an act on the compliance of the premises of the branch with the requirements for technical strength and equipment, drawn up by the authorized body.

When opening a branch on the territory of foreign states, the MFC shall submit the documents specified in subparagraphs 1-3 of this paragraph to obtain permission from the National Bank for opening.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

82. The National Bank considers an application to open a branch of the MFC within 15 (fifteen) calendar days from the date of submission of documents that meet the requirements of this Regulation and regulatory legal acts of the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

83. Based on the results of consideration, if the documents meet the established requirements, the National Bank issues consent for the state registration of the MFC branch with the attachment of one original CUy of the documents specified in subparagraphs 2 and 3 of paragraph 81 of this Regulation.

84. After the state registration of a branch, the MFC is obliged, within 10 (ten) calendar days from the date of registration, to submit a notification letter to the National Bank with the following documents attached in one CUy:

1) a CUy of the Regulations on the branch with a mark of state registration, certified by the seal of the MFC;

2) a CUy of the certificate of state registration of the branch, certified by the seal of the MFC.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

84-1. When closing a branch in the territory of the Kyrgyz Republic or a foreign state, the MFC, within 10 (ten) calendar days from the date of termination of the branchs activities specified in the relevant decision, submits to the National Bank at its location a corresponding notification letter (Appendix 11-1) with attachment the following documents certified by the seal of the MFC:

- CUies of the decision of the authorized management body of the MFC to close the branch;

- CUies of the registration application for registration of the termination of the activities of the branch, sent to the authorized state body in charge of registration of legal entities.

Amendments and/or additions to the charter of the MFC in connection with the closure of the branch are carried out by the MFC at the next regular introduction of amendments and/or additions to the charter.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

84-2. After the state registration of the termination of the activities of the branch, the MFC is obliged, within 10 (ten) calendar days from the date of registration, to submit to the National Bank a notification letter with a CUy of the document of the authorized state body that registers legal entities on registration of the termination of the branch.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

85. The representative office of the MFC is its separate subdivision, which is not a legal entity, protecting and representing the interests of the MFC, as well as performing transactions and other lawful actions on behalf of the MFC based on the Regulations on the representative office, with the exception of accepting deposits (deposits), issuing microcredits (financing in accordance with the Islamic principles of banking and financing) and other transactions that require obtaining permits in accordance with the legislation of the Kyrgyz Republic.

The representative office has a single balance sheet with the MFC, as well as a name that completely coincides with the name of the MFC, with the addition of the word "representative office".

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

86. To open a representative office, the MFC submits the following documents to the National Bank at its location:

1) an application for opening a representative office (Appendix 12);

2) the decision of the authorized management body of the MFC to open a representative office and a CUy of such a decision (certified by the seal of the MFC);

3) Regulations on the representative office, which, in addition to the name and location, must indicate the purpose of the establishment of the representative office and the types of activities that the representative office may be engaged in, and a CUy of the Regulation (certified by the seal of the MFC);

4) a CUy of the personal sheet on personnel records of the head of the representative office.

When opening a representative office on the territory of foreign countries, the MFC shall submit the documents specified in subparagraphs 1-3 of this paragraph to obtain permission from the National Bank for opening.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

87. The National Bank considers an application to open a representative office of the MFC within 15 (fifteen) calendar days from the date of submission of documents that meet the requirements of this Regulation and regulatory legal acts of the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

88. Based on the results of consideration, if the documents meet the established requirements, the National Bank issues consent for the state registration of the MFC representative office with one original CUy of the documents specified in subparagraphs 2 and 3 of paragraph 86 of these Regulations attached.

89. After the state registration of the representative office of the MFC, within 10 (ten) calendar days from the date of registration, it is obliged to submit to the National Bank at the place of its location the following documents in one CUy:

1) a CUy of the Regulations on the representative office with a mark of state registration, certified by the seal of the MFC;

2) a CUy of the certificate of state registration of the representative office, certified by the seal of the MFC.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

89-1. When closing a representative office in the territory of the Kyrgyz Republic or a foreign state, the MFC, within 10 (ten) calendar days from the date of termination of the representative office specified in the relevant decision, submits to the National Bank at the location of its location a corresponding notification letter with the following documents certified by the seal of the MFC :

- CUies of the decision of the authorized management body of the MFC to close the representative office;

- CUies of the registration application for registration of the termination of the activities of the representative office, sent to the authorized state body in charge of registration of legal entities.

Amendments and/or additions to the charter of the MFC in connection with the closure of the representative office are carried out by the MFC at the next regular introduction of amendments and/or additions to the charter.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

89-2. After the state registration of the termination of the activities of the representative office, the MFC, within 10 (ten) calendar days from the date of registration, is obliged to submit to the National Bank at the place of its location a corresponding letter of notification with a CUy of the document of the authorized state body that registers legal entities on registration of the termination of the representative office.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

90. MFC, its branches and representative offices at the location must have a sign indicating their name.

91. When changing contact phone numbers, e-mail addresses, the head of the representative office and branch, the MFC must notify the National Bank of this within 15 (fifteen) calendar days from the date of such changes.

In case of appointment of a new head of the branch and / or representative office of the MFC, CUies certified by the seal of the MFC of the relevant decision of the authorized body of the MFC on the appointment of a new head and a personal sheet on personnel records of the new head must be attached to the notification.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

92. In order to agree with the National Bank on the amendments and / or additions (approval in a new edition) to the regulation on the branch / representative office of the MFC, the MFC submits the following documents to the National Bank at its location:

1) a request for amendments and/or additions to the regulation on the branch/representative office of the MFC;

2) the relevant decision of the authorized body of the MFC and a CUy of such decision certified by the seal;

3) position and a CUy of the position (certified by the seal of the MFC).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

92-1. The National Bank within 10 (ten) working days reviews the documents submitted in accordance with the requirements of this Regulation. If the documents comply with the requirements of this Regulation and there are no grounds for refusal, the National Bank issues to the MFC consent to the state re-registration of the branch / representative office of the MFC with the attachment of original CUies of the MFC documents specified in subparagraphs 2 and 3 of paragraph 92 of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

92-2. Within 10 (ten) calendar days from the date of state re-registration of the branch / representative office, the MFC is obliged to submit the following documents to the National Bank:

1) a CUy of the certificate of state re-registration of the branch / representative office of the MFC, certified by the seal of the MFC;

2) a CUy of the Regulations on the branch / representative office with a mark on the state re-registration of the branch / representative office of the MFC, certified by the seal of the MFC.

The National Bank enters information on the state re-registration of a branch/representative office in the register.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

Chapter 8. Coordination of amendments and additions to the charter 

93. In order to agree with the National Bank of the amendments and / or additions to the charter, the MFC shall submit the following documents to the National Bank at its location:

1) a request for amendments and/or additions to the articles of association;

2) the decision of the shareholder (with a sole shareholder) or the minutes of the meeting of the general meeting of shareholders of the MFC on the introduction of amendments and additions to the charter and a CUy of such a decision or minutes (certified by the seal of the MFC);

3) a new version of the charter and a CUy of this charter (certified by the seal of the MFC);

4) an act on the compliance of the premises of the MFC with the requirements for technical strength and equipment, drawn up by the authorized body (in case of a change in the location of the MFC);

5) a CUy of the lease agreement or a document confirming the MFC's ownership of the relevant premises (if the location of the MFC changes).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

94. The National Bank, within 1 (one) month, reviews the documents submitted in accordance with the requirements of this Regulation. If the documents comply with the requirements of this Regulation and there are no grounds for refusal, the National Bank issues to the MFC a consent to the state re-registration of the MFC with the attachment of original CUies of the MFC documents specified in subparagraphs 2 and 3 of paragraph 93 of this Regulation.

95. Within 10 (ten) calendar days from the date of state re-registration, the MFC is obliged to submit the following documents to the National Bank:

1) a CUy of the certificate of state re-registration of the MFC, certified by the seal of the MFC;

2) a CUy of the charter with a mark of state re-registration, certified by the seal of the MFC.

The National Bank enters information on state re-registration in the register.

96. Change in the size of the authorized capital:

1) an increase in the size of the authorized capital, determined by the charter of the MFC, is carried out after full payment by the shareholders of the authorized capital. The decision of the MFC to increase the authorized capital is allowed only after the registration of the previous change in the size of the authorized capital in the charter of the MFC and the recognition of the issue of shares as valid;

2) if a change is made to the charter of the MFC regarding the size of the authorized capital, the MFC, in addition to the requirements of paragraph 93 of these Regulations, shall submit the following documents:

a) the decision of the shareholder (with a sole shareholder) or the minutes of the meeting of the general meeting of shareholders of the MFC on changing the size of the authorized capital, and a CUy of such a decision or minutes (certified by the seal of the MFC);

b) a register of shareholders indicating information about shareholders (Appendix 5) with application of questionnaires of shareholders (Appendix 13, if the specified information was not provided earlier), whose share in the authorized capital is 5 (five) or more percent;

c) a letter confirming the previous registration of the share issue (certified by the seal of the MFC) and a certificate on the results of the share issue;

d) with an increase in the size of the authorized capital:

- information on the acquisition by MFC shareholders of more than 5 (five) but not more than 20 (twenty) percent of MFC shares as a result of one or more transactions by one legal entity or individual, or a group of legal entities and/or individuals linked by an agreement, or legal entities that are subsidiaries or dependents of each other;

- information about the categories, classes, number, nominal value of declared shares and the rights they grant to the shareholder;

- a document confirming, on the day of filing the application, the deposit of funds in full as an increase in the authorized capital to an account in a commercial bank of the Kyrgyz Republic (statements from a savings account in a bank);

- if the capital increase is made at the expense of additional capital contributed by shareholders, or at the expense of retained earnings - a corresponding decision of the shareholder (with a single shareholder) or minutes of the meeting of the general meeting of shareholders (CUy certified by the seal of the MFC) is submitted;

- information allowing to determine the sources of origin of funds in the amount of more than 2% of the minimum amount of the authorized capital established by the National Bank for the MFC that does not carry out operations for accepting term deposits from individuals and legal entities, according to the list of documents specified in subparagraph 9 of paragraph 50 of this Regulations (except for the case of an increase in the authorized capital at the expense of retained earnings);

e) when reducing the size of the authorized capital - the written consent of creditors - financial and credit organizations (if any) to reduce the authorized capital (CUies certified by the seal of the MFC);

3) when agreeing to increase the size of the authorized capital of the MFC, the National Bank may require the provision of information in the manner prescribed for newly created MFCs, as well as require the provision of additional information regarding the financial condition of the shareholders of the MFC and their operations, the provision of constituent documents of shareholders and their financial and other reporting.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

97. The MFC is obliged to notify the National Bank of the final registration of the results of the issue of shares of the MFC in accordance with the securities legislation within 30 (thirty) calendar days from the moment the issue is recognized as valid and the results of the securities issue are registered.

In addition to the notice, the following must be submitted:

- a document confirming the registration by the authorized state body for regulation of the securities market of the results of the issue of shares;

- an extract from the register of shareholders signed by the registrar on the changes made or a new register of shareholders.

98. Change of the name of the MFC:

1) A change in the name of the MFC is subject to prior agreement with the National Bank. When changing the name of the MFC, its license (additional license) is subject to replacement (re-registration).

To agree on a new name, the following must be submitted to the National Bank:

- an application for changing the name of the MFC with the proposed full and abbreviated name containing its organizational and legal form;

- confirmation of the authorized state body that registers legal entities about the absence of the declared name in the Unified State Register of Legal Entities, as well as confirmation of the authorized state body that carries out state regulation in the field of protection of the company name, about the absence of the name in the state register of company names.

The National Bank within 1 (one) month makes a decision and sends a response to the MFC on the results of agreeing on the proposed new name of the MFC.

2) If the new name of the MFC is agreed with the National Bank, the shareholders of the MFC make a decision to change its name at the general meeting of shareholders and make appropriate changes to the charter of the MFC.

3) Within 10 (ten) calendar days after the decision of the general meeting of shareholders, the MFC submits the following documents to the National Bank at its location:

- a petition for consideration of amendments to the charter in connection with the renaming of the MFC, signed by the head of the MFC;

- decision of the shareholder (with a sole shareholder) or minutes of the meeting of the general meeting of shareholders of the MFC on introducing amendments to the charter in connection with the change in the name of the MFC and a CUy of such a decision or protocol (CUy certified by the seal of the MFC);

- a new version of the charter and its CUy (certified by the seal of the MFC).

The National Bank, within 15 (fifteen) calendar days, issues the MFC's consent to state re-registration in connection with the change of name with the attachment of original CUies of the submitted constituent documents provided for in paragraphs three and four of this subparagraph.

4) The MFC, within 10 (ten) calendar days from the date of the state re-registration, is obliged to submit the following documents to the National Bank at its location:

- an application for renewal of a license (additional license) with a new name;

- a CUy of the certificate of state re-registration of the MFC, certified by the seal of the MFC;

- a CUy of the charter with a mark of state re-registration, certified by the seal of the MFC;

- a document confirming the payment of the state fee for the issuance of a license (additional license) in the amount established by the legislation of the Kyrgyz Republic.

5) MFC, within 3 (three) working days from the date of reissuing a license (additional license) in connection with its renaming, must inform through the mass media about the renaming, indicating the new name of the MFC.

6) An MFC that has changed its name must submit to the National Bank a license (additional license) with the old name. The National Bank replaces the license of the MFC with an explanatory inscription on the reissuance of the license (additional license) in connection with the change in name. The National Bank makes an appropriate entry on the renewal of the license in the register.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 27, 2019 No. 2019-P-33/9-7, June 29, 2020 No. 2020-P-33/38-5) 

99. Change of location of the MFC:

1) Changing the location (postal address) of the MFC may be accompanied by changes in the name of the settlement, street name, house number. Changing the location of the MFC within one locality does not entail the replacement of its license. Change of location is agreed in accordance with paragraphs 93-95 of these Regulations.

When changing the location of the MFC, within 10 (ten) calendar days from the date of state re-registration, in addition to the documents specified in subparagraph 4 of paragraph 98 of this Regulation, submit the following documents to the National Bank:

- a CUy of the lease agreement or a document confirming MFC's ownership of the relevant premises;

- an act on the compliance of the premises with the requirements for technical strength and equipment, drawn up by the authorized body;

2) in case of completeness of the submitted documents and their compliance with the requirements of the legislation, the National Bank replaces the license of the MFC with an explanatory note on the renewal of the license (additional license) due to the change in location and makes an entry in the register about the change in the location of the MFC;

3) Within 2 (two) working days after the actual change of location, the MFC must publish in the media information about the change in the location (postal address) of the MFC.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

100. Any individual or legal entity wishing to acquire a stake in the MFC, giving the right to directly or indirectly exercise control, or acting together with other persons or associations, must, 30 (thirty) days before the expected date of the acquisition of shares, submit an application to the National Bank in writing form.

Acquisition refers to the purchase, transfer, pledge or other form of alienation or encumbrance of shares in a microfinance company.

Control refers to the ability to directly or indirectly control the election of the majority of members of the Board of Directors of the MFC, as well as to influence the management of the microfinance company in other ways. Control can be exercised through ownership of 5 (five) or more percent of shares of any type issued by a microfinance company with voting rights or in any other way that allows influencing management decisions.

The change in the composition of MFC shareholders is carried out in accordance with the requirements of the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic".

In case of any change in the composition of the shareholders of the MFC, the MFC is obliged, within 1 (one) month from the moment of the change, to submit to the National Bank a corresponding notification with the register of shareholders of the MFC attached.

In the event that an individual or legal entity acquires less than 5 (five) percent of MFC shares, the National Bank, as part of its supervisory functions, has the right to request and receive information on the sources of funds used to acquire MFC shares, on the financial condition and business reputation of an individual or legal entity, acquiring MFC shares, in order to determine compliance with the requirements of Chapter 2 of these Regulations and determine the legality of the origin of funds allocated for the acquisition of MFC shares.

The National Bank may require the shareholder to alienate a block of shares if:

- the financial condition of the acquiring parties jeopardizes the stability of the MFC;

- the acquiring parties have not provided the required information in full, or have provided distorted or incorrect information;

- the acquiring parties do not comply with the requirements set out in Chapter 2 of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

101. Amendments and additions to the charter of the MFC are its integral part and come into force from the date of state re-registration of the MFC in the manner prescribed by law.

Changes and additions to the charter of the MFC may not be approved by the National Bank in the following cases:

1) if there are grounds in the proposed amendments and additions to the charter for refusal to issue a license (additional license), provided for by the legislation of the Kyrgyz Republic and these Regulations;

2) MFC's refusal to comply with the instructions/recommendations of the National Bank on the elimination of comments on the proposed amendments and additions to the charter;

3) in other cases provided for by the legislation of the Kyrgyz Republic.

Chapter 9 

102. MFC has the right to open an "Islamic window" for the provision of financial services in accordance with Islamic principles of banking and financing in accordance with the requirements of this Regulation.

103. To open an Islamic window, an MFC must fulfill the following requirements:

1) comply with the capital requirements in accordance with the regulatory legal acts of the National Bank;

2) comply with economic standards and other requirements established by the National Bank;

3) not be subject to enforcement measures (with the exception of accepted and executed warnings, orders and recommendations) by the National Bank during the last 12 (twelve) months of activity prior to the date of submission of the application to the National Bank;

4) operate as an MFC for 2 (two) years.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

104. In order to provide financial services in accordance with Islamic principles of banking and financing through the Islamic window, MFC must obtain an additional license for the right to conduct operations in accordance with the principles of Islamic banking and financing through the Islamic window.

105. The opening of the "Islamic window" of the MFC is carried out by decision of the shareholder (with a single shareholder) or the general meeting of shareholders of the MFC. The activities of the MFC through the "Islamic window" should be specified in the charter of the MFC.

106. In order to obtain consent to issue an additional license for the right to provide financial services through the "Islamic window", the MFC submits the following documents to the National Bank at its location:

1) an application for a license to provide financial services in accordance with Islamic principles of banking and financing through the "Islamic window", with a description of the operations that MFC intends to engage in;

2) the decision of the shareholder (with a single shareholder) or the minutes of the meeting of the general meeting of shareholders of the MFC on the creation of an "Islamic window" and the introduction of amendments and / or additions to the charter of the MFC in connection with such activities, as well as on the election of members of the Sharia Council and its Chairman, the appointment the head of the "Islamic window", and a CUy of such a decision or protocol (certified by the seal of the MFC);

3) the charter containing the issues of carrying out operations in accordance with the Islamic principles of banking and financing in the manner prescribed by the regulatory legal acts of the National Bank, and a CUy of the charter (certified with the seal of the MFC);

4) a business plan containing a comprehensive analysis of future activities and identification of risks associated with the opening of the "Islamic window";

5) the organizational structure of the MFC, revised in connection with the planned expansion of the activities of the MFC;

6) decision of the Board of Directors (in the absence of the Board of Directors in the MFC - the executive management body of the MFC) that a comprehensive analysis of the proposed operations and their impact on the activities of the MFC was carried out, and that the Board of Directors (in the absence of the Board of Directors in the MFC - the executive management body of the MFC MFC) identified the risks associated with new operations (CUy certified by the seal of the MFC);

7) questionnaires of candidates for the positions of the Chairman and members of the Sharia Council, the head of the "Islamic window" (Appendix 1) with documents confirming their compliance with the minimum qualification requirements of the National Bank. In addition to the above documents, documents must also be submitted confirming the compliance of one of the members of the Board, one of the members of the Board of Directors, the chief accountant and the head of the internal audit service with the minimum qualification requirements of the National Bank for officials of the MFC carrying out operations in accordance with the Islamic principles of banking and financing through the "Islamic window";

8) Regulations on the Sharia Council, corresponding to the regulatory legal acts of the National Bank (CUy certified by the seal of the MFC);

9) Regulations on the "Islamic window", corresponding to the regulatory legal acts of the National Bank (CUy certified by the seal of the MFC);

10) standard agreements for the implementation of operations in accordance with the Islamic principles of banking and financing, drawn up in accordance with Sharia standards and approved by the Sharia Council of the MFC in accordance with the regulatory legal acts of the National Bank;

11) financing policy, operational, accounting and other main policies of the MFC, corresponding to the regulatory legal acts of the National Bank, approved by the Shariah Council of the MFC and approved by the Board of Directors (in the absence of a Board of Directors in the MFC - by the executive management body of the MFC), providing for measures to identify, measure control, monitoring and minimization of all possible risks to which MFC is exposed as a result of conducting operations in accordance with Islamic principles of banking and finance, accounting principles for proposed transactions;

12) an agreement between the MFC and the association of microfinance organizations / credit unions on the provision of services by the Shariah Council in the event that the MFC is provided with services by the Shariah Council operating under this association (in the absence of a Shariah Council in the MFC) (CUy certified by the seal of the MFC).

107. The National Bank considers an application for opening an "Islamic window" within a period not exceeding 2 (two) months from the receipt of all documents that meet the established requirements. The term for consideration of documents may be extended by the Deputy Chairman/member of the Board of the National Bank in charge of supervision and licensing issues by 10 (ten) calendar days.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, May 17, 2017 No. 19/14) 

108. If the issue of issuing an additional license to the MFC is positively resolved, the National Bank issues a written consent for the state re-registration of the MFC in accordance with the requirements of the legislation of the Kyrgyz Republic, with one original CUy of the submitted documents specified in subparagraphs 2 and 3 of paragraph 106 of this Regulation attached.

109. The MFC is obliged, within 10 (ten) calendar days from the moment of state re-registration, to submit the following documents to the National Bank at its location:

1) MFC's application for an additional license to provide financial services in accordance with the principles of Islamic banking and financing through the "Islamic window";

2) a CUy of the charter with a mark of state registration, certified by the seal of the MFC;

3) a CUy of the certificate of state re-registration of the MFC, certified by the seal of the MFC;

4) a document confirming the payment of the state fee for the issuance of a license in the amount established by the legislation of the Kyrgyz Republic.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 27, 2019 No. 2019-P-33/9-7) 

110. An additional license for the right to provide financial services in accordance with the Islamic principles of banking and financing through the "Islamic window" (Appendix 8) is issued within 10 (ten) calendar days after the submission of the MFC to the National Bank of the documents specified in paragraph 109 of this Regulation .

111. An integral part of the additional license is a list of restrictions to the additional license for the right to provide financial services in accordance with the Islamic principles of banking and financing through the "Islamic window".

Chapter 10 

112. An MFC may be transformed into an MFC operating in accordance with Islamic principles of banking and finance, only if the MFC has an "Islamic window", experience in the Islamic financial services market for at least 1 (one) year prior to the date of filing an application for transformation and subject to the requirements of subparagraphs 1-3 of paragraph 103 of this Regulation.

113. At least 6 (six) months before the transformation, the MFC must notify the creditors of the MFC (if any) and the National Bank, submit the decision of the shareholder (with a single shareholder) or the minutes of the meeting of the general meeting of the shareholders of the MFC on the intention to transform into the MFC operations in accordance with the Islamic principles of banking and finance, with the application of the action plan for the transformation, approved by the decision of the authorized management body of the MFC. The action plan should include, but not be limited to, the timing of the action plan, the procedure for the transformation / redemption of assets and liabilities that do not comply with Shariah standards, staff training, etc.

114. Officials of the MFC, specified in paragraph 25 of this Regulation, who do not have certificates and / or other documents on training in the field of Islamic principles of banking and finance, within 6 (six) months from the date of notification of the National Bank of the intention of the MFC to be transformed into An MFC operating in accordance with Islamic principles of banking and finance must complete appropriate educational courses.

115. After notifying the National Bank of the transformation of the MFC into an MFC operating in accordance with the principles of Islamic banking and finance, the National Bank, if necessary, conducts an inspection of the MFC or may take into account the results of external supervision and inspection conducted during the last 6 (six) months prior to the date of such notification by the National Bank.

116. After 6 (six) months from the date of notification of the National Bank of the intention to transform into an MFC, carrying out operations in accordance with Islamic principles of banking and financing, in the absence of grounds for the National Bank to refuse, including on the basis of the results of the audit and consideration of the action plan specified in paragraph 113 of this Regulation, the MFC submits the following documents to the National Bank to obtain the appropriate license:

1) an application for a license to carry out operations in accordance with Islamic principles of banking and finance;

2) the decision of the shareholder (with a sole shareholder) or the minutes of the meeting of the general meeting of shareholders on the transformation of the MFC into an MFC, carrying out operations in accordance with the principles of Islamic banking and financing, and a CUy of such a decision or minutes (certified by the seal of the MFC);

3) the charter containing the issues of carrying out operations in accordance with the Islamic principles of banking and financing in the manner prescribed by the regulatory legal acts of the National Bank, and a CUy of the charter (certified with the seal of the MFC);

4) decision of the Board of Directors of the MFC (in the absence of the Board of Directors in the MFC - the executive management body of the MFC) that a comprehensive analysis of the proposed operations and their impact on the activities of the MFC has been carried out, and that the Board of Directors (in the absence of the Board of Directors in the MFC - the executive management body of the MFC MFC) identified the risks associated with the transformation (CUy certified by the seal of the MFC);

5) forecast calculations with the forecast balance in terms of the volume of financing and the number of clients of the MFC;

6) questionnaires of MFC officials specified in clause 25 of this Regulation (Appendix 1) and documents confirming their compliance with the minimum requirements of the National Bank (for persons who have not previously been approved in connection with the opening of an "Islamic window" in the MFC);

7) written consent of creditors - financial and credit organizations to the transformation (if any);

8) the final action plan specified in paragraph 113 of these Regulations;

9) the organizational structure of the MFC, revised in connection with the transformation of the MFC (governing bodies, structural divisions (departments, departments), their functional responsibilities, the range of issues under consideration or the list of operations for which they are authorized, subordination).

117. The deadlines for submitting the documents specified in paragraph 116 of this Regulation for obtaining a license to carry out operations in accordance with the Islamic principles of banking and financing may be suspended by the National Bank based on the results of external supervision and inspection until the MFC eliminates violations and shortcomings in order to The MFC and the documents provided were in accordance with the established requirements.

118. The National Bank considers an application for a license to carry out operations in accordance with the Islamic principles of banking and financing within 2 (two) months from the date of their submission to the National Bank.

119. In case of completeness and compliance of the submitted documents with the established requirements, there are no grounds for refusal and there is sufficient justification on the part of the MFC for transformation, the National Bank may give consent to the MFC for the transformation into an MFC that carries out operations in accordance with Islamic principles of banking and financing, with issuance of consent to the state re-registration of the MFC in connection with the transformation with the application of original CUies of the submitted documents specified in subparagraphs 3 and 4 of paragraph 116 of these Regulations.

120. After the state re-registration, the MFC, in order to issue a license by the National Bank to carry out operations in accordance with the Islamic principles of banking and financing, must submit the following documents to the National Bank at its location:

1) an application for a license to carry out operations in accordance with Islamic principles of banking and financing;

2) a CUy of the charter of the MFC with a mark of state re-registration, certified by the seal of the MFC;

3) a CUy of the certificate of state re-registration of the MFC, certified by the seal of the MFC;

4) a document confirming the payment of the state fee for the issuance of a license in the amount established by the legislation of the Kyrgyz Republic;

5) an original CUy of the previously issued license (additional license).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 27, 2019 No. 2019-P-33/9-7) 

121. A license to carry out operations in accordance with the Islamic principles of banking and financing (Appendix 8) is issued by the MFC by the National Bank within 10 (ten) calendar days from the date of submission to the National Bank of a properly executed package of documents in accordance with the requirements of paragraph 120 of this Regulation .

122. Within 1 (one) month from the date of completion of the action plan specified in subparagraph 8 of paragraph 116 of these Regulations, the MFC is obliged to submit a notification letter to the National Bank with a report on the implementation of this transformation action plan.

Chapter 11 

(The title of the Chapter  

is as amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

123. For the acquisition in the aggregate of 5 (five) or more percent of the shares of the MFC, a legal entity (corresponding to the criteria of Appendix 14 of these Regulations) or an individual must obtain prior permission from the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

124. Any individual or legal entity wishing to acquire a total of 5 (five) or more percent of the shares of the MFC is obliged to submit the following documents to the National Bank 30 (thirty) days before the expected date of the acquisition of shares:

- an application for the acquisition of a total of 5 (five) or more percent of shares with a questionnaire attached in the form, in accordance with appendices 13 (for individuals) or 13-1 (for legal entities) to these Regulations;

- the original decision of the authorized body of the legal entity on the acquisition of MFC shares;

- documents confirming the compliance of the legal entity with the criteria specified in Appendix 14 of these Regulations;

- CUies of constituent documents of a legal entity;

- information about the founders/participants/shareholders and officials of the legal entity;

- information and documents confirming the sources of origin of funds allocated for the purchase of MFC shares;

- documents confirming the stable financial condition of the applicant.

The stable financial condition of the applicant persons means:

- absence of outstanding debts to the budget and tax authorities of the Kyrgyz Republic as of the date of filing the application;

- the absence of outstanding and overdue obligations to individuals and legal entities as of the date of application;

- profitable activity during the last 2 (two) years of activity preceding the date of application (for legal entities).

Individuals who have committed violations of the legislation governing the banking and / or financial sector, including the regulatory legal acts of the National Bank, in respect of which the National Bank has taken a decision recognizing them as involved in actions classified as unhealthy banking or financial practices, cannot obtain permission from the National bank for the acquisition in the aggregate of 5 (five) or more percent of the voting shares of the MFC.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

125. The National Bank no later than 30 (thirty) days from the date of receipt of the application and documents that meet the requirements established by this Regulation for the acquisition in the aggregate of 5 (five) or more percent of the shares of the MFC, and in cases of acquisition of shares by a non-resident - within 60 (sixty) ) days informs the applicant in writing about his decision (consent or refusal). Refusal must be motivated.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

126. The National Bank may request additional information necessary to consider an application for the acquisition of a total of 5 (five) or more percent of MFC shares.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

127. The National Bank has the right to refuse to approve the acquisition by an individual and / or legal entity of a block of shares in the aggregate of 5 (five) or more percent of the shares of the MFC in any of the following cases:

- the acquirer does not comply with the requirements of Chapter 2 of these Regulations;

- the acquirer has not complied with the requirements of paragraph 100 of these Regulations.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

128. (Repealed in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

129. (No longer valid in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

Chapter 12 

130. An MCC/MCA/CU intending to transform into an MFC must meet the following requirements:

1) operate as an MCC/MCA/CU for at least 5 (five) years;

2) not be subject to any measures of influence applied by the National Bank (with the exception of accepted and implemented warnings, instructions and recommendations) of the National Bank during the last 2 (two) years;

3) have an opinion of an independent auditing company confirming the accuracy of the financial statements of the MCC/MCA/CU as of the last reporting date prior to filing an application for an MFC license.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

131. If the size of the authorized capital of an MCC/MCA/CU intending to transform into an MFC is less than the amount established in paragraph 5 of these Regulations for an MFC, then its founders (participants, shareholders) must pay the missing amount to a savings account in a commercial bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

132. In order to obtain the consent of the National Bank for state re-registration in connection with the transformation into an MFC, an MCC/MCA/CU must submit the following documents to the National Bank:

1) an application for a license in connection with the transformation into an MFC;

2) the decision of the participant (with a single participant) or the minutes of the meeting of the general meeting of participants (in two CUies) on the transformation into the MFC, the approval of the charter, the appointment of officials of the MFC in accordance with paragraph 25 of these Regulations;

3) articles of association (in two CUies). An indicative list of issues that should be contained in the articles of association is given in Appendix 4;

4) information about shareholders (Appendix 5) with application of questionnaires of shareholders with shares in the authorized capital of the MFC more than 5% in the form, in accordance with appendices 13 (for individuals) and 13-1 (for legal entities) to this Regulation;

5) business plan, including the questions given in Appendix 6;

6) information about the general organizational structure of the MFC (governing bodies, structural divisions (departments, departments), their functional responsibilities, the range of issues under consideration or a list of operations for which they are authorized, subordination);

7) information about the officials of the MFC, specified in paragraph 25 of this Regulation, with the application of questionnaires (Appendix 1) and information (documents) confirming their compliance with the minimum requirements of this Regulation and the regulatory legal acts of the National Bank;

8) information allowing to determine the sources of origin of funds contributed/contributed by the founders/participants (shareholders) to the authorized capital of the transforming MCC/MCA/CU in the amount of more than 2% of the minimum authorized capital established by the National Bank for the MFC that does not carry out operations on acceptance of term deposits from individuals and legal entities, in accordance with subparagraph 9 of paragraph 50 of this Regulation (if the founders/participants (shareholders) have not previously been approved for the deposited funds);

9) a document confirming the deposit of funds as the authorized capital of the MFC in accordance with paragraph 5 of these Regulations to a savings account in a commercial bank of the Kyrgyz Republic. The funds on the savings account cannot be used by the founders/participants (shareholders), MCC/MCA/CU for any purpose before obtaining an MFC license, with the exception of the main statutory purposes of the MCC/MCA/CU (lending, financing in accordance with Islamic principles of banking and financing);

10) an act on the compliance of the premises with the requirements for technical strength and equipment, drawn up by the authorized body.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

133. Each CUy of the constituent document or decision of the MCC/MCA/CU, which is converted into the MFC, submitted to the National Bank in accordance with the requirements of this Regulation, containing more than one sheet, must be separately stitched, numbered and signed by the head of the MCC/MCA/CU and sealed with the seal of the MCC/MCA/CU.

134. Documents submitted for obtaining the consent of the National Bank for state re-registration in connection with the transformation of an MCC/MCA/CU into an MFC are considered by the National Bank on the general basis established for newly created MFCs, taking into account the requirements of this Chapter.

The National Bank conducts an inspection of the activities of the MCC/MCA/CU for compliance with the requirements for the MFC.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

135. At the time of submission to the National Bank of an application for a license in connection with the transformation of the CU, carrying out the activities of accepting deposits (deposits) on the basis of the license of the National Bank, to the MFC, the CU should not have obligations on deposits (deposits).

136. An MCC/MCA/CU cannot obtain an MFC license if:

1) they are declared insolvent (bankrupt) and are subject to liquidation and/or reorganization;

2) over the past 2 (two) years, measures of influence of the National Bank have been applied to them, as well as other violations of the regulatory legal acts of the National Bank (with the exception of warnings, instructions and recommendations received and executed);

3) there is a court decision prohibiting the MCC/MCA/CU, their founders/participants (shareholders) from engaging in this type of activity;

4) MCC/MCA/CU do not meet the requirements of the National Bank for obtaining an MFC license;

5) on other grounds provided for by the legislation of the Kyrgyz Republic and these Regulations.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

137. In the event that an MCC/MCA/CU is transformed into an MFC, they may continue their activities as an MCC/MCA/CU until they receive a license from the MFC.

138. An MCC/MCA/CU transformed into an MFC may obtain an additional license for the right to attract deposits (deposits) in less than 2 (two) years of activity as an MFC only in the following cases:

1) when a person established as a credit union in accordance with the Law "On Credit Unions" within 2 (two) years prior to filing an application for transformation to the MFC carried out activities on accepting deposits on the basis of a license issued by the National Bank;

2) when a person established as an MCC or MCA, within 2 (two) years prior to filing an application for transformation into an MFC, carried out activities in accordance with the Law "On Microfinance Organizations in the Kyrgyz Republic" for an MMC/MCA on the basis of a certificate from the National Bank.

139. (No longer valid in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

Chapter 12-1. The procedure for re-registration of a commercial bank in the MFC 

(Chapter  

as amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

139-1. A commercial bank intending to re-register with an MFC must meet the following requirements:

1) the size of the authorized capital and equity (regulatory) capital of a commercial bank intending to re-register in the MFC must comply with the requirements established in paragraph 6 of this Regulation for the MFC;

2) have an opinion of an independent audit company confirming the reliability of the financial statements of a commercial bank as of the last reporting date before filing an application for an MFC license.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

139-2. To obtain the consent of the National Bank for state re-registration in connection with re-registration with the MFC, a commercial bank must submit the following documents to the National Bank:

1) an application for a license in connection with re-registration with the MFC, indicating the list of operations that it intends to carry out as an MFC;

2) the decision of the shareholder (with a single founder) or the minutes of the meeting of the general meeting of shareholders (two CUies) on re-registration in the MFC, approval of the charter, appointment of officials of the MFC in accordance with paragraph 25 of these Regulations;

3) articles of association (in two CUies). An indicative list of issues that should be contained in the articles of association is given in Appendix 4;

4) information about shareholders (Appendix 5) with the application of questionnaires of shareholders (Appendices 13, 13-1);

5) a business plan developed taking into account the termination of banking operations not provided for the MFC, as well as including the issues listed in Appendix 6;

6) information about the general organizational structure of the MFC (governing bodies, structural divisions (departments, departments), their functional responsibilities, the range of issues under consideration or a list of operations for which they are authorized, subordination);

7) information about the officials of the MFC, specified in paragraph 25 of this Regulation, with the application of questionnaires (Appendix 1) and information (documents) confirming their compliance with the minimum requirements of this Regulation and regulatory legal acts of the National Bank. MFC officials who have been approved for a similar position in a commercial bank that is undergoing re-registration with the MFC over the past 12 months, do not get approved by the National Bank and are limited to submitting questionnaires in the form of Appendix 1 to this Regulation;

8) information allowing to determine the sources of origin of funds contributed/contributed by the founders/participants (shareholders) to the authorized capital of the transforming commercial bank, in accordance with subparagraph 9 of paragraph 50 of this Regulation (if the founders/participants (shareholders) have not previously been approved on deposited funds);

9) an act on the compliance of the premises with the requirements for technical strength and equipment, drawn up by the authorized body;

10) the main policies and procedures of the MFC;

11) a detailed action plan for the termination (completion) of banking operations that the MFC is not entitled to carry out with a description of specific actions, terms and volumes of operations. The action plan must be designed for a period not exceeding 12 (twelve) months from the date of receipt of the MFC license;

The following activities must be completed before obtaining consent for state re-registration:

- notification of correspondent banks regarding the decision to re-register with the MFC;

- termination of new transactions in the Automated Trading System of the National Bank, as well as completion of existing transactions in the Automated Trading System of the National Bank;

- if there are securities placed through the National Bank on the "depo" accounts of a commercial bank owned by the bank's clients, notifying the clients of the commercial bank about the termination of the function of sub-depository accounting of securities placed through the National Bank;

- if there are own securities placed through the National Bank, the sale of these securities or transfer to the client account "depo" of another organization that is a sub-depository of securities placed through the National Bank;

12) information confirming compliance with the economic standards established for the MFC.

If it is impossible to comply with economic standards and other requirements of the National Bank at the time of re-registration with the MFC, the National Bank may be given a period to bring the activities of the MFC in line with the requirements of regulatory legal acts, not exceeding 12 months from the date of receipt of the MFC license.

A commercial bank must submit to the National Bank a plan approved by the board of directors to bring the standards and other requirements in line with the requirements of regulatory legal acts.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

139-3. Documents submitted to obtain the consent of the National Bank for state re-registration in connection with the re-registration of a commercial bank with the MFC are considered by the National Bank within 60 calendar days.

The decision to issue consent for the state re-registration of a commercial bank in the MFC is made by the Board of the National Bank, and to issue a license to the MFC is made by the Deputy Chairman of the Board / member of the Board of the National Bank in charge of supervision and licensing issues.

In the course of reviewing the documents submitted by the commercial bank, the National Bank has the right to conduct an audit of the commercial bank in order to confirm the compliance of the commercial bank with the requirements established for the MFC. If the issue of issuing a license to the MFC is positively resolved, the National Bank issues a written consent for the state re-registration of a commercial bank in the MFC in accordance with the requirements of the legislation of the Kyrgyz Republic with the attachment of one CUy of the submitted constituent documents specified in subparagraphs 2-3 of paragraph 139-2 of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

139-4. From the date of the decision of the authorized body of a commercial bank on re-registration with the MFC, a commercial bank must approve:

- an action plan to terminate banking operations that the MFC is not entitled to carry out;

- the procedure for notifying depositors and creditors of the decision to re-register with the MFC.

The action plan and the procedure for notifying depositors and creditors specified in this paragraph must be agreed with the National Bank and have a reasonable timeframe not exceeding those specified in paragraph 139-8 of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

139-5. A commercial bank, after re-registration with the MFC and receiving a certificate of state re-registration, within 10 (ten) calendar days, must submit the following documents to the National Bank at its location:

1) an application for a license;

2) a CUy of the certificate of state re-registration, certified by the seal of the MFC;

3) notarized CUies of constituent documents with a mark of state registration;

4) register of shareholders;

6) a document confirming the payment of the state fee for the issuance of a license in the amount established by the legislation of the Kyrgyz Republic.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4, February 27, 2019 No. 2019-P-33/9-7) 

139-6. The license (Appendices 7 and 8) is issued within 10 (ten) calendar days after the submission of the documents specified in paragraph 139-5 of this Regulation.

A commercial bank license with a list of permitted operations must be submitted to the National Bank on the day the MFC license is received.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

139-7. A commercial bank re-registered with the MFC receives a license from the MFC without imposing restrictions on the right to attract term deposits (deposits).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

139-8. When re-registering with the MFC, a commercial bank is obliged to stop banking operations, including those not provided for by the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic" for the MFC within the following terms:

1) acceptance of new and replenishment of existing demand deposits, opening of settlement accounts - from the date of submission of an application to the National Bank for obtaining a written consent to state re-registration. From the date of receipt of consent to the state re-registration of the MFC, a commercial bank is obliged to begin work on the return of existing demand deposits to the owners;

2) opening of time deposits - from the date of receipt of consent for state re-registration. From the date of receipt of consent to state re-registration, a commercial bank is obliged to notify account holders of the termination of account maintenance operations;

3) making settlements and payments on behalf of clients and correspondent banks, and their cash services - from the date of receipt of the MFC license;

4) issue, purchase, payment, acceptance, storage and confirmation of payment documents (checks, letters of credit, bills of exchange and other documents), including credit and payment cards - from the date of receipt of the MFC license;

5) payment of a debt obligation by purchasing promissory notes and bills of exchange (forfaiting) - from the date of receipt of the MFC license;

6) making remittances of clients, including without opening an account - from the date of obtaining a license from the MFC, with the exception of carrying out this operation as an agent of a commercial bank;

7) opening and maintenance of correspondent accounts for non-resident banks of the Kyrgyz Republic - from the date of obtaining a license from the MFC;

8) carrying out operations on accounts in foreign currency for clients and on the acquisition (exchange) of foreign currency on behalf of the client - from the date of obtaining the MFC license;

9) carrying out operations with precious metals (only banking silver, gold, platinum and coins from the said high-quality metals) - from the date of receipt of the MFC license.

10) issue of electronic money - from the date of receipt of the license by the MFC;

11) acceptance, processing and issuance of financial information (processing, clearing) on payments and settlements of third parties to participants in the payment system of this processing, clearing center - from the date of receipt of the MFC license.

If there are agreements that have not expired, the commercial bank re-registered with the MFC is obliged to fulfill its obligations under these agreements insofar as they do not contradict the activities of the MFC, as permitted by the microfinance legislation, or terminate these agreements ahead of schedule.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

Chapter 13. Grounds for refusal to issue a license (additional license) 

140. The National Bank may refuse to issue a license (additional license)/remove restrictions on a license for any of the following reasons:

1) non-compliance of constituent or other documents submitted for obtaining a license (additional license/removal of restriction in a license) with the requirements established by the legislation of the Kyrgyz Republic and these Regulations;

2) submission of documents not in full. When these obstacles are eliminated, documents are considered on a general basis;

3) if, since the issuance of the consent of the National Bank for state registration/re-registration, there have been changes in the financial or legal situation of the applicant (including a trend of deterioration in the financial situation), which may serve as a basis for refusing to issue a license (additional license), including including when re-registering a commercial bank in the MFC / lifting restrictions on the license;

4) non-compliance of the officials of the MFC, specified in paragraph 25 of this Regulation, with the minimum qualification requirements established by this Regulation and the regulatory legal acts of the National Bank;

5) non-compliance of the founders (shareholders) with the requirements established in Chapter 2 of these Regulations;

6) non-compliance of the size, structure, source of formation of the minimum authorized capital with the requirements of the legislation of the Kyrgyz Republic;

7) failure to pay the minimum amount of the authorized capital;

8) submission of documents for obtaining a license (additional license/removal of restriction in a license) containing false information or information;

9) failure to pay the state fee for the issuance of a license;

10) the presence of a court decision in relation to the founders/participants (shareholders), prohibiting him/them from engaging in this type of activity and/or a court decision to recognize one or all of the founders/participants (shareholders) guilty(s) of committing economic and/or malfeasance ;

11) lack of written consent of creditors - financial and credit organizations (in case of transformation of the MFC into an MFC, carrying out operations in accordance with the Islamic principles of banking and financing, with a decrease in the size of the authorized capital of the MFC);

12) non-compliance with the requirements of this Regulation for obtaining a license (additional license/removal of restriction in the license), including when re-registering a commercial bank in the MFC;

13) on other grounds provided for by the legislation of the Kyrgyz Republic.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4, February 27, 2019 No. 2019-P-33/9-7, June 29, 2020 No. 2020-P-33/38 -5) 

141. The National Bank notifies in writing the authorized person of the MFC, MCC/MCA/CU/commercial bank intending to transform into an MFC of the grounds for refusal to issue a license/removal of restrictions on a license within 3 (three) working days from the date of such decision.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

Chapter 14. Reorganization and liquidation of the MFC 

142. An MFC may be reorganized (merger, accession, division, separation, transformation) by decision of its shareholders or by decision of the National Bank in accordance with the legislation of the Kyrgyz Republic.

When reorganizing the MFC with the creation of a new legal entity, the National Bank considers the issue of issuing a new license to the MFC. At the same time, the licenses under which the reorganized MFCs acted are taken into account.

This Regulation does not regulate the procedure for forced reorganization of the MFC.

The reorganization of the MFC can only be started after prior agreement with the National Bank. The MFC notifies the National Bank of its intention to start the reorganization within 10 (ten) business days from the date of the relevant decision.

The reorganization of the MFC is carried out in accordance with the banking legislation of the Kyrgyz Republic, these Regulations and the constituent documents of the MFC subject to reorganization.

When agreeing on the reorganization of the MFC, the National Bank has the right to require the provision of information necessary for making a decision, both in the manner prescribed for newly created MFCs, and additionally. Consideration of documents during the reorganization of the MFC can be carried out in the manner prescribed for newly created MFCs.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-1. To obtain permission for the reorganization of the MFC in the form of a merger, accession, division, spin-off, the MFC must provide the following documents:

- an application for obtaining consent to re-registration in connection with the reorganization;

- an agreement on reorganization approved by the general meeting of MFC shareholders (in case of reorganization in the form of a merger, accession);

- economic justification of the reorganization;

- minutes of the general meeting of each reorganized MFC, containing a decision on reorganization, on approval of the draft charter of the MFC created as a result of the reorganization; on the election of the board of directors, the board of the MFC;

- balance sheets of each reorganized MFC on the first day of the current month;

- financial statements of each reorganized MFC for the last reporting year with an audit report;

- an approximate diagram of the organizational structure of each reorganized MFC;

- an approximate structure of assets, liabilities and capital of each reorganized MFC;

- approximate values of economic standards for each reorganized MFC;

- information on the possibility of fulfilling the claims of creditors to the company on early termination or performance of the relevant obligations and satisfaction of their claims;

- a business plan for each reorganized MFC for the next 3 years (two original CUies), drawn up taking into account the requirements of Appendix 6 of these Regulations;

- separation balance sheet approved by the general meeting of shareholders of the reorganized MFC (for reorganization in the form of division, spin-off);

- deeds of transfer approved by the general meeting of shareholders of each reorganized MFC (for reorganization in the form of affiliation, merger).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-2. The reorganization agreement should take into account the following issues:

a) the procedure and conditions for the reorganization;

b) the procedure for converting MFC shares subject to reorganization;

c) the rights of owners of all types of MFC shares subject to reorganization;

d) a list of MFC shareholders subject to reorganization, who are entitled to participate in the joint meeting of shareholders in electronic form and on paper, signed by the Chairman of the Board of Directors in the form of Appendix 5 in two original CUies;

e) provisions on the succession of the MFC, created as a result of the reorganization, in relation to all obligations to creditors and claims to debtors of each MFC, subject to reorganization in accordance with the deed of transfer.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-3. The draft agreement on reorganization is considered approved if the shareholders owning at least 2/3 of the voting shares of each MFC participating in the reorganization process voted for its adoption.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-4. The business case for the reorganization must set out the motivations for MFC to undertake the reorganization process and must state clearly and concisely the purpose of the reorganization.

In addition, the justification should contain a detailed analysis of the financial condition of the MFCs to be reorganized.

The justification should highlight such issues as the role and place of the MFC in the microfinance sector, their strengths and weaknesses, the main activities of the reorganized MFC, and the proposed financial transactions.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-5. Within one month from the day the general meeting of shareholders of each MFC makes a decision to reorganize, the MFC shall notify all its creditors of this decision in writing.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-6. The National Bank, within 30 (thirty) working days from the date of receipt of the application and the documents listed in paragraphs 142-1 and 142-15 of this Regulation, considers and makes a decision on issuing consent for state re-registration in connection with the reorganization in the form of accession, merger, division, transformation or rejection of the application for reorganization, indicating the reasons for the rejection.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-7. The National Bank, within 2 (two) months from the date of receipt of the application and the documents listed in paragraphs 142-1 and 142-14 of this Regulation, considers and makes a decision on issuing consent for state re-registration in connection with the reorganization in the form of separation or on rejecting the application on the reorganization, indicating the reasons for the rejection.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-8. The decision to issue consent for state re-registration with the authorized state body in connection with the reorganization of the MFC is made by the Deputy Chairman / member of the Board of the National Bank in charge of banking supervision and licensing / head / director of the regional department / representative office.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-9. The process of reorganization of the MFC is considered completed from the moment of the state registration of the MFC in accordance with the established legislative procedure.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-10. The National Bank may reject an application for reorganization of the MFC for the following reasons:

a) the proposed reorganization of the MFC may lead to threats to the interests of financial consumers;

b) the financial position of the new MFC will pose a significant threat to the interests of the depositors of the MFC to be reorganized;

c) in the documents submitted to the National Bank for obtaining permission to conduct the reorganization, false information was revealed;

d) MFC created in the process of reorganization does not meet the requirements for obtaining a license for the right to conduct certain banking operations.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-11. Within 3 (three) working days from the date of the state registration of a new MFC in the authorized state body for registration of legal entities, the MFCs that participated in the reorganization process (merger, accession, division) submit banking licenses to the National Bank in exchange for a license, issued by the new MFC, and in the event of reorganization in the form of a spin-off, the license is issued only to the new MFC. When issuing a new license, the licenses (including the established restrictions) under which the reorganized MFCs operated, are taken into account.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-12. The MFC, created as a result of the reorganization, must comply with all economic standards and other requirements established by the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-13. Based on the results of consideration of the submitted documents, an entry is made in the register on the termination of the activities of the reorganized MFC (indicating the legal successors and the form of reorganization) and on the issuance of new licenses for the right to conduct certain banking operations.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-14. In case of reorganization in the form of a spin-off, the existing MFC following the reorganization is not considered a newly created MFC and operates on the basis of a previously issued license for the right to carry out banking operations. In order to obtain consent to re-registration in connection with the re-registration of a newly created MFC created as a result of reorganization in the form of a spin-off / to obtain a license for the right to conduct banking operations, in addition to the documents specified in paragraph 142-1, the MFC submits to the National Bank the documents provided for in chapters 3 , 4, 5 and 6 of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-15. In order to obtain consent for reorganization in the form of transformation, MFCs must submit documents to the National Bank in accordance with Chapter 8 of these Regulations.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

142-16. When reorganizing the MFC, the coordination of officials is carried out in accordance with Chapter 3 of these Regulations.

In case of reorganization in the form of affiliation, only officials of the merging MFC are approved.

In case of reorganization in the form of a merger, all officials of the reorganized MFC, subject to approval in accordance with the requirements of Chapter 3 of this Regulation, are coordinated with the National Bank.

In the event of reorganization in the form of spin-off and separation, the officials of only newly created MFCs, subject to approval in accordance with the requirements of Chapter 3 of these Regulations, are coordinated with the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 29, 2020 No. 2020-P-33/38-5) 

143. The MFC may be liquidated in accordance with the legislation of the Kyrgyz Republic. At the same time, the MFC must hand over the original CUy of the license (additional license) to the National Bank within 3 (three) days from the date of the decision to liquidate on a voluntary basis and stop carrying out operations under the license (additional license) from the moment the decision to liquidate is made.

144. It is not allowed to make a decision on liquidation on a voluntary basis if the MFC has not fulfilled all obligations to depositors and creditors, including to financial and credit organizations.

145. Responsibilities for the liquidation of the MFC, including when the license is revoked by the National Bank, are assigned to its founders (shareholders) or to the management body authorized to liquidate by the charter of the microfinance organization, except for the following cases:

- forced liquidation of a microfinance company with the right to attract deposits is carried out in accordance with the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, banks and banking activity";

- in case of insolvency (bankruptcy), a microfinance company that does not attract deposits is liquidated in accordance with the Law of the Kyrgyz Republic "On Bankruptcy (Insolvency)".

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

Chapter 15. Procedure for Appealing the Decisions of the National Bank 

(Chapter  

as amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

146. Decisions made by the National Bank within the framework of this Regulation may be appealed by applicants and/or other interested persons in respect of whom decisions have been made or whose interests are affected by the decisions taken, in accordance with the banking legislation of the Kyrgyz Republic, including with mandatory observance of pre-trial appeal procedure.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

 

 

 

 

 

Appendix 1

to the Regulation on Licensing the Activities of Microfinance Companies

 

Place for a photo

QUESTIONNAIRE  

(to be completed by an official of the MFC)

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, June 15, 2017 No. 2017-P-12/25-11, October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 year No. 2020-P-33/38-5) 

1. Full name _____________________________________________________________

2. Underline why the questionnaire is being filled out:

1) election to the position of the Chairman of the Board of Directors; 2) election to the position of a member of the Board of Directors; 3) election to the position of the Chairman of the Sharia Council; 4) election to the position of a member of the Sharia Council; 5) appointment to the position of the Chairman of the Board; 6) appointment to the position of a member of the Management Board; 7) appointment to the position of chief accountant; 8) appointment to the position of the head: 8.1. credit division, 8.2. financing units in accordance with Islamic principles of banking and financing, 8.3. subdivision responsible for asset and liability management, 8.4. internal audit services, 8.5. "Islamic window", 8.6. a structural unit responsible for internal organizational measures to combat the financing of terrorist activities and the legalization (laundering) of criminal proceeds (compliance officer).

No.

 

 

3

Specify the proposed position in the MFC:

_________________________________

Name of MFC:

____________________________________

4

If the surname was changed:

(former surname)

When:

For what reason:

5

Date of Birth:

Place of Birth:

6

Passport

Series:

Number:

 

 

Issued by:

Date of issue:

7

Citizenship:

(Indicate how it was obtained: by place of birth, after marriage, by other circumstances - provide an explanation) _______________________________________________________________________________

8

Home address:

(according to documents)

Tel: ( ) ______

Actual place of residence:

Tel: ( ) ______

9

Information about the availability of knowledge in the field:

Not really

- legislation regulating the activities of microfinance organizations, banking legislation

_____

- corporate governance

_____

- risk management

_____

- lending activities

_____

- accounting and financial reporting

_____

- liquidity management

_____

- legislation on audit activity and International Auditing Standards

_____

- Islamic principles of banking and finance, including Shariah standards set by AOIFI

_____

- standards of the Islamic Financial Services Council (IFSB)

_____

- accounting and auditing standards set by AAOIFI

_____

10

Main place of work:

position held:

11

Business address:

Phone:

( ) ______________

Fax:

( ) ______________

 

 

 

 

 

12. Education _________________________________________________

(higher, incomplete higher, bachelor, master, specialized secondary, secondary)

School name and location

Faculty or department

Year of entry and graduation

Specialty according to the received diploma

 

 

 

 

 

 

 

 

 

 

 

 

Training in courses conducted by various training centers.

Seminar or Course Topic

Seminar organizer

Place of passage

Pass date

Availability of a certificate

 

 

 

 

 

 

 

 

 

 

13. Work performed since the beginning of employment:

Enrollment Date

date of dismissal

Position held

Name of institution, location, full name of employer

Reason for leaving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14. Recommendations are submitted from:

1. Full name __________________________________________________________________

2. Position and place of work _______________________________________________

3. Home address, phone, fax, e-mail mail _____________________________________

1. Full name __________________________________________________________________

2. Position and place of work _______________________________________________

3. Home address, phone, fax, e-mail mail _____________________________________

*Recommendations are provided by persons who have worked with the candidate at his previous places of work, or had business relations with him. The recommendation must include the last name, first name, patronymic, place of work, position, telephone, fax, e-mail address and address of the recommender. The following recommendations are not allowed:

1) from employees of the National Bank;

2) from any relatives;

3) from the managers and employees of the MFC applying for approval of the candidate.

The authenticity of the signature of the recommending person must be certified at the place of his work or by a notary.

15. List the companies in any country in which you were and/or are a founder, shareholder, director (including the MFC to which you are elected or appointed) during the last 10 years:

Company name, location

Main activities of the company

Number of shares held

Amount of ownership in soms

Share in the authorized capital of the company, in %

Director of company

 

 

 

 

 

 

 

 

 

 

 

 

16. Indicate whether for you or for a company with which you were associated as a significant participant, controlling person and/or member of the Board of Directors or other officer at any time, in any country:

- allegations of violations in the field of banking legislation, misdemeanors and crimes were brought (yes / no)

_________________________________________________________________________

- applied disciplinary sanctions (yes/no)

_________________________________________________________________________

If yes, please provide a detailed description of the accusation brought by the law enforcement agency, indicating the name of the law enforcement agency, disciplinary sanction applied by any government agency, the results of the proceedings, the court decision:

_________________________________________________________________________

17. Do you or any of the companies listed in paragraph 15 have common interests with the MFC in which you are applying for a position? If yes, please provide detailed explanation.

18) Have you been judged. If yes, please provide an explanation regarding the conviction, indicating the numbers of subparagraphs, paragraphs, parts, articles of the Criminal Code of the Kyrgyz Republic, in accordance with which you were convicted (including those regarding the expunged conviction, indicating the date the conviction was cancelled).

Indicate whether they were held liable in accordance with the Code of Misdemeanors of the Kyrgyz Republic. If yes, please provide an explanation regarding the prosecution, indicating the numbers of subparagraphs, paragraphs, parts, articles of the Code of Misdemeanors of the Kyrgyz Republic, in accordance with which you were held accountable

_________________________________________________________________________

19. List each company that was involuntarily declared bankrupt or in the process of forced liquidation with which you were associated as a director, officer (member of the Board of Directors, member of the Management Board, chief accountant / financial manager) or significant participant (ownership of 10 (ten ) and more than a percentage of shares)

_________________________________________________________________________

Give a detailed justification of your role and responsibilities as a leader, officer or significant participant in the company with which you were associated, and which was placed in conditions related to involuntary bankruptcy, liquidation

_________________________________________________________________________

20. If there is a loan debt (other obligations) to someone, indicate the following information for each debt (obligation):

Name of creditor

date of issue

Loan amount,

in thousand soms

Interest rate

Purpose of the loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Description and amount of the deposit

Payment terms

Balance of loan debt, in thousand soms

Balance of debt on interest, in thousand soms

Arrears (principal, interest)

 

 

 

 

 

 

 

 

 

 

21. Were there any cases when you were unable to repay your debt to any financial and credit organization on a personal loan, as well as on a loan for which you acted as a guarantor, guarantor. If yes, please explain

_________________________________________________________________________

_________________________________________________________________________

22. Are you currently involved in any legal proceedings. If yes, please provide an explanation.

_________________________________________________________________________

23. Provide the following information:

1. Personal statement of assets and liabilities as of "___" _________________.

Tab. one

 

Assets 

Amount (in soms / for foreign citizens - in US dollars) 

 

Availability

 

 

Deposit funds in financial and credit organizations

 

 

Investments in companies (table item 15 of this questionnaire)

 

 

Securities

 

 

Real estate, including mortgaged or seized property

 

 

Accounts receivable, including funds provided on loan

 

 

Other assets

 

 

Total assets

 

 

Commitments

 

 

Loan debt

 

 

Accounts payable

 

 

Other liabilities

 

 

Total liabilities

 

 

Net worth (assets-liabilities)

 

 

Issued personal guarantees

 

Tab. 2

 

Sources of income 

Previous year  

20__ year 

Current year  

(expected amount) 20__ year 

 

Salary at the main place of work (including bonuses)

 

 

 

Dividends

 

 

 

Interest

 

 

 

Other income

 

 

 

Total

 

 

 

Expenses

 

 

 

Spending (personal, consumption)

 

 

 

Loan repayments principal interest

 

 

 

Other expenses (specify)

 

 

 

Total expenses

 

 

 

Net income (expense)

 

 

24. Marital status __________________________________________________________

List close relatives over 16 years old (parents, children, spouse, brothers, sisters):

Full name

family relations

Date and place of birth

Place of work, position

Home address, phone

 

 

 

 

 

 

 

 

 

 

25. Provide full details of your interests with the MFC for which you are applying ((3) see note). You should also indicate any other information that you consider important for consideration when agreeing to a position

_________________________________________________________________________

_________________________________________________________________________

I, ________________________________________________________________________

Full Name

I confirm that the above information in the questionnaire is true and complete and is provided in accordance with my knowledge and information on the issues indicated in the questionnaire. I acknowledge that if deliberate distortions and omissions are made on my part, this may serve as a basis for refusing to agree to the recommended position and entail liability in accordance with the law.

_____________________

signature

"__" _________________

date

 

 

Note:

1) It is necessary to sign each page of the questionnaire;

2) Corrections in the questionnaire are certified by the words "verify corrected" and the candidate's own signature;

3) Indicate the relationship with the shareholders, officials of the MFC.

 

(*) (Repealed in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

 

 

 

Appendix 2

to the Regulation on Licensing the Activities of Microfinance Companies

 

 

 

Chairman of

the National Bank of the Kyrgyz Republic

SAMPLE APPLICATION  

for a license 

We ask you to issue a license to conduct certain banking operations in order to create

"____________________________________________________________________________",

(full name of MFC)

(carrying out operations in accordance with Islamic principles of banking

and financing) with the following details:

1. Name

2. Full address

3. Name of authorized person

Authorized person's address

Phone fax __________________

4. Type of organization (according to the method of formation):

Closed Joint Stock Company

Public corporation

5. Connection with the holding company (yes, no)

If yes, the name of the holding company

6. Estimated capital structure:

- share capital (nominal)

- par value of a share

- number of shares

The founders are fully responsible for the accuracy of the information provided.

Constituent documents on _____ sheets, described sheet by sheet.

Founders: full name, signature, date

 

Address, phone, fax

1.

2.

3.

(If the founder is a legal entity, then the full name of the legal entity is indicated,

the signature of the head is put and certified with a seal)

 

 

 

Appendix 3

to the Regulation on Licensing the Activities of Microfinance Companies

LIST  

of the main issues that should be reflected in the founding agreement on the creation of the MFC 

1. Full and abbreviated name.

2. Purposes of creation.

3. Information about the legal form.

4. Information about the authorized capital.

5. Rights and obligations of founders-shareholders of the MFC.

6. Information about promotions.

7. Information about the governing bodies (Management Board, Board of Directors, Sharia Council), their competence and appointment procedure.

8. Procedure for reorganization and liquidation.

9. Other issues provided for by law.

 

 

 

Appendix 4

to the Regulation on Licensing the Activities of Microfinance Companies

LIST  

of the main issues that should be reflected in the charter of the MFC 

1. Full and abbreviated name of the MFC with an indication of the legal form (in Kyrgyz, Russian and English).

2. The goals of the creation of the MFC, the provisions governing the achievement of the goal established by Article 2 of the Law "On Microfinance Organizations in the Kyrgyz Republic".

3. Operations carried out by the MFC.

4. Information about the authorized capital of the MFC.

5. Information about MFC shares.

6. Rights and obligations of shareholders.

7. Placement of MFC shares.

8. Alienation of shares by shareholders.

9. Register of shareholders and the procedure for registering shareholders.

10. Distribution of profits.

11. Ensuring the interests of clients.

12. Accounting and reporting of the MFC.

13. Management bodies of the MFC (Board of Directors, Sharia Council, Management Board), their competence and appointment procedure.

14. Control over the financial and economic activities of the MFC.

15. Information about subsidiaries, branches and representative offices.

16. The procedure for introducing amendments and additions to the charter.

17. The procedure for the reorganization and liquidation of the MFC.

18. Other issues provided for by the legislation of the Kyrgyz Republic.

 

 

 

Appendix 5

to the Regulation on Licensing the Activities of Microfinance Companies

LIST  

of founders (shareholders)_________________________________  

(name of MFC)

 

For legal entities

Postal code, address, telephone, fax

Payment details of the founder, account number and name of the financial and credit organization in which the account is opened

Declared authorized capital

Paid on ________ 20__

Full name of the legal entity

Full name of the founder (shareholder) of the legal entity

share in thousand soms

share in the authorized capital (in %)

contributed in thousand soms

share in the authorized capital (in %)

For individuals

Passport data

Full name

 

2

3

4

5

 

 

 

nine

total 

 

 

 

 

 

 

 

 

 

Chairman of the Board of Directors (signature) Full name

Seal (for a newly created MFC - the seal of the legal entity from which the Chairman of the Board of Directors was elected; for the current MFC - the seal of the MFC).

 

 

 

Appendix 6

to the Regulation on Licensing the Activities of Microfinance Companies

LIST  

of the main issues that should be reflected in the business plan 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, August 21, 2019 No. 2019-P-33/43-8) 

1. Introduction

1) indicate the name of the MFC, the location of the MFC;

2) indicate the authorized person, his address, telephone number.

2. Description of the sCUe of the MFC

1) indicate the proposed market territory in which the MFC will operate;

2) list and briefly describe the proposed services. Pay attention to the proposed credit policy (risk assessment mechanism for issuing loans, the mechanism for the continuous control of loans issued, other issues related to the proposed credit policy), deposit services, as well as conducting other operations that are priority for the creation of the MFC. Specify the provisions governing the achievement of the goal established by Article 2 of the Law "On Microfinance Organizations in the Kyrgyz Republic";

3) indicate the Chairman and members of the Board of Directors, members of the Sharia Council, the Chairman and members of the Board of the new MFC.

List the proposed shareholders whose number of shares will be five percent or more outstanding, indicate the percentage of shares that are expected to be purchased by them.

3. Leadership and management

1) indicate the name of the MFC and the terms of reference of the board and officers, describe the plan for attracting personnel and implementing the personnel policy of the MFC;

2) Discuss the proposed candidates for officials, as well as the qualities that they should have. Specify the nature and extent of the experience they must have in order to be able to provide the services offered or serve the proposed market areas;

3) Discuss any conflicts of interest;

4) Describe any agreements that MFC intends to enter into for microfinance services activities.

4. Analysis of the activities of the MFC

1) Analyze and describe the markets to be served by the MFC, indicate the size, income and other economic indicators. Include anticipated changes in the market, factors influencing those changes, and their impact on the emerging MFC. To the extent necessary for making business decisions, describe the differences between the markets you will serve, for example, the differences between the deposit and credit markets;

2) analyze the competition. List competitors within the market service area, competitors located outside and able to influence the markets served, and any potential competition.

Provide an analysis of market strategies, as well as expected results in relation to the relative degree of influence on the value of market shares and prices;

3) explain the chosen strategy in order to get a share from each market (deposit/credit) and indicate the expected results;

4) describe the possible risks of the MFC's activities and the risk management strategy.

5. Plans and goals

1) Consider the main planning objects used in market analysis and in setting plans and goals for the new MFC. Include at least the following: market growth, interest rates, cost of funds, and competition;

2) describe the internal control mechanism aimed at compliance with the legislation on combating the financing of terrorist activities and the legalization (laundering) of criminal proceeds;

3) describe the plan for attracting personnel and conducting personnel policy;

4) how it is supposed to form the MFC clientele.

6. Structure of assets and liabilities

The projected balance sheet and income statement should reflect changes in assets and liabilities, volume for each service, and salaries of officers and staff, and be based on planning objects to be submitted as part of the application, market analysis, and strategy discussed above. The proposed forms for forecasts follow.

Discuss the organizers' plans for providing the new MFC with an independent external audit. To comply with licensing conditions, the National Bank may require MFC to hire an independent external auditor.

7. Capitalization / equity plan

1) provide a rationale for how the proposed capital structure will be achieved and an explanation of why the organizers believe that the amount offered is sufficient in a market economy. The organizers are expected to establish capital in an amount sufficient to compete effectively in the marketplace and to support the planned operations accordingly;

2) Discuss plans for initial capital raising and growth financing during the first three years. Explain how the plans will ensure that MFC complies with key regulations set by the National Bank;

3) discuss the number and class of shares to be issued, the nominal and sale value of the shares;

4) evaluate the adequacy of the projected capital, taking into account the weighting of assets by risk;

5) describe the credit policy of the MFC, the mechanism for assessing risk criteria.

 

 

 

Appendix 7

to the Regulation on Licensing the Activities of Microfinance Companies

NATIONAL BANK OF THE KYRGYZ REPUBLIC 

LICENSE No. _________  

of a microfinance company for the right to conduct certain banking operations in the national currency  

"___" _____________ 20__ 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

Microfinance company "__________________________________" (full name), established to provide affordable microfinance services to help overcome poverty, increase employment, promote entrepreneurship and social mobilization of the population of the Kyrgyz Republic, in accordance with the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic". Republic",

MFC legal address ____________________________________________________________

(short name)

1. This license authorizes the following separate banking operations:

1) issuance of secured and unsecured microcredits;

2) acceptance of time deposits from individuals and legal entities on a repayment basis in order to accumulate customer savings;

3) purchase and subsequent sale of debt obligations (factoring);

4) provision of retail banking services under an agency agreement with a bank - without opening accounts for clients in a microfinance company;

5) issuance of guarantees in an amount not exceeding, together with a microcredit (leasing), the norm of the maximum loan amount per borrower.

2. An integral part of this license is a list of restrictions on certain banking operations.

This license comes into force from the moment it is signed by the Deputy Chairman/member of the Board of the National Bank in charge of supervision and licensing issues (head/director of the regional department/representative office).

This license grants the right to carry out operations expressly specified in the license.

The license is inalienable (nominal). The rights arising from this license are not transferable to third parties.

 

Seal

 

Deputy Chairman/Member of the Board of the National Bank

(head/director of the regional department/representative office)

LIST OF RESTRICTIONS No. ________  

"___" ______________ 20__ to license No. _____ issued "__" ___________ 20__ for the right to conduct certain banking operations in national currency 

Microfinance company "_______________________________________"

(full name)

Sequence number of the banking transaction 

The presence of a restriction 

Date from which the restriction is valid 

Note 

1

Not

 

 

2

Not

 

 

3

Not

 

 

4

Not

 

 

5

Not

 

 

 

Deputy Chairman of the National Bank

(head/director of the regional department/representative office)

 

 

 

Appendix 8

to the Regulation on Licensing the Activities of Microfinance Companies

NATIONAL BANK OF THE KYRGYZ REPUBLIC 

LICENSE No. ________  

of a microfinance company for the right to conduct certain banking operations in the national currency in accordance with the Islamic principles of banking and financing / for the right to conduct certain banking operations in the national currency in accordance with the Islamic principles of banking and financing within the "Islamic window" __ "_____________ 20__ 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

Microfinance company "____________________________________" (full name), established to provide affordable microfinance services to help overcome poverty, increase employment, promote entrepreneurship and social mobilization of the population of the Kyrgyz Republic, in accordance with the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic". Republic"

MFC legal address _____________________________________________________________

(short name)

This license permits the following operations on Islamic principles of banking and financing in accordance with the legislation of the Kyrgyz Republic:

1. Financing by transactions:

1) "Mudaraba";

2) "Sharika/Musharakah and Sharika/Musharakahmuntahiyahabittamlik";

3) "Murabaha";

4) "Ijara and Ijaramuntahiyabittamlik";

5) Qard Al-Hassan (only for issuing microfinance);

6) "Guarantees";

7) "Salam";

2. accepting deposits from individuals and legal entities under the Mudaraba transaction in order to accumulate customer savings;

3. provision of retail banking services under an agency agreement with a bank - without opening accounts for clients in a microfinance company;

4. issuance of guarantees in an amount not exceeding, together with microfinance (leasing), the standard for the maximum loan amount per borrower.

An integral part of this license is a list of restrictions on certain banking operations.

This license comes into force from the moment it is signed by the Deputy Chairman/member of the Board of the National Bank in charge of supervision and licensing issues (head/director of the regional department/representative office). This license grants the right to carry out operations expressly specified in the license.

The license is inalienable (nominal). The rights arising from this license are not transferable to third parties.

 

Seal

 

Deputy Chairman/Member of the Board of the National Bank

(head/director of the regional department/representative office)

LIST OF RESTRICTIONS No. ________  

"___" ____________ 20__ to license No. _______ issued by "__" _________ 20__ for the right to conduct certain banking operations in the national currency in accordance with the Islamic principles of banking and financing / for the right to conduct certain banking operations in the national currency in accordance with Islamic principles of banking and financing within the "Islamic window" 

Microfinance company "_______________________________________"

(full name)

Sequence number of the banking transaction 

The presence of a restriction 

Date from which the restriction is valid 

Note 

1

Not

 

 

2

Not

 

 

3

Not

 

 

4

Not

 

 

5

Not

 

 

 

Seal

 

Deputy Chairman of the National Bank

(head/director of the regional department/representative office)

 

 

 

Appendix 9

to the Regulation on Licensing the Activities of Microfinance Companies

NATIONAL BANK OF THE KYRGYZ REPUBLIC 

LICENSE No. ________  

of a microfinance company for the right to conduct certain banking operations in foreign currency "__" __________ 20__ 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

Microfinance company "__________________________________________" (full name), established to provide affordable microfinance services to help overcome poverty, increase employment, promote entrepreneurship and social mobilization of the population of the Kyrgyz Republic, in accordance with the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic". Republic"

legal address of the MFC ________________________________________________________________

(abbreviated name)

1. This license authorizes the following separate banking operations:

1) issuance of secured and unsecured microcredits;

2) acceptance of time deposits from individuals and legal entities on a repayment basis in order to accumulate customer savings;

3) purchase and subsequent sale of debt obligations (factoring);

4) issuance of guarantees in an amount not exceeding, together with a microcredit (leasing), the standard for the maximum loan amount per borrower;

5) purchase and sale of foreign currency on its own behalf.

2. An integral part of this license is a list of restrictions on certain banking operations.

This license comes into force from the moment it is signed by the Deputy Chairman/member of the Board of the National Bank in charge of supervision and licensing issues (head/director of the regional department/representative office).

This license grants the right to carry out operations expressly specified in the license.

The license is inalienable (nominal). The rights arising from this license are not transferable to third parties.

 

Seal

 

Deputy Chairman/Member of the Board of the National Bank

(head/director of the regional department/representative office)

LIST OF RESTRICTIONS No. ________  

"___" ______________ 20__ to license No. ________ issued by "___" _____________ 20__ for the right to conduct banking operations in foreign currency 

microfinance company

"_____________________________________________________________________"

________________________________________________________________________

(full name of the legal entity)

Sequence number of the banking transaction 

The presence of a restriction 

Date from which the restriction is valid 

Note 

1

Not

 

 

2

Not

 

 

3

Not

 

 

4

Not

 

 

5

Not

 

 

 

Deputy Chairman of the National Bank

(head/director of the regional department/representative office)

 

 

 

Appendix 10

to the Regulation on Licensing the Activities of Microfinance Companies

NATIONAL BANK OF THE KYRGYZ REPUBLIC 

LICENSE No. _________  

of a microfinance company for the right to conduct certain banking operations in foreign currency in accordance with the Islamic principles of banking and financing / for the right to conduct certain banking operations in foreign currency in accordance with the Islamic principles of banking and financing within the "Islamic window" ___ "_____________ 20__ 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

Microfinance company "__________________________________________" (full name), established to provide affordable microfinance services to help overcome poverty, increase employment, promote entrepreneurship and social mobilization of the population of the Kyrgyz Republic, in accordance with the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic". Republic"

legal address of the MFC _____________________________________________________________

(abbreviated name)

This license authorizes the following operations on Islamic principles of banking and financing in accordance with the legislation of the Kyrgyz Republic:

1. Financing by transactions:

1) "Mudaraba";

2) "Sharika/Musharakah and Sharika/Musharakahmuntahiyahabittamlik";

3) "Murabaha";

4) "Ijara and Ijaramuntahiyabittamlik";

5) Qard Al-Hassan (only for issuing microfinance);

6) "Salam";

2. accepting deposits from individuals and legal entities under the Mudaraba transaction in order to accumulate customer savings;

3. provision of retail banking services under an agency agreement with a bank - without opening accounts for clients in a microfinance company;

4. issuance of guarantees in an amount not exceeding, together with microfinance (leasing), the standard for the maximum loan amount per borrower.

An integral part of this license is a list of restrictions on certain banking operations.

This license comes into force from the moment it is signed by the Deputy Chairman/member of the Board of the National Bank in charge of supervision and licensing issues (head/director of the regional department/representative office). This license grants the right to carry out operations expressly specified in the license.

The license is inalienable (nominal). The rights arising from this license are not transferable to third parties.

 

Seal

 

Deputy Chairman/Member of the Board of the National Bank

(head/director of the regional department/representative office)

LIST OF RESTRICTIONS No. ________  

"___" ______________ 20__ to license No. _______ issued "__" ___________ 20__ for the right to conduct certain banking operations in foreign currency in accordance with the Islamic principles of banking and financing / for the right to conduct certain banking operations in foreign currency in accordance with Islamic principles of banking and financing within the "Islamic window" 

Microfinance company "__________________________________________"

(full name)

Sequence number of the banking transaction 

The presence of a restriction 

Date from which the restriction is valid 

Note 

1

Not

 

 

2

Not

 

 

3

Not

 

 

4

Not

 

 

5

Not

 

 

 

Seal

 

Deputy Chairman of the National Bank

(head/director of the regional department/representative office)

 

 

 

 

Appendix 11

to the Regulation on Licensing the Activities of Microfinance Companies

 

 

 

 

 

National Bank of the

Kyrgyz Republic

SAMPLE APPLICATION FOR  

MFC TO OPEN A BRANCH _____________________________________ (on the letterhead of the institution) 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

Hereby "__________________________________________________________________________________"

(name of MFC)

applies for approval of the opening of a branch in ______________________________________

_______________________________________________________________________________

(name of locality, location)

according to _______________________________________________________________________________ (name

of the MFC management body that made the decision to open a branch in accordance with the charter)

This branch is empowered to conduct the following operations and transactions:

-

-

(all operations and transactions are indicated, the right to perform which is delegated to the branch in accordance

with the regulation on the branch under the license issued by the MFC by the National Bank).

Appointed as the head and chief accountant:

_______________________________________________________________________________

(FULL NAME)

Appendix: CUies of personnel records for the head and chief accountant of the branch, power of attorney,

in total on _____ sheets.

 

MFC is fully responsible for the accuracy of the information provided.

 

Head of the executive body of the MFC (signature) Full name

MFC seal "___" ____________________ 20__

 

 

 

Appendix 11-1 to the

Regulation on Licensing the Activities of Microfinance Companies

 

 

 

 

 

National Bank of the

Kyrgyz Republic

SAMPLE  

MFC NOTIFICATION of Branch Closure _______________________________________ (on institutional letterhead) 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

Hereby "__________________________________________________________________________________"

(name of MFC)

notifies of the intention to close the branch at _________________________________________

_______________________________________________________________________________

(name of locality, location)

according to

_______________________________________________________________________________

(name of the MFC management body that made the decision to open a branch in accordance with the charter)

MFC has no obligations (**):

- before the clients and creditors served in this branch;

- in front of the budget.

Assets and liabilities are transferred to the balance sheet of the MFC.

MFC is fully responsible for the accuracy of the information provided.

 

Head of the executive body of the MFC (signature) Full name

MFC seal "___" ________________ 20__

 

 

 

Appendix 12 to the

Regulation on Licensing the Activities of Microfinance Companies

 

 

 

 

 

National Bank of the

Kyrgyz Republic

SAMPLE APPLICATION FOR  

MFC TO OPEN A OFFICE ______________________________________________ (on the letterhead of the institution) 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

Hereby "__________________________________________________________________________________"

(full name of the MFC opening a representative office and its license number)

applies for approval of the opening of a representative office at ___________________________

(indicate the location of the representative office, telephone, fax and the name of the MFC

in which the current account of the representative office is opened)

The decision to open a representative office was made by ________________________________

_______________________________________________________________________________

(indicate the governing body of the MFC that made the decision to open a representative office)

in order to

_______________________________________________________________________________

(specify the purpose of opening a representative office)

Appointed as the head of the representative office:

_______________________________________________________________________________

(indicate the name of the head)

Appendix: a CUy of the personnel record sheet for the head of the representative office, a power of attorney, on _____ sheets.

 

Head of the executive body of the MFC (signature) Full name

MFC seal "___" _______________ 20__

 

 

 

 

Appendix 13

to the Regulation on Licensing the Activities of Microfinance Companies

 

 

 

 

 

Place for a photo 

QUESTIONNAIRE of the  

founder (shareholder) of the MFC  

(filled in by an individual) 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4, June 29, 2020 No. 2020-P-33/38-5) 

1

Full name

 

 

2

If surname changed:

(previous surname)

When:

For what reason:

3

Date of Birth:

Place of Birth:

4

Passport

Series:

Number:

 

 

Issued by:

Date of issue:

5

Citizenship:

(Indicate how it was obtained: by place of birth, after marriage, by other circumstances - provide an explanation)

6

Home address:

(according to documents) Tel: () ___________________

Actual place of residence:

Tel: () ___________________

7

Main place of work:

position held:

8

Business address:

Tel: () ___________________

Tel: () ___________________

9

Education __________________________

(higher, incomplete higher, secondary specialized, secondary)

The name of the educational institution and its location

Year of entry and graduation

Specialty according to the received diploma

 

 

 

 

 

10. Work performed since the beginning of employment

Start date  

(month, year) 

Departure date  

(month, year) 

Position held 

Name of institution, location, full name of employer 

Reason for leaving 

 

 

 

 

 

11. Indicate whether you or the company with which you were associated as a significant participant and / or any other official (member of the Board of Directors, member of the executive body, chief accountant / financial manager, etc.) ever, in any country:

- accusations were made for committing administrative offenses within the last three years , including in cases where the case was dismissed or the charge was dropped (yes / no) _________

- applied disciplinary sanctions within the last three years (yes/no) __________

- accusations of committing crimes were brought under criminal law, including in cases of termination of a criminal case, acquittal and release from criminal liability (yes / no) __________

If yes, please provide a detailed description of the charge, conviction by a law enforcement agency, indicating the name of the law enforcement agency, the accusation or disciplinary sanction applied by any government agency, the outcome of the proceedings, the decision of the court (including in cases of dismissal, dismissal of charges, acquittal or exemption from criminal liability):

____________________________________________________________________________

12. Have you been judged. If yes, please provide an explanation regarding the criminal record, indicating the numbers of subparagraphs, paragraphs, parts, articles of the Criminal Code of the Kyrgyz Republic, in accordance with which you were convicted (including regarding the expunged conviction, indicating the date the conviction was canceled)

____________________________________________________________________________

Indicate whether a decision has been made regarding you to be prohibited from engaging in any professional activity. If yes, please provide an explanation.

____________________________________________________________________________

Indicate whether they were held liable in accordance with the Code of Misdemeanors of the Kyrgyz Republic. If yes, please provide an explanation regarding the bringing of responsibility, indicating the numbers of subparagraphs, paragraphs, parts, articles of the Code of Misdemeanors of the Kyrgyz Republic, in accordance with which you were held liable

____________________________________________________________________________

13. List each company that was declared bankrupt or in the process of forced liquidation with which you were associated as an official (member of the Board of Directors, member of the executive body, chief accountant / financial manager, etc.) or a significant participant

____________________________________________________________________________

Give a detailed justification of your role and responsibilities as an official or a significant participant in the company with which you were associated and which was placed in conditions related to involuntary bankruptcy, liquidation

____________________________________________________________________________

14. Whether you or a company with which you were associated as an official (member of the Board of Directors, member of the executive body, chief accountant / financial manager, etc.) or a significant participant in the investigation by government or regulatory bodies. If yes, please explain why

____________________________________________________________________________

15. Are you currently involved in any legal proceedings. If yes, please provide an explanation.

____________________________________________________________________________

16. Marital status

____________________________________________________________________________

List close relatives (parents, children over 16, spouse, brothers, sisters, grandparents):

Full name 

family relations 

Date and place of birth 

Position and place of work 

Home address, phone no. 

 

 

 

 

 

17. If there is a loan debt (other obligations) to someone, indicate the following information for each debt (obligation):

Name of creditor

 

 

date of issue

 

 

Loan amount

 

 

Interest rate

 

 

Purpose of the loan

 

 

Description and amount of the deposit

 

 

Payment terms

 

 

The balance of the loan

 

 

The balance of debt on interest on a loan,

 

 

Arrears (principal, interest on loan)

 

 

18. Provide the following information:

a) Personal Statement of Assets and Liabilities as of "____" _____________________ (specify currency)

 

Assets 

Amount (in soms/for foreign founders in US dollars) 

1

Availability

 

2

Deposit funds in financial and credit organizations

 

3

Investments in companies (Table 2)

 

4

Securities

 

5

Real estate, of which is pledged or on which attachment is imposed

 

6

Accounts receivable (including funds provided on loan)

 

7

Other assets

 

 

Total assets

 

 

Commitments

 

1

Loan debt

 

2

Other liabilities

 

 

Total liabilities

 

 

Net worth (assets-liabilities)

 

 

Personal issued guarantees

 

 

 

 

b) information about sources of income (specify the currency)

 

Sources of income 

Previous year  

20___ year 

Current year  

(expected amount) 20___ year 

1

Salary at the main place of work (including bonuses)

 

 

2

Salary not at the main place of work, including royalties, other payments

 

 

3

Dividends

 

 

4

Interest

 

 

5

Other real estate income

 

 

b

Other income

 

 

 

Total

 

 

 

Expenses

 

 

1

Spending (personal, consumption)

 

 

2

Loan repayments: principal

interest

 

 

3

other expenses

 

 

 

Total expenses

 

 

 

Net income (expense)

 

 

19. Indicate the companies in any country in which you were (in case of alienation of a share in the authorized capital, you must indicate the date of alienation) and / or are the founder, shareholder (owner) during the last 10 years:

Name of legal entity, location 

Type of activity of a legal entity 

Number of shares held 

Share of ownership in capital in soms 

Share in the authorized capital of this legal entity in % 

Taxpayer Identification Number (TIN) 

 

 

 

 

 

 

20. Additional information:

one). Do you intend to include new candidates on the Board of Directors of this MFC (if yes, please provide a brief summary)

2) Do you intend to make significant changes to MFC policies and MFC management (if yes, briefly describe the proposed changes)

21. Provide any other information that you consider important for the consideration of the application for the purchase of MFC shares

22. I, ______________________________________________________________________________

Surname, name, patronymic

I confirm that the above information in the questionnaire is true and complete and is provided in accordance with my knowledge and information on the issues indicated in the questionnaire. I acknowledge that if deliberate misrepresentations and omissions are made on my part, this may serve as a basis for refusing to satisfy an application for the acquisition of MFC shares and entail liability in accordance with the law.

________________ Signature "___" ____________________________

Notes:

It is necessary to sign each page of the questionnaire.

Corrections in the questionnaire are certified by the words "to believe corrected" and by the candidate's own signature.

 

 

 

Appendix 13-1

to the Regulation on Licensing the Activities of Microfinance Companies

date

QUESTIONNAIRE of the  

founder (shareholder) of the MFC  

(to be filled in by a legal entity) 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

1. Name of the legal entity (hereinafter referred to as the "company")

_______________________________________________________________________________

(indicate the full and abbreviated name of the legal entity)

2. Legal address of the company _______________________________________________________________________________

3. Date of establishment of the company _______________________________________________________________________________

4. TIN _______________________________________________________________________________

5. Date of registration with the authorized body for registration of legal entities

_______________________________________________________________________________

No. (certificates of state registration/re-registration)

6. In which banks are the company's accounts opened: _______________________________________________________________________________

7. Describe the activities that the company is allowed to engage in under the license(s) (or other permit), indicating the number of the license (permit) and the authority that issued the license (permit):

8. Describe other activities the company is involved in:

9. Persons having common interests with _______________________________________________________________________________

(full name of the Company):

1) legal entities and individuals who are participants/shareholders (full name of the Company):

Full name of legal entities, full name of individuals 

Number of shares held 

Share in authorized capital 

 

 

 

2) companies in which _______________________________________________________________

(full name of the applicant - legal entity)

is a member/shareholder;

Full name of legal entities 

Number of shares held 

Share in authorized capital 

3) affiliated with _______________________________________________________________

(full name of the Company)

legal entities and individuals:

Full name of legal entities, full name of individuals 

Number of shares held 

Share in authorized capital 

 

 

 

 

 

 

10. Specify the officials of the company, indicating their position in the company, as well as their citizenship (members of the Board of Directors (supervisory body), members of the board (executive body), financial manager (chief accountant).

11. Whether members of the Board of Directors or officials (members of the Board of Directors (supervisory body)), members of the board (executive body), financial manager (chief accountant) of the company are owners of the shares of the MFC, the shareholder of which the company intends to become. If yes, please indicate the number of shares held by the specified officers of the company:

Full name 

Number of shares held 

Share in the authorized capital of MFC 

Additional information or notes 

 

 

 

 

 

12. Does the company have a loan (credit) debt to financial and credit organizations and / or other persons, if yes, it is necessary to indicate the date of receipt of the loan (loan), the purpose of obtaining the loan (s) (loan), the amount of the loan (loan) received and the balance debt on the principal amount of the credit (loan) and interest on it as of the date of application:

Name of creditor

 

 

Date of issue

 

 

Loan (loan) amount

 

 

Interest rate

 

 

Appointment of a loan (credit)

 

 

Description and amount of the deposit

 

 

Payment terms

 

 

Balance of debt on a loan (credit)

 

 

Balance of debt on interest on a loan

 

 

Arrears (principal, interest on loan)

 

 

13. Does the company intend to include representatives of the company on the Board of Directors of this MFC (if yes, please indicate the nominations), and whether the Company intends to make significant changes to the policies of the MFC and the management of the MFC (if yes, please indicate the proposed changes).

14. Specify all structural divisions of the company:

Subdivision  

(branch, representative office) 

The address 

Supervisor 

Kind of activity 

Other information or notes 

 

 

 

 

 

15. Indicate whether the company is involved in litigation with anyone, if yes, indicate in detail the details of the litigation (plaintiff, defendant, subject of dispute, in which court the court case is being considered, at what stage of the consideration the case is).

16. Other information that is material according to the applicant:

Signature of the head of the company

Stamp of the company

 

 

 

Appendix 14

to the Regulation on Licensing the Activities of Microfinance Companies

REQUIREMENTS  

for founders who own more than 20 (twenty) percent of the voting shares of a microfinance company 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11, August 15, 2018 No. 2018-P-33/33-8) 

The founders (shareholders) of the MFC can be legal entities that correspond to one of the following points:

1. International financial institutions authorized by the World Bank, the Asian Development Bank, the European Bank for Reconstruction and Development and the Islamic Development Bank.

2. Foreign non-profit organizations subject to the following conditions:

a) working and/or working as loan providers during the last five years on microfinance development projects of government organizations of donor countries (for example, GTZ, TACIS, JICA, TICA), on the basis of intergovernmental agreements with the government of the Kyrgyz Republic;

b) having work experience in the Kyrgyz Republic for at least three years;

c) assisting in supporting the economies of developing countries.

3. Financial and credit organizations subject to the following conditions:

a) stable financial condition and implementation of profitable activities in the market of the Kyrgyz Republic during the previous two years;

b) the presence of a rating above the average assigned by a rating agency registered with the Microfinance Ratingand Assessment Fund;

c) availability of an external audit report for the last two years;

d) during the last twelve months, the National Bank did not apply enforcement measures.

This list may be revised by the National Bank.

 

 

 

Appendix 15

to the Regulation on Licensing the Activities of Microfinance Companies

Minimum requirements for the content of the action plan for the termination (completion) of banking operations prohibited by the MFC 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 17, 2018 No. 2018-P-33/43-4) 

1. A commercial bank must provide an Action Plan for the termination (completion) of banking operations prohibited by the MFC (hereinafter referred to as the Action Plan) for each type of operation, volume and timing of their completion. Before preparing the Action Plan, the bank must make an inventory of all existing banking operations and transactions (contracts, agreements and other documents), in order to provide reliable information on the timing of their completion, determine the actual volume of banking operations to be completed and operations, the completion of which does not depend on the bank and will be difficult on time.

2. The total period for the implementation of the action plan determined by the commercial bank must be justified taking into account the specific situation in the commercial bank and the nature of the proposed measures and should not exceed 12 (twelve) months after obtaining the MFC license.

3. The submitted action plan must necessarily contain: detailed measures and deadlines for their implementation, responsible executors at each stage of implementation, indication of performance indicators, as well as measures taken by the bank to monitor the implementation of the action plan. The MFC action plan should provide, where necessary, for the modalities and conditions for the participation of shareholders and third parties.

4. The action plan must contain information about the expected result of its implementation, including:

- MFC's actions to complete previously concluded transactions and/or conduct banking operations;

- a list of operations, the completion of which will be difficult or impossible in a timely manner;

- terms of termination of contracts, transactions and other documents related to banking operations prohibited for the MFC.

5. The action plan must be signed by the head of the commercial bank and the chief accountant of the commercial bank, and approved by the board of directors.

6. All sheets of the action plan, including appendixes, must be numbered, laced and sealed with a seal of a commercial bank.

7. To develop an action plan, a commercial bank has the right to involve an audit organization (individual auditor).

8. If necessary, the National Bank has the right to request from a commercial bank additional information necessary to recognize the action plan as real, setting a deadline for its submission.

9. MFC is obligated to ensure that the action plan is implemented in full and on time.