Return back

 

 

 

Appendix  

to Resolution No. 2017-П-12/23/1-(НПА) of the   

National Bank of the Kyrgyz Republic Board as   

of June 8, 2017   

REGULATION   

on Licensing Bank Activities   

(As amended by the Resolution of the NBKR Board No.2018-П-12/44-3 as of October 24, 2018, No. 2019-П-12/22-4 as of April 24 2019, No. 2019-П-12/43-2 as of August 21, 2019, No. 2020-П-12/39-1 as of July 8, 2020, No. 2021-П-12/38-3 as of July 14, 2021, No. 2021-П-12/47-2 as of August 25, 2021, No. 2022-П-12/12-3 as of March 9, 2022). 

SECTION I. GENERAL PROVISIONS   

Chapter 1. Bank, its Founders (Shareholders)  

1. This Regulation on Licensing Bank Activities (hereinafter referred to as the “Regulation”) defines the procedure for licensing activities of the commercial banks to be established in the territory of the Kyrgyz Republic (hereinafter referred to as the “bank”), the procedure for obtaining an authorization to purchase threshold participation in the capital of the banks, approving the banks officials, expanding the activities of the banks through creation of the separate structural subdivisions, the procedure for agreeing the amendments and additions to the banks charter, the procedure for reorganizing the banks and establishment of a “transitional” bank as part of restructuring measures of the bank, and also the procedure for re-registering a microfinance company into a commercial bank and reorganizing a traditional bank into an Islamic bank.  

This regulation also covers the State Development Bank of the Kyrgyz Republic taking into account the peculiarities stipulated by the Law of the Kyrgyz Republic “On State Development Bank of the Kyrgyz Republic”.  

The bank performs its activities in accordance with the legislation of the Kyrgyz Republic and its charter on the basis of the license authorizing to conduct banking operations issued by the National Bank of the Kyrgyz Republic (hereinafter referred to as the “National Bank”) under this Regulation.  

In case of availability of the appropriate license of the National Bank, the bank that possesses the “Islamic window” can conduct banking operations in accordance with the principles of Islamic banking and finance in accordance with the procedure established by the National Bank.  

An Islamic bank shall conduct banking operations only in accordance with the principles of Islamic banking and finance in the manner required by the National Bank provided that there is an appropriate license of the National Bank.  

2. License issuance to the bank and execution of its activities in compliance with the license is not regarded as the National Banks guarantees of solvency of a bank.  

3. A bank can be established and operate only in the legal form of a joint stock company (close-end type or open-end type).  

4. The bank acquires the status of a legal entity from the date of its state registration in accordance with legislation of the Kyrgyz Republic. Authorization of the National Bank to establish a bank shall be submitted for the state registration of a bank as a legal entity.  

5. The bank shall obtain the license of the National Bank authorizing to perform banking operations in order to commence its activities.  

The license fee is determined in accordance with the legislation of the Kyrgyz Republic and is specified in the corresponding regulatory legal act of the National Bank.  

Prior to obtaining a license for conducting banking operations, it is prohibited for the bank to engage in any activities as a legal entity, except for organizational activities associated with the bank establishment. (As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-33/9-7 as of February 27, 2019

6. The bank uses the name written in its charter as its firm (official) name. The bank has no right to name itself in any documents, announcements or advertisement other than the name written in its charter.   

The firm (official) name of the bank shall meet the requirements of Article 78 of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity” and Clause 7 thereof.   

7. The names of foreign states/settlements, including words meaning full or partial relation of the bank to such states/settlements, can be used in the firm (official) name of the bank if:   

а) the founders (shareholders) of the bank, holding in total 40 percent or more of the voting shares of any type of the bank, are authorized, in accordance with the laws of the state of origin, to act/participate in any organizations on behalf of such states/settlements. In this case, it is necessary to submit to the National Bank a written confirmation of the body authorized to use the firm names of the state of origin that the use of the name of such state or its settlements (cities and villages), including the words meaning the complete or partial relation of the bank to such states/settlements, is allowed under law, or a written confirmation of this body that such authorization/confirmation is not required by law.   

b) the name used coincides with the firm name/registered trademark of the founder (shareholder) of a legal entity registered under the laws of the state of origin.   

Other geographical indications/names (Eurasian, European, Asian, etc.) may be in the firm name of the bank if the main economic activities of the founders (shareholders) of the bank-legal entities holding in total 40 or more percent of the voting shares of any type of a bank are primarily carried out in the territory of the specified region.   

The word “international” may be used in the banks firm name if the share of the international organizations and/or international financial/credit institutions in the authorized capital of a bank is 50 percent or more.   

The word “investment” may be used in the banks firm name if the bank carries out investment activities (with an appropriate investment policy), which consists in trading securities and/or financing investment projects, and the share of such investments is 60 percent or more of the banks total net assets, with the exception of investments in government securities and banking premises. Meanwhile, investments in the authorized capital of the organizations, in total making up at least 20 percent of the net total capital of the bank, can be included in calculation of the investments share for the purposes of long-term investment.   

Within the framework of this Regulation, investment projects are the projects focused on developing and improving the economic and social welfare of the Kyrgyz Republic in the sphere of construction of residential buildings, social institutions and roads, healthcare, education and other spheres.   

The word “savings” may be used in the banks firm name if the share of the individuals and legal entities time deposits attracted by the bank constitutes 60 percent or more of the banks attracted liabilities.  

Other words indicating peculiarities of its activities (trade, construction, etc.) may be used in the banks firm name if such orientation prevails in the banks activities, i.e. it constitutes 60 percent or more of the total net assets or liabilities.   

When a bank is established, compliance by the bank with the provisions of this clause in the Regulation for use in its firm name of indications on the peculiarities of its activities shall be established on the basis of its business plan.   

The National Banks Supervision Committee is entitled to demand amendments in the firm (official) name of the bank in case of changes in the composition, status or shares of the founders (shareholders) in the banks authorized capital resulting in the banks failure to fulfill the requirements of this clause of the Regulation, as well as if the banks activities do not correspond to its firm name, with the activity peculiarities indicated therein, from three years or more and/or if the threshold levels established in this clause of the Regulation are reduced down to less than 20 percent of the banks total net assets and liabilities.   

8. The minimum amount of authorized capital for the newly opened banks is determined by the National Bank.  

9. Individuals and legal entities (residents and non-residents of the Kyrgyz Republic) whose participation in the bank is not prohibited by the legislation of the Kyrgyz Republic may act as founders (shareholders) of the bank.   

10. The Government of the Kyrgyz Republic represented by the authorized state body may serve as a founder (shareholder) of the bank.   

11. The following persons/entities shall not be the founders (shareholders) of the bank:   

1) individuals and legal entities residing and/or registered in the territory of the offshore zones or having as members the affiliated entities registered in the offshore zones, the list of which is established by the National Bank.   

2) individuals and legal entities against whom/which there are international sanctions adopted by the UN Security Council, as well as individuals and legal entities registered in the states against which there are international sanctions adopted by the UN Security Council that prohibit legal relations with aforementioned individuals/legal entities and are mandatory for the Kyrgyz Republic;   

3) individuals and legal entities who/which, in the prescribed manner, have not provided information about their activities, financial status, composition of the participants and any other information and documents to reliably identify them and examine the participants of the legal entity, including beneficial owners, or have provided the information, which cannot be used in reliable identification and examination of the participants of a legal entity, including the beneficial owners, as well as if they have not confirmed their impeccable business reputation;   

4) individuals and legal entities who/which, in accordance with the procedure established by the National Bank, have not confirmed the legality of the source of funds used to purchase shares of the bank;   

5) legal entities financed from the republican or local budgets, with the exception of the Government of the Kyrgyz Republic;   

6) individuals and legal entities in respect of whom/which there are prohibitions or restrictions in accordance with the legislation of the Kyrgyz Republic or the legislation of a foreign state.   

12. Legal entities not engaged in banking and/or financial activities may not alone or jointly with other persons exercise the following:  

1) direct or indirect holding, or management of more than twenty percent of the banks voting shares of any type;   

2) control over bank.   

13. For the purposes of this Regulation, the entity is deemed to be engaged in financial activity and other activities related to banking and/or financing activity provided that this entity:  

а) is incorporated as the bank holding company (management company) with the objective to manage banks and institutions engaged in the types of activities specified in Clause 14 hereby;   

b) carries out any of the types of activity specified in Clause 14 hereby and holds a license (authorization) issued by the authorized state body, provided that the law on consolidated supervision is effective in the country of residence (country of incorporation) of this entity.   

14. For purposes of this Regulation the types of financial activities and activities related to banking and/or financial activities are the following:  

1) banking;   

2) microfinance (provision of micro credits);   

3) investment funds;  

4) insurance;   

5) leasing;   

6) mortgage lending;  

7) trust management (trust);  

8) audit.  

15. Bank founders (shareholders)  considerable participants shall have satisfactory financial standing and perform their obligations on payment of taxes and payments equal to them. Founders (shareholders) - legal entities shall be registered in accordance with the procedure established by legislation and operate for, at least, one year.  

16. At the request of the National Bank, the bank founders (shareholders), as well as the affiliated and bank-related entities shall submit information on their activities, members/shareholders, constituent documents, financial and other reports containing information about their founders (shareholders), information about their financial status and operations, as well as any other information and documents to reliably identify and examine the participants of the legal entity, including the beneficial owners.   

At the request of the National Bank, the bank founders (shareholders) shall provide the aforementioned information about the entities sharing common interests with the bank and its founders (shareholders).   

17. Officials of public and municipal service:   

1) may own shares of a bank and/or a banking holding company with obligatory transfer thereof for trust management for the period of being in service;   

2) may not participate in management bodies of the bank and/or holding company.   

18. Bank premises, as well as premises of the branches, savings banks and field cash-desks shall meet the specified requirements on technical security and equipment status (including the equipment of cash office, vault and other premises), as well as fire safety requirements. In this respect appropriate acts between the bank and authorized public bodies shall be drawn up.  

These requirements for the bank premises do not cover the premises of the field cash-desks with cash balances not exceeding KGS 500,000.   

19. The bank is liquidated (activities are terminated) in accordance with the legislation of the Kyrgyz Republic.  

With regard to liquidation of the State Development Bank of the Kyrgyz Republic the provisions of Article 24 of the Law of the Kyrgyz Republic “On State Development Bank of the Kyrgyz Republic” shall be applied.   

20. The terms in this Regulation are used according to their definitions provided for in the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity”, banking legislation and a glossary (code) of banking terms of the National Bank.   

Meanwhile, within the framework of this Regulation:   

1) Trust management is the management of assets (shares) under the trust management agreement. For purposes of this Regulation the manager of assets of this person shall not have common interests with this entity/person, and:  

а) in no way can be controlled by this person or depend on him/her in managing assets of that entity;   

b) has not been and is not an employee of that person or his/her business partner;  

c) is not a close relative of that person;  

2) Foreign bank is a bank registered outside the territory of the Kyrgyz Republic;  

3) Bank that possesses “Islamic window” is a bank providing services in accordance with the principles of Islamic banking and finance within the framework of the respective division (“Islamic window”), under an appropriate license;  

4) Islamic bank is a bank, which carries out its activities in accordance with the principles of Islamic banking and finance under an appropriate license of the National Bank;  

5) Banking premises is a real estate (including under construction /being installed) owned by the bank or is at the disposal of the bank under a finance lease or other agreements and is/will be used as a fixed asset;   

6) Sharia Board is a body of the bank responsible for the conformity of the banks policies and standard agreements with the Sharia standards;   

7) Exchange office is a specially equipped place for exchange operations with foreign currency in cash conducted by the bank in accordance with a license authorizing to carry out banking operations.   

Chapter 2. Requirements to Documents Presented to the National Bank 

21. Documents presented to the National Bank in accordance with this Regulation and comprising of more than one sheet shall be listed, filed, numbered, duly signed and certified. Annual reports, issued in compliance with the Financial Accounting International Standards requirements (including specifications and disclosures, consolidated balance-sheet, report on profit and loss and other forms of the financial reporting, as well as audit report, verifying the financial reporting validity) may be presented as booklets, printed by typographic means.  

22. Original document and/or its duly certified copies shall be presented to the National Bank. Documents presented by the foreign founders (shareholders) shall be legalized in accordance with the procedure established by the laws of the Kyrgyz Republic. Documents presented in a foreign language shall contain duly certified translation into the state and/or official languages.  

If required, at the request of the National Bank certain documents shall be presented in electronic format.  

Along with the provision of documents stipulated by this Regulation, banks, individuals and legal entities shall provide consent to the collection and processing of personal data in accordance with Appendix 33 hereof in relation to persons whose personal data are provided to the National Bank. Failure to provide the above consent is the basis for refusing to consider the documents submitted, including on the coordination of bank officials, including managers, chief accountants of separate structural units of banks, shareholders of banks. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

23. In case of revocation of the application and documents for obtaining a banking license, or in case of refusal to issue a license, to satisfy the application for acquiring the threshold participation in the banks capital and in other cases within the framework of this Regulation, the National Bank does not return the documents presented by the bank and applicants.   

24. The term for documents consideration does not include time spent by the applicant for finalizing the documents, unless otherwise provided by this Regulation.   

25. If the documents received by the National Bank do not meet the requirements set by the National Bank, the time reckoning for considering the documents starts from the date when the National Bank receives the documents that meet the set requirements.   

SECTION II. ESTABLISHMENT AND LICENSING OF BANKS   

Chapter 3. Documents Presented for Establishing a Bank  

26. Following the founders decision to establish a bank, in order to prepare necessary documents for obtaining an authorization to establish a bank, its founders shall appoint an authorized person and may establish an organization group for making contacts with the National Bank on the issues of presenting documents.  

27. A person elected/appointed by the founders for the position of the Chairman of the Board of Directors or Chairman of the Management Board may be appointed as an authorized person.   

28. In order to obtain consultations and familiarize with the banks licensing procedures, a representative of the founders may address the National Bank prior to presenting an application to issue an authorization for establishing a bank.   

29. In order to obtain an authorization to establish a bank the applicant shall present to the National Bank the following original documents or their duly certified copies in the Kyrgyz and/or Russian languages of the Kyrgyz Republic:   

1) an application to issue an authorization for establishing a bank signed by the authorized person appointed by the General Meeting of Founders (in accordance with the form in Appendix 1);  

2) two notarized copies of the minutes of the Constituent (General) Meeting of Founders that contain the following decisions:   

а) on bank establishment;  

b) on approval of its firm (official) name;  

c) on election of the members of the Board of Directors and its Chairman;  

d) on election of the members of the Board of Directors Committees and their Chairmen;   

e) on appointment of the members of the Management Board, the Chairman of the Management Board and his/her deputies, approval of the chief accountant;  

f) on approval of the charter;  

g) on approval of the business plan, organizational structure of the bank, the projected balance sheet and the plan for income, expenses and profits for the first three years of operations;   

h) on approval of the authorized person with the right to sign the appropriate documents;  

4) The bank charter in two original copies.  

The bank charter (the standard form of the Charter is given in Appendix 3), besides the data provided for by the legislation of the Kyrgyz Republic, shall contain the following:  

а) the date and the number of the constituent (general) meeting decision on approval of the charter;  

b) the full and abbreviated firm (official) name in the state and official languages that meets the requirements to the name of the banks established by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity” and by this Regulation;   

c) data on the organizational and legal form, and the ownership form of the bank;  

d) regulations on management bodies of the bank;  

e) the decision making process by the management bodies of the bank, including the list of questions on which the qualified majority of shareholder votes is required;   

f) legal address of the banks location and its separate structural subdivisions;   

g) a provision on fulfillment of requirements of the legislation of the Kyrgyz Republic if a branch of a foreign bank is opened;  

5) a copy of the conclusion from the authorized state body for legal entities registration on approval and reservation of the declared firm name. The National Bank is entitled to repeatedly request the aforementioned application as of the last date, prior to making a decision to issue an authorization for bank establishment;   

6) other documents confirming the compliance of the bank with the declared firm name, if necessary, based on the provisions of Clause 7 of this Regulation;  

7) a detailed organizational structure of the bank;  

8) a business plan, 2 original copies, prepared by taking into account the requirements of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity” (the list of questions is given in Appendix 7);   

9) the list of founders (shareholders) signed by the Chairman of the Board of Directors in accordance with the form given in Appendices 5 and 6 - each in two original copies;  

10) information related to the founders (shareholders), including:  

а) the share of each founder (shareholder) interest in the banks equity;   

b) information about the legality of the sources of funds transferred to form the banks authorized capital with attached relevant documents;   

c) other data and documents of all bank founders (shareholders) in accordance with Section III of this Regulation;  

11) if the bank will be part of the banking group, it shall additionally present data and documents in accordance with Section III of this Regulation;  

12) if the bank is established in the form of a subsidiary company of banking holding company, the documents shall be presented in accordance with Chapter 22 of this Regulation;   

13) the list of members of the Board of Directors, including full names of the Chairman and his/her deputy(ties), and data/documents in accordance with Section IV of this Regulation;   

14) the list of members of the Audit Committee, the Risk Management Committee, the Nomination and Remuneration Committee including full names of the Chairmen, and the data/documents of the Chairmen in accordance with Section IV of this Regulation;   

15) information (documents) about candidates for positions of the Chairman of the Management Board, deputy(ties) of the Chairman of the Management Board, other members of the Management Board, the managing director (if available), the chief accountant, the manager of the structural subdivision responsible for the lending activities of the bank, the manager of the structural subdivision responsible for managing the banks assets and liabilities, as well as the managers of internal audit, risk management and compliance control services (or officials equal to them with their functional duties), in accordance with Section IV of this Regulation;  

16) policies and procedures on combating terrorism financing and money laundering;  

17) the lending policy, the operational policy and other major policies of the bank approved by the Board of Directors of the bank that provide for the following:   

а) procedures for identifying, measuring, controlling and monitoring all possible risks to which the bank is exposed to;  

b) controlling measures to minimize all possible risks on an on-going basis;  

c) a description of information systems, risk management systems and internal control systems in accordance with the approved policy;   

d) policy and procedures on combating terrorism financing and money laundering;   

18) a detailed plan of activities on opening and organizing activities of the bank;  

19) an application for entry into the Deposit Protection Fund of the Kyrgyz Republic;  

20) a letter of commitment to connect/join the national system of cashless payments using bank payment cards “Elcart” in the Kyrgyz Republic, a business plan indicating the planned indicators (card issue, the quantity of installed peripheral equipment units, including regions) and a letter of commitment to provide the personnel necessary for conducting activities in the state language.   

(As amended by the Kyrgyz Republic National Bank Boards Resolution No. 2018-П-12/44-3 dated October 24, 2018)  

30. Additionally, the bank shall fulfill the following requirements to conduct banking operations in foreign currency:   

1) to have approved internal documents (policies) regulating the activities in the intended direction, providing for the assessment, control and monitoring of risks;   

2) to provide technical equipment of the bank, including equipment requirements to be adequate to the intended range of performed operations.   

31. The bank, in addition to the documents and information specified in Clause 29 of this Regulation, shall submit the following documents to the National Bank to conduct banking operations in foreign currency:   

1) a statement of the Board of Directors that a comprehensive analysis of the proposed operations and their impact on the banks activities has been made, and that the Board of Directors has identified the risks related to these operations;   

2) a business plan, which is developed to conduct banking operations in foreign currency, if the main business plan does not provide for such regulations;   

3) information confirming the availability of qualified personnel;   

4) internal documents of the bank (policies) regulating the activities related to the intended operations.  

32. The banks internal documents (policies) regulating the activities related to the intended operations shall ensure an adequate level of internal control and include:   

1) identification, measuring, monitoring and control of all risks related to the intended operations;   

2) the accounting procedure for the intended operations;   

3) control measures to prevent all possible risks on an ongoing basis;   

4) a description of the technical equipment and the readiness of the bank to provide information on the standards and rules for its transfer established by the National Bank;  

33. The person appointed to the position of the Chairman of the Management Board of the bank to be established shall, within fourteen calendar days from the date of appointment, leave the position previously held by him/her, the occupation of which is contrary to the banking legislation of the Kyrgyz Republic.   

  

Chapter 4. Documents Presented for Establishing and Islamic Bank   

34. After the founders have decided to establish an Islamic bank, its founders shall select an authorized person or may create an organizational group to contact the National Bank on the issues of presenting the documents to prepare the necessary documents in order to obtain authorization to establish a bank.   

35. A person elected/appointed by the founders to the position of the Chairman of the Board of Directors or the Chairman of the Management Board of a bank may be appointed as an authorized person.   

36. Prior to submitting an application to issue an authorization for an Islamic bank establishment a representative of the founders may apply to the National Bank to receive advice and familiarize with the banks licensing procedures.   

37. To obtain authorization of an Islamic bank establishment, an applicant shall submit the following original documents or duly certified copies thereof in the state and/or official languages ​​of the Kyrgyz Republic to the National Bank:   

1) an application to issue an authorization for an Islamic bank establishment signed by an authorized person appointed by the general meeting of the founders (according to the form of Appendix 1);   

2) minutes of the constituent (general) meeting of the founders - two notarized copies, containing the decisions:   

а) on establishment of an Islamic bank;   

b) on approval of its firm (official) name;  

c) on election of the members of the Board of Directors and its Chairman;  

d) on election of the members of the Sharia Council and its Chairman;  

e) on election of the members of the Committees of the Board of Directors and their Chairmen;  

e) on appointment of the members of the Management Board, the Chairman of the Management Board and his/her deputy(ties), approval of the chief accountant;  

g) on approval of the charter;  

h) on approval of the business plan, organizational structure of the bank, budgeted balance sheet and plan of income, expenses and profit for the first three years of activity;  

i) on approval of an authorized person and delegating him the power to sign the relevant documents;  

3) a constituent agreement signed by all founders - two original copies. The signatures of the authorized representatives of the founders - legal entities shall be certified by the seal of the legal entity. The signature of the founder - an individual shall be notarized. The documents of a foreign applicant shall comply with the requirements of Clause 22 thereof. The list of information to be reflected in the constituent agreement (standard form) is given in Appendix 2;  

4) a bank charter - two original copies. The charter of a bank (a standard form for an Islamic bank is given in Appendix 4), in addition to the information required by law, shall contain:  

а) date and number of the decision on approval of the charter made at the constituent meeting;   

b) full and abbreviated firm (official) name in the state and official languages ​​complying with the requirements for the banks names established by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity” and this Regulation;  

c) data on the banks organizational and legal form and form of ownership;  

d) provisions on the banks management bodies;  

e) procedure for making decisions by the banks management bodies, including a list of issues requiring a qualified majority of shareholders votes;  

f) objectives, functions and powers of the Sharia Council, as well as the procedure for creation thereof (body which appoints the members of the Council, and the period of appointment) and the requirements for the members of the Council under the principles of Islamic finance;  

g) legal address of the banks location and its separate structural subdivisions;  

h) provision on compliance with the requirements of the legislation of the Kyrgyz Republic if a branch of a foreign bank is opened.   

5) a copy of the conclusion of the authorized state body for legal entities registration on approval and reservation of the declared company name. The National Bank is entitled to re-request the said application as of the last date, before making a decision on issuing an authorization to establish a bank.  

6) other documents confirming the compliance of the bank with the declared firm name, if necessary, based on the provisions of Clause 7 of this Regulation.  

7) detailed organizational structure of the bank;  

8) business plan - two original copies, drawn up subject to the requirements of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity” (a list of questions for an Islamic bank is given in Appendix 8);  

9) the list of founders (shareholders), signed by the Chairman of the Board of Directors of the bank according to the form of Appendices 5 and 6 - each in two original copies);  

10) information relating to the founders (shareholders), including:  

a) participating interest of each founder (shareholder) in the capital of the bank;  

b) information on the legality of the sources of funds allocated to form the authorized capital of the bank with the relevant documents being attached;  

c) other information and documents of all founders (shareholders) of the bank in accordance with Section III of this Regulation;  

11) if the bank is part of a banking group, additional information and documents shall be submitted according to Section III of this Regulation;  

12) if a bank is established in the form of a subsidiary of a bank holding company, additional documents shall be submitted according to Chapter 22 of this Regulation;  

13) the list of members of the Board of Directors, indicating the presiding person and his/her deputy (ties), and information/documents according to Section IV of this Regulation;  

14) the list of members of the Sharia Council, indicating the presiding person and his/her deputy (ties), and information and documents according to Section IV of this Regulation;  

15) the list of members of the Audit Committee, the Risk Management Committee, the Nomination and Remuneration Committee indicating the presiding persons and information/documents on the chairmen in accordance with Section IV of this Regulation;   

16) information (documents) on the candidates for the positions of the Chairman of the Management Board, the Deputy (ties) of the Management Board Chairman and other members of the Management Board, the Managing Director (if available), the Chief Accountant, the head of the structural subdivision responsible for the principles Islamic finance, the head of the structural subdivision responsible for assets and liabilities management in the bank, as well as the heads of the internal audit, risk management and compliance control services, (or the persons who are equated to them by their functional obligations) according to Section IV of this Regulation;  

17) financing policy, operational, accounting policies and other main policies of the bank, approved by the Sharia Council and the Board of Directors of the bank and providing for:  

a) measures to identify, assess, control and monitor all possible risks a bank is exposed as a result of its banking operations in accordance with the principles of Islamic banking and finance;  

b) control measures to constantly minimize all possible risks arising from the banking operations in accordance with the principles of Islamic banking and finance;  

c) description of information systems, risk management systems and internal control systems in accordance with the approved policy;   

18) standard forms of the agreements for implementation of the banking operations in accordance with the principles of Islamic banking and finance, drawn up in accordance with the Sharia standards and approved by the Sharia Council of the bank;  

19) policy and procedures on combating terrorism financing and money laundering;  

20) a detailed action plan for opening and organization of the activities of an Islamic bank;  

21) an application for entry into the Deposit Protection Fund of the Kyrgyz Republic;  

22) a letter of commitment to connect/join the national system of cashless payments using bank payment cards “Elcart” in the Kyrgyz Republic, a business plan indicating the planned indicators (card issue, the quantity of installed peripheral equipment units, including regions) and a letter of commitment to provide the personnel necessary for conducting activities in the state language.  

(As amended by the Kyrgyz Republic National Bank Boards Resolution No. 2018-П-12/44-3 dated October 24, 2018)  

38. Additionally, the bank shall fulfill the following requirements to conduct the banking operations in foreign currency:  

1) to have approved internal documents (policies) regulating the activities in the intended direction, providing for the assessment, control and monitoring of risks;  

2) to ensure the technical equipment of the bank, including equipment requirements, which shall be adequate to the intended range of operations performed.  

39. The bank, in addition to the documents and information specified in Clause 37 of this Regulation, shall submit the following documents to the National Bank to conduct banking operations in foreign currency:  

1) a statement of the Board of Directors that a comprehensive analysis of the proposed operations and their impact on the activities of the bank has been carried out, and that the Board of Directors has identified the risks related to these operations;  

2) a business plan designed to conduct banking operations in foreign currency, if the main business plan does not provide for such provisions;  

3) information confirming the availability of a qualified personnel;  

4) internal documents of the bank (policy) regulating the activities on the proposed operations in foreign currency;  

40. The banks internal documents (policies) regulating the activities of the proposed operations shall ensure an adequate level of internal control and include:  

1) identification, assessment, monitoring and control of all risks related to the proposed operations;  

2) accounting procedure for the proposed operations;  

3) control measures to prevent all possible risks on an ongoing basis;  

4) description of the technical equipment and readiness of the bank to provide information on the standards and the rules for its transfer established by the National Bank;  

41. The person appointed to the position of the Chairman of the Management Board of the bank to be established shall, within fourteen calendar days from the date of appointment, leave the position previously held by him/her.   

42. Consideration of an application for issuance of an authorization to establish an Islamic bank, the procedure for the authorized capital formation in establishing an Islamic bank and the subsequent change in its size, the procedure for considering an application for issuing a license to conduct banking operations in accordance with the principles of Islamic banking and finance, verifying the readiness of an Islamic bank to conduct banking activities, cancellation of previously issued authorizations to establish a bank and refusal to issue a license shall be implemented similar to the procedure specified in Chapters 5-9 of this Regulation.  

Chapter 5. Procedure of Considering an Application for Issuing an Authorization to Establish a Bank   

43. The application for issuing an authorization to establish a bank is considered by the National Bank within a period not exceeding six months from the date of receipt of an application and all satisfactory documents necessary for issuing an authorization. If the documents do not comply with the requirements of the National Bank, the period shall be counted from the date of satisfactory documents receipt.  

44. The period for consideration of an application for issuing an authorization to establish a bank and attached documents may be extended by the decision of the Board of the National Bank for an additional six months.  

The decision on extended consideration of an application shall be communicated by the National Bank to an authorized person (a representative of the organizational group) of the newly created bank in writing within three working days from the date of the decision.  

45. Upon consideration of an application for issuing an authorization and the documents satisfying the requirements, provided for in Chapters 3 or 4 of this Regulation, the National Bank shall decide on whether to issue an authorization for bank establishment or to refuse to issue it.  

The decision to issue an authorization for bank establishment is taken by the Management Board of the National Bank during the period specified in Clauses 43 and 44 of this Regulation.  

46. ​​When considering an application for issuing an authorization to establish a bank, the National Bank collects, analyzes and verifies the information regarding founders (shareholders), members of the Board of Directors, the Sharia Council and the Management Board and other officials, as well as information received with an application.  

47. The candidates for the positions indicated in Clause 126 of this Regulation shall be approved by the National Bank in accordance with Section IV of this Regulation before issuing an authorization to establish a bank.  

48. The application and submitted documents shall be examined by the National Bank to determine whether the bank will be managed in accordance with the principles of healthy and safe banking practice. In particular, it considers the soundness of the business plan, the adequacy of the capital base, competence, business reputation and reliability of the founders (shareholders), proposed members of the Board of Directors, members of the Sharia Council (if any), members of the Management Board and other officials of the bank the legislation of the Kyrgyz Republic, compliance of the banks planned activity with the banking legislation of the Kyrgyz Republic, conformity with antitrust laws, the impact of the banks planned activity on the economy and banking system of the Kyrgyz Republic, etc.  

49. Authorization to establish a bank means that the applicant will be granted a license to conduct banking operations upon implementation of the conditions specified in Clause 63 of this Regulation.  

The term of validity of an authorization is six months. During this period, the founders shall make a state registration of the bank established by them as a legal entity and to apply to the National Bank for a license.  

50. If the Management Board of the National Bank decides positively on issuing an authorization to establish a bank, within three working days from the date of the decision, the following shall be sent:  

1) in the name of an authorized person (a representative of the organizational group) or the chairman of the Board of Directors or the Chairman of the Management Board - a letter indicating the number of an accumulation account opened with the National Bank to form the authorized capital;  

2) to the authorized state body responsible for legal entities registration - a letter of consent for the state registration of a bank in accordance with the requirements of the legislation of the Kyrgyz Republic, indicating the size of the authorized capital under the constituent agreement and the charter of the bank. Two original copies of the constituent agreement and the bank charter are attached to the letter;  

3) to the authorized state body for regulation of the securities market - a copy of the letter of consent for the state registration of the bank indicating the size of the authorized capital in accordance with the constituent agreement and the charter of the bank for state registration of the bank shares issue according to the requirements of the legislation of the Kyrgyz Republic.  

51. Within five working days from the date of receipt of the state registration certificate, the bank shall submit to the National Bank a letter signed by an authorized person (a representative of the organizational group) or the Chairman of the Board of Directors or the Chairman of the Banks Management Board with attached;  

1) copy of a certificate of the authorized state body responsible for state registration of a legal entity, certified by a notary;  

2) copy of the decision of the authorized state body responsible for registration of the constituent issue of the banks shares, certified by a notary;  

3) copy of the constituent agreement of the bank with the stamps of the authorized state body responsible for legal entities registration, certified by a notary;  

4) copy of the banks charter with stamps of the authorized state body responsible for legal entities registration, certified by a notary.  

52. In the period upon issuing an authorization to establish a bank and before obtaining a license, the bank and its founders (shareholders) shall notify the National Bank of any amendments in the information on the basis of which an authorization was received at least five working days from the day the amendments occurred.   

Chapter 6. Procedure for Authorized Capital Formation in Bank Establishment and Further Change of its Size   

53. Fully paid authorized capital serves as a basis for the banks capital. Only such authorized capital in respect of which the bank has no liabilities to repay funds invested by the founders (shareholders) is part of the banks capital.  

54. The authorized capital of the bank is formed only in the non-cash national currency of the Kyrgyz Republic using only the funds of founders (shareholders).   

If the authorized capital of the bank is formed or the size thereof is increased at the expense of funds received by the founders (shareholders) under the loan agreement or a similar agreement, the lender is considered as an indirect shareholder. Such agreement shall contain information that borrowed funds are intended for purchase of the banks shares. Granted/received loan will be taken into account in assessing the financial status of an applicant.   

55. If the authorized capital of the bank is formed or the size thereof is increased, the shares can only be paid in a non-cash form, except for the case of restructuring or reorganizing the bank provided for by the legislation of the Kyrgyz Republic, as well as sending retained earnings to replenish the authorized capital of the bank.   

The authorized capital of the bank shall not be formed or increased through the fixed assets, tangible and intangible assets.   

56. The loans of the banks and other financial-credit organizations shall not be used to purchase the shares of a bank. The bank may not issue loans for purchase or against the securities issued by the bank itself.  

It is not allowed to form the authorized capital using funds of the state budget and state extra budgetary funds other than the cases directly envisaged by legislation of the Kyrgyz Republic.  

57. The founders (shareholders) of the bank shall deposit the minimum amount of the authorized capital to the accumulation account opened with the National Bank within six months from the day the National Bank Board decided to issue an authorization to establish a bank, however not later than the day of application submitted to the National Bank for issuing a banking license to conduct banking operations.   

58. The funds held in the accumulation account opened with the National Bank may not be used by the founders for any purpose until a license to conduct banking operations is received. In case of refusal to issue a license, the National Bank returns all the funds held in the accumulation account to the founders (shareholders) of the bank.   

59. Any other persons are prohibited to deposit funds to be further transferred to the authorized capital on behalf of the founders (shareholders) during initial formation of the authorized capital and subsequent increase thereof.   

In case, if the founders (shareholders) funds, including the funds received under the loan agreement, or the funds received under similar conditions, are transferred to the Kyrgyz Republic from the foreign banks, these banks (except for parent banks carrying out capitalization of subsidiary banks located in the territory of the Kyrgyz Republic) shall comply with the following credit ratings:  

- a long-term credit rating not lower than category BBB assigned by Standard & Poors rating agency (USA),  

- a long-term credit rating not lower than category Baa assigned by Moodys Investors Service rating agency (USA),   

- a long-term credit rating not lower than category BBB from Fitch-IBCA (USA),   

- equivalent credit rating assigned by rating agencies: Capital Intelligence, Japan Credit Rating Agency (JCR), Dominion Bond Rating Service (DBRS), Rating & Investment Information (R&I),   

- equivalent credit rating assigned by the national rating agency received accreditation in the authorized bodies in the country of the sending bank with the rating recognized by the central (national) bank in the country of the sending bank.   

For the purposes of this clause only sending banks are regarded as foreign banks. Correspondent banks (transit banks, intermediary banks) do not fall under this definition.   

60. Within three business days from the date of registration of shareholders, the bank shall present a duly certified register of shareholders to the National Bank.   

In the future, in case of any amendments in the composition of the shareholders, the National Bank shall be provided with duly certified register of the banks shareholders with amendments on paper within five business days from the date of the amendment introduced in the register of shareholders.  

If the bank has become aware of the fact of the purchase, change or alienation of shares, regardless of the method of alienation, in a quantity affecting the threshold value, the bank must immediately notify the National Bank, at least within three working days, with further provision of amended register of shareholders according to this clause of the Regulation.   

61. The change in the size of the authorized capital is made with the consent of the National Bank in accordance with Section VI of this Regulation.  

Verification of the formation of an increase in the banks authorized capital can be carried out as part of comprehensive and targeted audits of the National Bank.  

62. The legal affairs of all the founders (shareholders) of the bank and copies of the primary documents for the authorized capital formation in establishing the bank, later - when changing the size of the authorized capital (including copies of payment documents, decisions regarding changes in the authorized capital size, and other documents), the documents on the quantity of shares and the composition of the banks shareholders must be kept by the bank in a separate folder with assignment of a separate item number and have a permanent storage period. The bank must determine the person responsible for ensuring the proper formation and storage of these folders (legal files).  

Legal files of the founders (shareholders) with a share of less than five percent of the authorized capital of the bank must contain at least the following information.   

- for individuals - passport data;  

- for legal entities - a certificate or document confirming the state registration of a legal entity.  

Legal files of the shareholders owning five or more percent of the banks authorized capital shall contain information on related, dependent, subsidiary, affiliated entities and companies/banks, according to the forms of the Appendices 15 (for individuals), 16 (for legal entities) and 17 (for foreign banks) of this Regulation.  

Chapter 7. Procedure for Consideration of an Application to Issue a License and Inspection of the Banks Readiness to Conduct Banking Activities   

63. The board of directors of a bank after state registration of a bank as a legal entity in accordance with the legislation of the Kyrgyz Republic shall submit an application to the National Bank to issue a license to conduct banking operations, however at least within six months from the date of issuing an authorization by the National Bank to establish a bank.   

Documents and information on fulfillment of the following requirements shall be attached to an application:  

1) a certificate of state registration;  

2) confirmation of full payment of the minimum authorized capital;  

3) compliance of the premises and equipment (including equipment of a cash handling unit) of a bank with the safety requirements established by the National Bank for technical resistance and equipment, for fire safety (an act of an authorized state body on compliance of the premises bearing the seal of this body);  

4) selection of an independent external auditor for the upcoming financial year;  

5) availability of the organizational structure, management bodies and personnel of the bank (officials) in accordance with the requirements of the National Bank;  

6) availability of a business plan, all major policies, regulations and procedures of the bank;  

7) provision of information on compliance with all standards and requirements of the National Bank on capital after commencement of its activities;  

8) availability of an internal control system, technical, informational, technological measures of protection, property insurance;  

9) successful testing of information systems and security systems for banking activities;  

10) payment for the license;  

11) the power of attorney issued to the representative for obtaining a license, if a proxy acts on behalf of the bank;  

12) payment of the entrance fee to the Deposit Protection Fund.  

64. The National Bank shall consider an application for issuing a license and the attached documents within a period not exceeding six months from the date the application and the documents satisfying the requirements are submitted to the National Bank. Based on the results of consideration, the National Bank makes a decision on issuing or refusing to issue a license.  

65. The National Bank, during the period for consideration of a banks application for issuing a license, verifies the legality of the minimum authorized capital formation.  

Chapter 8. Reasons for Refusal to Issue an Authorization for Bank Establishment, Cancellation of Previously Issued Authorization and Refusal to Issue a License   

66. The National Bank may refuse an applicant to grant an authorization to establish a bank for any of the following reasons:  

1) inconsistency of the constituent and/or other documents submitted for obtaining an authorization with the requirements, or provision of the false documents and information;  

2) non-submission or incomplete submission of information and documents about the members of a banking group or the impossibility of exercising effective banking supervision over a banking group or the persons/entities related to the members of a banking group;   

3) failure to submit or incomplete submission of information and documents on the legality of the sources of funds, namely:  

a) it is impossible to determine the legality of the sources of funds from the information provided;  

b) according to the information provided, the source of the funds does not meet the requirements and criteria established by the National Bank, etc.;   

4) non-compliance of the size of the minimum authorized capital with the requirements established by the National Bank;  

5) incompliance of the founders (shareholders) and officials subject to coordination with the National Bank to the established requirements;  

6) the official consent of the foreign supervisory authority or confirmation has not been provided that such consent is not required under the laws of the founders country in opening a subsidiary bank by a foreign bank or a financial-credit organization;  

7) there is insufficient supervision, as well as on a consolidated basis, according to the assessment of the National Bank, in respect of a foreign founder - a bank or a financial-credit organization, as well as a member of a banking group at the place of its registration.  

67. The National Bank is entitled to cancel a previously issued authorization to establish a bank in the following cases:  

1) upon detection of inaccurate information and documents on the basis of which the authorization was issued;  

2) if the financial condition of the founders (shareholders) has deteriorated or the facts, on the basis of which an authorization may be refused, have been established;  

3) if there have been changes in the composition of the founders (shareholders), in the constituent and other documents without the consent of the National Bank;  

4) if the founders (shareholders) of the bank refused or do not take follow-up actions to establish a bank.  

68. The National Bank is entitled to refuse to issue a license, indicating the grounds for refusal, in the following cases:  

1) an application for issuing a license is filed after the expiration of the authorization validity;  

2) the submitted documents and information do not meet the requirements established by Clause 63 of this Regulation;  

3) if there are grounds for cancellation of the authorization in accordance with Clause 67 of this Regulation.  

69. Decisions on refusal to issue an authorization to establish a bank, on cancellation of a previously issued authorization to establish a bank, as well as on refusal to issue a license, provided for in this Chapter of the Regulation, are taken by the Board of the National Bank and communicated by the National Bank to an authorized person (a representative of the organizational group) or the Chairman of the Board of Directors or the Chairman of the Board of the Bank in writing within three working days from the date of such decision.  

70. The National Bank publishes the information on issued authorizations, on refusal to issue authorizations and cancellation of the authorizations in the media and/or on the official website of the National Bank.  

Chapter 9. Licenses Authorizing to Conduct Banking Operations and Issuing Procedure   

71. The licenses authorizing to conduct banking operations, issued by the National Bank within the framework of this Regulation, have an unlimited duration and are valid throughout the territory of the Kyrgyz Republic, are nominal (inalienable) and shall not be transferred to third parties.  

72. All types of banking operations can be carried out only if there is a license authorizing to conduct banking operations and express reference in the list of authorized banking operations, which is an integral part of the license, to the right to conduct banking operations.  

Banking operations may not be conducted without a license from the National Bank.  

73. Within the framework of this Regulation, the bank may be issued the following licenses:  

1) a license authorizing to conduct banking operations in the national and/or foreign currency (Appendix 9.10);  

2) a license authorizing to conduct banking operations in accordance with the principles of Islamic banking and finance in the national and/or foreign currency (Appendices 11,12);  

3) a license authorizing to conduct banking operations in accordance with the principles of Islamic banking and finance through the “Islamic window” in the national and/or foreign currency (additional license) (Appendices 13, 14).  

A list of authorized banking operations is an integral part of a banking license. The National Bank determines the list of authorized banking operations in accordance with the legislation of the Kyrgyz Republic.  

74. The licenses authorizing to conduct banking operations and the attached list of authorized banking operations are issued to the chairman of the banks Board of Directors or the chairman of the banks Management Board or an authorized person in accordance with submitted power of attorney.  

75. The National Bank may decide to restrict implementation of the certain banking operations in accordance with the legislation of the Kyrgyz Republic.  

76. The lists of authorized operations attached to licenses shall be replaced when restrictions on banking operations are established or are lifted. The previous list of authorized operations shall be submitted to the National Bank when the current list of authorized operations is substituted (re-issued). 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/22-4 as of April 24 2019

77. If a bank is reorganized or restructured by creating a “transitional bank”, its name or location address are changed, resulting in state re-registration of the bank in accordance with the legislation of the Kyrgyz Republic, and also if the settlement of the banks location is renamed, the license shall be substituted (re-issued). The bank shall submit an application (petition) to the National Bank for substitution (re-issuance) of the licenses with the relevant documents confirming the specified information for the purposes of the license substitution.  

78. Substitution (re-issuance) of the license shall be carried out by the National Bank within five working days from the date of submitting an application (petition) for substitution (re-issuance) of the license and relevant documents related to the grounds for substitution (re-issuance) of the license, with a document confirming payment for the license in the amount established by the legislation of the Kyrgyz Republic.  

79. The National Bank maintains a register of licensed banks and a register of issued licenses. Information from the register of licensed banks and the register of issued licenses is published on the official website of the National Bank.   

When substituting (re-issuing) the licenses, the National Bank makes an appropriate entry in the register of issued banking licenses.   

80. At the request of the bank, for provision to the correspondent banks, the National Bank within five working days shall issue certified copies of the licenses and a list of authorized banking operations for them with the words “true copy”.  

Chapter 10. Procedure for Issuing Authorization to the Bank to Conduct Banking Operations with Precious Metals   

81. A bank may conduct banking operations with precious metals (only banking silver, gold, platinum, and coins from these metals of high fineness that are not a payment instrument) in the case of obtaining the relevant authorization from the National Bank in accordance with the requirements of this Regulation by specifying these operations in the list of authorized banking operations in the bank license to conduct banking operations.  

82. If the operations with precious metals are specified in the list of authorized banking operations in the banks authorizing to conduct banking operations a bank may conduct operations:  

1) with precious metals in the form of affined small bars emitted (issued) by the National Bank in cash and non-cash form;  

2) with precious metals in the form of refined standard and small bars of other issuers and coins of banking silver, gold, platinum of high fineness);  

83. In order to conduct operations with precious metals in the form of affined small bars emitted (issued) by the National Bank, the banks shall fulfill the following requirements:  

1) the size of the authorized capital shall meet the requirements established by the banking legislation of the Kyrgyz Republic;  

2) to have qualified personnel who have completed special training at the National Bank (confirmed by a letter from the National Bank);  

3) to comply with prudential standards established by the National Bank;  

4) to have approved procedures for conducting operations with precious metals in the form of affined small bars emitted (issued) by the National Bank.  

84. In order to conduct operations with precious metals in the form of refined standard and small bars of other issuers, the banks shall be obliged:  

1) to comply with the provisions of Clause 83 of this Regulation;  

2) to have qualified personnel with at least one year of experience in this field or having a document confirming that they have completed an internship or training in this area during the past five years;  

3) to provide information on the measures taken by the bank to ensure proper conditions for the storage and transportation of precious metals;  

4) to provide information on insurance conditions (including information about the company with which the bank intends to enter into an insurance agreement and its financial status);  

5) to submit confirmation of fulfillment of other requirements for conducting operations with precious metals, established by the Regulation “On operations of the commercial banks with precious metals” approved by the Resolution of the Board of the National Bank N 35/3 dated August 26, 2009;  

6) to have a business plan and approved policies for conducting operations with precious metals, developed taking into account the requirements of the Regulation “On operations of the commercial banks with precious metals” approved by the Resolution of the Board of the National Bank N 35/3 dated August 26, 2009.  

85. The banks internal documents (policies) regulating the activities of the proposed operations shall ensure an adequate level of internal control and include:  

1) identification, assessment, monitoring and control of all risks related to conducting of the proposed operations;  

2) the accounting procedure for the proposed operations;  

3) control measures to prevent all possible risks on a regular basis;  

4) a description of the technical equipment and readiness of the bank to provide information on the standards and rules for its transfer established by the National Bank.  

86. The banks internal documents (policies) regulating operations with precious metals, in addition to the requirements set out in Clause 85 of this Regulation, to expand the range of conducted operations, shall obligatorily reflect such specific issues as: the allowable purity of metals and the procedure for determining purity, the procedure for accounting and storage of precious metals, the procedure for regulating open positions on operations with precious metals, the procedure for interaction with the authorized state body of the Kyrgyz Republic.  

87. If the bank intends to conduct operations with precious metals in the form of refined standard and measuring bullions of other issuers, except for the National Bank, the following documents shall be additionally submitted:  

1) a statement of the board of directors that a comprehensive analysis of the proposed operations and their impact on the banks activities has been performed and that the board of directors has identified the risks associated with new operations;  

2) business plan;  

3) information on measures taken by the bank to ensure proper conditions for storage and transportation of precious metals (except for the cases when the bank applies for a permit to obtain the right to conduct operations with precious metals of other issuers in impersonal form (in non-cash form));  

4) information about the conditions of insurance, including information about the company the bank intends to enter into an insurance contract with and the financial status thereof (except for the cases when the bank applies for a permit to obtain the right to conduct operations with precious metals of other issuers in impersonal form (in non-cash form).  

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

88. The National Bank considers the banks application for issuing an authorization to conduct banking operations with precious metals and the attached documents within two months from the date of receipt of the application and the documents that meet the established requirements, and, following the results of such consideration, decides whether to issue an authorization or not. When considering an application of a newly established bank, the decision to issue or refuse to issue an authorization to conduct banking operations with precious metals is made within two months from the date of receipt of the application and the documents that meet the requirements, but not earlier than the decision is made to issue a license to the bank conducting banking operations.   

The decision to issue or refuse to issue an authorization to the bank to conduct banking operations with precious metals is made by the Board of the National Bank and communicated by the National Bank to the bank in writing within three working days from the date of such decision making.  

89. If the Board of the National Bank approves the issue of permission to the bank to conduct banking operations with precious metals, the National Bank will replace (re-issue) the list of permitted banking operations to the banks license within 3 (three) business days from the date, on which the bank submits to the National Bank the previous list of permitted banking operations. When replacing (re-issuing) the list of permitted operations, the previous list of permitted operations shall be subject to delivery to the National Bank within 1 (one) day from the date of receiving a letter from the National Bank on a positive decision of the Board of the National Bank on issuing permission to the bank to conduct banking operations with precious metals. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

90. (The paragraph was declared null and void according to the Resolution of the National Bank of the Kyrgyz Republic Board No. 2020-П-12/39-1 as of July 8, 2020). 

Chapter 11. Procedure of Considering an Application for Issuing an Authorization to Conduct Banking Operations or to Lift Restrictions in a License   

91. A bank shall be entitled to apply to the National Bank with the corresponding request to obtain an authorization from the National Bank to conduct banking operations that are not specified in the list of authorized operations, or to lift restrictions in a banking license (in the list of authorized banking operations) established as part of applied enforcement actions resulting in substitution of the list of authorized banking operations attached to a license.  

92. To obtain an authorization from the National Bank to conduct banking operations that are not specified in the list of authorized operations, or to lift restrictions in a banking license (in the list of authorized banking operations) established as part of applied enforcement actions that result in substitution of the list of authorized banking operations attached to a license, within six months from the date of adoption of the relevant decision by the Board of Directors of the bank, a bank shall send the following documents to the National Bank: 

1) an application of the bank signed by the chairman of the Board of Directors to consider the issue of authorization to conduct certain banking operations / to lift restrictions in the license, indicating a specific list of operations that the bank intends to conduct; 

2) the detailed minutes of the meeting of the Board of Directors containing the decision of the Board of Directors authorizing to conduct the proposed operations as well as the information that the Board of Directors conducted a comprehensive analysis of the proposed operations and their impact on the activities of the bank, and that the Board of Directors identified the risks associated with the proposed operations based on the conclusion of the risk management service - a copy certified by the bank; 

3) an approved business plan of the bank for the proposed operations, containing an economic justification for the need to conduct operations/to lift restrictions from them, a marketing plan for implementation of the measures, forecast economic calculations, a credit strategy, and a risk management strategy;  

4) the yield forecast related to the proposed operations; 

5) the information and data on fulfillment of the National Bank requirements/on elimination of the violations identified by the National Bank therefore the restrictions were imposed on the relevant banking operations; 

6) the information confirming availability of the qualified personnel; 

7) the organizational structure of the bank, revised due to planned expansion of the banks activities (if necessary);  

8) the internal documents of the bank (policy) regulating the activities of the proposed operations; 

9) the original power of attorney to obtain a license; 

10) payment for the license. 

To obtain authorization to conduct additional banking operations and transactions under the principles of Islamic banking and finance, a bank shall submit the following documents: 

1) an application of the bank signed by the chairman of the Board of Directors to consider the issue of authorization to conduct certain banking operations / to lift restrictions in the license, indicating a specific list of operations that the bank intends to conduct; 

2) the detailed minutes of the meeting of the Board of Directors containing the decision of the Board of Directors authorizing to conduct the proposed operations as well as the information that the Board of Directors conducted a comprehensive analysis of the proposed operations and their impact on the activities of the bank, and that the Board of Directors identified the risks associated with the proposed operations based on the conclusion of the risk management service - a copy certified by the bank; 

3) the organizational structure of the bank, revised due to planned expansion of the banks activities (if necessary);  

4) the internal documents of the bank regulating the activities of the proposed operations, approved by the Sharia Council of the bank, approved by the corresponding bank body and providing the: 

а) measures to identify, assess, control and monitor all possible risks a bank is exposed to as a result of its banking operations under the principles of Islamic banking and finance; 

b) control measures to minimize regularly all possible risks resulting from implementation of the banking operations by the bank under the principles of Islamic banking and finance;  

5) standard agreements for implementation of the banking operations under the principles of Islamic banking and finance, drawn up in accordance with Sharia standards and approved by the Sharia Council of the bank.  

6) the original power of attorney to obtain a license; 

7) payment for the license. 

To obtain authorization to issue electronic money, a bank in addition to the documents provided for obtaining authorization from the National Bank to conduct banking operations that are not specified in the list of authorized operations, or to remove restrictions in a banking license (in the list of authorized banking operations) established as part of applied enforcement actions resulting in substitution of the list of authorized banking operations attached to the license, a bank shall submit the following documents: 

1) a copy of the standard agency agreement for distribution of e-money with an agent - in two copies; 

2) a copy of the contract with an operator (if an issuer works with an operator) - in two copies; 

3) a copy of the software installation certificate for receiving, daily updating and storage of the database of turnovers and balances of e-money - in two copies; 

4) the e-money system operation rules signed by the chairman of the Board/the Board of Directors in two copies, which shall contain provisions on: 

- the procedure of implementation operations between the bank, the operator, agents, acceptors, which shall include the general scheme of all cash and information flows;  

- organization of control over financial and technical risks when using e-money;  

- a system of security and protection of information and differentiation of the access rights to information resources when using electronic money - in two copies;  

- information on limits related to e-wallets in accordance with the established requirements for limits, as well as other requirements specified in the Regulation “On e-money in the Kyrgyz Republic” in tabular form;  

- the interaction between the participants of the e-money system in the form of a diagram/chart.  

To receive an authorization to implement activities on receiving, processing and issuing financial information (processing, clearing) on ​​payments and settlements of third parties to the participants of the payment system, of this processing and clearing center, the bank shall, in addition to the documents provided for obtaining an authorization from the National Bank to conduct banking operations not specified in the list of authorized operations or to lift restrictions in the banking license (in the list of authorized banking operations) established as part of applied enforcement actions resulting in substitution of the list of authorized banking operations attached to a license, a bank shall submit the following documents: 

1) list of participating banks;  

2) copies of internal documents regulating the procedure for conducting financial monitoring of operations carried out in the payment system;  

3) signed by the chairman of the Board/Board of Directors and the rules of the payment system operation bearing the banks seal, which shall contain the following:  

a) system architecture and scheme of its work;  

b) entry and exit procedures;  

c) procedure for connecting the participant to the system;  

d) processing procedure;  

e) the procedure for providing by the participants of the payment system the information about their activities to the payment system operator;  

f) the risk management system in the payment system, including the risk management model being used, a list of measures and risk management methods;  

g) information security requirements; 

h) procedure for disputes settlement;  

i) procedure for the actions to be taken by the participants in the event of emergency situations in the system;  

j) rights, duties and responsibilities of the participants;  

k) description of the available mechanisms for managing the reference books of the senders and the recipients in the system, checking presence of the customers in the lists of terrorists issued by the international organizations, the national list of terrorists, the national list of suspected terrorists;  

4) information on fulfillment of the requirements established in the regulatory legal acts of the National Bank on regulation of the activities conducted by the payment systems operators.  

At the same time, in order to carry out activities on receiving, processing and issuing financial information (processing, clearing) on ​​payments and settlements of third parties to the participants of the payment system, of this processing and clearing center, the bank shall:  

1) fulfill the requirements established by the regulatory legal acts of the National Bank on regulation of the activities conducted by the payment systems operators;  

2) comply with all prudential standards and requirements established by the National Bank;  

3) do not have restrictions on the activities of the bank, as a result of applied enforcement actions or other sanctions to the bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021

93. The internal policy of the bank shall provide an adequate level of internal control and include:  

1) assessment of tracking and control of all risks related to conducting the proposed operations;  

2) the accounting procedure for the proposed operations;  

3) control measures to prevent all possible risks on a regular basis;  

4) description of the technical equipment and readiness of the bank to provide information on the standards and rules for its transfer established by the National Bank.  

94. The National Bank considers a banks application for an authorization to conduct banking operations that are not specified in the list of authorized operations or to lift restrictions in a banking license (in the list of authorized banking operations) established as part of applied enforcement actions resulting in substitution of the list of authorized banking operations attached to a license, and the attached documents within two months from the date of receipt of the documents satisfying the requirements and based on the results of consideration, makes a decision on upholding of an application or refusal to uphold thereof. During the review of the documents submitted by the bank, the National Bank is entitled to inspect the bank to confirm the compliance of the bank with the established requirements.  

At any stage of the banks application consideration, the National Bank is entitled to refuse to issue an authorization in the following cases:  

- identification by the National Bank of violations in the activities of the banks, if the violations directly indicate the absence of an adequate internal control system in the bank;  

- identification of violations of the law in the field of combating terrorism financing and money laundering or the requirements for compliance with the prudential standards established by the National Bank.  

The decision to uphold or refuse to uphold an application submitted in accordance with Clause 92 of this Regulation is made by the Board of the National Bank and communicated by the National Bank to the bank in writing within three working days from the date of such decision.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

95. The list of permitted banking operations to the license shall be replaced within 3 (three) business days from the date, on which the bank submits to the National Bank the previous list of permitted banking operations.  

 

When replacing (re-issuing) the list of permitted banking operations, the previous list of permitted banking operations shall be submitted to the National Bank within 1 (one) day from the date of receiving a letter from the National Bank on a positive decision of the Board of the National Bank on permission to conduct certain banking operations/lifting of restrictions on the license 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

Chapter 12. Procedure for Opening an “Islamic window” and Issuing a License to Conduct Banking Operations under the Principles of Islamic Banking and Finance in the National and/or Foreign Currency through an “Islamic Window”   

96. A bank may open an “Islamic window” to conduct operations under the principles of Islamic banking and finance in accordance with the requirements of this Regulation.  

97. To conduct banking operations through the “Islamic window”, the bank must obtain a license authorizing to conduct banking operations under the principles of Islamic banking and finance in the national and/or foreign currency through the “Islamic window”.  

98. To open the “Islamic window” the bank shall fulfill the following requirements:  

a) be adequately capitalized according to the requirements of the National Bank; 

b) comply with prudential standards and other requirements established by the National Bank. 

The bank may be granted a license authorizing to conduct banking operations through the “Islamic window”, provided that no limitations or prohibitions have been applied to creating subsidiaries, branches, representative offices and other structural subdivisions of the bank and no special regime was introduced. for systematic violations of the law (two or more times in the last twelve months). 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021

99. To obtain a license authorizing to conduct banking operations in the national and/or foreign currency through the “Islamic window”, the bank shall provide the following documents:  

1) an application of the Board of Directors of a bank to issue a license authorizing to conduct banking operations under the principles of Islamic banking and finance in the national and/or foreign currency through an “Islamic window” containing a detailed description of the types of operations that the bank intends to conduct; 

2) the detailed extract from the minutes of the authorized bodies of a bank (a copy certified by the bank) on the following decision-making about: 

a) opening of an “Islamic window”;  

b) election of members of the Sharia Council and its chairman, on appointment of the head of an “Islamic window”, the head of the structural subdivision responsible for financing under the Islamic principles. The Sharia Council shall consist of at least three people;  

c) approval of the policies and procedures for banking operations under the principles of Islamic banking and finance; 

d) the statement of the Board of Directors that a comprehensive analysis of the proposed operations and their impact on the activities of the bank has been carried out, and that the bank has identified the risks related to the new operations, based on the conclusion of the risk management service; 

3) a business plan with an indication of the forecasted yield related to implementation of the proposed operations (for at least two coming years); 

4) information confirming the availability of qualified personnel (these employees shall have at least one year of experience in the banking/financial sector and the documents confirming that they have completed special training in this area); 

5) the organizational structure of the bank, revised due to planned expansion of the banks activities;  

6) two copies of the banks charter (copies certified by the bank), containing issues related to implemented banking operations under the principles of Islamic banking and finance in the manner prescribed by the regulations of the National Bank; the Charter shall also contain information about the tasks, functions and powers of the Sharia Council, the procedure for its creation (what body appoints the council members, for what period) and the requirements for the members of the council under the principles of Islamic finance; 

7) information about the candidates for the position of chairman and the members of the Sharia Council of the bank, the head of an “Islamic window”, the head of the structural subdivision responsible for financing under the principles of Islamic banking and finance, according to Section IV of this Regulation; 

8) financing policy, operational, accounting policies and other basic policies of the bank, approved by the Sharia Council of the bank, approved by the Board of Directors of the bank, and providing for: 

a) measures to identify, assess, control and monitor all possible risks a bank is exposed as a result of its banking operations under the principles of Islamic banking and finance;  

b) control measures to regularly minimize all possible risks resulting from implementation of the banking operations by the bank under the principles of Islamic banking and finance;  

9) standard agreements on banking operations under the principles of Islamic banking and finance, drawn up in accordance with the Sharia standards and approved by the Sharia Council of the bank. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021

100. The internal policy of a bank operating in accordance with the principles of Islamic banking and finance through an “Islamic window” shall ensure an adequate level of internal control and include:  

1) description of all risks related to the proposed operations and methods for their assessment;  

2) accounting principles of the proposed operations.  

101. The National Bank considers an application of the bank for issuing a license authorizing to conduct banking operations under the principles of Islamic banking and finance in the national and/or foreign currency through an “Islamic window” and the attached documents within two months from the date of receipt of the documents that meet the established requirements, and based on the results of consideration, it makes a decision on issuing a license or refusing to issue thereof.  

The decision to issue a license to the bank authorizing to conduct banking operations in accordance with the principles of Islamic banking and finance through an “Islamic window” is made by the Board of the National Bank and communicated to the bank by the National Bank in writing within three working days from the date of such decision.  

If the documents do not comply with one or more of the proposed banking operations, the Board of the National Bank issues an authorization to conduct only those operations for which all necessary documents are provided that meet the requirements of the regulatory legal acts of the National Bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

102. The license authorizing to conduct banking operations under the principles of Islamic banking and finance through an “Islamic window” is issued to the bank within three working days from the day the National Bank Board decides to issue an additional license to the bank when the bank submits confirmation of payment for the license.  

SECTION III. PROCEDURE FOR AGREED ACQUIRING OF THRESHOLD PARTICIPATION IN THE BANKS CAPITAL   

Chapter 13. General Rules  

103. Any individual or legal entity intending solely or jointly with other persons, regardless of the method of acquiring a title to shares, including inheritance or restoration of a title to them, to acquire a threshold participation in the banks capital, including significant participation and control, including by the additional purchase of shares, must obtain written authorization from the National Bank. 

Obtaining the written authorization of the National Bank is mandatory in each case when any individual or legal entity intends to:  

1) become a significant participant in the bank;  

2) carry out direct or indirect ownership or management (including under a trust management agreement):  

- twenty percent or more of the banks voting shares,  

- thirty-three percent or more of the banks voting shares,  

- fifty percent or more of the banks voting shares,  

- sixty seven percent or more of the banks voting shares;  

In case of acquiring the banks shares by the National Bank, the requirements of this section shall not apply to the National Bank and the decision to acquire the threshold participation in the banks capital is the decision of the Board of the National Bank on the acquisition of shares. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

104. Any individual or legal entity owning a threshold participation in the banks capital, intending to single-handedly or jointly with other persons alienate the shares, regardless of the method of alienation, in an amount affecting the change in the threshold value, shall transfer prior notification to the National Bank al list five workers days before the transaction.   

105. An interested person must apply to the National Bank with a written application, with attached documents and information in accordance with the requirements of Chapter 14 of this Regulation in order to obtain written authorization from the National Bank for acquisition of a threshold participation in the banks capital.  

106. If there is information that an applicant acts together with another person, the National Bank is entitled to require the applicant to disclose information on this fact.  

107. The National Bank shall be entitled hereunder to demand information at any time from the controlling persons/entities and significant participants of the bank, including through indirect ownership.  

108. Officials (members of the supervisory authority and the executive body) of the legal entities owning or managing, or intending to own or manage threshold participation in a banks capital, must have an impeccable business reputation in accordance with Clause 119 thereof.  

Information on newly appointed members of the Board of Directors (supervisory body) or the Board (executive body) of the individuals (legal entities) owning or managing, or intending to own or manage threshold participation in a banks capital must be submitted to the National Bank within thirty working days from the appointment day in accordance with Appendix 18.  

109. The National Bank shall be entitled to require the provision of additional information from any legal entities controlled by an individual/entity who/which may become a significant participant or controlling person/entity of a bank or may make investments in a bank, as a result of which the bank may become a dependent company of that person, including through indirect ownership.  

110. Individuals/entities or a group of individuals/entities owning or managing, or intending to own or manage, the threshold participation in the banks capital, including through indirect ownership, shall have a satisfactory financial status and not jeopardize the stability of the bank.  

Individuals/entities or a group of individuals/entities owning or managing, or intending to own or manage threshold participation in the banks capital, their affiliates, officials (members of the supervisory authority and the executive body), as well as beneficial owners and persons related to the bank must have an impeccable business reputation in accordance with Clause 119 thereof.   

When the information contained in the questionnaire of an individual/entity who has received authorization from the National Bank to acquire a threshold participation in the banks capital has been changed, this resident individual/entity of the Kyrgyz Republic must notify the National Bank in writing within thirty working days from the date of the change.   

Chapter 14. Presentation of Documents  

112. To obtain written authorization from the National Bank, the applicant shall submit to the National Bank a written application for obtaining an authorization from the National Bank to acquire a threshold participation share in the banks capital (the application form is given in Appendix 19).  

If an authorized person is designated an applicant, the powers of the authorized person shall be documented by the power of attorney(s) of the applicant, executed in accordance with the law.  

If an application contains information of the direct purchase or indirect ownership of the banks shares, an applicant must disclose information on the degree of coherence, on the sources of funds that he/she/it intends to use for such purchase or possession.  

At the same time, the persons jointly owning the shares must provide documents and information at the request of the National Bank in accordance with the requirements of this Regulation on acquisition of the threshold participation in the banks capital.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

113. In addition to the application specified in Clause 112 thereof, the following shall be submitted:  

1) by the legal entities:  

a) a certificate of state registration, a registered charter and/or other documents confirming its legal status and the origin of the legal entity;  

b) information about all its shareholders (founders, participants) and controlling persons/entities, shareholders (founders, participants) of such shareholders (founders, participants) and beneficial owners (including extracts from the trade register or shareholders register), as well as information about all their shareholders and controlling persons/entities who actually exercise control;  

c) the decision of the applicants authorized body to acquire the threshold participation in the bank (implementation of a significant participation);  

d) financial statements (in the form of annual reports (with explanations and disclosures, including the consolidated balance sheet, profit and loss statement and other forms of financial statements under the International Financial Reporting Standards) for the last three years (in case of carrying out its activities for less than three years - a report shall be provided for the last reporting year), including the opinion of the audit organization confirming the accuracy of the financial statements.  

e) information on the origin and sources of funds forwarded by the applicant to participate in the capital (purchase of shares) of the bank, with attached supporting documents or their certified copies;  

f) information in accordance with the questionnaire according to the form of Appendix 16 (for foreign legal entities according to the form of Appendix 17);  

g) residents of the Kyrgyz Republic - a certificate or other document issued by the state tax service and the social fund on fulfillment of all obligations to the budget of the Kyrgyz Republic and the tax authorities on the date of the application;  

h) the following information about all its shareholders (founders, participants) and controlling persons/entities:  

- information about their activities and professional experience (in terms of shareholders, participants, founders, whose share in the capital constitutes five or more percent);  

- report of the audit organization or other information on the financial status;  

- information about any persons with whom shareholders (founders, shareholders) have common interests;  

i) information and data confirming that all members of the Board of Directors (supervisory body) and the Management Board (executive body) comply with the minimum criteria established by the National Bank, in accordance with Clause 108 thereof;  

2) in addition to the documents listed in Sub-clause 1 of this Clause, the foreign banks, the foreign banks subsidiaries and other foreign legal entities shall submit the following legalized documents according to the established procedure:  

a) written consent of the relevant supervisory authority of the country of origin (registration) of the foreign founder (shareholder) to invest in a bank (to establish a subsidiary bank or to open a branch in the Kyrgyz Republic), if required by the laws of the country of origin (registration), or written confirmation that such consent is not required under the laws of the founders country from the relevant supervisory authority, law firm or other authorized persons;  

b) if an applicant is subject to supervision by the supervisory authority in the country of origin (registration) - information regarding the supervisory regime to which it is subject, including written confirmation of the supervisory authority of the country of origin (registration) of the foreign legal entity that the applicant is authorized to carry out financial, banking or other activities (in relation to the banks - confirmation that the applicant has the appropriate banking license issued by an authorized body), is subject to supervision on a consolidation basis in the country of origin (registration), and on the readiness of the supervisory authority to cooperate with the National Bank on a regular basis;  

c) the most recent (consolidated - for a banking group, bank holding) balance sheet and (consolidated - for a banking group, bank holding) profit and loss statement (information shall be on a date not later than ninety days before the date of application); 3) if a bank as a result of acquisition becomes part of a banking group or a bank holding company, it is necessary to additionally submit information about the group, including:  

a) information about the structure of the banking group;  

b) information about the members of the banking group, including information about the main activities of the participants in the group;  

c) banking group policy on risk management and internal control;  

d) information about the controlling persons/entities of the members of the banking group;  

e) information about the persons who exercise real control in the banking group;  

f) information on the financial status of the group members, including:  

- a consolidated report of an applicant and its parent company, which was audited within the last three financial years;  

- the latest available consolidated balance sheet and consolidated profit and loss statement (information must be on a date not later than ninety days before the date of application);  

g) letter of commitment to provide in the subsequent documents containing:  

- information on amendments in the composition of the supervisory and executive bodies, significant participants, persons directly or indirectly exercising control, together with the information on the business reputation and reliability of the appointed officials in accordance with the requirements thereof;  

- periodic regulatory reporting / periodic regulatory banking reporting (hereinafter - PRR/PRBR), both individually and on a consolidated basis, according to the forms established by the National Bank. PRR/PRBR shall be individually provided by the bank holding company to the National Bank within the terms established by the regulatory legal acts of the National Bank and on a consolidated basis - quarterly within twelve calendar days from the end of the reporting period (this information shall be provided only by residents of the Kyrgyz Republic);  

- information on amendments made in the constituent documents (constituent agreement, charter), the structure of subsidiaries or affiliates, expansion of their activities, change of officials in the subsidiaries or affiliates, as well as information on establishment and/or acquisition of the subsidiaries by the subsidiaries of the bank within the period not later than thirty days from the date of the relevant decision-making;  

- annual report together with the annual financial statements, confirmed by an independent auditing company, on an individual and consolidated basis no later than one hundred and eighty days from the date of completion of the reporting year, and containing an assessment of the adequacy of internal control for a banking group and a banking holding company. These statements shall also contain information on the activities of the banking group, including information on all subsidiaries and affiliates of the banking holding company, including the name, ownership percentage, type or activities in which each member of the banking group is involved;  

- written notice of available facts or circumstances that may negatively/significantly affect the activities of a subsidiary and/or a dependent bank licensed by the National Bank, indicating the measures taken to prevent such effect. The notice shall be provided to the National Bank within five working days from the moment of revealing the indicated facts or circumstances.  

If the documents listed above are not submitted or are submitted in violation of the deadlines, the National Bank may apply, in respect of a subsidiary and/or a dependent bank located in the Kyrgyz Republic, and its parent company/banking group or bank holding company (resident of the Kyrgyz Republic), the enforcement actions stipulated by the banking legislation of the Kyrgyz Republic;  

4) by the individuals:  

a) a copy of the passport or other document proving their identity;  

b) the report of the audit organization or other information on the financial status, including, but not limited to, confirmation of full payment of taxes and/or income declaration in the form prescribed by the legislation of the country of origin (registration) on the date of filing an application;  

c) information on the origin and sources of origin of funds sent by the applicant to participate in the capital (purchase of shares) of the bank (for example, certificates of savings from the bank, from the place of work  incomes certificate; certificate of dividends or other documents confirming the receipt of income and availability of funds sent to purchase the shares of the bank), with attached supporting documents or their certified copies. If cash in bank accounts is the source of the banks shares acquisition, a letter shall be submitted to confirm the availability of cash according to the form of Appendix 20;   

d) information on the activities and professional experience according to the form of Appendix 15;  

5) in addition to the information specified in Sub-clause 4 of this Clause, the foreign individuals submit recommendations regarding their business reputation from at least two independent persons who have a positive business reputation.   

An applicant - a foreign individual must submit a letter from a bank that meets the requirements established by the National Bank about the availability of funds in his/her accounts in the amount covering the cost of the bank shares he/she purchases and about the absence of accounts payable of this individual;  

6) if the shares are inherited due to the death of a banks shareholder - an individual or declaring him/her dead by the court, an applicant, within ten calendar days from the date of accession to the heirship shall submit a copy of the duly certified certificate of inheritance to the National Bank.  

7) in case of restitution of the title to the bank shares, an applicant shall additionally submit a copy of the relevant court decision to the National Bank.  

Chapter 15. Documents Consideration  

114. After receiving an application for an authorization from the National Bank to acquire threshold participation in the banks capital, the National Bank checks the completeness and sufficiency of the documents submitted by an applicant in accordance with the requirements of Chapter 14 thereof and, if the documents are fully submitted, sends the applicant a letter of acceptance.  

The application is not considered to be submitted until all the necessary information is received by the National Bank, regardless of the source of provided information, including at the additional request of the National Bank.  

115. The National Bank shall make a decision on received application 60 (sixty) calendar days at the latest from the date of notification of the applicant about acceptance of an application. The National Bank shall be entitled to extend the period for considering an application by 30 (thirty) calendar days. The National Bank informs the applicant of its decision - consent or refusal - in writing within 3 (three) business days from the date of making thereof. Refusal must be motivated. The National Bank shall be entitled to suspend consideration of an application if there is information that there are disputes between the seller and the buyer of shares with the subject matter being the issues of shares transfer (purchase and sale and other transactions, transfer of ownership, settlements), which are considered within the framework of the civil or the criminal legislation of the Kyrgyz Republic by the law enforcement or judicial authorities for a period until the end of the proceedings. After completion of the proceedings, the interested person must provide the documents confirming this fact, meanwhile the period for considering an application is started anew from the date of submission thereof.  

The decision of the National Bank to approve an application/to refuse to approve an application for obtaining the consent of the National Bank to acquire the threshold participation in the banks equity, with entitles the applicant - an individual or a legal entity to become a significant participant or a person exercising direct or indirect ownership or management (as well as under a trust management agreement) of 20 (twenty) and more, or 33 (thirty three) or more percent of voting shares of the bank, shall be made by the deputy chairman/the member of the National Bank Board in charge of banking supervision and licensing.  

The decision of the National Bank to approve an application/to refuse to approve an application for obtaining the consent of the National Bank to acquire the threshold participation in the banks equity, which entitles the applicant - an individual or a legal entity to become a controlling person of the bank or a person exercising direct or indirect ownership or management (as well as under a trust management agreement) of 50 (fifty) and more or 67 (sixty seven) and more percent of the voting shares of the bank, shall be made by the Supervision Committee of the National Bank.  

If the applicant, in accordance with the requirements of the banking legislation, is recognized as a person jointly owning shares, the National Bank shall issue a permit to acquire the threshold participation in the amount of shares directly owned by the applicant and for joint ownership with third parties.  

The decision of the National Bank to approve an application/to refuse to approve an application for obtaining the consent of the National Bank to acquire the threshold participation in the banks equity shall be brought to the applicants attention in writing within 3 (three) business days from the date of such decision.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2020-П-12/39-1 as of July 8, 2020). 

116. Documents and information at the additional request of the National Bank shall be submitted within fifteen working days, and in respect of the non-residents - within thirty working days, unless a longer period is specified in the written request of the National Bank. If the documents and information are not submitted within the specified period, an applicant may receive a refusal in satisfaction of his/her/its application.  

117. The National Bank may refuse to satisfy an application if:  

1) satisfaction of an application can result in a monopoly in the banking system of the Kyrgyz Republic;  

2) financial status of an applicant is unsatisfactory;  

3) there are facts testifying to the dingy business reputation of an applicant, its beneficial owners and officials (if an applicant is a legal entity);  

4) an applicant submitted distorted or inaccurate (false) information, and did not provide full information on the origin and sources of funds and if:  

a) it is impossible to determine the origin and sources of funds from the provided information;  

b) the source of funds does not meet the requirements established by the National Bank according to the information provided;   

5) there is reliable information that an applicant was or is involved in illegal financial or other activities;  

6) the previous activity of an applicant has been completed or contributed to the bankruptcy or significant financial losses of a legal entity;  

7) officials of an applicant - a legal entity, intending to become the controlling persons of the bank, do not comply with the requirements of the banking legislation;  

8) the interests of the banks depositors may be damaged or it will be impossible to exercise effective supervision in the bank due to established relations between the bank and the applicant, and/or the bank related persons and/or companies with which the applicant has common interests;  

9) it is impossible to identify the beneficial owners of an applicant;  

10) the applicant assumes a significant change in the banks policy that threatens the financial stability, reliability of the bank or interests of the banks depositors, including if the competence, experience, qualifications of the proposed bank management do not meet the requirements of the National Bank;  

11) an applicant is a foreign legal entity subject to supervision by the supervisory authority in its country of origin (registration), and if:  

a) he/she/it has not provided confirming information to the National Bank that in his/her/its country of origin (registration) effective supervision is exercised, including on a consolidated basis;  

b) according to the National Bank, an applicant is not effectively supervised, including on a consolidated basis;  

c) cooperation with the supervisory authority of the applicants state of origin (registration) is impossible and/or ineffective  

118. The National Bank may consider the financial status of an applicant unsatisfactory if one of the following signs is available:  

1) an applicant was declared insolvent (bankrupt) by the court;  

2) the applicants liabilities exceed his/her/its assets as of the last reporting date;  

3) the total amount of liabilities, including the off-balance sheet liabilities of an applicant, may pose a significant risk to the banks stability;  

4) the confirmation has not been received or the provided information indicates that an applicant is not able to provide, if necessary, additional capital to the bank;  

5) for other reasons, indicating the possibility of causing damage to the bank or its depositors as a result of satisfying an application, including the presence of outstanding debts to the budget of the Kyrgyz Republic and tax authorities on the date of filing an application.  

119. A person/entity (individual or legal entity) shall be deemed to have no or lost an impeccable business reputation in the following cases:  

1) if a person/entity has unexpunged or unspent conviction for a crime in the economic sphere;  

2) if a person/entity:  

a) is subject to forced liquidation, bankruptcy;  

b) if it is recognized by the court that the actions or inaction of a person/entity as a significant participant or member of the management body of a legal entity resulted in compulsory liquidation, including bankruptcy;   

3) if a person/entity is not entitled to carry out activities in the banking, financial, auditing, insurance and investment spheres by a court decision or to carry out activities in the banking sector by the decision of the National Bank;  

4) if a person/entity has lost an impeccable business reputation in other areas of activity by a court decision;  

5) for the bank officials - if an official of a bank is relieved of his/her post by the decision of the Board or the Supervisory Committee of the National Bank or a foreign competent authority of banking supervision in accordance with the procedure of enforcement action application to the bank;  

6) if a person/entity intentionally violated the requirements of the legislation of the Kyrgyz Republic on acquisition of the threshold participation in the capital of the bank;  

7) if a person/entity has an unfulfilled court decision on payment of his/her/its financial obligations;   

8) if a person/entity deliberately submitted false information and documents to the National Bank.  

120. If a positive decision is made, the National Bank shall forward a letter to the applicant on approval of an application, which is the basis for taking actions to purchase shares and subsequent registration containing the requirement on necessity to notify the proposed buyer in case of future sale of shares or reduction of threshold participation in the banks equity about the necessity to obtain the consent of the National Bank to acquire the threshold participation in the banks equity. After the transfer of ownership of the shares, the applicant within 5 (five) business days must submit to the National Bank a copy of the purchase and sale agreement for the shares or other document on the basis of which ownership was transferred, and the documents confirming the fact of payment for the shares.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3-(НПА) as of October 24, 2018, No. 2019-П-33/9-7-(НФКО) as of February 27, 2019, No. 2019-П-12/22-4-(НПА) as of April 24 2019, No. 2019-П-12/43-2-(НПА) as of August 21, 2019, No. 2020-П-12/39-1-(НПА) as of July 8, 2020). 

121. If a person/entity has acquired a threshold participation in the banks capital on the basis of an authorization of the National Bank, which was obtained on the basis of inaccurate (false) information, or he/she/it has ceased to meet the requirements for the founders (shareholders) under the banking legislation of the Kyrgyz Republic, the National Bank revokes an authorization for purchase of the shares, previously issued to the applicant in accordance with this Chapter, and the consequences specified in Clause 124 thereof occur.  

122. (The paragraph was declared null and void according to the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2as of August 25, 2021). 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021

123. If a person/entity acquires a title to the shares by inheritance or by restoring the rights to them, in the amount of the threshold participation in the banks capital, before obtaining an authorization from the National Bank, the consequences specified in the first paragraph of Clause 124 thereof occur.  

If these persons/entities are refused to issue an authorization of the National Bank, the consequences stipulated by the second paragraph of Clause 124 thereof shall occur.  

124. In the cases specified in Clauses 121-123 of this Regulation, the votes on such shares are not counted when calculating the quorum and when making decisions. All previously made decisions are considered invalid if the number of votes on such shares influenced the decision on the merits.  

In the cases specified in Clauses 121 and 123 thereof, the person/entity in respect of whom/which the violation has been detected is obliged to sell the corresponding parcel of shares to the persons/entities not connected with him/her/it within the period of time determined by the National Bank. Otherwise, the National Bank will apply to the court for expropriation of the said persons/entitys shares.  

125. The National Bank shall notify the independent registrar of the bank of occurrence of the consequences specified in Clause 124 thereof.  

Chapter 15-1.  

Procedure for Information Provision by the Bank Shareholders on Compliance with the Requirements of Impeccable Business Reputation and Obligatory Requirements   

(The chapter as amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)   

125-1. All bank shareholders owning the banks shares in the amount less than the significant share in the banks capital are obliged to confirm the absence of restrictions and prohibitions specified in Article 79 of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity”.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

125-2. Any person purchasing the banks shares in an amount that does not reach the first threshold value (significant participation) shall be obliged to submit the following documents to the National Bank within 20 (twenty) business days after acquiring ownership of the shares:  

1) for the individuals:  

a) a copy of the passport;  

b) information about the sources of funds;  

c) a certificate from a credit bureau or from an authorized body of the country (for non-residents of the Kyrgyz Republic) on the absence of overdue debts;  

d) a certificate or other document confirming the absence of obligations obligatory payments to the budget (bodies of the tax service and the Social Fund (not submitted by residents of the Kyrgyz Republic if it is possible to get such information through information systems of interdepartmental interaction) or the authorized body of the country of origin (for non-residents of the Kyrgyz Republic);  

e) a certificate or other document confirming the absence of a criminal record (for non-residents of the Kyrgyz Republic);  

f) information about the main activity (employment book, patent and description of the activity);  

2) for the legal entities:  

a) copies of constituent documents;  

b) a certificate of state registration of a legal entity or another document being equivalent in accordance with the legislation of the country of origin to confirm registration of a legal entity;  

c) a certificate from a credit bureau or from an authorized body of the country (for non-residents of the Kyrgyz Republic) on the absence of overdue debts;  

d) a certificate of obligatory payments to the budget (not submitted by residents of the Kyrgyz Republic if it is possible to get such information through information systems of interdepartmental interaction);  

e) a certificate or another document, confirmed by a legal entity, that the founders, shareholders, the members of a legal entity, the head of the executive body, the chief accountant have no criminal record (not submitted by residents of the Kyrgyz Republic if it is possible to get such information through information systems of interdepartmental interaction);  

f) information about the main activity;  

g) register of shareholders, participants, as well as copies of their passports;  

h) information on subsidiaries, associated companies indicating ownership percentage of shares (property, participatory interests, shares), main activities and place of registration;  

i) information about the ultimate beneficiaries of the legal entity (prior to an individual or to a logical ultimate beneficiary). If the beneficial owner is a state agency or a state, the relevant state agency or state shall be indicated.  

If the abovementioned individuals/legal entities purchased the banks shares in the amount exceeding 0.01 percent of the minimum authorized capital established for the banks, they must additionally provide a copy of the shares purchase and sale agreement or another document on the basis of which the ownership was transferred, and the documents confirming the fact of payment for the shares.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2020-П-12/39-1 as of July 8, 2020, No. 2021-П-12/47-2 as of August 25, 2021). 

125-3. The banks shall conduct regular monitoring in order to update the information provided by the banks shareholders. The persons/entities specified in Clause 125-2 are obliged to provide regularly, at the request of the Bank, updated information for the Bank to monitor amendments in such information. If amendments have been introduced in the information, the Bank must send them to the National Bank no later than 10 (ten) business days from the date of receipt of amended information.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

125-4. The banks shall annually, no later than the second quarter, submit to the National Bank information about the scheme of ownership of the bank shares by the shareholders holding more than 1 (one) percent of the bank shares. Instructions on development of the scheme of the owners (final beneficiaries) of a commercial bank are given in Appendix 31 thereof.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018).  

SECTION IV. PROCEDURE FOR AGREEMENT OF THE BANKS OFFICIALS   

Chapter 16. General Provisions  

126. The officials of the bank, whose candidacies are subject to mandatory agreement with the National Bank, are:  

1) the chairman and the members of the Board of Directors;  

2) the chairman and the members of the Sharia Council;  

3) the chairman of the Audit Committee, the Risk Management Committee;  

4) the Chairman of the Board (president, general manager, head of a branch of a foreign bank), his/her deputies (vice president, deputy general manager, deputy head of a branch of a foreign bank) and other members of the Board;  

5) the managing director;  

6) the head of the structural subdivision responsible for the lending activities of the bank;  

7) the head of the structural subdivision responsible for the assets and liabilities management in the bank (or a person equated to it in its functional duties);  

8) the chief accountant;  

9) the head of the structural subdivision responsible for financing under the Islamic principles;  

10) the head of the “Islamic window”;  

11) the head of the internal audit service;  

12) the head of the risk management service;  

13) the head of the compliance control service.  

The deputies of the abovementioned heads of structural subdivisions and the chief accountant are the officials of the bank who are subject to mandatory agreement with the National Bank.  

Any persons who are equal in their functional duties to the above-mentioned officials are also subject to agreement with the National Bank.  

Any units of officials (with the exception of the chairmen and members of the Board of Directors and the Sharia Council, the chairman of the Audit Committee, the chairman and other members of the Banks Board), who determine/supervise the activities of the structural subdivisions, which heads are subject to agreement with the National Bank in accordance with this clause thereof. At the same time, the minimum requirements established by this Regulation in relation to the heads of the relevant structural subdivisions are applied to such officials, who determine/supervise the activities of the structural subdivisions of the bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

127. The persons specified in clause 126 thereof shall comply with the minimum requirements established by the National Bank in accordance with Chapters 17-19 of this Regulation.  

128. A person who substitutes an official for the period of his/her temporary absence in accordance with the job description (or other internal document of the bank) and/or who is assigned the duties of the positions specified in Clause 126 of this Regulation, with the exception of the chairmen and members of the Board of Directors, the Sharia Council and the chairman of the Audit Committee, for a period of more than two months, shall be subject to agreement in accordance with this Section of the Regulation.  

129. If the National Bank refuses to approve the persons indicated in Clause 126 thereof, the indicated person shall be dismissed from his/her position within ten working days from the day the bank receives the letter of the National Bank about refusal to approve. The document, on the basis of which the candidate is accepted to the position of a member of the Board of Directors, shall be indicated as the basis for termination of powers (relations related to the performance of functions of a member of the Board of Directors) - refusal to approve an official by the National Bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

130. In the event of the dismissal (termination of authority) or the voluntary resignation of the chairman and members of the Board of Directors, the chairman and members of the Board of the bank, and the chief accountant, the bank shall notify the National Bank of this decision within 1 (one) business day from the date of such decision, stating the reasons for dismissal.

In the event of the dismissal or voluntary resignation of the other officials specified in Clause 126 thereof, within 3 (three) business days. The above requirements also apply to the persons temporarily relieved of their duties for more than 2 (two) months (leave for taking care of a child (decree), sick leave, temporary fulfillment of other duties, etc.).  

In case of dismissal of other bank employees directly involved in banking operations, at the initiative of the employer and/or because of an employees violation of the law, the bank is obliged to notify the National Bank of this within 10 (ten) working days from the date of the decision, stating the reasons for dismissal. Within the framework of this Regulation, the bank employees directly involved in banking operations are any bank employees involved in conducting/carrying out banking operations at any stage (business process).  

The above notifications may be sent by the bank from its official e-mail address to the official e-mail address of the National Bank. At the same time, in case of necessity of verification of information contained in electronic document, the National Bank shall have the right to request them on paper. 

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2022-П-12/12-3 as of March 9, 2022

131. The management board of the bank must, within a period not exceeding 30 (thirty) calendar days, submit a candidate that meets the requirements of this Regulation for a vacant position to occur due to dismissal/termination of powers/voluntary resignation/another long absence (for more than 2 (two) months) of a bank official, except for occurrence of the vacancies in the composition of the Board of Directors, which does not affect the quorum of the Board of Directors and mandatory number of the independent members of the Board of Directors. The abovementioned period can be extended once on the basis of the banks application with provision of the justification for impossibility of presenting a candidate for a vacant position. The decision to extend/refuse to extend the abovementioned period shall be made by the deputy chairman/a member of the National Bank of the Kyrgyz Republic Board in charge of banking supervision and licensing.  

In case of non-fulfillment of the requirements of this paragraph, the National Bank may take enforcement actions to the banks management board established by the legislation of the Kyrgyz Republic.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No.2020-П-12/39-1 as of July 8, 2020

132. Responsibility for the compliance of the heads of departments and branches, as well as other officials with the requirements developed by the bank, is imposed on the chairman of the banks Board. During the audit of the bank, inspectors of the National Bank must be provided with information on the heads of departments and branches and other officials of the bank according to the form of Appendix 24.  

Execution of duties of the Chairman of the Board, his/her deputies and other members of the Board, for the period of their temporary absence, shall be entrusted to the vice-chairmen or other members of the Board of the bank, being approved by the National Bank.  

133. The officials specified in Clause 126 thereof, with the exception of the chairmen and the members of the Board of Directors, the Sharia Council, the Board and the Chairman of the Audit Committee, the Banks Risk Management Committee, previously agreed to an equivalent or higher position during the last 12 (twelve) months, do not pass coordination with the National Bank and are limited to providing questionnaires according to the form of Appendix 21.  

The chairmen and members of the Board of Directors, the Sharia Council, the Board and the Chairman of the Audit Committee, the banks Risk Management Committee, re-elected for a new term in the same bank, do not get approval from the National Bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018).  

Chapter 17. Requirements to the Members of the Board of Directors and the Chairman of the Audit Committee, Risk Management Committee   

(Chapter as amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

134. The candidates for the positions of the chairman and the members of the Board of Directors, the Chairman of the Audit Committee, the Risk Management Committee must meet the following minimum requirements:  

1) have a diploma of higher education and length of service (work experience) of at least three years, within the last ten years in the field of economic, banking, financial or legal issues;  

2) have an excellent business reputation;  

3) have knowledge in the field of corporate governance and banking legislation of the Kyrgyz Republic;  

4) know the banks business plan and the banks development strategy;  

5) not fall under the terms of Chapter 20 of this Section in the Regulations.  

Meanwhile, the majority of members of the board of directors, including the chairman of the board of directors, must have at least two years of length of service during the last ten years in executive positions in the banking and/or financial system. When calculating this length of service, the length of service as a member of the board of directors, who was declined approval, or the approval procedure, which has not been completed, shall not be taken into account. If the majority of the members of the board of directors have less than 2 (two) years of experience during the last 10 (ten) years in the executive positions in the banking and/or financial system, the National Bank shall be entitled to suspend approval of the members of the banks board of directors who do not meet this requirement prior to bringing composition thereof in compliance with the above requirement. In this case, the bank must bring the composition of the board of directors in compliance within 1 (one) month from the date of receipt of the corresponding letter from the National Bank. If the bank does not form the composition of the board of directors that meets this requirement within the established time frame, the National Bank shall make a decision to refuse to approve all members of the board of directors, failure to complete the approval procedure of these members was due to the lack of the necessary length of service thereof in the executive positions in the banking and/or financial system.  

For the purposes of this Regulation, the executive position means a position not lower than the head of a structural division in the financial and credit organization and/or the company conducting activities falling under paragraphs 13 and 14 of this Regulation, and/or an organization in the field of financial services regulation. Meanwhile, work experience does not include work in the divisions of the abovementioned organizations/companies related to regulation of the security issues in this organization/company and implementation of the economic activities.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No.2020-П-12/39-1 as of July 8, 2020

135. A candidate for the position of the Chairman of the Audit Committee, in addition to the requirements set out in paragraph 134 of the Regulation, must: 

1) possess knowledge of international accounting and financial reporting standards and audit standards adopted in international practice, and have the certificates or other documents confirming the completion of training in these areas, obtained in the educational institutions that have an appropriate permit/license from an authorized state body; 

2) be an independent member of the Board of Directors in accordance with paragraph 138 of this Regulation. 

Moreover, the chairman of the Audit Committee of an Islamic bank or a bank with an Islamic window must additionally have knowledge of the principles of Islamic banking and finance, be familiar with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards, and submit a certificate or document, confirming completion of training in the specified direction. 

A candidate for the position of the chairman of the Risk Management Committee, in addition to the requirements set out in paragraph 134 of this Regulation, must: 

1) possess knowledge of risk management and have a certificate or other document confirming completion of training in the specified direction, obtained in the educational institutions that have an appropriate permit/license from an authorized state body; 

2) be an independent member of the Board of Directors in accordance with paragraph 138 of this Regulation. 

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No.2020-П-12/39-1 as of July 8, 2020

136. At least one member of the Board of Directors of a bank must be a citizen of the Kyrgyz Republic who speaks the state and/or official language.  

137. The election of the chairman and members of the Board of Directors shall be made taking into account the requirements of Article 100 of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity”.  

The requirements of Article 21 of the Law of the Kyrgyz Republic “On the State Development Bank of the Kyrgyz Republic” are applicable to the members of the Board of Directors of the State Development Bank of the Kyrgyz Republic.  

In the event of a vacancy (ies) in the composition of the Board of Directors of a bank that does not affect (their) quorum, the missing members of the Board of Directors are elected at the next general meeting of shareholders of the bank.  

In the event of a vacancy (ies) of the independent members of the Board of Directors, not affecting the quorum, but as a result of which the bank violates the requirement to have one third of the independent members of the Board of Directors. The Board of Directors of the bank within 10 (ten) working days from the date of the vacancy (ies) shall decide to convene an extraordinary general meeting of shareholders at which missing independent members of the board of directors shall be elected.  

If, as a result of early termination of powers of the members of the Board of Directors, its composition reduces to a number less than the established quorum, the Banks Management Board shall, within five days from the date of termination of the powers of members of the Board of Directors, decide to convene an extraordinary general meeting of shareholders of the bank to elect a new Board of Directors.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018).  

138. At least one third of the composition of the Board of Directors of a bank must be independent members of the Board of Directors.  

An independent member of the Board of Directors is a person who at the time of election:  

1) is not and has not been an employee of this bank or an employee of any of the legal entities associated with the bank for the past 5 (five) years. If the legal entities associated with the bank are legal entities with a 100 (one hundred) percent ownership interest of the state represented by an authorized state body representing the interests of the state as the owner of state property, and the relationship with the bank is determined only on the basis of the state interest represented by the authorized state body representing interests of the state as the owner of state property in the capital of the bank and legal entities, this requirement shall not apply as grounds for non-compliance with the independence criteria for the members of the Board of Directors. 

2) is not and was not a member of the Board of the bank or a member of the Board of any of the legal entities related to the bank during the past five years;  

3) did not receive - directly or indirectly, any significant additional remuneration, compensation, benefits or donations, except for reimbursement of expenses related to participation in the meetings of the Board of Directors from this bank or the bank-related individuals/entities, or on their behalf during the past five years;  

For the purposes of this clause of the Provision, substantial additional remuneration, compensation, benefits or donations are understood as such additional remuneration, compensation, allowances and donations or any other remuneration, the total amount of which over the last 5 (five) years is more than KGS 1,000,000 (one million).  

4) does not have significant business relationships (including the provision and receipt of loans) with this bank or any of the bank-related individuals/entities, either directly or as a partner, during the past five years;  

Under this clause of the Provision, a business relationship of a person with a bank or any of those related to a bank is considered material in cases where the commercial, business or financial relationship of the individual/entity with the bank and/or other legal entity having common interests with the bank in any way affect the ability of an individual/entity to make objective decisions in the interests of the bank. However, a member of the Board of Directors shall not:  

a) be a borrower of a bank whose total debt exceeds 10% of the total net capital of the bank;  

b) be a member of the executive (supervisory) body of a legal entity that is a borrower of a bank and whose total debt exceeds 10% of the amount of the net total capital of the bank;  

c) control one or more legal entities having common interests with the bank and/or total debt to the bank or legal entities having common interests with the bank can be considered as the total debt of one individual/entity in accordance with the criteria of the National Bank for lending;  

d) provide goods and services to the bank, the total annual amount of which exceeds 10% of the total annual gross income of the person;  

e) have a loan debt to the bank, classified as “losses”;  

f) be a member of the supervisory, executive body of a legal entity that received a loan from a bank, or from any legal entity that has common interests with a bank that has been classified as a “loss”.  

5) was not a partner or employee of the current or former external auditor of the bank or any of the bank-related individuals/entities during the past five years;  

6) does not exercise significant participation or control over this bank and in no way represents a shareholder exercising significant participation or control over the bank;  

7) was not a member of the Board of Directors of this bank for the past five years;  

8) does not have close family relations with the persons mentioned in Sub-clauses 1-7 of this Clause of the Regulations.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2019-П-12/43-2 as of August 21, 2019, No. 2021-П-12/47-2 as of August 25, 2021).  

139. The submitted documents are reviewed by the National Bank in accordance with Chapter 21 thereof.  

Chapter 18. Requirements to the Members of the Sharia Council of the Islamic Bank and the Bank Having an “Islamic Window”   

140. The candidates for the posts of members of the Sharia Council shall meet the following minimum requirements:  

1) have a diploma of higher education;  

2) possess knowledge in the field of banking legislation of the Kyrgyz Republic on the principles of Islamic banking and finance;  

3) have knowledge in the field of the principles of Islamic banking and finance, confirmed by the documents (certificates), indicating successful completion of training in this area;  

4) members of the Sharia Council shall have at least 1 (one) year or working experience in the finance and credit organizations, or at least 2 (two) years in educational institutions, or at least 2 (two) years in religious organizations with experience in preparing Sharia conclusions, or in international organizations that set standards in Islamic banking, registered according to the legislation.  

The chairman of the Sharia Council must additionally have a diploma (generally recognized higher education institutions) in higher education in the field of Sharia in a direction that includes issues of law and/or trading activity, and also have experience (experience) in the Sharia Council of an Islamic bank, a bank with an “Islamic window”/Islamic financial organization for at least 1 (one) year or working experience in the banks for at least 5 (five) years, including 1 (one) year of experience in a managerial position;  

5) do not fall under the conditions of Chapter 20 thereof. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2022-П-12/12-3 as of March 9, 2022

141. The members of the Sharia Council of an Islamic bank and a bank with an Islamic window shall be elected at a general meeting by the founders (shareholders) of the bank by cumulative voting for a period of 5 (five) years. 

The members of the Sharia Council can at the same time be the members of the Sharia Council of one commercial bank and two non-bank financial and credit organizations registered in the Kyrgyz Republic.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2020-П-12/39-1 as of July 8, 2020, No. 2022-П-12/12-3 as of March 9, 2022

142. The members of the Sharia Council shall be subject to the requirements of paragraph 138 of this Regulation, provided for the members of the banks Board of Directors, in terms of the required number and criteria of independence. At least 1 (one) member of the Sharia Council of the bank must be a citizen of the Kyrgyz Republic who speaks the state and/or the official language. 

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2020-П-12/39-1 as of July 8, 2020) 

143. The submitted documents are reviewed by the National Bank in accordance with Chapter 21 thereof.  

  

Chapter 19. Requirements for the Members of the Board, Chief Accountant and Heads of Structural Subdivisions of the Bank  

144. The candidates for the positions specified in paragraph 126 of this Regulation, with the exception of the chairmen and members of the Board of Directors, the Sharia Council and the chairman of the banks Audit Committee, must meet the following minimum requirements:  

1) have a diploma of higher education;  

2) have the following length of service (work experience) within the last seven years for a candidate for the position of:  

а) the chairman of the banks Board (a president, a general manager, a head of a branch in a foreign bank) - at least five years of experience in the banking and/or financial system, including in the executive positions - at least two years;  

b) the deputy chairmen (a vice president, a deputy general manager, a deputy head of a branch in a foreign bank), other members of the Management Board, heads of the risk management service and the compliance control service - at least three years of experience in the banking and/or financial system;  

c) the head of the internal audit service and the chief accountant - at least three years of experience in the banking, financial system and/or the sphere of audit services, the activities specified in paragraphs 13 and 14 of this Regulation;  

d) the managing director, the heads of the structural divisions responsible for lending, for funding according to the principles of Islamic banking and finance, for managing assets and liabilities, and an Islamic window - at least two years of experience in the banking and/or financial system. The managing director who is not a member of the management board and supervises the activities of the banks structural divisions only in the specialized areas (the issues of cybersecurity and information technologies, provision of security, legal support) must have at least 2 (two) years of experience in the banking and/or financial system and/or at least 3 (three) years in the organizations dealing with the abovementioned issues.  

Work in the audit organization shall not be combined with the positions of the head of the internal audit service and the chief accountant of the bank.  

3) have knowledge in the field of banking legislation of the Kyrgyz Republic in the area of banking risk management and in the sphere where they intend to work.  

At the same time, the deputy chairman/a member of the Board responsible for funding according to the principles of the Islamic banking and finance, the head of an Islamic window and the head of the structural division responsible for funding according to the principles of Islamic banking and finance, must additionally have knowledge in the field of the principles of Islamic banking and finance confirmed by the appropriate certificates or the documents.  

4) not fall under the terms and conditions of Chapter 20 of this Regulation.  

The requirements for the heads of structural divisions and the chief accountant shall be applied to their deputies.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No.2020-П-12/39-1 as of July 8, 2020

145. Candidates for the positions of the chief accountant and the head of the internal audit service, in addition to the requirements specified in paragraph 144 of this Regulation, must:  

1) the chief accountant must know the international accounting and financial reporting standards and have the appropriate certificates or other documents confirming completion of the training course (passed exam/test) and advanced training in the above direction, which were obtained within five years preceding the date of filing an application for approval of the candidacy, in the educational institutions that have an appropriate permit/license from an authorized state body.  

Moreover, the chief accountant of an Islamic bank or a bank with an Islamic window must additionally know the accounting standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and have the appropriate certificates or other documents confirming successful completion of the training course or advanced training in the above direction, which were received within five years preceding the date of filing an application for approval of a candidacy in the educational institutions that have an appropriate permit/license from an authorized state body, as well as the chief accountant must know the Chart of Accounts according to the principles of Islamic finance;  

2) the head of the internal audit service - must know the legislation of the Kyrgyz Republic in the field of audit, the international audit standards, the international standards of the internal audit in the banks and have a certificate of completion of in-depth training in these areas, as well as know and be able to apply the International Financial Reporting Standards, confirmed by the relevant certificates (The bank training center, the association of accountants and auditors and other training centers) acknowledging completion of the training course (passed exam/test) and advanced training in the above areas, which were obtained within five years preceding the date of filing an application for approval of the candidacy, in the educational institutions that have an appropriate permit/license from an authorized state body.  

Moreover, the head of the internal audit service of an Islamic bank or a bank with an Islamic window must additionally have knowledge of the principles of Islamic banking and finance, be familiar with the standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and submit a certificate or document confirming completion of the training course on the principles of Islamic banking and finance.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2020-П-12/39-1 as of July 8, 2020, No. 2022-П-12/12-3 as of March 9, 2022

146. Responsibility for the compliance of the chairman of the Board, his/her deputy (ies), other members of the Board, heads of internal audit, risk management, compliance control services with the requirements set forth by the National Bank in accordance with this Chapter of the Regulation is imposed on the Board of Directors of the bank.   

147. Responsibility for the compliance of the managing directors, heads of structural subdivisions in charge of the banks lending activities, for financing under the principles of Islamic banking and finance, for managing assets and liabilities of a bank, chief accountant, head of the “Islamic window” with the requirements set forth by the National Bank in accordance with this Chapter of the Regulations is imposed on the chairman of the Board  

148. The chairman of the Board, deputy chairman (men) of the Board, other members of the Board and the chief accountant, deputy chief accountant are not entitled to sign the banks payment documents until the procedure for coordinating their candidacies with the National Bank is completed.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018).  

149. During the period of approval by the National Bank of the candidature for the posts with the right of first signature on payment documents, the right of signature may be delegated to a person who has undergone the procedure of approval for the posts of deputy chairman or another member of the Board. If there are no individuals in the bank having passed the approval procedure to delegate the right to sign on payment documents (as agreed with the National Bank), the right to sign on payment documents may be assigned to the individual undergoing the approval process. The decision to approve the delegation of the right to sign on payment documents shall be taken by the Deputy Chairman/member of the Board of the National Bank with responsibility for the banking supervision and licensing. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

Chapter 20. Grounds for Refusal to Approve Candidates  

150. The National Bank shall be obliged to refuse to approve the candidates for the positions specified in paragraph 126 of this Regulation (hereinafter the candidates), in the following cases:  

1) a person is considered not to have or to have lost an excellent business reputation in cases specified in paragraph 119 of this Regulation;  

2) a conviction has been passed against the candidates for committing crimes in the sphere of economy, finance and banking, as well as for official misconduct;  

3) they were previously: the chairman or a member of the Board of Directors, the chairman of the Audit Committee, the chairman of the Management Board, another member of the Management Board, the chief accountant, the head of the internal audit or risk management services of a bank/financial and credit organization that was compulsorily declared bankrupt, and there is evidence that their actions (inaction) resulted in revocation of the license (certificate of registration) of the bank/financial and credit organization;  

4) the candidates do not meet the requirements established for their positions by Chapters 17, 18, 19 of this Regulation, for the Chairman and members of the Board of Directors separately by Part 3 of Article 100 of the Law “On the National Bank of the Kyrgyz Republic, Banks and Banking Activities”, for the Chairman and members of the Management Board separately by Part 7 of Article 104 of the Law “On the National Bank of the Kyrgyz Republic, Banks and Banking Activities.  

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

а) was involved in actions (inaction), as a result of which a license (certificate of registration) was revoked from the bank/financial and credit organization, or the regime of temporary administration was introduced into the bank;  

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

c) committed violations of the legislation of the Kyrgyz Republic;  

6) there are materials of inspections conducted by the regulatory authorities, indicating occurrence of the financial and/or administrative problems in the areas with the candidate being responsible for the activities thereof.  

Meanwhile, the grounds specified in subparagraphs 5 “c” and 6 of this paragraph may not be applied to a candidate for the agreed position, if violation of the legislation of the Kyrgyz Republic committed by a candidate did not result in serious financial losses/loss deficiency, significant risks for the bank/financial and credit organization, was of an unsystematic and short-term nature and was insignificant according to the National Bank.  

The National Bank shall be entitled to refuse to approve the candidates for the positions specified in paragraph 126 of this Regulation (hereinafter the candidates) in the following cases:  

а) there is confirmed information that the previous activity of a candidate was associated with significant losses of the organizations in which he/she held positions;  

b) there is confirmed information that previously a candidate systematically acted risky, unreasonably or in violation of the internal procedures of the organizations;  

c) if, according to the assessment of the National Bank, the candidate was appointed formally, not to perform basic functions (nominal appointment). A nominal appointment within the framework of this Regulation means the appointment of a candidate to a position in the absence of sufficient time for him/her to perform the functions provided for the relevant position; availability of the facts indicating that a candidate has a connection/dependence with third parties, which will not enable him/her to independently and in the interests of the entire bank perform the functions assigned to him/her, failure to perform the functions assigned to a candidate during the period of the approval procedure with the National Bank;  

d) if, according to the assessment of the National Bank, the approval of a candidate may result in a conflict of interests.  

The abovementioned grounds for refusal to approve candidates for the positions specified in paragraph 126 of this Regulation shall be additional criteria for assessment of the candidates qualifications.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2019-П-12/43-2 as of August 21, 2019, No. 2020-П-12/39-1 as of July 8, 2020

151. A candidate cannot be approved for the positions specified in paragraph 126 of this Regulation, if there are facts specified:  

- in subparagraph 2 of paragraph 150 and in subparagraph 2 “b” of paragraph 119 of this Regulation - within 7 (seven) years from the date of removal or cancellation of the criminal record;  

- in subparagraphs 3 and 5 “a” of paragraph 150 and in subparagraph 6 of paragraph 119 of this Regulation - within 7 (seven) years from the date of the decision on the existence of a violation;  

- in subparagraph 4 of paragraph 119 of this Regulation - within 5 (five) years from the date of entry into force of the relevant decision;  

- in subparagraph 5 “b” of paragraph 150 and in subparagraph 5 of paragraph 119 of this Regulation - within 5 (five) years from the date of the decision on the existence of a violation;  

- in subparagraph 5 “c” of paragraph 150 of this Regulation - if information on violation of the legislation of the Kyrgyz Republic by a candidate is contained in the National Banks audit report - 1 (one) year from the date of registration of the audit report. In cases where a candidate is indicated as a responsible person (one of the responsible persons) for admitting a violation of the legislation of the Kyrgyz Republic in an instruction, resolution of the Supervision Committee, resolution of the Board of the National Bank, the term shall be 3 (three) years from the date of the decision on the existence of a violation. If information on violation of the legislation of the Kyrgyz Republic by a candidate is contained in the other official documents of the National Bank, the term shall be 1 (one) year from the date of detecting the fact of violation.  

- in subparagraph 6 of paragraph 150 of this Regulation - 1 (one) year from the moment of detecting the fact of violation, meanwhile if, according to the results of inspections conducted by the regulatory authorities, measures of responsibility were applied to a candidate, the period shall be 3 (three) years from the date of entry into force of the corresponding decision;  

- in subparagraphs 7, 8 of paragraph 119 of this Regulation - within 1 (one) year from the date of detecting the fact of violation.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2020-П-12/39-1 as of July 8, 2020, No. 2021-П-12/38-3 as of July 14, 2021

152. Coordination with the National Bank of the persons referred to in Clause 126 thereof, if they are involved as a suspect/accused in a criminal case, is suspended from the day the National Bank receives information about this.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018).  

153. When providing any inaccurate, incomplete information (information and/or documents) or when deliberately distorting or omitting information by the bank and/or by the individuals/entities indicated in Clause 126 thereof, the National Bank is entitled to refuse to consider the documents and approve it.  

154. The National Bank is entitled to cancel the decision to approve candidates and to demand the removal of candidates if they subsequently identify, after agreeing on the candidacies, the reasons specified in Clauses 150-153 thereof, which took place during the reconciliation period but were not known to the National Bank. The decision to cancel the decision to approve candidates is taken by the body/person which/who made the decision to approve candidates. Cancellation of a decision to approve a candidate results in the consequences envisaged for the refusal to approve a candidate, established by the banking legislation of the Kyrgyz Republic.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018).  

155. The National Bank is entitled to demand the termination of the powers of the bank officials who are involving a bank to the activities that threaten its reliability and stability, as well as upon detection of the facts specified in Clause 150 thereof.  

156. The requirements of the National Bank on removal or termination of the powers of the bank officials provided for in Clauses 154 and 155 thereof may be taken by an official/body of the National Bank who/which made a decision to approve a candidate, or as part of applied enforcement actions in accordance with the banking legislation of the Kyrgyz Republic.  

Chapter 21. Procedure for Approval of Bank Officials   

157. The bank, within three working days from the date of election/appointment of the persons referred to in Clause 126 thereof, shall submit to the National Bank a corresponding written notice of changes in the composition of the officials.  

158. The bank within 10 (ten) business days, and in the case of election/appointment of a non-resident - within 30 (thirty) calendar days from the date of election/appointment of a candidate must submit to the National Bank a request for approval of the candidacy with the following documents attached:  

1) a certified copy/extract from the minutes of the meeting held by the authorized management body that made the decision on election/appointment of a candidate (employment contract);  

2) a certified copy of the order (resolution, instruction) on appointment to the position  

3) the form of a questionnaire provided in Appendix 21, subsequently, when the information contained in this questionnaire is changed, an official resident of the Kyrgyz Republic must notify the National Bank of such changes in writing within 10 (ten) business days, and a non-resident of the Kyrgyz Republic - within 20 (twenty) business days from the moment of changes introduction on paper or in electronic form;  

4) (The paragraph was declared null and void according to the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021). 

5) a list of functional duties, drawn up and certified by the bank accordingly;  

6) a permit to labor or other activities for the foreign citizens in cases where obtaining such a permit is mandatory in accordance with the legislation of the Kyrgyz Republic;  

7) a copy of an employment book (if any);  

8) a copy of the passport specified in the form of a questionnaire provided in Appendix 21 to this Regulation;  

9) the banks application for a candidate, according to Appendix 32 to this Regulation. This requirement shall not be applied to the candidates who are approved for the positions of the chairman and members of the Board of Directors, the chairman and members of the Sharia Council.  

The documents specified in subparagraphs 2 and 5, this paragraph of the Regulation shall not be submitted by the chairmen and members of the Board of Directors, the Sharia Council and the chairman of the Audit Committee and the Risk Management Committee.  

When approving the candidates for the positions of the members of the Board of Directors in the subsidiary banks of the National Bank, the candidates for these positions, if they are the employees of the National Bank, shall be limited to submitting the form of a questionnaire provided in Appendix 21 and must comply with the requirements established by this Regulation. If there are no comments on the submitted documents and the candidate complies with the established requirements, the authorized person of the National Bank shall make a decision on approval, and the responsible structural division of the National Bank shall send a letter to the bank on approval of a candidate within the time frame established by this Regulation.  

In order to ensure the achievement of objectives established by the legislation, as well as to solve specific tasks, the National Bank may decide to approve the candidate for the position of member of the Board in the subsidiary bank, who is qualified and competent in the areas necessary to perform the tasks set and meet the requirements for impeccable business reputation and subparagraphs 1, 3, 4 of paragraph 144 of this Regulation. 

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2020-П-12/39-1 as of July 8, 2020, No. 2021-П-12/47-2 as of August 25, 2021, No. 2022-П-12/12-3 as of March 9, 2022

159. If it is necessary to obtain information about the candidate's previous activities, the National Bank is entitled to request one or more recommendation letters from last three places of work of a candidate. Recommendation letters from members of the Ulema Council of Muslims of Kyrgyzstan, or Spiritual Administration of Muslims of Kyrgyzstan, or members of the Shariah Council of Islamic financial-credit organizations and financial institutions (including foreign financial-credit organizations and financial institutions), members of the Shariah Council of international organizations can be requested from candidates for positions of the Shariah Council. The recommendation letter must contain the surname, name, patronymic, place and address of work, position, telephone, fax, e-mail address of the recommending person, candidates characteristics, the information about when and where the recommending person worked together with candidate, as well as the date of signing the recommendation letter. The authenticity of the recommending persons signature must be certified at his place of work or notarized. This requirement is not necessary if the recommendation letter is submitted on the letterhead of the organization and has a seal of the organization. However, it is not allowed to provide recommendation letters:  

1) from the employees of the National Bank;  

2) from any relatives;  

3) from the heads and employees of the bank applying for the approval of a candidate;  

4) from the affiliated companies officials of the applying bank;  

5) from the persons recognized as involved in implementation of the activities related to unhealthy and unsafe banking practices, and from the persons who received refusal during the last approval procedure for the positions specified in paragraph 126 of this Regulation.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2022-П-12/12-3 as of March 9, 2022

160. (The paragraph was declared null and void according to the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021). 

161. (The paragraph was declared null and void according to the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021). 

162. If necessary, the National Bank may request additional information from a bank, a candidate and/or third parties if it considers that the information provided is not enough to make a decision.  

163. Documents submitted in a foreign language must be translated into the state and/or official languages ​​of the Kyrgyz Republic and certified in the prescribed manner.  

164. The submitted documents are reviewed for completeness, accuracy of filling in the forms and the compliance of the candidates with the established requirements of this Regulation.  

When considering the candidates documents, the National Bank takes into account the previous activities of the candidate, experience in the field of banking and/or financial activities and activities related to the banking and/or financial activities, the availability of specialized education, confirmed by relevant documents.  

The responsible structural subdivision of the National Bank, if there are comments to the documents submitted or the candidates do not meet the requirements for experience (length of service), education and mandatory certificates, is entitled to send a letter for revision or refusal to approve the candidate.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018).  

165. In case of documents non-compliance with the established requirements and when submitting an incomplete package of documents, a letter is sent to the bank about the need for revision and elimination of the comments. The bank shall, no later than twenty calendar days, submit to the National Bank the documents revised taking into account the remarks, in the case of non-residents of the Kyrgyz Republic, no later than thirty calendar days. When submitting the documents that do not meet the requirements of this Regulation, or not in full more than two times or not on time, the candidates documents may not be accepted for consideration by the National Bank.  

166. The decision on approval of a candidate shall be made within 30 (thirty) business days from the date of submitting the documents for approval. If it is necessary to obtain additional information or documents, the National Bank shall be entitled to extend the period for documents consideration by 20 (twenty) business days.  

Decisions on approval of the candidates for the positions of:  

- the chairmen and the members of the board of directors (except for the candidates who are the employees of the National Bank elected to the board of directors of the National Bank subsidiary bank), the Sharia Council, the chairman of the Audit Committee, the Risk Management Committee, the chairman of the management board, the deputy chairman (men) and other members of the management board responsible for lending and/or Islamic finance, the managing director responsible for lending and/or Islamic finance (unless the managing director is supervised by the chairman/deputy chairman/board member responsible for lending activities and/or for funding according to the principles of Islamic banking and finance), the head of the internal audit service, the chief accountant of the bank shall be made by the Supervision Committee of the National Bank;  

- the deputy chairman (men) and other members of the management board, the managing director, the heads of the compliance control and risk management services, the heads of an Islamic window shall be made by the deputy chairman /member of the National Bank of the Kyrgyz Republic Board in charge of banking supervision and licensing;  

- the heads of the structural divisions responsible for funding according to the Islamic principles, assets and liabilities management, lending activities of the bank, the candidates for the positions of the members of the board of directors who are the employees of the National Bank elected to the board of directors of the National Bank subsidiary bank shall be made by the head of the National Bank responsible structural division.  

The decision to approve other officials of the bank shall be made by the Supervision Committee, the deputy chairman/member of the National Bank of the Kyrgyz Republic Board in charge of banking supervision, or the head of the National Bank responsible structural division, depending on the functional duties of the official to be approved.  

The decision on approval of the deputy heads of the structural divisions and the chief accountant shall be made by the same body/official who decides on approval of the heads of the structural divisions and the chief accountant.  

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

167. The National Bank Supervisory Committee, Deputy Chairman/ member of the Board of the National Bank and/or the responsible structural subdivision of the National Bank are entitled to invite candidates for an interview. Employees from other departments of the National Bank may be involved for the interview. The results of the interview are recorded in a minutes that is signed by the representatives of the National Bank and may serve as a basis for refusing to approve the candidate. The devices for audio and video recording can be used with the consent of the candidate when conducting an interview.  

The absence of a candidate at an interview results in suspension of the documents consideration. If a candidate does not present more than twice without good reason (for good reasons: due to illness, being on a business trip, etc.) at an interview, the National Bank may refuse to approve it.  

During the interview, the candidate is asked questions to assess his/her knowledge of banking legislation, banking activities, as well as questions in any other areas affecting the process of coordinating the candidate for the position, including but not limited to the questions about the candidates business reputation, his/her previous activities, business and family ties.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

168. When considering the candidates, information obtained during inspections, as well as the inspections carried out by any government or regulatory authority, is taken into account.  

169. The results of the candidates consideration are communicated by the National Bank to the bank in writing within three working days from the date of the decision-making on the candidates.  

  

SECTION V. PROCEDURE FOR EXTENSION OF THE BANKS ACTIVITY BY ESTABLISHING SEPARATE SUBDIVISIONS  

170. The bank may open separate subdivisions in the form of branches, representative offices, savings and field cash offices, mobile offices, exchange offices, as well as open customer service points with the right to provide consulting services and services for receiving applications for banking services provided by the bank. The Bank may open separate subdivisions subject to fulfillment by the bank of the requirements of the banking legislation of the Kyrgyz Republic and this Regulation. 

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2019-П-12/43-2 as of August 21, 2019

Chapter 22. Peculiarities for Subsidiary Bank Establishment  

171. A subsidiary bank is an independent legal entity. Establishment of a subsidiary bank in the territory of the Kyrgyz Republic is possible only with the written permission of the National Bank and provided that:  

1) the ownership and management structure, the financial capabilities of the parent bank and the subsidiary bank will meet the criteria established by the National Bank;  

2) risk control procedures have been developed in the parent bank, arising from the activities of the subsidiary bank, and the procedures aimed at maintaining the corporate identity of the parent bank and the subsidiary bank;  

3) the establishment or acquisition of a subsidiary bank will not create significant risks to the financial stability of the parent bank;  

4) other requirements established by the National Bank are met.  

172. The foreign banks, which must correspond to one of the following credit ratings may be a foreign parent (parent) bank in relation to a subsidiary bank in the territory of the Kyrgyz Republic:  

- a long-term credit rating of at least category “B”, assigned by the rating agencies “Standard & Poors”, “Moodys Investors Service”, “Fitch-1ВСА” (USA),  

- or equivalent to the above credit rating assigned by the rating agencies: “Capital Intelligence”, “Japan Credit Rating Agency (JCR)”, “Dominion Bond Rating Service (DBRS)”, “Rating & Investment Information (R & i)”.  

173. To obtain an authorization to establish a subsidiary bank in addition to the documents submitted in accordance with Sections II and III of this Regulation, the following shall be submitted:  

1) the decision of the relevant (authorized) applicants body to open (acquire) a subsidiary bank in the territory of the Kyrgyz Republic;  

2) procedures established to control the applicants risks arising from the activities of a subsidiary bank;  

3) analysis of the possible impact of a subsidiary bank on the financial position of the applicant (parent company);  

4) information on the amount of the proposed investment in the subsidiary bank by the applicant and its percentage ratio to the applicants own capital;  

5) written confirmation of the supervisor of the country of origin (registration) of the applicant:  

a) consent to the establishment (acquisition) of a subsidiary bank in the territory of the Kyrgyz Republic or confirmation that such permission is not required under the laws of the country of origin (registration) of the applicant;  

b) that the applicant has the appropriate license issued by the authorized body;  

c) on the supervision of the banking group on a consolidated basis in accordance with the Basel principles;  

d) on readiness to cooperate with the National Bank on a permanent basis and promptly providing information regarding supervision of a subsidiary bank and any events concerning the financial position and reputation of the applicant.  

174. If the shares of a bank operating on the basis of a license of the National Bank are acquired by another legal entity, giving it the status of a subsidiary bank, in addition to the documents specified in Clause 173 thereof, the following shall be submitted:  

1) the proposed changes to the bank charter;  

2) the proposed changes in the management structure of the bank, including the proposed new candidates for the officials;  

3) the proposed new strategy of the bank, including changes in credit policy and other main policies of the bank;  

4) financial forecast, including the estimated balance of the bank;  

5) other plans and proposals for the sale of assets, mergers, expansion, reduction (increase) of assets, reduction (expansion) of the branch network, etc.  

175. To obtain an authorization to establish a subsidiary bank or acquire control in another bank, with the status of a subsidiary bank, a bank, acting under a license of the National Bank, shall fulfill the following requirements:  

1) compliance with the criteria of “adequately capitalized” bank in accordance with the requirements of the National Bank;  

2) fulfillment of all the conditions for establishment of a new bank, as provided for by this Regulation in respect of a subsidiary bank;  

3) compliance of the risk control procedure for the applicant arising from the activities of the subsidiary bank with the requirements established by the National Bank and the standards adopted in the international practice;  

4) no adverse effect on the financial stability of the applicant due to ownership of a subsidiary bank;  

5) acceptability for the National Bank of supervision quality in the country where the subsidiary bank will be located (host country), including supervision on a consolidated basis, as well as prospects for effective cooperation and information sharing with the supervisory authority of the host country - in case of establishing a subsidiary bank outside the Kyrgyz Republic.   

176. Subsidiaries of a bank may carry out banking and/or financial activities, as well as activities related to banking and/or financial activities, on the basis and in the manner determined by the banking legislation of the Kyrgyz Republic.  

177. The following factors may also be taken into account when deciding whether to grant consent for establishment of a subsidiary bank:  

a) existence of a deposit insurance system in the country of origin (registration) or in the host country;  

b) the economic situation in the country of origin (registration) or in the host country.  

178. In assessing the applicants statement and financial situation, the National Bank may rely on the information and opinion of the applicants supervisor in the country of origin (registration).  

179. The National Bank may request additional information necessary to consider an application for the acquisition or establishment of a subsidiary bank.  

Chapter 23. Procedure for Opening a Bank Branch  

180. A branch of a bank is its separate subdivision located outside the location of the bank, not a legal entity, carrying out all or part of banking operations on behalf of the bank, on the basis of the Branch Regulations approved by the bank, and operating within the authority granted to it by the bank.  

The branch is provided with the property of the bank, has a single balance with the bank, as well as the name that fully coincides with the name of the bank, with added word “branch”.  

The branch manager is appointed, in accordance with the banks charter by the authorized management body and acts on the basis of the power of attorney issued in the established manner. The list of operations and other powers of the branch manager shall be specified in the power of attorney.  

181. Information about the branch of a bank must be included in the charter of the bank. At the first general meeting of shareholders, which will take place after the opening / closing of a branch, the bank is obliged to approve the introduction of relevant amendments/additions to the banks charter.  

182. A bank operating on the basis of a corresponding banking license issued by the National Bank may open its branches in the Kyrgyz Republic, provided that:  

1) the bank is not under the special supervision of the National Bank as a result of deterioration in the state of the bank;  

2) the bank has not been unprofitable for the last two years following the results of activities preceding the filing date of an application for opening a branch. For newly established banks, which term of activity since the receipt of the license is less than three years, the current financial year shall be profitable;  

3) the National Bank does not impose restrictions on the expansion of the banks activities, by prohibiting the opening of a branch;  

4) the bank is “adequately capitalized” in accordance with the requirements of the National Bank;  

5) the recommendations and requirements of the National Bank were fulfilled following the results of inspections and current supervision of the banks activities;  

6) the room for the location of the branch and its cash unit complies with the requirements for the technical equipment, provision of security and fire alarms, confirmed by the relevant acts of the authorized state bodies;  

7) the head and chief accountant of the branch comply with the following requirements:  

1) a diploma of higher education;  

2) the presence of work experience in the banks and/or other financial-credit organizations for at least two years in the past ten years.  

183. A bank branch is opened with the prior written consent of the National Bank.  

The following documents are submitted to the National Bank for opening a branch and receiving a letter of consent for state registration:  

1) an application for approval of opening a branch (Appendix 23);  

2) the decision of the authorized management body of the bank on opening of a branch under the banks charter (a copy of the meeting minutes certified by the bank or an extract from the meeting minutes);  

3) Regulation on the branch (in duplicate), which shall include: the name of the branch, fully coinciding with the name of the bank, with added word “branch”, the legal address of the branch, the list of banking operations, the right to exercise thereof has been delegated to the branch, the scale and the nature of the planned operations, the powers and functions of the branch manager, his/her rights and obligations, which shall provide for implementation of the effective control by the parent bank;  

4) information about the head and chief accountant of the branch (Appendix 24), a copy of the employment record, a certificate from the credit bureau;  

5) certified by the bank copy of the power of attorney issued to the head of the branch, indicating the operations and transactions which he/she is authorized for;  

6) assessment of the future activities of the branch, in terms of the impact of the activities of the branch on the achievement of the strategic goals of the bank and the projected profitability of the bank;   

7) an act of an authorized state body on compliance of the premises for placing a branch with the established requirements for technical equipment, certified by the appropriate seal of this state body;  

8) a copy of the lease agreement or a document confirming the banks ownership of the premises where the branch will be located, certified by the bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

184. Within ten working days from the date of receipt of properly executed documents in accordance with Clause 183 of this Regulation, and also in the absence of grounds for refusal, the National Bank sends a letter of consent signed by the deputy chairman/member of the Board to the authorized state body for legal entities registration in charge of banking supervision and licensing, with 2 (two) copies of the Branch Regulations, which is the basis for the state registration of a branch in the manner prescribed by law.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

185. If the bank detects non-compliance with the requirements and conditions specified in Clauses 182 and 183 of this Regulation, the responsible structural subdivision of the National Bank sends a letter to the bank about non-compliance with the established requirements for opening a branch.  

The Bank is entitled to re-apply for approval of opening a branch after the elimination of remarks or revision of documents.  

186. After the state registration of a banks branch in the authorized state body, the bank is obliged to submit to the National Bank a written notice within five working days with attached copy of the certificate of state registration of the branch and a duly certified copy of the Branch Regulation with a note of state registration.  

187. The National Bank shall keep the electronic Register of the banks branches.  

At the end of the calendar year, the register shall be additionally archived in accordance with the established procedure.  

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

188. Within 5 (five) business days from the day the bank submits the documents stipulated in Clause 186 of this Regulation, the responsible structural subdivision of the National Bank:  

1) make an entry in the Register of Bank Branches;  

2) sends a letter on opening of a bank branch and on making an appropriate entry in the Register of Bank Branches, indicating the full name of the head and chief accountant of the branch, assigned BIC:  

a) to the relevant structural units and regional departments and representative offices of the National Bank;  

b) to the commercial banks;  

c) to the Central Treasury of the Ministry of Finance of the Kyrgyz Republic.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

189. A branch of a bank is entitled to begin banking operations from the day it receives a notification from the National Bank about making an entry in the Register of Bank Branches.  

190. When appointing a new manager and/or chief accountant of a branch, the bank must notify the National Bank in writing and provide information about the manager and/or the chief accountant of the branch in a prescribed form (according to Appendix 24) a copy of the employment record, a certificate from the credit bureau , copy of the power of attorney (for the Head of the branch) within ten business days from the date of appointment. The notification shall also provide information on the date and number of the decision of the authorized management body of the bank on dismissal, the reasons for the dismissal (suspension) of the person who previously held the position of the head or chief accountant of the branch.  

The head and chief accountant of the branch shall meet the criteria of impeccable business reputation. 

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2019-П-12/43-2 as of August 21, 2019

191. If the location of a branch is changed and it does not entail its state re-registration, the bank is obliged to notify the National Bank in writing within five working days from the date of receipt of the act of the authorized state body about the compliance of the premises for placing the branch with the technical equipment requirements.  

In addition to the notification specified in this clause of the Regulation, the following documents shall be attached:  

1) the decision of the authorized body, in accordance with the charter of the bank, on change of the branch address (a copy certified by the bank).  

2) a certified copy of the lease agreement or entitling documents to the new premises.  

3) an act of the authorized state body on compliance of the premises for placing the branch with the established requirements for technical equipment, certified by the appropriate seal of this state body.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

192. When a bank provides the documents satisfying the requirements specified in Clause 191 of this Regulation, the National Bank makes an appropriate entry in the Register of Bank Branches and sends a letter to the bank within ten working days to make an entry about the branch in the Register of Bank Branches specifying the new address.  

A branch of a bank is entitled to begin banking operations at a new address from the day it receives a notification from the National Bank about making an entry about a new address of a branch in the Register of Bank Branches provided for by this clause of the Regulation.  

193. In the event of the need for state re-registration of a branch in accordance with the legislation of the Kyrgyz Republic, the bank submits to the National Bank an application for issuing a letter of consent for state re-registration of the banks branch. The following documents shall be attached to the application:  

1) the decision of the authorized body, according to the charter of the bank, to conduct a state re-registration of the branch indicating the relevant reasons/grounds for re-registration (a copy certified by the bank);  

2) the branch regulation in two copies in a new version or as amended and supplemented - in cases of amendments and additions to the provision;  

3) documents provided for by Sub-clauses 1 and 2 of Clause 191 of this Regulation, if the address of the branch location is changed entailing its state re-registration in accordance with the legislation of the Kyrgyz Republic.  

194. Within ten working days from the date of receipt of duly executed documents, the National Bank sends a letter of consent to the authorized state body for registration of the legal entities signed by the deputy chairman/member of the Board of the National Bank responsible for banking supervision and licensing with attached 2 (two) copies of the Branch Regulation, which is the basis for the state re-registration of the branch in the manner prescribed by law.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

195. In case of non-compliance of amendments and additions to the Branch Regulation with the requirements of banking legislation, the National Bank may refuse to issue a letter of consent for state re-registration of a banks branch.  

196. After the state re-registration of a banks branch in the authorized state body, the bank is obliged to submit a written notice to the National Bank within five working days with a bank-certified copy of the certificate on state re-registration of the branch and a copy of the Branch Regulations with a note on state registration.  

197. Within three working days from the day the bank provides the documents specified in Clause 196 of this Regulation, the responsible structural subdivision of the National Bank;  

1) makes an entry in the Register of Bank Branches;  

2) in cases of renaming a branch, changing the address of its location, resulting in state re-registration of a branch, sends a corresponding letter of notification to this effect:  

a) to the relevant structural subdivisions and regional departments and representative offices of the National Bank;  

b) to the commercial banks;  

c) to the Central Treasury of the Ministry of Finance of the Kyrgyz Republic.  

If the location of the banks branch is changed, the branch is entitled to begin banking operations at a new address from the day of receipt of the notification of the National Bank about the entry of a new address of the branch in the Register of Bank Branches.  

197-1. When reorganizing the banks to ensure uninterrupted provision of the banking services to the clients, the existing branches of the reorganized banks may continue their activities during the period of state re-registration of the branches under the new BIC (bank identification code).  

The bank must within 1 (one) business day from the date of completion of the reorganization procedure (state registration of the bank(s) reorganization) send to the National Bank an application for BIC assigning to the branches of the bank(s) that participated in the merger and separation procedure, to the branches of the merged bank, the branches of the separated bank. Based on the results of considering the abovementioned application, the National Bank shall assign a new BIC to the branches within 2 (two) business days and send a notification letter about it:  

a) to the relevant structural divisions, regional departments and representative offices of the National Bank;  

b) to the commercial banks;  

c) to the Central Treasury of the Ministry of Finance of the Kyrgyz Republic.  

The reorganized bank(s) must within 3 (three) business days from the date of completion of the reorganization procedure (state registration of the bank(s) reorganization) submit to the National Bank the documents provided for by this Regulation to obtain consent for the state re-registration of the branches.  

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

198. Within five working days from the date of the decision to close the branch, the bank shall submit to the National Bank:  

1) a notice of the branch closure (Appendix 25);  

2) the decision of the Board of Directors of the bank on the branch closure (a copy certified by the bank, or an extract from the meeting minutes).  

199. No later than five working days from the date of the decision to close the branch, the bank is obliged to notify all customers and inform them about the location of the nearest branch of the bank in which they will be serviced.  

200. Within five working days from the date of state registration of termination of a branch activity in the authorized state body for registration of legal entities, the bank shall notify the National Bank about it in writing. A copy of the decision of the authorized state body for registration of legal entities on state registration of the termination of the branchs activities shall be attached to the notification.  

201. Within three working days from the day the bank submits the documents stipulated in Clause 200 of this Regulation, the responsible structural subdivision of the National Bank:  

1) makes an entry in the Register of Bank Branches;  

2) sends a letter on the branch closure and making the appropriate entry in the Register of Bank Branches:  

a) to the relevant structural subdivisions, regional departments and representative offices of the National Bank on the banks branch closure,  

b) to the commercial banks,  

c) sends a letter to the Central Treasury of the Ministry of Finance of the Kyrgyz Republic.  

202. A bank operating on the basis of a corresponding banking license issued by the National Bank may open its branches abroad only with the permission of the National Bank.  

203. To open a branch abroad, the bank shall fulfill the conditions specified in Sub-clauses 1-5 and 7 of Clause 182 of this Regulation, and submit to the National Bank an application for approving the opening of a branch abroad, documents and information on opening a branch, as provided for in Sub-clauses 2-6 and 8 of Clause 183 thereof, and additional information regarding the supervisory regime in the host country.  

204. An application of the bank to approve the opening of a branch abroad and the attached documents shall be considered by the National Bank within one month from the date of submitting the documents satisfying the requirements in full. According to the results of consideration, the deputy chairman/member of the Board of the National Bank, who oversees banking supervision and licensing, makes a decision on issuing an authorization or refusing to issue an authorization for a banks branch opening in the foreign country.  

205. The National Bank may refuse the bank to open a branch abroad if the bank does not comply with the conditions specified in Clause 182 thereof, fails to submit the documents specified in Clause 203 thereof, and if the National Bank determines that:  

1) sufficient and effective banking supervision, including on a consolidated basis is not provided in the host country;  

2) there is no possibility of effective cooperation with the supervisory authorities of the host country, including the possibility of sharing information.  

206. After registering a banks branch in the authorized state body of a foreign state, the bank is required to submit a written notice to the National Bank within ten working days, with a bank certified document copy of the branch registration and a copy of the Branch Regulation with a note on registration (in two copies).  

207. Subsequently, when changing the head and/or chief accountant of a branch abroad, the address of the location of the branch, as well as making changes and additions to the Branch Regulations and/or changing the list of banking operations performed by the branch, the bank shall notify the National Bank in writing within five working days from the date of adoption by the authorized management body of the bank of the relevant decision.  

In case of non-compliance of the proposed changes in the activities of a banks branch abroad with the banking legislation of the Kyrgyz Republic, the National Bank is entitled to send to the bank a requirement to bring its activities in compliance with the banking legislation of the Kyrgyz Republic.  

Chapter 24. Procedure for Opening a Branch of a Foreign Bank in the Territory of the Kyrgyz Republic   

208. The branches of the foreign banks with a stable financial status, excellent business reputation may be opened in the territory of the Kyrgyz Republic provided that a cooperation agreement was concluded between the supervisory authority of the country where the foreign bank is registered and the National Bank of the Kyrgyz Republic.  

The branches of the foreign banks shall operate on the basis of the relevant license of the National Bank providing the right to conduct the banking operations.  

A branch of a foreign bank shall operate without formation of the Board of Directors and the Management Board. The following officials must be appointed in a branch of a foreign bank: the head of the branch (general manager), two deputies, the heads of the internal audit, risk management, compliance control services, the chief accountant and the heads of the structural divisions responsible for lending/funding according to the Islamic principles, for management of the branchs assets and liabilities.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/22-4 as of April 24, 2019, No. 2020-П-12/39-1 as of July 8, 2020

209. A branch of a foreign bank must have a name that fully coincides with the name of the bank, with added word “branch”.  

210. The foreign banks provide their branches with irrevocable and perpetual funds in the amount that meets the requirements of the banking legislation of the Kyrgyz Republic to the banks capital. The capital of a branch of a foreign bank is the basis for calculating economic standards established by the banking legislation of the Kyrgyz Republic, and is placed in the National Bank, as a deposit in the form and size in accordance with the rules established by the National Bank.  

211. A foreign bank opening a branch in the Kyrgyz Republic shall meet the following requirements:  

1) to operate in the market of the relevant state for at least five years;  

2) comply with the regulations of the central (national) bank / supervisory authority of the state of origin;  

3) to have no restrictions on banking operations;  

4) to comply with one of the following credit ratings:  

a) a long-term credit rating of at least category “B” assigned by the rating agency “Standard & Poors”, “Moodys Investors Service”, “Fitch-IBCA” (USA),  

or equivalent to the above credit rating assigned by the rating agencies: “Capital Intelligence”, “Japan Credit Rating Agency (JCR)”, “Dominion Bond Rating Service (DBRS)”, “Rating & Investment Information (R & I)”.  

Rating information shall be provided to the National Bank annually and within twenty (20) business days for each change.  

A downward change in the rating of a foreign bank assigned by one of the above agencies may be a ground for imposing restrictions on certain banking operations of its branch or revoking an authorization (license).  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

212. To obtain an authorization (license) to open a branch, a foreign bank submits to the National Bank the following original documents or their duly certified copies in the state and/or official languages ​​of the Kyrgyz Republic, legalized in accordance with the legislation of the Kyrgyz Republic:  

1) an application for opening a branch (according to the form of Appendix 26) and information in accordance with the questionnaire according to the form of Appendix 17;   

2) the decision of the authorized management body of the applicant bank to open a branch in the Kyrgyz Republic and a notarized copy of the power of attorney issued to the head of the branch, indicating the operations and transactions which he/she is authorized for;  

3) the constituent documents of the applicant bank;  

4) the license of the applicant bank authorizing to conduct banking operations;  

5) the annual report of the applicant bank (including the consolidated balance sheet, profit and loss statement) for the three previous years, confirmed and certified by an auditing organization with a recognized international reputation;  

6) general information about the bank, its organizational structure, managers (members of the Board of Directors (supervisory body), the Sharia Council, if necessary, members of the Board (executive body)), shareholders (participants) (according to the form of Appendices 5 and 6 - each in two original copies). If the bank is part of a group, information on the group and companies in the group, information on the main activities of the companies in the group, as well as information on their financial position for the last fiscal year must be submitted;   

7) the business plan of the branch for the first three years of activity containing the economic rationale for establishing a branch of the applicant bank;  

8) the Branch Regulation of a bank, including a list of banking operations that the branch is authorized to conduct, and procedures that ensure adequate supervision of the branch by the applicant bank (the head office of a foreign bank);  

9) policies and procedures on combating terrorism financing and money laundering.  

10) lending policy, operational policy and other main policies of the branch of the applicant bank, providing for:  

a) procedures for identifying, assessing, controlling and monitoring all possible risks a bank is exposed to;  

b) control measures to minimize all possible risks on a regular basis;  

c) description of the information systems, risk management systems and internal control systems in accordance with the approved policy;  

11) written confirmation of the banking supervisory authority of the country of origin (registration) that the applicant bank has the appropriate banking license issued by the authorized body and has the right (consent of the banking supervision authority of the country of origin (registration)) to open a branch in the Kyrgyz Republic, with indication of the banking supervisory authority supervising the applicant bank on a consolidated basis;  

12) information (documents) on officials of the branch of the bank, confirming their compliance with the requirements in accordance with Section IV of this Regulation;  

13) a notarized card with the specimen signatures of the authorized officials of the applicant bank, including the heads of the supervisory and executive bodies of the applicant bank.  

The National Bank may require the provision of additional information and documents about the applicant bank.  

213. An application of a foreign bank to open a branch and the attached documents shall be considered by the National Bank within six months from the date on which the documents satisfying the requirements are submitted in full. If the documents do not meet the requirements of the National Bank, the period begins from the day of receipt of the full package of documents that meet the requirements of the National Bank.  

The Board of the National Bank may extend the time limit for considering the application for six months. The decision to extend the time for consideration of an application shall be communicated by the National Bank to the foreign bank in writing within three working days from the date of such a decision.  

214. An application of a foreign bank to open a branch and the attached documents are considered in the manner established for opening a bank in accordance with Section II of this Regulation, taking into account the requirements of this Chapter thereof.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

215. A branch of a foreign bank is obliged to immediately notify the National Bank of any changes related to the conditions for issuing an authorization (corresponding banking license) for opening a branch.  

216. The National Bank determines the list of banking operations that a branch of a foreign bank can perform in the territory of the Kyrgyz Republic in the relevant banking license of a branch of a foreign bank.  

217. A license for a branch of a foreign bank may be refused in the following cases:  

1) if the constituent and other documents do not comply with the requirements of the banking legislation of the Kyrgyz Republic, as well as if incomplete information or invalid documents are provided;  

2) if the parent foreign bank does not comply with the criteria of impeccable business reputation and financial stability established by the National Bank.  

3) if the parent foreign bank does not comply with the requirements of this Regulation applicable to the founders (shareholders) of the banks;  

4) if the funds allocated by the parent bank do not meet the established requirements;  

5) if the persons applying for positions in the branch (officials) do not meet the requirements established by this Regulation;  

6) if the premises and equipment of the branch, the internal control system, technical, information systems and the security system do not meet the established requirements;  

7) if the supervisory regime in the country where a foreign bank is registered does not provide effective banking supervision, including on a consolidated basis, and there is no proper cooperation with it, including the exchange of information.  

218. The National Bank publishes information on issuing a license, the grounds for refusing to issue and revoking a license from a branch of a foreign bank in the official publications and on the official website of the National Bank.  

219. A foreign bank that has an authorization (license) to open one branch in the Kyrgyz Republic, in case it intends to open additional branches, must obtain permission (license) from the National Bank to open each branch in the Kyrgyz Republic separately.  

220. A change in the name of the parent bank (the applicant bank) results in a change in the name of its branch (es) in the territory of the Kyrgyz Republic. When changing the name and address of the head office of a parent bank, the branch notifies the National Bank of it within two working days from the day the parent bank makes the relevant decision.  

Chapter 25. Procedure for Opening a Representative Office of a Bank   

221. A representative office of a bank is its separate subdivision, which is not a legal entity, which represents the banks interests, and also performs transactions or other authorized actions on its behalf, with the exception of banking operations that require obtaining a corresponding banking license from the National Bank.  

The representative office is provided with the property of the bank; it has the same balance with the bank, as well as the name that fully coincides with the firm (official) name of the bank with added word “representative office”.  

222. Information on the banks representative office (name, name of the state and locality in which the representative office is located) must be included in the banks charter. At the next general meeting of shareholders, which took place after opening/closing of the representative office, the bank is obliged to approve the introduction of relevant amendments/additions to the banks charter.  

223. A representative office of a bank in the territory of the Kyrgyz Republic and abroad is opened with the prior authorization of the National Bank.  

224. The following documents are submitted to the National Bank for opening a representative office in the territory of the Kyrgyz Republic and receiving a letter of consent for state registration:  

1) application for approval of opening a representative office (Appendix 27);  

2) the decision of the Board of Directors of the bank to open a representative office (a copy of the meeting minutes certified by the bank or an extract from the minutes of the meeting) and an order appointing the head of the representative office (indicating the full name);  

3) the Representative Office Regulation (two copies) containing information about the purposes for its establishment, the date of discovery, the indication of the types of activity, the address of the location and the name.  

225. Within ten working days from the date of receipt of duly executed documents in accordance with Clause 224 of this Regulation, the National Bank shall send to the authorized state body for registration of legal entities a letter of consent signed by the deputy chairman/member of the Board of the National Bank responsible for banking supervision and licensing, with the attachment of 2 (two) copies of the Representative Office Regulation, which is the basis for the state registration of the representative office in the manner established by law.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

226. After the state registration of the banks representative office in the authorized state body, the bank is obliged to submit a written notification to the National Bank within five working days, enclosing a certificate of state registration of the representative office and a notarized copy of the Representative Office Regulation with a note on state registration.  

227. The National Bank maintains the Register of Banks Representative Offices in electronic form.  

At the end of the calendar year, the register is additionally archived in paper form in the prescribed manner.  

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

228. Within three working days from the day the bank provides the documents specified in Clause 226 of this Regulation, the responsible structural subdivision of the National Bank:  

1) makes an entry in the Representative Offices Register;  

2) sends a letter on opening of a representative office of a bank and on making an appropriate entry in the Banks Representative Offices Register, indicating the full name of the director:  

a) to the relevant structural subdivisions and regional administrations and the representative office of the National Bank;  

b) to the commercial banks.  

229. In the event of the appointment of a new manager or a change in the location of a representative office that does not result in its state re-registration, the bank shall notify the National Bank in writing within five working days from the date of the adoption of the relevant decision, with a copy of the relevant decision of the Board of Directors attached (certified by the bank or an extract from the minutes) and information about the head according to the form of Appendix 27.  

230. If it is necessary to conduct state reregistration of a representative office in accordance with the legislation of the Kyrgyz Republic, the bank submits to the National Bank an application for issuing a letter of consent for the state reregistration of the banks representative office. The following documents shall be attached to the application:  

1) the decision of the Board of Directors to conduct state re-registration of the representative office with an indication of the relevant reasons/grounds for re-registration (bank-certified copy of the meeting minutes or an extract from the meeting minutes);  

2) The Representative Office Regulation in two copies in the new version or as amended and added - in cases of amendments and additions to the Regulation due to renaming of the representative office and/or bank, change of address of the representative office location, entailing its state re-registration, as well as in other cases of making changes and additions to the Regulation (or approving it in a new version).  

231. Within ten working days from the date of receipt of duly executed documents in accordance with Clause 230 of this Regulation, the National Bank shall send a letter of consent to the authorized state body for registration of legal entities signed by the deputy chairman/member of the Board of the National Bank responsible for banking supervision and licensing, with attached 2 (two) copies, which is the basis for the state re-registration of the representative office in the manner established by law.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

232. After the state re-registration of the banks representative office in the authorized state body, the bank is obliged to submit a written notification to the National Bank within five working days with a bank-certified copy of the certificate of state re-registration of the representative office and a notarized copy of the Representative Office Regulation with a note of state registration.  

Closing the banks representative office.   

233. Within five working days from the date of the decision to close the representative office, the bank must submit to the National Bank:  

1) notice of closing the representative office;  

2) the decision of the Board of Directors of the bank to close the representative office (a copy of the meeting minutes certified by the bank or an extract from the meeting minutes).  

234. The bank shall notify the National Bank in writing within five working days from the date of state registration of terminating the activities of the banks representative office in the authorized state body for registration of legal entities. A copy of the decision of the authorized state body on registration of legal entities about state registration of terminating the activities of the representative office shall be attached to the notification.   

235. Within three working days from the day the bank submits the documents stipulated in Clause 234 of this Regulation, the responsible structural subdivision of the National Bank:  

1) makes an entry in the Banks Representative Offices Register;  

2) sends a letter on closing a representative office and making an appropriate entry in the Banks Representative Offices Register:  

a) to the relevant structural subdivisions, regional departments and the representative office of the National Bank on closing the representative office of the bank,   

b) to the commercial banks.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

236. A bank operating on the basis of a corresponding banking license issued by the National Bank may open its representative offices abroad only with an authorization of the National Bank.  

237. To open a representative office abroad, the bank shall submit to the National Bank an application for approval of opening a representative office abroad, documents and information on opening a representative office, provided for in Sub-clauses 2-3 of Clause 224 of this Regulation.  

238. An application of a bank to approve the opening of a representative office abroad and the attached documents shall be considered by the National Bank within one month from the date on which the documents that meet the requirements of the National Bank are provided in full. Following the results of consideration, the deputy chairman/member of the Board of the National Bank, who oversees banking supervision and licensing, decides whether to issue an authorization or to refuse to issue an authorization for a bank to open a representative office in a foreign country.  

239. The National Bank may refuse the bank to open a representative office abroad if the intended activity of the representative office of the bank contradicts the banking legislation of the Kyrgyz Republic.  

240. After registering the representative office of a bank in the authorized state agency of a foreign state, the bank shall submit a written notice to the National Bank within ten working days, with a bank certified copy of the document on the registration of the representative office and a copy of the Representative Office Regulation with a note on registration.  

241. Subsequently, when changing the address of the location of the representative office, changing the head of the representative office, as well as when making changes and additions to the Representative Office Regulation and/or changing the list of transactions (activities), the bank shall notify the National Bank in writing of this within five working days from the day of adoption by the authorized management body of the bank of the relevant decision.  

In case of inconsistency of the changes and/or additions made in the activities of the banks representative office abroad with the banking legislation of the Kyrgyz Republic, the National Bank is entitled to send to the bank a request to cancel the banks changes and/or additions, as well as to request additional information on this issue.  

Chapter 26. Procedure for Opening a Representative Office of a Foreign Bank in the Territory of the Kyrgyz Republic  

242. Information on the banks representative office shall be included in the banks charter. At the first general meeting of shareholders, held after the opening/closing of a representative office, the bank is obliged to approve the introduction of relevant amendments/additions to the banks charter.  

243. A representative office of a foreign bank in the territory of the Kyrgyz Republic is opened with the prior authorization of the National Bank. A representative office of a foreign bank is prohibited to conduct banking operations.  

244. A foreign bank that intends to open a representative office in the Kyrgyz Republic must notify the National Bank of its intention two months before submitting to the National Bank a corresponding application for approving the opening of a representative office and issuing the appropriate authorization.  

245. To open a representative office in the Kyrgyz Republic and receive a letter of consent for its state registration, a foreign bank shall provide the following documents to the National Bank:  

1) an application for approval of opening a representative office (Appendix 28);  

2) notarized copies of the constituent documents of the applicant bank;  

3) the Representative Office Regulation (two copies) containing a list of activities performed by the representative office;  

4) power of attorney for the head of the representative office, indicating his/her authority;  

5) written confirmation of the banking supervisory authorities of the relevant state that the applicant bank has a valid license to conduct banking activities;  

6) notarized cards with specimen signatures of the heads of the applicant bank (chairmen of the supervisory and executive management bodies);  

7) the decision of the authorized management body of the applicant bank to open a representative office in the territory of the Kyrgyz Republic;  

8) the annual report of the applicant bank (including the consolidated balance sheet and profit and loss statement) for the last financial year, certified by an auditing organization;  

9) duly certified copies of the banking licenses of the applicant bank authorizing to conduct banking operations.  

246. Within one month from the date of receipt of duly executed documents in accordance with Clause 245 of this Regulation, the National Bank sends a letter of consent to the authorized state body for registration of legal entities signed by the deputy chairman/member of the Board of the National Bank in charge of banking supervision and licensing , with an attachment of 2 (two) copies of the Representative Office Regulation, which is the basis for the state registration of the representative office in the manner established by law.   

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

247. The National Bank is entitled to refuse to issue an authorization for opening a representative office of a foreign bank for the following reasons:  

1) inconsistency of the submitted documents with the established requirements;  

2) the bank is registered in offshore zones, as well as in the states or territories that provide preferential tax treatment, and (or) not providing for the disclosure and (or) provision of information to banking supervisory authorities;  

3) if there are banks current losses as of the reporting date.  

248. After the state registration of a representative office of a bank in the authorized state body, a bank shall submit a written notice to the National Bank within a period of not more than five working days, with a bank certified copy of the certificate of state registration of the representative office and a notarized copy of the Representative Office Regulation with a note of state registration attached.  

249. Within three working days from the day the bank submits the documents specified in Clause 248 of this Regulation, the responsible structural subdivision of the National Bank:  

1) makes an entry in the Banks Representative Offices Register;  

2) sends a letter on opening of a banks representative office and on making an appropriate entry in the Banks Representative Offices Register, indicating the name of the head:  

a) to the relevant structural subdivisions, regional administrations and the representative office of the National Bank;  

b) to the commercial banks.  

3) publishes information on opening of a representative office of a foreign bank in the territory of the Kyrgyz Republic in the media and on the official website of the National Bank.  

250. A representative office of a bank is entitled to commence activities from the day it receives a notification from the National Bank about making an entry in the Banks Representative Offices Register specified in Sub-clause “b” of Clause 249 of this Regulation.  

251. In case of appointment of a new representative of a representative office or change of location of a representative office that does not result in its state re-registration, the bank shall notify the National Bank in writing within five working days from the date of the adoption of the relevant decision, with a copy of the relevant decision of the authorized management body of the foreign bank and information about the head according to the form of Appendix 28.  

252. In the event of the need for state re-registration of a representative office of a foreign bank in accordance with the legislation of the Kyrgyz Republic, the bank submits to the National Bank an application for the issuance of a letter of consent for state re-registration of the banks representative office. The following documents must be attached to the application:  

1) the decision of the authorized management body of the bank to conduct state re-registration of the representative office with an indication of the relevant reasons/grounds for re-registration (a copy of the decision certified by the bank);  

2) the Representative Office Regulation in two copies in the new edition or as amended and supplemented.  

253. Within one month from the date of receipt of duly executed documents in accordance with Clause 252 of this Regulation, the National Bank sends to the authorized state body in charge of legal entities registration a letter of consent signed by the deputy chairman/member of the Board of the National Bank in charge of banking supervision and licensing, with an attachment of 2 (two) copies of the Representative Office Regulation, which is the basis for the state re-registration of the representative office of a foreign bank in the manner prescribed by law.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

254. After the state re-registration of the representative office of a foreign bank in the authorized state body, the bank is obliged to submit a written notification to the National Bank within five working days with a certified bank copy of the state re-registration of the representative office and a notarized copy of the Representative Office Regulation with a note on the state re-registration attached.  

255. Within five working days from the date of the decision to close the representative office, the bank shall submit to the National Bank:   

1) notice of closing the representative office;  

2) the decision of the authorized body of the foreign bank to close the representative office (a copy of the decision certified by the bank).  

256. The bank shall notify the National Bank in writing within five working days from the date of state registration of terminating the activities of a representative office of a foreign bank in the authorized state body for registration of legal entities. A copy of the decision of the authorized state body on registration of legal entities about state registration of the termination of the activities of the representative office shall be attached to the notification.  

257. Within three working days from the day the bank submits the documents stipulated in Clause 256 of this Regulation, the responsible structural subdivision of the National Bank:  

1) makes an entry in the Banks Representative Offices Register;  

2) sends a letter on closing a representative office and making an appropriate entry in the Banks Representative Offices Register:  

a) to the relevant structural subdivisions, regional administrations and the representative office of the National Bank,   

b) to the commercial banks.  

Chapter 27. Opening of Savings Banks and Banks Field Cash Offices  

258. A bank may open savings and/or field offices in the territory of the Kyrgyz Republic in order to provide banking services.  

Savings bank is a separate subdivision of a bank, subordinated to the head office or branch of a bank, carrying out certain types of banking operations and services, and located in the stationary premises rented or owned by the bank on the right of ownership, equipped according to the established requirements for technical equipment.  

The field cash office is a separate subdivision of a bank, subordinated to the head office or branch of the bank, carrying out certain types of banking operations and services within the threshold amount of working capital established by this Chapter of the Regulation, by leaving the head office /branch for one or more stationary premises rented or owned by the bank on the right of ownership equipped in accordance with the established requirements for technical equipment.  

Suspension and resumption of activities of savings and field cash offices is carried out in accordance with the rules provided for the opening and closing of savings and field cash offices, respectively.  

It is forbidden to place more than one savings bank at the same address.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

259. The National Bank maintains a register of savings banks and field cash offices in electronic form.  

At the end of the calendar year, the register is additionally archived in paper form in the prescribed manner.  

260. Savings banks and field cash offices of the bank are opened and closed on the basis of the decision of the authorized representative in accordance with the charter of the governing body of the bank.  

261. Savings banks/field cash offices are entitled to carry out the operations specified, respectively, in Clauses 262 and 272 of this Regulation, if there are no restrictions on the mentioned operations in the banks license authorizing to conduct banking operations.  

262. The savings bank, if there is a corresponding license from the bank, within the power of attorney issued to it, has the right to perform the following operations:  

1) servicing individuals:   

a) accepting deposits from individuals according to a standard deposit agreement;  

b) receiving payments to the budget and payment for the services provided;  

c) the issuance of pensions and benefits;  

d) purchase and sale of government securities;  

e) carrying out exchange operations with cash foreign currency;  

e) carrying out operations on bank payment cards with the presence of an appropriate peripheral device (terminal, ATM, automated self-service terminal, other device constituting the technical infrastructure for receiving and servicing bank payment cards); g) implementation of remittances for individuals;  

h) receiving payments from the bank customers to repay loans received;  

i) issuance of cash on loans approved at the head office or branches of the bank;  

j) conducting operations with electronic money;  

2) servicing legal entities and individual entrepreneurs without forming a legal entity, without opening an account for the following operations:  

a) accepting payments to the budget of the Kyrgyz Republic in cash;  

b) receiving payment for utilities;  

c) cash management services;  

d) conducting operations with electronic money;  

3) on issuing loans (financing in accordance with the Islamic principles), falling under the criteria of clause 2 of the Procedure for applying a special classification of loans that meet certain criteria, approved by the Resolution of the Board of the National Bank N 5/6 as of March 2, 2006;  

4) provision of consulting services.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

263. The bank shall notify the National Bank in writing of the opening of the savings bank no later than five working days from the date of the decision of the authorized bank management body to open the savings bank and the receipt of the act of the authorized state body on compliance of the savings banks premises with the established requirements for technical equipment.  

For the notification provided for by this clause of the Regulation the following documents shall be submitted to the National Bank and duly certified:  

1) a notice of opening a savings bank (according to the form of Appendix 29) indicating the full name of the head of the savings bank;  

2) the decision of the authorized management body of the bank to open a savings bank (a bank certified copy);  

3) a lease agreement or a document confirming the banks ownership of the premises where the savings bank will be located (a bank certified copy);  

4) an act of an authorized state body on the compliance of the savings banks premises with the established requirements for technical equipment, certified by the signature and seal of this state body.   

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

264. A savings bank is subject to mandatory registration with the National Bank in accordance with this Chapter of the Regulation.  

The responsible structural subdivision of the National Bank shall register the savings bank no later than ten working days from the date of receipt of the documents that meet the requirements specified in Clause 263 of this Regulation.  

To register savings banks, the responsible structural subdivision of the National Bank, when registering, assigns a registration number to the savings bank and sends a letter to the bank about entering information into the Savings Banks Register.  

265. Registration in the National Bank is the basis for the beginning of the activities of the savings bank.  

The savings bank is not entitled to conduct operations until receipt of the letter of registration.  

266. The head of the savings bank is appointed by the order of the chairman of the banks Board and acts on the basis of the power of attorney issued in accordance with the established procedure. The power of attorney must list the operations which the head of the savings bank is authorized for on behalf of the bank.  

The National Bank is entitled to demand from the bank to change the head of the savings bank if:  

1) a conviction was imposed on him/her by a court decision prohibiting him from working in the financial and credit sphere;  

2) he/she was convicted of crimes in the field of economy, finance and banking, as well as official misconduct;  

3) in relation to him/her there are materials of inspections conducted by the regulatory bodies, indicating the occurrence of financial or administrative problems on the sites he/she was responsible for.  

267. The responsible structural subdivision of the National Bank is entitled to refuse the bank to register a savings bank if the submitted documents do not comply with the established requirements and if there are restrictions on the banks operations with respect to the operations specified in Clause 262 of this Regulation.  

268. In the event of a change in the address of the savings bank, the bank shall, within a period not exceeding three working days from the date of the decision of the authorized management body of the bank to change the address of the savings bank and receive an act of the authorized body on the compliance of the savings banks premises with the established requirements for technical equipment, send written notification to the National Bank with attachment of the documents provided for in Clauses 3 and 4 of Clause 263 of this Regulation, and a bank certified copy of the decision of the authorized management body of the bank about changed address of the savings bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

269. The responsible structural subdivision of the National Bank registers the savings bank at the new address no later than ten working days from the date of receipt of the documents satisfying the requirements specified in Clause 268 of this Regulation and sends a letter to the bank about the entry of information into the Savings Banks Register.  

Before receiving a letter of registration of a savings bank at a new address, the savings bank is not entitled to conduct operations at a new address.  

270. In the event of a change in the jurisdiction of the savings bank, the bank shall, within a period not exceeding three working days from the date of making such a decision, send to the National Bank a written notification with an attachment of a bank certified copy of the decision of the authorized management body of the bank to change the jurisdiction of the savings bank. 

The above notifications may be sent by the bank from its official e-mail address to the official e-mail address of the National Bank. At the same time, in case of necessity of verification of information contained in electronic document, the National Bank shall have the right to request them on paper. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2022-П-12/12-3 as of March 9, 2022

271. The responsible structural subdivision of the National Bank, no later than ten working days from the date of receipt of the documents specified in Clause 270 of this Regulation, makes the appropriate changes related to jurisdiction in the Savings Banks Register and sends a corresponding letter on the change of the registration number of the savings bank due to change of jurisdiction to the bank.  

272. The field cash office, if there is a corresponding license from the bank, within the issued power of attorney, is entitled to perform the following operations:  

1) servicing individuals:  

a) receiving payments to the budget and payment for the services provided;  

b) implementation of remittances for individuals;  

c) receiving payments from bank customers to repay loans received;  

d) carrying out exchange operations with foreign currency in cash, if the bank has a corresponding license;  

e) carrying out operations on the bank payment cards with available appropriate peripheral device (terminal, ATM, automated self-service terminal, other device constituting the technical infrastructure for receiving and servicing bank payment cards);  

e) issuance of pensions and benefits;  

g) issuance of funds for loans approved at the head office or branches of the bank within the general limit set in Clause 273 of this Regulation;  

h) conducting operations with electronic money;  

2) servicing legal entities and individual entrepreneurs without forming a legal entity, without opening an account:  

a) accepting payments to the budget of the Kyrgyz Republic in cash;  

b) carrying out exchange operations with cash foreign currency, if the bank has a corresponding license;  

c) operations with electronic money;  

3) provision of consulting services.  

273. In order to minimize the risks related to the activities of the field cash office, the total amount of cash that may be on hand shall not exceed KGS 2,000,000 (two million). The amounts exceeding this threshold level shall be encashed at the cash office of the bank branch/head office of the bank, which the field cash office is assigned, or at a nearby savings bank of the bank, about which a corresponding act is drawn up.  

The requirements for the technical equipment of the field cash offices premises with the cash balance not exceeding KGS 500,000 (five hundred thousand) are not established.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021

274. The Bank within three working days from the date of the decision to open the field cash office, notifies the National Bank in writing with attached duly certified copy of the decision of the authorized management body of the bank. 

The above notifications may be sent by the bank from its official e-mail address to the official e-mail address of the National Bank. At the same time, in case of necessity of verification of information contained in electronic document, the National Bank shall have the right to request them on paper. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2022-П-12/12-3 as of March 9, 2022

275. If the address of the field cash office is changed, the bank is obliged, within a period not exceeding three working days, to notify the National Bank in writing of the change in its address, indicating the new address in it.  

The above notifications may be sent by the bank from its official e-mail address to the official e-mail address of the National Bank. At the same time, in case of necessity of verification of information contained in electronic document, the National Bank shall have the right to request them on paper. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2022-П-12/12-3 as of March 9, 2022

276. The management of the bank is fully responsible for the activities of the savings bank/field cash office it opens.  

277. The bank shall notify the National Bank in writing of closing (termination of activities) the savings bank/field cash office no later than three working days from the date of the decision to close (terminate the activities) with a duly certified copy of the decision of the authorized management body of the bank.  

The Bank is responsible for the accuracy of the information specified in the notification. The National Bank shall be entitled to apply enforcement actions to the bank provided for by the banking legislation of the Kyrgyz Republic for failure to submit a notice or submission of a notice in violation of the established deadlines. The above notifications may be sent by the bank from its official e-mail address to the official e-mail address of the National Bank. At the same time, in case of necessity of verification of information contained in electronic document, the National Bank shall have the right to request them on paper. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2022-П-12/12-3 as of March 9, 2022

278. The National Bank is entitled to inspect the activities of the savings banks and field cash offices when presenting the relevant document confirming the powers of the inspectors. In case of a violation by the savings bank/field cash office the procedure for conducting operations established by the National Bank, the latter notifies the bank management of the violations found and sets a specific period for their elimination. Depending on the type of violation, measures and sanctions can be applied to the bank in accordance with the banking legislation of the Kyrgyz Republic.  

279. The procedure and conditions for carrying out operations of the savings banks and field cash offices shall be specified in the standard regulations of the bank “On the savings bank of the bank” and “On the field cash office of the bank”, respectively, approved by the authorized management body of the bank. The general conditions for conducting operations of the savings banks and field cash offices of the bank are public information and cannot be the subject of commercial or bank secrecy. The working hours of the savings banks/field cash offices, the number of employees and the range of their official duties are established in accordance with the internal regulations approved by the head of the bank.  

280. The savings bank and field cash office shall be equipped with a fireproof metal cabinet for storing money and documents.  

281. When the savings offices and field cash offices conduct exchange operations with foreign currency in cash, these offices must be equipped with the equipment to determine the authenticity of the banknotes (ultraviolet detector lamp, magnifying glass, etc.), a telephone. Exchange operations shall be carried out in accordance with the Regulation “On the Procedure for Conducting Exchange Operations with Foreign Currency in Cash in the Kyrgyz Republic” approved by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/42-1-(НПА) on August 14, 2019.  

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

282. (Became invalid in accordance with the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

283. The following information shall be displayed for the customers in each savings bank and field cash office in a visible place:  

1) the name of the bank, which must be indicated on the signboard and correspond to the name specified in the bank charter. Below the name of the bank, the registration number of the savings bank (Savings bank N_) shall be specified in smaller type;  

2) working hours of the savings bank/field cash office;  

3) information for the customers and the procedure of their service.  

284. The savings bank shall be equipped with a stand (at least 40 x 60 cm in size) containing, at least, information on interest rates on deposits, on the rates of purchase, sale and exchange of foreign cash.  

285. At the end of the working day, all cash from the field cash office, all documentation, seal and other valuables belonging to the bank shall be taken out for delivery to the branch of the bank, which the field cash office is assigned to, or to a nearby savings bank of the bank subject to its compliance with the established requirements on technical equipment, about which a corresponding act is drawn up.  

286. The conditions and procedure for transporting funds necessary for operation of the field cash offices shall be set forth in a banks regulatory act governing the procedure for transporting funds, developed on the basis of the requirements of banking legislation and regulatory legal acts of the National Bank.  

Chapter 27-1. Opening mobile offices 

(Chapter as amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

 

286-1. The Bank may open a separate unit in the form of a mobile office (hereinafter - MO).  

Mobile office is a separate structural unit of the bank subordinate to the head office or branch of the bank, performing certain types of banking operations and services, organized on the basis of a vehicle equipped in accordance with the requirements for technical resistance against burglary. Responsibility for the safety of life and health of cashiers of the MO, the driver of a motor vehicle, security guards and ensuring the safety of the valuables and money available in the MO shall be borne by commercial banks and individuals ensuring the MOs safety.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-2. The Bank shall be entitled to organize the activities of the MO independently. The MO opens (closes) on the basis of the decision of the authorized bank management body according to the charter.  

In order to minimize the risks associated with the implementation of the MOs activity, the total amount of cash that may be in the cash desk of the MO during the business day should not exceed KGS 5,000,000 (five million). Amounts of money exceeding this threshold should be collected at the cash desk of the bank branch/head office of the bank the MO is assigned to, or at the nearby savings bank/bank branch, whereof the relevant act is drawn up.  

The Board of the Bank shall be fully responsible for the MOs activities. (As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019, No. 2020-П-12/39-1 as of July 8, 2020

286-3. If the bank has the appropriate license, the MO has the right to perform the following operations within the power of attorney issued by it:  

1) personal banking:  

a) accepting payments to the budget and payments for the services provided;  

b) money transfers for individuals;  

c) accepting payments from bank customers in repayment of received loans;  

d) conducting exchange operations with cash foreign currency;  

e) carrying out operations on bank payment cards (cashing out) if there is an appropriate peripheral device (terminal, ATM, automated self-service terminal, other device that makes up the technical infrastructure for receiving and servicing bank payment cards) and issuing bank cards;  

f) issuing pensions and benefits;  

g) conducting e-money operations (cashing out, replenishment of an electronic wallet);  

2) corporate and individual entrepreneurs banking without company formation and opening an account:  

a) acceptance of payments to the budget of the Kyrgyz Republic in cash;  

b) conducting exchange operations with cash foreign currency;  

c) conducting operations with electronic money (cashing out, replenishment of an electronic wallet);  

3) the provision of advisory services and services for receiving applications for loans, opening a bank account, issuing a card, opening an electronic wallet.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-4. The Bank must strictly adhere to the list of measures aimed at minimizing operational risk arising from the implementation of the MO operations, as well as the requirements for the behavior of bank employees working in the MO, when the MO is on the way during customer banking, in case of emergency situations (including malfunction of software and hardware, an accident, attempts of unauthorized access to the cashiers premises in a motor vehicle or in the drivers cabin). 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-5. The MO is provided with the equipment necessary for cash transactions (including individual means for storing cash and other valuables, equipment for money recounts, technical means of authenticating banknotes) in accordance with the requirements of regulatory legal acts of the National Bank. The MO has the right to perform cash transactions using software and hardware.  

The MO must have a cashier, driver and security guard.  

A cashier must have at least 1 (one) year work experience in a structural unit of a bank that carries out operational activities.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-6. The Bank shall notify the National Bank in writing of the MO opening no later than 3 (three) business days from the date, on which the decision was made by the authorized management body of the bank to open the MO and receiving an act of the authorized state body on the compliance of the MO with the established requirements for technical resistance against burglary.  

When notifying the National Bank, the following approved and duly certified documents shall be submitted:  

1) notification of the MO opening;  

2) the decision of the authorized management body of the bank on the MO opening (copy certified by the bank) indicating the jurisdiction;  

3) title documents for a motor vehicle or other documents establishing the right of the bank to use it accompanied by a certificate from the authorized body on technical serviceability;  

4) an act of the authorized state body on the compliance of the MO with the established requirements for technical resistance against burglary, certified by the signature and seal of this state body;  

5) an agreement on the provision of escort services for the period of the MOs activities by employees of the authorized state body of the Kyrgyz Republic, security agency or cash collection organization.  

The MO opening date is the date of the notification.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-7. In the event of a temporary suspension of the MOs activities for more than 1 (one) month and/or in connection with emergency situations, the National Bank shall be notified to that extent within two days. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-8. The responsible structural unit of the National Bank has the right to send a notification to the bank in case of non-compliance of the submitted documents and vehicles with the established requirements. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-9. The National Bank has the right to verify the MOs activities of the bank.  

If the bank does not comply with the established requirements for the bank, enforcement actions may be applied in accordance with the banking legislation of the Kyrgyz Republic.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-10. The procedure and conditions for conducting MO operations should be enshrined in the Bank Regulation “On Bank Mobile Offices”, approved by the banks management. The operation mode of the MO, the number of employees and the range of their official duties shall be established in accordance with the internal regulations approved by the banks management. In order to carry out the MOs activities, the cashier shall be issued a power of attorney indicating the list of operations permitted by the bank.  

The Regulation “On Bank Mobile Offices” should indicate:  

a) the MOs activities shall be carried out in accordance with the legislation of the Kyrgyz Republic, including the regulatory legal acts of the National Bank, and internal documents of the bank.  

b) a list of operations, the right to the implementation of which can be delegated to the MO;  

c) the MOs work organization;  

d) the procedure for monitoring operations performed by the MO;  

e) the procedure for the transfer of information and documents on completed transactions to the bank by the MO;  

f) information about the bank official who is entrusted with the responsibility for managing and supervising the MOs activities;  

g) a list of measures aimed at minimizing the operational risk arising from the implementation of the MO operations, ensuring control over the operations carried out by the MO to exclude the possibility of fraud by employees of the MO (the “four eye” principle, online control, etc.), as well requirements for the behavior of bank employees working in the MO when the MO is on the way, during customer banking, in case of emergency situations (including malfunction of software and hardware, an accident, attempt of unauthorized access to the room of a cashier in the vehicle or in the drivers cab). The measures to ensure the safety of the MO must also be approved;  

h) a list of measures to comply with legislative requirements to counter the financing of terrorist activities and the legalization (laundering) of criminal proceeds;  

i) information on the number of employees of the bank working in the MO.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-11. The MO should be equipped with an information stand (at least 40 x 60 cm in size) containing at least information about the name of the bank, banking license number, information on the services provided and the rate (interest, foreign currency purchase and sale rates, etc.). 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-12. Within 3 (three) business days from the date, on which the decision to close the MO was taken, the bank shall send a notification to the National Bank on time enclosing the original (duly certified copy) of the decision to close the MO;  

The MO closing date is the date, on which the bank sends the notification”.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-13. Before departure of the MO to the service location (customers location), the person responsible for the MOs route shall prepare the MOs route agreed with the head of the banks security service, which determines the way from the start to the end point (return route to the branch) and the amount of time for each point. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-14. The manager of the operating cash desk of the bank (branch, internal structural unit) shall issue a route to the cashier of the MO before leaving the MO.  

The cash limit of the MO shall be set by the head office/branch of the bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-15. At the end of the working day, the valuables (money) available in the MO, the documents generated by the MO during customer banking shall be handed over to the appropriate head office, branch, bank savings bank, premises that meet the requirements for technical resistance against burglary in accordance with the banks internal documents. It is forbidden to leave money and other valuables and documents, including those generated during customer banking, overnight in the MO. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

286-16. The route of movement (except for the end points of service) and the time of departure/entry of the MO should be classified as secrecy. The cashier, driver and armed guard are notified of the route on the day of departure. The route should be monitored by the banks security service or by persons who are responsible for ensuring the security of the MO via GPS navigation. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

Chapter 28. Opening of Exchange and Customer Service Offices  

(Title of the chapter as amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

287. The Bank may open exchange and customer service offices in the territory of the Kyrgyz Republic.  

The bank, according to a banking license, having the right to conduct banking operations in foreign currency, can open exchange offices in the territory of the Kyrgyz Republic in order to provide services for exchange operations with foreign currency in cash.  

The banks are entitled to open customer service offices located outside the head office, branches, savings banks that are only entitled to provide consulting services and services to accept applications for banking services provided by the bank and identifying the bank customers subordinate to the head office or branch of the bank.   

The management of the bank is fully responsible for the activities of the exchange and customer service offices opened by it and their compliance with the requirements of the legislation of the Kyrgyz Republic.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

288. The exchange office of the bank is opened on the basis of the order of the bank. The exchange office organizes its activities in accordance with the Regulation “On the procedure for conducting exchange operations with foreign currency in cash in the Kyrgyz Republic”.  

The customer service office is opened on the basis of the decision of the executive body of the bank.  

The bank must necessarily have an internal document regulating the opening and operation of customer service offices.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

289. The Bank within 3 (three) working days from the date of the decision to open the exchange office and/or customer service office, notifies the National Bank in writing with the indication of the address of the exchange office and/or customer service office  

The notification shall be accompanied by an order/decision of the authorized body of the bank to open the exchange office/customer service office.  

The activity of the exchange office/customer service office is terminated on the basis of the decision of the executive body of the bank. The Bank shall notify the National Bank in writing of the termination of the activity of the exchange office/customer service office no later than 3 (three) business days from the date of the decision to close it. The notification must contain the address of the exchange office/customer service office.   

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

290. If the address of the exchange office/customer service office is changed, the bank is obliged, within a period not exceeding 3 (three) business days, to notify the National Bank in writing of the change in address of the exchange office/customer service office, indicating the new address in it.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

291. The National Bank is entitled to inspect the activities of the exchange office/bank customer office office without prior notice upon presentation of the relevant document, which is the basis for inspection.  

If the exchange office violates the procedure for carrying out exchange operations established by the National Bank, the latter notifies the bank management of the violations found and gives a certain period for their elimination, depending on the type of violation, and/or may apply measures and sanctions in accordance with the laws and regulations of the National Bank.   

In case of violation by the customer service office of the requirements established by the National Bank, the latter notifies the bank management of the violations found and may apply measures and sanctions in accordance with the laws and regulations of the National Bank, including the requirements for closing the customer service offices.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

292. Terms and conditions of functioning of exchange offices:  

1) the cash room of the exchange offices located in the bank, trade organization, hotel, airport and other premises shall be isolated from the staff and customers, and the customer servicing shall be done only through the cash window;  

2) in the premises of the bank exchange offices, rented or occupying a separately located building, a room with a separate entrance in the non-residential buildings or an apartment in the residential buildings, there must be metal bars on the windows and entrance metal doors. Customer servicing shall be done only through the cash window;  

3) in the exchange offices it is necessary to have a fireproof metal cabinet for storing money and documents of the exchange office. Own money of the cashiers, outerwear and other items shall be stored in a specially designated room or cabinets located outside the cash room premises;  

4) exchange offices shall be equipped with technical means to determine the authenticity of bank notes (ultraviolet detector lamp, magnifier, etc.), telephone;  

5) when exchanging foreign currency in cash, the exchange offices, regardless of location, must use cash registers with fiscal memory or computers equipped with a fiscal card registered with the tax authorities;  

6) information for the customers and the procedure for servicing them in accordance with Appendices 8 and 9 to the Regulation “On the procedure for issuing licenses authorizing to conduct exchange operations with foreign currency in the Kyrgyz Republic”, approved by a resolution of the Board of the National Bank No. 42/2 as of November 30, 2000, shall be displayed in a visible place.  

292-1. The conditions of operation of the customer service offices.  

The following information shall be displayed the customers in a visible place at each customer service office:   

1) the name of the bank, which must be indicated on the signboard and correspond to the name indicated in the banks charter;  

2) information for the customers and the order of their servicing, with an indication of the list of services that this customer service office can provide.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

293. The working hours, the number of employees, and the range of official duties at the exchange offices are established in accordance with the internal regulations approved by the chairman of the banks Board.  

294. The exchange office shall be equipped with a stand (at least 40 x 60 cm in size) containing at least information on the rates of purchase, sale and exchange of foreign currency in cash.  

The following information shall be displayed in each exchange office, in a place visible to the customers:  

1) the name of the bank, which is obligatory shall be indicated on the signboard and correspond to the name indicated in the charter of the bank. Below the name of the bank, the registration number of the exchange office (Exchange office N_) shall be indicated in smaller type;  

2) working hours of the exchange office;  

3) information for the customers and the order of their servicing.  

SECTION VI. AGREEMENT OF AMENDMENTS AND ADDITIONS TO THE CHARTER  

Chapter 29. General Provisions  

295. Amendments and additions to the banks charter related to changing the name, governing bodies, authorized capital, reorganizing or restructuring the bank, changing the address of the banks location, registering/re-registering the branches and/or the representative offices and other amendments and additions are subject to prior approval by the National Bank.  

Commercial banks shall be obliged to send a corresponding notice to the National Bank on all matters relating to the activities of the bank, which should indicate the date, time and place of the meeting, the agenda of the meeting, and also the materials of the meeting prior to holding annual and extraordinary meetings of shareholders. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

296. The bank is obliged to notify the National Bank of all amendments and additions made to the banks charter 15 (fifteen) working days before the day of making the relevant decision by sending a new version of the charter and the text of the amendments and additions made to the charter in the prescribed form, in accordance with Appendix 30. The National Bank considers the submitted documents within 10 (ten) working days and upon the results of the consideration has the right to send proposals and comments on them in order to bring them in compliance with the legislation of the Kyrgyz Republic.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

297. A bank within one month from the date of the general meeting of shareholders of the bank must submit to the National Bank the minutes of the general meeting of shareholders certified by an independent registrar with the decisions taken by the general meeting of shareholders on each issue of the agenda of the general meeting.  

298. The banks charter, as amended by the amendments and additions, is subject to state registration in accordance with the legislation of the Kyrgyz Republic. The written consent of the National Bank to the amendments and additions to the banks charter, with the exception of changes regarding the size and structure of the banks capital, is issued no later than one month from the date of receipt of the corresponding application with duly executed bank documents and in the absence of grounds for refusal to agree.  

The approval of changes regarding the banks capital is made within 3 (three) months. If it is necessary to obtain additional information or documents that may affect the decision of the National Bank on approval / non-approval of amendments and additions to the banks charter, the period for consideration of documents may be extended by ten business days.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

299. The National Bank is entitled to refuse to approve the proposed changes and additions to the banks charter in the following cases:  

1) in case of non-compliance of the submitted documents with the requirements or submission of false documents and information;  

2) if the decision of the general meeting of shareholders is made in violation of the legislation of the Kyrgyz Republic;  

3) if the size of the authorized capital or equity capital becomes less than the established minimum size;  

4) if the subscription to the shares of the previous issue was not made, their full value was not paid on time or the shares were issued and paid in violation of the legislation of the Kyrgyz Republic, or the legality of the source of funds used to purchase shares was not confirmed;  

5) the absence of an authorization of the National Bank to acquire a threshold participation in the banks capital in accordance with this Regulation;  

6) if it is a threat to the stability and safe operation of the bank.  

300. The new version of the banks charter, as amended and supplemented, becomes effective on the day of the state re-registration of the bank in the manner established by the legislation of the Kyrgyz Republic.  

  

Chapter 30. Introduction of Amendments and Additions to the Charter  

  

301. To approve a new version of the charter, the bank, within one month from the date of the adoption by the general meeting of shareholders of the relevant decision, submits the following documents to the National Bank:  

1) an application for consideration of a new version of the charter;  

2) the minutes or an extract from the minutes of the general meeting of shareholders containing the decision on the adoption (approval) of the new wording of the charter, information about shareholders or their representatives who attended the meeting of shareholders, duly certified by the bank (in two copies);  

3) the text of the amendments and additions made to the charter in the prescribed form in accordance with Appendix 30 (in two original copies);  

4) a new version of the charter (in two original copies);  

5) other documents stipulated by this Section of the Regulation.  

302. The National Bank, within one month, in the event of a change in the structure and size of the authorized capital  within 3 (three) months, considers the submitted application and the attached documents and, if they meet the requirements of this Regulation, and also in the absence of grounds for refusing to approve, sends a letter of consent with the state re-registration of the bank to the authorized state body for registration of legal entities with the attachment of two original copies of the new version of the banks charter, if the authorized capital is increased a copy of a letter shall be sent to the authorized state body for securities market regulation.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

303. The Bank is responsible for providing false information in accordance with the legislation of the Kyrgyz Republic.  

304. Within five working days from the date of receipt of the certificate on state re-registration, the bank shall submit to the National Bank:  

1) duly certified copy of the certificate of state re-registration;  

2) notarized copy of the new version of the charter with a note of the authorized state body for registration of legal entities on state re-registration.  

Chapter 31. Change in the Structure and Amount of the Authorized Capital  

305. By the decision of the general meeting of shareholders, the bank may decide to increase the size of the share capital by increasing the number of shares traded through issuing additional shares.  

The issue and placement by the bank of additional shares before the registration of the results of the issue and placement of the previous issue of shares is not allowed.  

306. By decision of the general meeting of shareholders, the bank may decide to reduce the number of shares traded by consolidating them or increasing the number of shares traded by splitting them.  

307. In the event of a change in the charter regarding the structure and amount of the authorized capital, the bank, in addition to the documents specified in Clause 301 of this Regulation, submits to the National Bank:  

1) the list of shareholders according to the form of Appendices 5 and 6;  

2) a copy of the document issued by the authorized state body for the regulation of the securities market, confirming the state registration of the results of the issue of shares of the previous issue, duly certified by the bank. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021

308. If an increase in the size of the banks authorized capital is approved, the National Bank may require the provision of information in the manner prescribed for newly established banks, as well as require the provision of additional information regarding the financial status of the banks shareholders and their operations, on the provision of constituent documents of shareholders and their financial and other statements.  

309. When amendments and additions to the charter are approved, the shareholders, as well as other individuals and/or legal entities planning to purchase shares of a bank, as a result of which they will have a threshold participation in the banks capital, must submit to the National Bank an application for acquiring the threshold participation in the banks capital and other information as per the requirements and procedures in accordance with Section III of this Regulation.  

310. The submitted documents are reviewed by the National Bank in accordance with Clause 302 of this Regulation.  

311. After the state re-registration of a bank in accordance with the procedure established by law, the bank, in addition to the documents stipulated by Clause 304 of this Regulation, additionally submits a duly certified copy of the document issued by the authorized state body regulating the securities market to confirm the state registration of the shares issue.  

312. The bank is obliged to notify the National Bank in writing of the results of the final registration of the bank securities issue in accordance with the legislation on securities within one month from the date the issue is recognized to be valid and the registration of the results of the securities issue. In addition to the notification the following documents shall be submitted:  

1) duly certified by the bank copy of the document issued by the authorized state body regulating the securities market to confirm the registration of the results of the shares issue;  

2) an extract from the register of shareholders, signed by the registrar, about the changes made, or a new register of shareholders;  

3) a list of shareholders according to the form of Appendix 5;  

4) information according to the form of Appendix 6.  

Chapter 32. Change of the Firm (Official) Name of a Bank   

313. A bank intending to change its firm (official) name is obliged to obtain the prior consent of the National Bank before making the appropriate changes in the name of the bank. When changing the name of the bank, the license authorizing to conduct banking operations is subject to replacement (re-issuance).  

314. To approve the proposed new name of the bank with the National Bank, the bank shall submit to the National Bank:  

1) an application for approval of the proposed full and abbreviated firm (official) name;  

2) a copy of the conclusion of the authorized state body for registration of legal entities on approval and reservation of the declared firm (official) name;  

3) other documents confirming the compliance of the bank with the declared firm name, if necessary, based on the provisions of Clause 7 of this Regulation.  

315. The decision on prior approval/refusal to approve a new firm (official) name of a bank is made by the National Bank Supervisory Committee, within one month from the date of receipt of the relevant documents to the National Bank. The decision to approve/refuse to approve a new firm name of the bank is communicated by the National Bank to the bank within three working days.  

316. In the case of a positive decision of the National Banks Supervisory Committee on the approval of a new corporate (official) name of a bank, and no later than one month after publication of the information on renaming in the media, the bank submits to the National Bank the documents referred to in Clause 301 of this Regulation.  

317. The submitted documents are reviewed at the National Bank in accordance with Clause 302 of this Regulation.  

318. In order to replace (reissue) banking license, the bank, in addition to the documents specified in Clause 304 of this Regulation, shall submit to the National Bank an application to replace the banking license (s) with the new firm (official) name and proof of payment for the license (s).  

319. Within three business days after the bank complies with the requirements of Clause 318 of this Regulation, the National Bank shall replace (reissue) banking license. When replacing (reissuing) a banking license, the bank shall hand over the banking licenses with the old firm name to the National Bank (according to the act of transfer and acceptance).  

320. Within three working days after issuing a license to a bank with a new name, the National Bank makes an appropriate entry about the replacement (re-issuance) of a license in the Register of issued banking licenses.  

321. Within five working days from the date of the replacement of licenses in connection with the renaming of the bank, the bank must inform the mass media of the renaming of the bank indicating the new firm (official) name of the bank.  

Chapter 33. Change of the Banks Location   

322. A change in the location (postal address) of a bank may be accompanied by a change in the name of the settlement, the name of the street, the house number, or the relocation of the bank to a room at another address.  

323. Changing the address of the banks location within one locality does not result in the replacement (re-issuance) of its license.  

324. The bank shall notify the National Bank twenty calendar days prior to the change in its location. If change of location is accompanied by the transfer of a banks cash unit to a new building, additional documents shall be submitted confirming the ownership or lease agreement (sublease) of the building in which the bank will be located.  

325. Within ten working days from the date of providing a notice of a change of location related to the transfer of a cash unit, the bank shall submit the relevant documents of the authorized state bodies on compliance of the building (room) with the requirements for the technical equipment of the bank room and the cash unit, availability of the security and fire alarm system.  

326. Within two business days after the actual change of location (postal address), the bank shall:  

1) notify the National Bank in writing;  

2) publish in the media about the change of the bank location (postal address).  

327. Amendments and additions to the charter due to change of the address of the banks location, resulting in the state re-registration of the bank, is carried out in the manner provided for in Chapter 30 of this Regulation.  

328. When changing the address of the banks location, accompanied with the change of the name of the settlement, the banks license shall be substituted (re-issued) in accordance with Clauses 318-321 of this Regulation.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

328-1. The head office of the bank may be located in several territories. At the same time, additional territories of the head office shall not carry out operational servicing of the banks customers and shall be established only for the purpose of staff accommodation. The information about opening of additional territories of the head office of the bank shall be communicated to the National Bank within 3 (three) working days with attached decision of the authorized body, a list of departments that will be located in the additional territory of the head office and the address of its location.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

SECTION VII. BANKS REORGANZATION   

Chapter 34. General Provisions   

329. A bank may be reorganized in the form of a merger, joining, separation, division of a bank. Only banks and microfinance companies may participate in the process of reorganization of a bank, as well as microfinance companies in the process of accession to the bank. The procedure of reorganization of banks by means of merger of a microfinance company shall be performed in accordance with the procedure established by this Regulation for banks and the legislation of the Kyrgyz Republic. 

When reorganizing the banks with the creation of a new legal entity, the National Bank considers the issue of issuing new banking licenses. At the same time, licenses, on the basis of which the reorganized banks operated, are taken into account.  

Regarding reorganization of the State Development Bank of the Kyrgyz Republic, there are requirements of Article 24 of the Law of the Kyrgyz Republic “On the State Development Bank of the Kyrgyz Republic”.  

This Regulation does not consider the procedure for the forced reorganization of banks. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2021-П-12/47-2 as of August 25, 2021

330. Reorganization of a bank can be started only after preliminary approval with the National Bank. The bank notifies the National Bank of its intention to begin reorganization within ten business days from the date of the adoption of the relevant decision.  

331. Reorganization of the banks is carried out in accordance with the legislation, this Regulation and the constituent documents of banks to be reorganized.  

332. In approving the banks reorganization, the National Bank may require the submission of information necessary for making a decision, either in the manner provided for the newly established banks, or additionally. Consideration of documents during the banks reorganization can be carried out in the manner prescribed for the newly established banks.  

333. To carry out the reorganization process, the Boards of Directors of banks to be reorganized create an organizational group responsible for contacts with the National Bank on reorganization issues.  

334. The reorganization process begins no earlier than two months after the publication of a message on the banks reorganization in the media.  

335. Reregistration of the separate structural subdivisions as the separate structural subdivisions of the reorganized bank is carried out upon notification of the bank, with attached properly certified copy of the relevant decision of the management body of the reorganized bank, without re-submitting the documents for opening these subdivisions, except for the documents necessary for their re-registration.  

336. Accounting in the course of the banks reorganization is carried out in accordance with international accounting standards.  

337. The National Bank publishes the banks reorganization and termination of the banks activities in the media.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2022-П-12/12-3 as of March 9, 2022

Chapter 35. Banks Merger  

338. A merger, as a form of bank reorganization, means the termination of the activities of two or more banks with the transfer of their rights (assets) and obligations (liabilities) in accordance with the deed of transfer to a new bank established as a result of the merger.  

339. Reorganization in the form of merger is carried out on the basis of a voluntary decision of the general meeting of shareholders of banks to be reorganized, as well as forcibly - in cases established by the legislation of the Kyrgyz Republic.  

340. Requirements for the minimum amount of the authorized capital for the banks formed as a result of reorganization in the form of a merger shall be established in the amount corresponding to the requirements of the National Bank to capital for newly established banks.  

341. In order to receive an authorization to conduct reorganization in the form of merger, the banks shall submit the documents to the National Bank in accordance with Chapter 39 of this Regulation.  

Chapter 36. Bank Joining  

342. Merger as one of the forms of reorganization of banks shall be meant the termination of the activities of one or several banks (merged banks) with the transfer of their rights (assets) and liabilities (obligations) in accordance with the transfer act to another bank (merging bank). Upon completion of the reorganization process, the merged banks lose the status of legal entities. Upon merging, the merging bank is not considered a new bank and shall act on the basis of a previously issued license for the right to conduct banking operations.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

343. Reorganization in the form of a merger is carried out on the basis of a voluntary decision of the general meeting of shareholders of the banks to be reorganized, as well as by force, in cases established by the legislation of the Kyrgyz Republic.  

344. In order to receive permission to conduct reorganization in the form of joining, the banks shall submit the documents to the National Bank in accordance with Chapter 39 of this Regulation.  

Chapter 37. Bank Division  

345. For registration of the banks created as a result of the bank division, the documents shall be submitted to the National Bank, subject to the requirements of Chapter 39 of this Regulation.  

346. In addition to the documents specified in Clause 345 of this Regulation, the following documents shall be submitted:  

1) an application for approval of reorganization in the form of a division signed by the chairman of the Board of Directors;  

2) economic rationale for the reorganization in the form of division;  

3) minutes of the general meeting of shareholders of the reorganized bank, containing:  

a) a decision to reorganize in the form of division;  

b) a decision on approval of the separation balance sheet;  

c) the procedure and conditions for reorganization;  

d) the decision to establish new banks and the procedure for converting the shares of the reorganized bank;  

4) separation balance sheet;  

5) documents confirming the notification by the bank of their creditors about reorganization;  

6) the balance sheet of the bank being reorganized as of the date of the decision on separation;  

7) the decision of the general meeting of shareholders of each newly established bank on approval of the Charter and the election of management bodies;  

8) a package of documents in accordance with Section II of this Regulation for each newly created bank.  

347. Based on the results of the review of the submitted documents, the National Bank draws up a conclusion on the possibility of reorganizing the bank, containing information on its financial position, on the types of banking licenses authorizing to conduct banking operations on the basis of which it operates.  

348. Following the consideration of the submitted documents, a record about termination of the reorganized banks activities (indicating the legal successors and form of reorganization) and issuing new licenses authorizing to conduct banking operations is made in the Register of licenses granted to the banks.  

349. One copy of the constituent documents of the bank is kept in the legal file of the bank in the National Bank.  

350. Information on the banks establishment as a result of the bank division and on termination of the activities of the reorganized bank is published by the bank in the media.  

  

  

Chapter 38. Bank Separation  

351. In case of reorganization in the form of a spin-off, the current bank shall not be considered to be a new bank as a result of the reorganization, and shall act on the basis of a previously issued license for the right to conduct banking operations. In order to obtain a license for the right to conduct banking operations by a bank established as a result of reorganization in the form of a spin-off, the documents provided for in Chapter 39 of this Regulation shall be submitted to the National Bank. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

352. In addition to the documents specified in Clause 351 of this Regulation, the following documents shall be submitted:  

1) minutes of the general meeting of shareholders of the reorganized bank, containing the decision:  

a) on reorganization in the form of separation of a new bank from an existing one;  

b) on approval of the separation balance sheet;  

c) on the procedure and conditions for implementation of the separation;  

d) on establishing a new company and the procedure for converting bank shares;  

2) documents confirming the notification by the bank of its creditors about reorganization;  

3) separation balance of the bank;  

4) a comparative table of changes and additions to the constituent documents of the reorganized bank in accordance with the requirements of the legislation and regulatory legal acts of the National Bank and containing information on reorganization of the bank in the form of separation and on the authorized capital of the bank reduced as a result of reorganization;  

5) the list of founders (shareholders), signed by the chairman of the Board of Directors according to the form of Appendices 5 and 6 - each in two original copies.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

353. Based on the results of the review of the submitted documents, an opinion is drawn up on the possibility of reorganizing the bank in the form of separation, on its financial position, on the types of licenses authorizing to conduct banking operations, on the basis of which it operates.  

354. Following the consideration of the submitted documents, the National Bank makes an entry in the Register of issued banking licenses on the bank created as a result of separation (indicating the bank being the source of separation).  

355. A bank created as a result of reorganization in the form of separation, receives one copy of licenses authorizing to conduct banking operations.  

356. Information about a bank established as a result of reorganization in the form of separation is published by the bank in the mass media.  

Chapter 39. Basic Rules and Procedures for Banks Reorganization   

357. To carry out the reorganization process in the form of joining, the Boards of Directors of the banks to be reorganized create an organizational group responsible for contacts with the National Bank on reorganization issues.  

358. In order to obtain an authorization for reorganization, the banks, in addition to the documents required in accordance with this Regulation for each form of reorganization, shall submit to the National Bank an application for such a authorization, a draft reorganization agreement approved by the Board of Directors and the general meeting of shareholders (with reorganization in the form of merger, joining) and the economic rationale of reorganization.  

359. An application for obtaining an authorization of the National Bank to implement the reorganization is signed by the chairmen of the Boards of Directors of the banks to be reorganized.  

360. In the agreement having the status of constituent for a bank, which is established as a result of reorganization, the following issues shall be taken into account:  

a) the procedure and conditions for reorganization;  

b) the procedure for converting shares of the banks to be reorganized;  

c) the rights of owners of all types of shares of the bank to be reorganized;  

d) a list of shareholders of the banks to be reorganized, who are entitled to participate in a joint meeting of shareholders in electronic form and on paper, signed by the chairman of the Board of Directors in the form of Appendices 5 and 6, each in two original copies;  

e) the provision on succession of the bank, established as a result of reorganization, in respect of all obligations to creditors and claims against the debtors of each bank to be reorganized in accordance with the deed of transfer.  

361. The economic rationale for the reorganization shall contain the reasons for encouraging the bank (s) to carry out the reorganization process, and the purpose of the reorganization shall be clearly and precisely stated. In addition, the rationale shall contain a detailed analysis of the financial status of the banks to be reorganized.  

The rationale shall highlight such issues as the role and place of banks in the banking sector, their strengths and weaknesses, the main activities of the new bank, the proposed financial operations. In addition, the following shall be submitted:  

a) balance sheets of the banks on the first day of the current month;  

b) financial statements of the banks for the last reporting year with an audit report;  

c) an approximate scheme of the organizational structure of the new bank;  

d) approximate structure of assets, liabilities and capital of a new bank (banks);  

e) information on the possibility of fulfilling the claims of creditors against the company regarding the early termination or fulfillment of the relevant obligations and the satisfaction of their claims”;  

f) information on the claims of creditors to the company on the early termination or performance of the relevant obligations and the satisfaction of their claims;  

g) the business plan of each new bank for the next two years, - two original copies, drawn up taking into account the requirements of Article 88 of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity” (a list of issues is given in Appendix 7).  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

362. Within three months from the date of receipt of the application and documents listed in Clause 358 of this Regulation, the National Bank, taking into account the requirements of Clauses 359-361 of this Regulation, considers and decides whether to grant an authorization for reorganization or reject an application for reorganization, indicating the reasons for rejection.  

The decision to issue an authorization for reorganization or to reject an application for reorganization of the banks is made by the Board of the National Bank.  

363. The National Bank may reject an application for reorganization of the banks for the following reasons:  

a) the anticipated reorganization of the banks may contribute to the emergence of a monopoly position in the banking market from the side of a new bank (s) or a threat may arise to the interests of the consumers of financial services;  

b) the financial position of the new bank (banks) will expose a significant threat to the interests of the bank depositors subject to reorganization;  

c) unreliable information was revealed in the documents submitted to the National Bank for obtaining an authorization for reorganization;  

d) the financial and economic rationale of the reorganization is not sufficiently convincing;  

e) a bank (banks) established in the process of reorganization does not fulfill the requirements necessary to obtain a license authorizing to conduct banking operations;  

364. Upon the expiration of the term for consideration of the documents specified in Clause 362 of this Regulation, the National Bank shall notify the organizational group of the decision taken within three days.  

365. General meetings of shareholders of the banks to be reorganized are held in accordance with the law and their constituent documents. The minutes of the general meeting of shareholders of each bank shall include at least the following issues:  

a) on making a decision on reorganization in the form approved by the National Bank and approval of a reorganization agreement;  

b) on approval of the draft Charter of the bank (banks) created as a result of the reorganization;  

c) on approval of the draft act (acts) of transfer;  

d) on approval of the draft regulations and on the procedure for voting at a joint meeting of shareholders of the banks (in case of reorganization in the form of merger, joining) to be reorganized.  

366. The draft reorganization agreement is considered approved if the shareholders, who own at least 2/3 of the voting shares of each bank that participate in the reorganization process, voted for its adoption.  

367. Within one month from the date of the decision of the general meeting of shareholders of each bank on the reorganization, the banks notify in writing all their creditors about this decision.  

368. In case of approval of the draft agreement on reorganization by the general meeting of shareholders of each bank participating in the reorganization process, a joint meeting of shareholders of banks is held. This meeting is held no earlier than in two months after the publication in two newspapers of republican significance of a message on reorganization of the banks in the state and official languages. The meeting is held in accordance with the legislation and approved by the joint general rules of its conduct.   

The minutes of the joint meeting shall include at least the following issues:  

a) on approval of the rules for holding a joint meeting of banks to be reorganized;  

b) on approval of the Charter of the bank (banks) established as a result of reorganization;  

c) on election of the Board of Directors of a bank (banks) established as a result of reorganization;  

d) on election of the executive bodies of the bank (banks) established as a result of the reorganization;  

e) on the voting procedure of shareholders of banks subject to reorganization;   

f) on making a decision on issuing/converting shares and approving documents required for considering the issue of registering a share issue, approving a consolidated or separation balance sheet of a bank (banks) established as a result of reorganization.  

369. The organizational group authorized by the joint meeting of the banks shareholders shall forward to the National Bank the documents provided for by this Regulation and other regulatory acts within 1 (one) month from the date of the joint meeting. In addition to the abovementioned documents, the following documents shall also be submitted:  

a) an agreement on reorganization approved by the general meetings of the shareholders of the banks subject to reorganization;  

b) the minutes of the general meetings of the shareholders of the banks subject to reorganization, where the agreement on reorganization and the transfer deed were approved;  

c) the transfer deeds of the banks subject to reorganization;  

d) the balance sheets of the banks as of the date of the decision made on reorganization;  

e) information on ensuring uninterrupted provision of the banking services to the clients by the reorganized bank, including in terms of operation of the bank payment cards.  

In case of failure to submit the abovementioned documents within the established time frame, the decision of the National Bank to issue a permit for reorganization shall become invalid.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2020-П-12/39-1 as of July 8, 2020

370. The decision to issue a consent for state re-registration of the bank reorganization in the authorized state body for registration of the legal entities shall be made by the deputy chairman/member of the National Bank of the Kyrgyz Republic Board in charge of banking supervision and licensing issues within twenty-five calendar days from the date of submitting the full package of documents listed in paragraph 369 of this Regulation and meeting the requirements of the legislation of the Kyrgyz Republic. The National Bank shall be entitled to suspend consideration of issuing consent for state re-registration in the authorized state body for registration of the legal entities if it is necessary to conduct an inspection of the reorganized banks on compliance with the requirements of the banking legislation of the Kyrgyz Republic and the reliability of information provided by the banks.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2020-П-12/39-1 as of July 8, 2020

371. The process of banks reorganization is considered complete from the moment of state registration of the bank (banks) in accordance with the established legislative procedure. 

372. Within 3 (three) business days from the date of the state registration of the new bank (banks) with the authorized state body for registration of legal entities, the banks participating in the reorganization process (merger, split-up), shall surrender licenses to conduct banking operations to the National Bank in exchange for a license issued to new banks, and in the reorganization in the form of spin-offs, a license is issued only to a new bank. When issuing a new license, the licenses are taken into account (including the established restrictions), on the basis of which the reorganized banks (bank) operated. 

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

373. Within three working days from the date of receipt of the notification of the state registration of a new bank (banks), the National Bank shall make an entry in the Register of licenses issued to banks about issuing a license to this bank, indicating the assignee and form of reorganization, as well as an entry of license revocation from banks (bank) involved in the reorganization process.  

374. Within three working days from the date of making an entry on issuing a license to a new bank (banks) in the Register of issued banking licenses, the correspondent accounts in the National Bank held by the banks that participated in the reorganization process are closed and, a correspondent account is simultaneously opened for the new bank (banks), the balances are transferred to this account from the closed one. The settlement documents of the banks that participated in the reorganization process unpaid on this date are transferred to the new bank.  

375. The deposited required reserves of the banks that participated in the reorganization process are reissued to a new bank (banks).   

376. All legal proceedings instituted against the banks that participated in the reorganization process continue with the participation of the new bank (s).  

377. A bank established in the course of reorganization, within seven working days from the moment of opening a correspondent account in the National Bank, informs all its creditors of the new bank details.  

378. A bank established during the reorganization process, within seven working days from the moment of state registration in the authorized state body for registration of legal entities, publishes in the media a message in the state and official languages ​​the information about the reorganization and the results of this process: termination of banks (bank), which participated in the reorganization process and the beginning of the activity of the new bank (banks).  

379. A bank established as a result of reorganization shall fulfill all economic standards and other requirements established by the National Bank.  

380. When reorganizing the banks, it is not allowed to exchange ordinary and preference shares convertible into the ordinary shares according to the banks issue for other property or property rights.  

Chapter 40. Procedure for Conversion of Shares and Registration of Shares Issue in the Course of Banks Reorganization in the Form of Merger or Joining  

381. Conversion (exchange) of shares is carried out in the manner established by the Law of the Kyrgyz Republic “On Joint-Stock Companies”.  

382. The reorganized bank is obliged to register the issue of shares with the authorized state body for the securities market.  

383. Documents for registration of the first issue of shares of a reorganized bank are prepared in accordance with the requirements of the legislation of the Kyrgyz Republic.  

384. Conversion of shares of the banks participating in the reorganization process into the shares of a reorganized bank shall be deemed completed from the moment of state registration in the authorized state body for regulation of the securities market, the results of share issuance.  

SECTION VIII. ESTABLISHMENT OF A “TRANSITIONAL” BANK WITHIN THE FRAMEWORK OF BANK RESTRUCTURING   

Chapter 41. Establishment of “Transitional” Bank within the Framework of the Bank Restructuring   

385. In order to preserve the assets of the restructured bank and preserve management of the bank, the temporary administrator can transfer the assets and liabilities of the restructured bank to the “transitional” bank, which will receive a license from the National Bank. Such a transfer does not require the consent of the restructured bank or any of its general bodies, its creditors or shareholders.  

386. The founder of a “transitional” bank is a temporary administrator without the right to receive dividends and other personal benefits, with the exception of payments in accordance with the legislation of the Kyrgyz Republic.  

387. “Transitional” bank, as a legal entity, is not the successor of a restructured bank and is not responsible for any of its obligations, except for those obligations that were transferred to it in accordance with the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity”. Assets and liabilities that are not transferred by the temporary administrator to the “transitional” bank remain with the restructured bank.  

388. In the case of the establishment of a “transitional” bank, within twelve months, the requirements of the National Bank for the formation of authorized capital established for newly established banks are not applied to it, and the requirements for fulfillment of the prudential standards calculated on the basis of the banks capital are not applied.  

Chapter 42. Procedure for Provision and Consideration of Documents for Obtaining an Authorization to Establish a “Transitional” Bank  

389. After the temporary administrator has taken a decision on establishment of a “transitional” bank, an authorized person shall be selected to contact the National Bank for the consideration of documents in order to prepare the necessary documents for obtaining a license authorizing to conduct banking operations.  

390. In order to obtain the consent of the National Bank for establishment of a “transitional” bank as part of the bank restructuring procedure, an authorized person shall submit to the National Bank the following original documents or duly certified copies thereof in the state and/or official languages:  

1) an application for issuing an authorization for establishment of a “transitional” bank signed by the temporary administrator according to the form of Appendix 1;  

2) a decision of the temporary administrator - two notarized copies, containing the solutions:  

a) on the bank establishment;  

b) on approval of its firm (official) name;  

c) on election of the members of the Board of Directors and its chairman;  

d) on appointment of the members of the Board, the chairman of the Board and his/her deputy (ies), approval of the chief accountant;  

e) on approval of the charter;  

e) on approval of the business plan, organizational structure of the bank, forecasted balance sheet and plan of income, expenses and profits for the first three years of activity;  

g) on ​​approval of the separation balance sheet of the restructured bank and a “transitional” bank;  

3) a detailed plan of measures for the establishment of a “transitional” bank;  

4) the separation balance sheet of the restructured bank and a “transitional” bank, approved by the temporary administrator;  

5) the conclusion of an independent audit organization confirming the accuracy of the information contained in the separation balance sheet;  

6) the banks charter in two copies (the standard form is given in Appendix 3), which, in addition to the information stipulated by the legislation, shall contain:  

a) the date and number of the decision of the temporary administrator on approval of the charter;  

b) full and abbreviated firm (official) name in the state and official languages, corresponding to the requirements established by the banking legislation;  

c) data on the organizational and legal form and form of ownership of the bank;  

d) regulations on the management bodies of the bank;  

e) the procedure for making decisions by the banks management bodies, including a list of issues on which a qualified majority of shareholders votes are required;  

f) the legal address (location) of the bank and its separate structural subdivisions;  

7) a copy of the conclusion of the authorized state body for registration of legal entities on the approval and reservation of the declared company name;  

8) detailed organizational structure of the bank;  

9) a business plan - two original copies, drawn up with the requirements of Article 88 of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity” (a list of issues is given in Appendix 7);  

10) policies and procedures on countering the financing of terrorist activities and money laundering;  

11) credit, operational policies, and other basic policies of the bank, approved by the temporary administrator of the bank, and providing for:  

a) procedures for the identification, assessment, control and monitoring of all possible risks to which the bank is exposed;  

b) control measures to minimize all possible risks on a regular basis;  

c) a description of information systems, risk management systems and internal control systems in accordance with the approved policy;  

12) a list of members of the Board of Directors, indicating the presiding person and his/her deputy (s), and information/documents in accordance with Section IV of this Regulation;  

13) a list of members of the Committees, indicating the presiding person and his deputy, and information/ documents on the chairman in accordance with Section IV of this Regulation;  

14) information (documents) on candidates for the positions of the chairman of the Board, deputy chairman (men) of the Board and other members of the t Board, managing director (if any), chief accountant in accordance with Section IV of this Regulation.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)   

391. An application for issuing an authorization for the establishment of a bank and the documents attached to it are considered by the National Bank within a period not exceeding twenty working days from the date of receipt of an application. Following the review of the submitted documents, the Board of the National Bank may authorize the registration of the “transitional” bank with the authorized body for the state registration of legal entities.  

In case of non-compliance of the submitted documents specified in Clause 390 of this Regulation with the requirements of the legislation of the Kyrgyz Republic, the National Bank is entitled to refuse to issue an authorization.  

392. When considering an application for issuing an authorization for the establishment of a “transitional” bank, the National Bank collects, analyzes and verifies the accuracy of the information provided. Identifying any inaccurate information or hiding information is regarded as the grounds for rejecting an application and refusing to issue an authorization for the establishment of a “transitional” bank.  

393. With a positive decision by the Board of the National Bank on the issue of an authorization for the establishment of a “transitional” bank with the attachment of two copies of the banks charter, within three working days from the date of the decision the National Bank shall send:   

1) to the authorized state body for registration of legal entities - a letter on issuing an authorization for registration of a “transitional” bank for the state registration of a bank in accordance with the requirements of the law;  

2) addressed to the authorized person responsible for establishment of the “transitional” bank - a letter indicating the number of the savings account opened with the National Bank to form the authorized capital;  

3) to the authorized state body for regulation of the securities market - a letter on issuing an authorization to establish a bank and approving the amount of the authorized capital specified in the banks charter in accordance with the legislation of the Kyrgyz Republic for the state registration of the issue (emission) of bank shares established by the bank restructuring method.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

Chapter 43. Issue of Banking Licenses to a Bank Established by the Bank Restructuring Method  

394. To obtain the licenses authorizing to conduct banking operations in the national and/or foreign currencies, the following documents shall be submitted by an authorized person to the National Bank:  

1) an application for a license signed by the temporary administrator;  

2) duly certified copy of the certificate of the authorized state body on the state registration of the legal entity;  

3) duly certified copy of the decision of the authorized state body on registration of the banks share issue;  

4) a certified (by the bank) copy of the charter of the bank with stamps of the authorized state body that carries out state registration of legal entities;  

5) a document confirming the payment of the declared authorized capital of the bank in full;  

6) a duly certified copy of the lease agreement or a document certifying the ownership of the building in which the bank will be located, and a confirmation of the building (bank premises) compliance:  

a) the established requirements for technical equipment (including equipment for the cash unit, storage room and other premises), confirmed by the relevant document of the authorized state body;  

b) fire safety requirements;  

7) documents confirming the presence in the bank of the equipment and technical equipment necessary for carrying out banking operations, including a conclusion confirming successful testing of information systems for banking activities;  

8) a document confirming payment for a license in the amount established by law.  

395. Licenses for the right to conduct banking operations are issued to the applicant within seventy-two hours from the time of applying to the National Bank, only upon submitting the full and duly executed documents specified in Clause 394 of this Regulation.   

396. Within one month, from the moment a “transitional” bank receives a license to conduct banking operations, the bank shall submit the documents on officials of the “transitional” bank to the National Bank in order to undergo the procedure for approval with the National Bank in accordance with Section IV of this Regulation with the exception of the officials, previously approved by the National Bank.  

397. In the event that a bank fails to comply with the requirements of Clause 396 of this Regulation in a timely manner, the National Bank may apply to the bank the enforcement actions and sanctions established by banking legislation.  

  

Chapter 44. Procedure for Provision and Consideration of Documents for Re-registration of Branches of a Restructured Bank, as Branches of a “Transitional” Bank  

398. The temporary administrator is entitled to re-register existing branches of a restructured bank as branches of a “transitional” bank.  

399. The restructuring of branches of a restructured bank as branches of a “transitional” bank is carried out with an authorization of the deputy chairman of the National Bank/member of the Board of the National Bank, who oversees banking supervision and licensing.  

400. The temporary administrator, simultaneously with the filing of an application for issuing an authorization to obtain a banking license, has the right to submit to the National Bank an application for re-registration of the branches of a restructured bank as the branches of a “transitional bank”, with a list of branches to be re-registered. The list of branches shall contain the location, information about the managers and chief accountants of the branches.  

401. The National Bank, after considering an application of the temporary administrator for the re-registration of the branches of the restructured bank, as the branches of a “transitional” bank and attached documents, as well as in the absence of comments, may simultaneously with an authorization to establish a “transitional” bank, issue an authorization for re-registration of the bank branches.  

402. An authorization of the National Bank to re-register the branches of a restructured bank as the branches of a “transitional” bank may be issued within twenty working days from the receipt of an application, but not earlier than an authorization of the National Bank to establish a “transitional” bank.  

403. Registration of the re-arranged branches of the bank is carried out in accordance with Clause 186 of this Regulation.  

404. Changes to the location, managers and chief accountants of the branches are considered in accordance with Chapter 23 of this Regulation,  

SECTION IX. RE-REGISTRATION OF THE MICROFINANCE COMPANY (MFC) TO THE COMMERCIAL BANK. REORGANIZATION OF A TRADITIONAL BANK INTO AN ISLAMIC BANK  

Chapter 45. Requirements for the MFC Being Re-registered as a Bank. Procedure for Providing MFC Documents to Obtain Banking Licenses  

405. MFCs intending to be re-registered as a bank shall:  

1) have the organizational and legal form of the joint-stock company;  

2) have, on the date of filing an application for re-registration as a bank, the authorized capital (previously formed and additionally contributed capital) in the amount established by the National Bank for newly established banks;  

3) operate as a microfinance organization for at least ten years and carry out operations to attract deposits on the basis of a license within the past five years. The requirement of this sub-clause shall not apply to IFCs that have previously been re-registered to IFC from the bank;  

4) have no enforcement actions and sanctions applied by the National Bank during the last two years;  

5) fulfill, on the date of filing an application for re-registration to a bank, all prudential standards and other requirements established by the National Bank for existing banks;  

6) have the opinion of an independent auditing company, confirming the accuracy of the financial statements of the MFC on the date of the filing an application for issuing an authorization to establish a bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019

406. After the MFC shareholders have decided to re-register it as a bank, it can create an organizational group to prepare the necessary documents in order to obtain a license to conduct banking operations and determine the authorized person to contact the National Bank regarding the consideration of documents.  

407. To obtain advice and familiarize with the procedures for submitting and considering an application and the licensing procedure, an authorized person may apply to the National Bank before submitting an application for the re-registration of the MFC as a bank.  

408. In order to obtain an authorization to establish a bank, MFC shall provide the National Bank with original documents or duly certified copies in the state and/or official languages ​​in accordance with Clauses 29-32 of this Regulation.  

409. MFC, simultaneously with the filing of an application for issuing an authorization to establish a bank, has the right to submit to the National Bank an application for obtaining an authorization of the National Bank to re-register existing branches of the MFC as the branches of the bank, with attached documents in accordance with Clause 183 of this Regulation.  

410. When issuing a banking license to the MFC, the National Bank, in order to prevent the risks inherent in banking activities, may establish restrictions on certain types of banking operations.  

Chapter 46. Procedure for Considering MFC Application to Issue an Authorization to Establish a Bank  

411. MFCs application for issuing an authorization to establish a bank is considered by the National Bank within a period not exceeding six months from the receipt of an application and all documents that meet the requirements of the National Bank and necessary for issuing an authorization.  

412. The period for consideration of an application for issuing a license to the MFC is six months.  

The decision to extend the time for consideration of the application is communicated by the National Bank to the MFC in writing within three working days from the date of such a decision.  

413. (The paragraph was declared null and void according to the Resolution of the National Bank of the Kyrgyz Republic Board No. 2019-П-12/43-2 as of August 21, 2019). 

414. After receiving an application, the National Bank carries out a comprehensive audit of the MFC activities as of the date of filing an application, the tasks of which also include confirming the presence of authorized capital in the amount that meets the requirement for the minimum authorized capital established by the National Bank for newly established banks, and verifying sources of funds allocated by the MFC to form the authorized capital of the bank.  

415. After reviewing the documents submitted in accordance with Clause 408 of this Regulation, and also taking into account the results of a comprehensive audit of the MFC activities, provided for in Clause 414 of this Regulation, the National Bank may authorize the MFC to establish a bank. The decision to issue an authorization for the bank establishment is taken by the Board of the National Bank during the period specified in Clauses 411 and 412 of this Regulation.  

Simultaneously with an authorization to establish a bank, the National Bank, following the results of consideration of the MFC application and the documents attached thereto regarding the receipt of an authorization of the National Bank to re-register the existing branches of the MFC as the branches of the bank, may issue an authorization to re-register the existing branches of the MFC as the branches of the bank to pass the re-registration procedure in the bodies for legal entities registration, provided that there are no any remarks.   

416. Further consideration of an application and documents of the MFC submitted for obtaining an authorization to establish a bank is carried out similarly to the procedure provided for in Clauses 46-49 of this Regulation.  

417. When a positive decision is taken by the Board of the National Bank on the issue of issuing an authorization for the bank establishment, within three working days from the date of the decision, the following shall be sent:  

1) to the authorized state body for registration of legal entities - a letter on issuing an authorization for the establishment of a bank to carry out state re-registration of the MFC as the bank in accordance with the requirements of the law. Two copies of the banks charter shall be attached to the letter of authorization to establish a bank.  

If simultaneously with the MFCs authorization to establish a bank, an authorization is issued to re-register existing branches of the MFC as the branches of the bank, the National Bank sends a letter of consent signed by the deputy chairman/member of the Board of the National Bank responsible for banking supervision and licensing to the bodies of legal entities registration;   

2) to the authorized state body for regulation of the securities market - a copy of the letter on issuing an authorization for reorganization of a MFC into a bank and approval of the amount of the authorized capital specified in the constituent agreement and the charter of the bank for the state re-registration of the issue of bank shares.  

418. Within five working days from the date of the state re-registration at the authorized state body for registration of legal entities, the bank shall submit to the National Bank a letter signed by an authorized person or the chairman of the board of directors or the chairman of the banks management with attached:  

1) duly certified copy of the certificate of the authorized state body on state re-registration of a legal entity (including branches);   

2) notarized copy of the decision of the authorized state body to re-register the issue of shares of the bank;  

3) notarized copy of the charter of the bank with stamps of the authorized state body for registration of legal entities.  

4) the register of shareholders of the bank, duly certified, with an electronic form attached. Subsequently, in case of any changes in the composition of shareholders, within five working days from the date of the amendment of the register of shareholders, the register of the banks shareholders is submitted to the National Bank with changes on paper and in electronic form.  

419. Being re-registered as a bank, the MFC (including branches and representative offices) may continue their activities as an MFC until the moment of receipt of banking licenses.  

Chapter 47. Procedure for Reorganization of a Traditional Bank into an Islamic Bank  

420. A traditional bank can be reorganized into an Islamic bank only if there is an “Islamic window” in this bank or if the banking operations are conducted under the principles of Islamic banking and finance within the framework of a pilot project.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

421. At least one year before the expected date of reorganization, the bank must notify the National Bank of it and submit a detailed plan of measures for its reorganization into an Islamic bank, drawn up in accordance with Sharia standards, approved by the Board of Directors and by the Sharia Council of the bank. For the banks engaged in the banking operations conducted under the principles of Islamic banking and finance under a pilot project, the notice period may be less than 1 (one) year before the expected date of reorganization.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

422. After reviewing the documents submitted by the bank for compliance with the requirements of the legislation of the Kyrgyz Republic and Sharia standards, the National Bank may authorize the bank to be reorganized into an Islamic bank. The decision to issue an authorization for reorganization of a traditional bank into an Islamic bank is taken by the Board of the National Bank within one calendar month from the date of submission of the document specified in Clause 421 of this Regulation.  

423. Within three working days from the moment of measures completion to fulfill the plan for reorganizing a bank into an Islamic bank, the bank shall submit to the National Bank a formal notification with an attachment of a detailed report of the action plan implementation to reorganize the bank into an Islamic bank and the expanded balance of the bank as of the last date.  

424. Within one calendar month, from the moment a duly executed package of documents specified in Clause 423 of this Regulation is submitted, an opinion is prepared in the name of the deputy chairman/member of the Board of the National Bank responsible for banking supervision and licensing about the possibility to issue a license to the bank authorizing to conduct banking operations in accordance with the principles of Islamic banking and finance in the national and foreign currencies.  

425. If a decision is made to issue a license to a bank, the bank is issued a license to conduct banking operations in accordance with the principles of Islamic banking and finance in return for existing bank license.  

426. The reason for the refusal to obtain a basic license authorizing to conduct banking operations in accordance with the principles of Islamic banking and finance, in exchange for the licenses held by a bank, may be a discrepancy between the documents presented in Clause 423 of this Regulation and the requirements of Kyrgyz law and Sharia standards.  

427. Members of the Board of Directors of a bank that was reorganized into an Islamic bank, within one calendar year, from the moment a bank receives a license to conduct banking operations in accordance with Islamic principles of banking and financing, shall receive appropriate training under the principles of Islamic banking and finance and submit supporting documents to the National Bank.  

SECTION X. APPEALING THE DECISIONS OF THE NATIONAL BANK   

Chapter 48. Procedure for Appealing Decisions of the National Bank  

428. Decisions made by the National Bank under this Regulation may be appealed in accordance with the Regulation on pre-trial settlement of disputes between the National Bank of the Kyrgyz Republic and the commercial banks, the organizations conducting certain types of banking operations and their founders (participants), legal entities and individuals.  

If a decision is cancelled within the framework of pre-trial appeal, the appellant must send an application to the National Bank for re-examination of previously sent documents. Re-examination of previously sent documents shall be conducted within the timeframes provided for by this Regulation, meanwhile their calculation begins from the day of filing an application for re-examination.  

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2020-П-12/39-1 as of July 8, 2020

429. The acts of the National Bank, adopted under this Regulation (with the exception of the resolutions of the Board of the National Bank and the Supervisory Committee of the National Bank) do not require certification with the seals. The decisions made in accordance with this Regulation may be communicated to the relevant persons (applicants) by sending a letter to the responsible structural subdivision of the National Bank.  

(As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)  

   

  

  

  

  

  

  

  

  

  

  

  

  

  

   

   

Appendix 1   to the Regulation “On Licensing Bank Activities”   

   

   

   

To the Chairman of the National Bank of the Kyrgyz Republic   

APPLICATION   

to Issue an Authorization for Bank Establishment   

We hereby request an authorization to establish a bank.  

______________________________________________________  

(full name of the bank)  

with the following details:  

1. Firm (official) name  

2. Full legal address of location  

3. Full name of an authorized person and/or a representative of the organizational group for the contacts with the National Bank  

The address of an authorized person and/or a representative of the organizational group for the contacts with the National Bank  

Phone: _________________________ Fax:___________________  

E-mail address: _____________________________  

4. Type of the joint-stock company (closed or open)  

5. Communication with the holding company (banking group) (yes, no). If yes, then the full name of the holding company (banking group)  

_______________________________________________________  

6. Estimated capital structure:  

- number of shares (common, preference)  

- total value of issued shares   

7. A detailed list of the banking operations that the bank intends to conduct.   

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

The constituent documents on ______ sheets are described on a per-sheet basis, bound, numbered and properly certified.   

   

Full name, signature and date of the founder/authorized person appointed by the general meeting of founders   

   

   

Appendix 2   to the Regulation “On Licensing Bank Activities”  

CONSTITUENT AGREEMENT  

on Bank Establishment (Standard Form)  

________________________________________________________  

(the full firm (official) name of the  

bank is indicated   

with the organizational and legal form)  

(As amended by the Kyrgyz Republic National Bank Boards Resolution No. 2018-П-12/44-3 dated October 24, 2018)   

City of _________________  

   

20__   

   

(The constituent agreement may contain other information provided for by the founders within the framework of the law, in addition to the minimum requirements that are specified in this standard form of the constituent agreement).  

This constituent agreement is made between:  

1.  

2.  

_________________________________________________________________________________________________________  

         (last name, first name, patronymic, passport details, including the address of permanent residence,  

                                                    if the founder is an individual, and  

_________________________________________________________________________________________________________  

          full name of the founder, legal address, if the founder is a legal entity),  

hereinafter referred to as the “Founders”, have agreed as follows:  

1. GENERAL PROVISIONS  

1.1. The founders, on the basis of voluntary pooling of their funds, agreed to establish a bank  

_________________________________________________________________________________________________________  

                                         (full firm (official) name of the bank),  

(hereinafter referred to as the “Bank”) in the organizational and legal form of the (open or closed) joint- stock company.  

The procedure for the founders activities to establish the Bank  

_________________________________________________________________________________________________________  

                                           (full firm (official) name of the bank)  

shall be determined by this Constituent agreement.  

2. PURPOSES OF BANK ESTABLISHMENT   

2.1. The Bank is established for the following purposes:   

3. ISSUES RELATED TO BANK ESTABLISHMENT   

3.1. The Bank is established in the form of (open or closed) joint stock company and acquires the rights of a legal entity from the date of its state registration in accordance with the legislation of the Kyrgyz Republic.  

3.2. The Bank is liable for its obligations with all its property; it can, on its own behalf, acquire and exercise property and non-property rights, bear obligations, be a plaintiff and a defendant in court.  

The shareholders of the Bank are not liable for the obligations of the Bank and bear the risk of losses related to its activities within the value of their shares. The shareholders who have not fully paid up the shares are jointly and severally liable for the obligations of the Bank within the unpaid part of the value of their shares.  

The Bank is not liable for the obligations of its shareholders. The Bank is not liable for the obligations of the state and its bodies. The state is not liable for the obligations of the Bank, except in cases where the state itself assumed such obligations.  

3.3. The Bank in its activities ensures compliance with the requirements of the legislation of the Kyrgyz Republic, regulatory acts of the National Bank of the Kyrgyz Republic, as well as the charter of the bank.  

3.4. The Bank is established for an unlimited period of time and implements its activities on the basis of a banking license issued by the National Bank of the Kyrgyz Republic.  

3.5. In order to prepare the necessary materials, documents, requests and other necessary acts for establishment of the Bank, an authorized person is appointed (an organizational group is created). The authorized person is entitled to perform all necessary actions, participate in the meetings and events related to establishment of the Bank.  

3.6. The founders are jointly and severally liable for the obligations arising prior to the state registration of the Bank.  

4. AUTHORIZED CAPITAL OF THE BANK   

4.1. The authorized capital of the Bank is set at KGS_________________________________________________.  

4.2. To form the authorized capital, the Bank issues  

_________________________________________________________________________________________________________  

             (registered ordinary and/or preference, the quantity and the type shares shall be specified)  

shares with a par value of KGS_________________________ in the amount of ____________ pieces.  

4.3. The authorized capital of the Bank at the time of its establishment is fully distributed among the Founders in the following amounts:  

No.  

Name (full name) of a founder   

thous. KGS  

   

   

   

   

   

   

4.4. Funds in the amount of the minimum authorized capital of the Bank complying with the requirements of the banking legislation of the Kyrgyz Republic are deposited by the founders, according to the amount specified in Clause 4.3 of this Constituent Agreement, on the savings account of the Bank opened with the National Bank of the Kyrgyz Republic.  

The funds are deposited within ____________ from the date of receipt of an authorization from the National Bank of the Kyrgyz Republic to establish a bank. After state registration, the funds are transferred to the Banks correspondent account opened with the National Bank of the Kyrgyz Republic.  

4.5. The size of the authorized capital of the Bank can be increased by increasing the nominal value of shares or increasing the number of shares traded by issuing additional shares.  

5. RIGHTS AND OBLIGATIONS OF THE BANKS FOUNDERS (SHAREHOLDERS)   

5.1. The founders (shareholders) of the Bank are entitled:   

5.2. The founders are obliged:  

6. BANKS SHARES  

6.1. The shares of the Bank are _______________________________________________________________________________registered  

                                                (ordinary and preference, the type of shares and their ratio shall be specified).  

One ordinary share gives a shareholder the right to 1 (one) vote when resolving the issues at the general meeting of shareholders, receiving part of the Banks profit in the form of dividends, if there are no restrictions on it, and on the part of the Banks property remaining after its liquidation.  

A preference share (if any) gives a shareholder the right to receive a guaranteed dividend, but does not give the right to vote, unless otherwise is provided in the Banks charter and by the legislation of the Kyrgyz Republic.  

A shareholder of the Bank is entitled to sell or otherwise transfer the rights to his/her shares in the Bank without the consent of other shareholders (if a bank is established in the form of a closed joint-stock company, the content of this clause changes). Only paid-up shares of the Bank are subject to alienation.  

6.2. Each founder (shareholder) is issued with the relevant documents (if necessary) confirming his/her shares and reflecting his/her share in the authorized capital of the Bank in the amount corresponding to his/her contribution to the authorized capital in full.  

6.3. The Bank is entitled to issue (place) bonds, deposit certificates, savings certificates and other securities provided for by the legislation of the Kyrgyz Republic on securities.  

6.4. The Bank (or the specialized registrar authorized by the legislation of the Kyrgyz Republic, it shall be specifically specified) in cases established by the legislation of the Kyrgyz Republic ensures that the register of shareholders is maintained and stored in accordance with the legislation of the Kyrgyz Republic no later than three months from the date of state registration of the Bank. The Bank is obliged to conclude an agreement with a specialized registrar in the event of an additional issue, regardless of the number of shareholders or the placement of its securities on the stock exchange, as well as in other cases established by the legislation of the Kyrgyz Republic.  

7. BANKS MANAGEMENT BODIES   

7.1. The supreme management body of the Bank is the Banks General Meeting of Shareholders. The range of powers and the terms of reference of the general meeting of shareholders are determined in the charter of the Bank, taking into account the requirements of the legislation of the Kyrgyz Republic.  

7.2. The Board of Directors is established in the Bank, which carries out the general management of the Banks activities in the period between the general meetings of shareholders. The Board of Directors of the Bank consists of ____________ (at least five members), which may include both shareholders of the Bank and other invited experts with impeccable business reputation and professional experience in the economic, financial, monetary or legal issues.  

At least 1 (one) member of the Board of Directors of a bank must be a citizen of the Kyrgyz Republic, fluent in the state and/or official language.  

The range of powers, restrictions, requirements and terms of reference of the Board of Directors of the Bank are determined in the charter of the Bank, taking into account the requirements of the legislation of the Kyrgyz Republic.  

7.3. The members of the Board of Directors cannot combine their work with work in the Board of the Bank and vice versa, as well as with other positions in the Bank.  

At least one third of the Board of Directors must be independent.  

7.4. The executive body of the Bank is the Board of the Bank.  

The Board of the Bank consists of ___________ (at least five members). The Board of the Bank may include the specialists with professional experience in the field of banking, financial, investment and legal spheres.  

The members of the Board of the Bank may not participate as a member of the Board of Directors of the Bank or as an official of another financial-credit organization supervised by the National Bank of the Kyrgyz Republic.  

A shareholder with a significant participation in the Banks capital or a person who is a significant shareholder in another financial-credit organization supervised by the National Bank of the Kyrgyz Republic cannot be a member of the Board.  

The members of the Board of the Bank in implementing their duties shall make every effort to protect primarily the interests of the Bank, to conduct and ensure sound and healthy banking practice.  

The range of powers and the terms of reference of the Board of the Bank are determined in the charter of the Bank, taking into account the requirements of the legislation of the Kyrgyz Republic.  

The chairman and the members of the Board of the Bank are personally responsible for decisions made at the meetings of the Board of the Bank. If a member of the Board thinks that the decisions taken in the bank threaten its financial stability, the rights and legitimate interests of creditors, the member of the Board shall inform the Board of Directors of the bank about it. If the Board of Directors does not respond to the information of a member of the Board, the member of the Board is entitled to notify the National Bank about it.  

7.5. The Bank establishes the Risk Management Committee, the Nomination and Remuneration Committee, and the Audit Committee.  

8. BANK REORGANIZATION AND LIQUIDATION   

9. MISCELLANEOUS  

9.1. The profit of the Bank, formed in the prescribed manner, after paying taxes, as provided for by the legislation of the Kyrgyz Republic, shall be distributed among the shareholders in the manner prescribed in the Banks charter.  

9.2. The Bank creates loan loss provisions related to the Banks activities in the amount and manner established by the banking legislation of the Kyrgyz Republic.  

9.3. This Constituent Agreement comes into force from the date of its signing and is valid until the founders fulfill their obligations in full, in accordance with this Constituent Agreement.  

9.4. If one or several provisions of this Constituent Agreement become invalid, the other provisions of the Constituent Agreement remain in force, and the founders (shareholders) in good faith negotiate on introduction of amendment into this Constituent Agreement to correct the provisions.   

9.5. This Constituent Agreement shall comply with the legislation of the Kyrgyz Republic and be interpreted in accordance with it.  

9.6. The Constituent Agreement is made in ____________ copies, one for each of the parties.  

_________________________________________________________________________________________________________  

      (name of the Founder (for legal entities), full name (for legal entities - the full name of the authorized  

  representative, indicating the position), signature, seal (for legal entities), address (location)).  

Note: In the case of establishing a bank in the form of a closed joint-stock company, the following shall also be indicated:  

- procedure for release and acceptance of new shareholders;  

- procedure for distribution of the shares among the founders or another predetermined circle of persons (private subscription for the shares and other securities), while indicating that an open subscription for the shares is not allowed;   

- features of the shares sale.  

Name, signature and date of the founder/founders   

   

   

Appendix 3   to the Regulation “On Licensing Bank Activities”  

   

   

   

Approved  by the General (Constituent) Meeting of the Banks Shareholders, Minutes No. _____  as of _____________ _____, 20__   

CHARTER  

(standard form)  

_________________________________________________________  

_________________________________________________________  

  

  

(the full firm (official) name of the bank   

is indicated with the organizational and legal form)  

  

  

(As amended by the Kyrgyz Republic National Bank Boards Resolution No. 2018-П-12/44-3 dated October 24, 2018)  

City of _________________  

   

20___   

   

The Charter may also contain other provisions stipulated by the law or by the founders, in addition to the minimum requirements specified in this standard form of the Charter.  

1. GENERAL PROVISIONS  

1.1. Open or closed joint-stock company  

“_________________________________________________________________________________________________________”  

                      (full name of the bank with specified organizational and legal form),  

hereinafter referred to as the “Bank”, is a financial-credit organization established by the decision of the founders (Minutes No. _____ as of _______________ _____, 20__).  

1.2. The Bank is ______________________________________________________ (the type of activity shall be specified), it is included in the banking system of the Kyrgyz Republic and carries out its activities in accordance with the requirements of the legislation of the Kyrgyz Republic and this Charter.  

1.3. The Bank is a legal entity in accordance with the legislation of the Kyrgyz Republic and it owns separate property reflected on its independent balance sheet, including cash transferred to it as payment for the shares.  

1.4. The Bank may, on its own behalf, acquire and exercise property and personal non-property rights, bear obligations, be a plaintiff and a defendant in court.  

1.5. The Bank is not liable for the obligations of the Kyrgyz Republic, and the Kyrgyz Republic is not liable for the obligations of the Bank, except in cases where the state itself assumed such obligations.  

The Bank is not liable for the obligations of the National Bank of the Kyrgyz Republic, and the National Bank of the Kyrgyz Republic is not liable for the obligations of the Bank.  

1.6. The Bank is established in the form of (open or closed) joint-stock company for an unlimited period and operates on the basis of a license authorizing to conduct banking operations issued by the National Bank of the Kyrgyz Republic.  

The Bank is independent from the state authorities and governance when making the decisions.  

1.7. The Bank has a round seal containing its full firm (official) name in Kyrgyz, Russian and English.  

The Bank is entitled to have stamps and letterheads with its firm name, indicating its location address, a trademark registered in the established manner, and other means of visual identification.  

1.8. Interference in any form in the Banks activities by the state bodies, their officials, public and other organizations is not allowed, except for the cases stipulated by the legislation of the Kyrgyz Republic.  

1.9. The Bank is entitled to establish correspondent relations with other banks located in the territory of the Kyrgyz Republic and abroad, subject to the requirements of the legislation of the Kyrgyz Republic.  

1.10. The Bank is entitled to participate independently or jointly with other legal entities or individuals in other commercial and non-commercial organizations in the territory of the Kyrgyz Republic and abroad in accordance with the legislation of the Kyrgyz Republic and corresponding foreign state.  

2. BANKS FIRM (OFFICIAL) NAME   

AND ADDRESS   

2.1. Full firm (official) name of the Bank: in the Kyrgyz language:  

“_________________________________________________________________________________________________________”  

ачык (жабык) акционердик коому;  

in Russian:  

Открытое (закрытое) акционерное общество  

“_________________________________________________________________________________________________________”;  

in English:  

The open (closed) joint-stock company  

“_________________________________________________________________________________________________________”;  

2. Abbreviated firm name of the Bank:  

In Kyrgyz:  

AAK (ЖАК) “__________________________________________________________________________________________”;  

in Russian:  

ОАО (ЗАО) “__________________________________________________________________________________________________________”;  

in English:  

OJSC (CJSC) “________________________________________________________________________________________________________”.  

The Bank has the exclusive right to use its firm name after registration according to the established procedure.  

2.3. Address of the Bank: index _____________, Kyrgyz Republic, city of _____________________,  

_____________________Street, N ____.  

2.4. Address of the branches and representative offices (the country and city shall be specified):  

3. PURPOSE AND SUBJECT OF THE BANKS ACTIVITY  

3.1. The bank is intended to make profit, as well as:  

3.2. The subject of the Banks activities is provision of the banking services in accordance with a license issued by the National Bank of the Kyrgyz Republic.  

4. BANKS BRANCHES AND REPRESENTATIVE OFFICES   

4.1. The Bank may establish branches and open representative offices in the territory of the Kyrgyz Republic and abroad complying with the legislation of the Kyrgyz Republic, as well as the laws of foreign countries at the location of the branches and the representative offices, unless otherwise is provided by the international agreement.  

The branches and representative offices operate on behalf of the Bank, which is fully responsible for their activities.  

4.2. The branches and representative offices are not independent legal entities, are invested with fixed and circulating assets at the expense of the Banks property, act on the basis of the provisions approved by it and carry out their activities on behalf of the Bank within the powers defined in the regulation.  

4.3. The decisions on establishing the branches and opening the representative offices and their liquidation, on approval of the regulations on the branches and representative offices are made by the Board of Directors of the Bank in accordance with the laws of the Kyrgyz Republic and the laws of the country where branches and representative offices are established.  

4.4. The heads of the representative offices and the branches are appointed by the Board of the Bank in coordination with the Board of Directors and act on the basis of a power of attorney issued by the Bank.  

5. BANKING OPERATIONS AND OTHER TRANSACTIONS   

5.1. The Bank may carry out the following types of banking operations specifying them in the license:  

1) attracting deposits on its own behalf on a contractual basis;  

2) placement of own and/or attracted funds on its own behalf on a contractual basis;  

3) opening and maintaining accounts;  

4) implementation of the settlements and payments on behalf of the customers and the correspondent banks and their cash services;  

5) issue, purchase, payment, acceptance, storage and confirmation of payment documents (checks, letters of credit, promissory notes and other documents), including credit and payment cards;  

6) acquisition of the right to claim from third parties who fulfill obligations in monetary form (factoring);  

7) payment of debt obligations by purchasing the promissory notes and bills of exchange (forfeiting);  

8) issue and placement of the debt securities;  

9) issuance of the bank guarantees;  

10) implementation of the customer remittances, including without opening an account;  

11) opening and maintaining correspondent accounts for the non-resident banks of the Kyrgyz Republic;  

12) carrying out transactions on the accounts in foreign currency for the customers, as well as on acquisition (exchange) of foreign currency on behalf of the customer;   

13) purchase and sale (exchange) of foreign currency in its own name;  

14) operations with precious metals (only bank silver, gold, platinum and coins from these metals of high fineness);  

15) implementation of the operations with derivative financial instruments (derivatives);  

16) issue of electronic money;  

17) receiving and conducting payments and settlements for goods and services that are not the result of their activities in favor of third parties through payment systems based on information technologies, electronic means, and methods of making payments;  

18) receiving, processing and issuing financial information (processing, clearing) on ​​payments and third-party payments to the participants of the payment system of this processing and clearing center.  

5.2. The Bank is entitled to carry out the following activities and transactions:  

1) issuance of a guarantee and other obligations on behalf of third parties;  

2) issue, purchase, sale, maintenance of securities, as well as depositary services;  

3) trust management of property (except for cash) under an agreement with an individual or legal entity;  

4) leasing safes for the individuals and legal entities to store valuables;  

5) sale of pledged property in repayment of obligations to the bank;  

6) investment services;  

7) banking advisory services;  

8) financial leasing transactions;  

9) services as a financial agent.  

The Bank carries out other activities in accordance with the legislation of the Kyrgyz Republic, if it does not contradict the banking legislation of the Kyrgyz Republic. The bank can carry out only such activity, which is necessary for ensuring its main activity or is connected with banking activity.  

5.3. The Bank is entitled to engage in other types of licensed activities with the consent of the National Bank of the Kyrgyz Republic.  

6. BANKS CAPITAL  

6.1. The Banks capital serves to ensure profitable and sustainable growth of the Bank, to cover potential losses characteristic of banking, it is the guarantor of customer confidence in the bank and acts as a measure of protection against possible risks that may arise during implementation of the Banks activities.  

6.2. Authorized capital of the Bank:  

6.2.1. The basis of the Banks capital is fully paid-up authorized capital in respect of which the Bank has no obligation to repay funds invested by the founders (shareholders) and complies with the requirements of the National Bank of the Kyrgyz Republic.  

6.2.2. The authorized capital is paid only from the funds of the founders (shareholders) and is formed in a cashless form, in the national currency of the Kyrgyz Republic.  

6.3. The amount of the authorized capital:  

6.3.1. The authorized capital of the Bank is KGS__________________________. It consists of ________________ (___________ registered ordinary shares (preference)).  

6.4. The increase or decrease in the authorized capital of the Bank is carried out in the manner determined by the legislation of the Kyrgyz Republic.  

6.5. Reserves:   

6.5.1. To ensure timely coverage of losses related to the banking activities, as well as to ensure an adequate level of control and reliability of its activities, the Bank creates the necessary reserves. The procedure of formation and methods for calculating reserves created by the Bank are established by the regulatory acts of the National Bank of the Kyrgyz Republic.  

7. BANKS SHARES. RIGHTS AND OBLIGATIONS OF THE SHAREHOLDERS   

(provisions for the types of shares, rights and obligations of the shareholders in accordance with the legislation of the Kyrgyz Republic shall be specified)  

8. PLACEMENT OF SHARES AND OTHER SECURITIES OF THE BANK   

(the procedure and methods of placement of the shares and other securities in accordance with the legislation of the Kyrgyz Republic shall be specified)  

9. DIVIDENDS  

(the procedure, terms and other requirements regarding payment of the dividends, as well as restrictions established by the legislation on their payment shall be specified)  

10. BANKS RELATIONS WITH THE CUSTOMERS   

10.1. Provision of the banking services to the legal entities and individuals is carried out by the Bank on the basis of an agreement subject to the provisions of the legislation of the Kyrgyz Republic.  

10.2. General terms and conditions of banking services are open information, cannot be confidential and are provided by the Bank upon the first request of the customers.  

If the terms of banking services are changed, the Bank notifies the customers about it in the manner established by the legislation of the Kyrgyz Republic or the terms of the agreement concluded between the bank and the customer.  

10.3. The Bank ensures the safety of cash and other valuables entrusted to it by its customers and correspondents. Their safety is guaranteed by all movable and immovable property of the Bank.  

10.4. The Bank is entitled to use any settlement systems used in the international banking practice in accordance with the legislation of the Kyrgyz Republic.  

10.5. The Bank constantly maintains its readiness to fulfill its obligations in a timely manner and fully by regulating its balance sheet structure in accordance with the mandatory standards established by the National Bank of the Kyrgyz Republic stipulated by the legislation of the Kyrgyz Republic.  

10.6. The Bank guarantees the observance of secrecy on transactions, accounts and deposits, as well as in respect of other information relating to its customers and correspondents. The shareholders of the Bank, the members of the Board of Directors, the members of the Board, the employees of the Bank, as well as other persons who are connected to the Bank through contractual and other relations, are obliged not to disclose to third parties and not to use for any purpose any information that has been entrusted to them or to which they had access in the process of relations between the Bank and the customers, as well as between the Bank and its correspondents, except on the grounds provided for by the legislation of the Kyrgyz Republic.  

10.7. Information constituting banking secrets is provided to third parties in accordance with the legislation of the Kyrgyz Republic.  

11. STRUCTURE OF MANAGEMENT AND CONTROL BODIES  

The management bodies of the Bank are:  

The supreme management body is the general meeting of shareholders of the Bank;  

Supervisory body is the Board of Directors of the Bank;  

The executive body is the Board of the Bank.  

The Bank has internal audit, compliance control and risk management services.  

12. BANKS GENERAL MEETING OF SHAREHOLDERS   

(the powers of the general meeting of shareholders, the procedure for convening, voting, in case of mandatory extraordinary general meetings of shareholders and other provisions established by the legislation of the Kyrgyz Republic shall be specified)  

13. BANKS BOARD OF DIRECTORS   

(the powers, requirements and restrictions for the members of the Board of Directors of the bank, the procedure and requirements for conducting meetings, the powers of the Chairman of the Board of Directors and other provisions stipulated by the legislation of the Kyrgyz Republic shall be specified)  

14. BANKS BOARD   

(the powers, requirements and restrictions for the members of the Board of the Bank, the procedure and requirements for conducting meetings, the powers of the Chairman of the Board and other provisions stipulated by the legislation of the Kyrgyz Republic shall be specified)  

15. BANKS COMMITTEES   

(Audit Committee, Nomination and Remuneration Committee, Risk Management Committee)  

15.1. _________________________________________ (the information on all mandatory committees, their name, quantitative composition and requirements for the committee members, the procedure for appointment, basic functions, rights and obligations, reporting shall be specified).  

16. REGISTER OF SHAREHOLDERS  

16.1. The Bank, as well as an independent registrar, keeps a register of shareholders.  

16.2. The register of shareholders of the Bank shall contain information on each registered individual/entity (shareholder or nominal holder of shares) with their details (location and settlement account for the shareholders - legal entities, passport details and place of residence for the shareholders - individuals), the number and categories of shares recorded in the name of each registered individual/entity, the date of their acquisition, as well as other information stipulated by the legislation of the Kyrgyz Republic.  

The emergence and termination of pledge of shares, change in the number of shares subject to pledge, and/or their categories, details of the individuals/entities who/which, according to documents submitted to the Bank, have pledge rights to the shares, are also entered in the register of shareholders, indicating whether the shareholder has the right to vote pledged shares.  

16.3. The Bank and the specialized registrar holding the register of shareholders of the Bank are not liable for the consequences resulting from the fact that the shareholder or nominal holder of shares did not inform the Banks holder of the register of shareholders about the changes, which shall be entered into the register of shareholders in accordance with the requirements of this charter and legislation of the Kyrgyz Republic.  

16.4. The entry in the register of shareholders of the Bank is made at the request of the shareholder or nominal holder of shares no later than 3 (three) days from the date of submission of the documents stipulated by the legislation of the Kyrgyz Republic.  

16.5. Refusal to make an entry in the Banks register of shareholders is not allowed, except for the cases provided for by the legislation of the Kyrgyz Republic. In case of refusal to make an entry in the Banks register of shareholders, the holder of the specified register no later than 3 (three) days from the moment of filing the request to make an entry in the register of shareholders sends to the person requesting the entry a reasoned notice of the refusal to make the entry.  

Refusal to make an entry in the register of shareholders of the Bank may be appealed in the manner prescribed by the legislation of the Kyrgyz Republic.  

16.6. At the request of a shareholder or their legal representatives, a bank or his/her/its official representative, the registrar is obliged within 5 (five) working days from the receipt of the request to provide an extract from the register indicating the number of shares owned by a particular shareholder of the bank, and if necessary, information about transactions made by these shareholders earlier. An extract from the register of shareholders of the Bank is not a security, but confirms the shareholders right to own shares at the time of its issue.  

16.7. Information from the register of shareholders of the Bank is provided by the registrar to the National Bank of the Kyrgyz Republic at the first request.  

17. ACCOUNTING AND REPORTING  

17.1. The Bank is obliged to keep accounting records and submit financial statements, the nature, volume, list of forms and the procedure for providing thereof are established by the legislation of the Kyrgyz Republic.  

17.2. The Board of Directors is responsible for the organization, state, accuracy of accounting and other reporting, timely submission of the annual report and other financial statements to the relevant authorities, as well as information about the Banks activities provided to the shareholders, creditors and the media.  

17.3. The accounting policy, organization of document circulation in the Bank, in its branches and representative offices is established by the decision of the Board of the Bank in accordance with the legislation of the Kyrgyz Republic.  

17.4. The financial year of the Bank is set from January 1 to December 31 inclusive.  

The annual report of the Bank is subject to confirmation by the external auditor of the Bank before the date of informing the shareholders of the annual General Meeting of Shareholders.  

17.5. The Bank is obliged to publish in the mass media the information that, in accordance with the legislation of the Kyrgyz Republic, is subject to mandatory publication.  

18. BANK AUDIT  

18.1. The Bank audit is carried out by the internal audit service and an independent external auditor in accordance with this Charter, the Regulation “On the Internal Audit Service” and the legislation of the Kyrgyz Republic.  

18.2. The competence of the internal audit service includes:  

18.2.1. Verification and assessment of the adequacy and effectiveness of the internal control system in the Bank.  

18.2.2. Determining the degree of compliance with the legislation of the Kyrgyz Republic and local regulations in the Bank.  

18.2.3. Assessment of the accounting adequacy in the Bank.  

18.2.4. Other issues related to its competence by the legislation of the Kyrgyz Republic, this Charter and the Regulation “On the Internal Audit Service”.  

18.3. The quantitative and personal composition of the internal audit service is determined by the Board of Directors of the Bank in accordance with the procedure established by the Regulations “On the Internal Audit Service” and this Charter.  

18.4. The Bank annually attracts a professional independent auditor (external auditor) who is not connected by property interests with the Bank, its shareholders or officials of the Bank to verify and confirm the correctness of the financial statements. An audit of the Bank shall meet the minimum criteria for an audit of the Bank established by the National Bank of the Kyrgyz Republic.  

18.5. The external auditor is approved by the general meeting of shareholders of the Bank.  

18.6. The external auditor carries out activities to confirm the reliability of the financial statements of the Bank in compliance with the requirements of the legislation of the Kyrgyz Republic and in accordance with the agreement made with him/her, signed by the Chairman of the Board on the basis of the decision of the general meeting of shareholders on approval of the external auditor. An audit firm is responsible for the faithful fulfillment of its duties in accordance with the approved charter of the audit firm, the legislation of the Kyrgyz Republic and an agreement with the Bank.  

18.7. According to the results of the external audit of the Bank, the external auditor draws up a conclusion in accordance with the requirements established by the legislation of the Kyrgyz Republic.  

19. BANK REORGANIZATION  

(the main provisions related to the bank reorganization, or a reference to the legislation of the Kyrgyz Republic shall be specified)  

20. BANKS LIQUIDATION PROCEDURE   

20.1. The Bank is liquidated in a voluntary and compulsory manner in accordance with the banking legislation of the Kyrgyz Republic.  

Chairman of the Board of the Bank ________________ Full name, signature  

   

   

   

Appendix 4   to the Regulation “On Licensing Bank Activities”  

   

   

   

APPROVED  by the General (Constituent) Meeting of the Banks Shareholders, Minutes No. _____  as of _____________ _____, 20__   

  

CHARTER  

(standard form for the Islamic bank)  

__________________________________________________________________  

__________________________________________________________________  

(the full firm (official) name of the Islamic bank   

is indicated with the organizational and legal form)  

  

  

(As amended by the Kyrgyz Republic National Bank Boards Resolution No. 2018-П-12/44-3 dated October 24, 2018)  

City of _________________  

   

20___   

   

The Charter may also contain other provisions stipulated by the laws of the Kyrgyz Republic or by the founders, in addition to the minimum requirements specified in this standard form of the Charter.  

1. GENERAL PROVISIONS  

1.1. Open or closed joint-stock company “__________________________________________” (full name of the bank with specified legal form), hereinafter referred to as the “Bank”, is a financial-credit organization operating in accordance with the principles of Islamic banking and finance and is established by the decision of the founders (Minutes No.______ as of _______________ ____, 20__).  

1.2. The Bank is ______________________________________________________ (the type of activity shall be specified), it is included in the banking system of the Kyrgyz Republic and carries out its activities in accordance with the requirements of the legislation of the Kyrgyz Republic and this Charter.  

1.3. The Bank is a legal entity in accordance with the legislation of the Kyrgyz Republic and it owns separate property reflected on its independent balance sheet, including cash transferred to it as payment for the shares.  

1.4. The Bank may, on its own behalf, acquire and exercise property and personal non-property rights, bear obligations, be a plaintiff and a defendant in court.  

1.5. The Bank is not liable for the obligations of the Kyrgyz Republic, and the Kyrgyz Republic is not liable for the obligations of the Bank, except in cases where the state itself assumed such obligations.  

The Bank is not liable for the obligations of the National Bank of the Kyrgyz Republic, and the National Bank of the Kyrgyz Republic is not liable for the obligations of the Bank.  

1.6. The Bank is established in the form of open or closed joint-stock company for an unlimited period and operates on the basis of a license authorizing to conduct banking operations issued by the National Bank of the Kyrgyz Republic.  

The Bank is independent from the state authorities and governance when making the decisions.  

1.7. The Bank has a round seal containing its full firm (official) name in Kyrgyz, Russian and English.  

The Bank is entitled to have stamps and letterheads with its firm name, indicating its location address, a trademark registered in the established manner, and other means of visual identification.  

1.8. Interference in any form in the Banks activities by the state bodies, their officials, public and other organizations is not allowed, except for the cases stipulated by the legislation of the Kyrgyz Republic.  

1.9. The Bank is entitled to establish correspondent relations with other banks located in the territory of the Kyrgyz Republic and abroad, subject to the requirements of the legislation of the Kyrgyz Republic.  

1.10. The Bank is entitled to participate independently or jointly with other legal entities or individuals in other commercial and non-commercial organizations in the territory of the Kyrgyz Republic and abroad in accordance with the legislation of the Kyrgyz Republic and corresponding foreign state.  

  

2. BANKS FIRM (OFFICIAL) NAME   

AND ADDRESS   

  

2.1. Full firm name of the Bank: in the Kyrgyz language:  

“_________________________________________________________________________________________________________”  

ачык (жабык) акционердик коому;  

in Russian:  

Открытое (закрытое) акционерное общество  

“_________________________________________________________________________________________________________”;  

in English:  

The open (closed) joint-stock company  

“_________________________________________________________________________________________________________”;  

2. Abbreviated firm name of the Bank:  

In Kyrgyz:  

AAK (ЖАК) “__________________________________________________________________________________________”;  

in Russian:  

ОАО (ЗАО) “__________________________________________________________________________________________________________”;  

in English:  

OJSC (CJSC) “________________________________________________________________________________________________________”.  

The Bank has the exclusive right to use its firm name after registration according to the established procedure.  

2.3. Address of the Bank: index _____________, Kyrgyz Republic, city of _____________________,  

_____________________Street, N ____.  

2.4. Address of the branches and representative offices (the country and city shall be specified):  

3. PURPOSE AND SUBJECT OF THE BANKS ACTIVITY  

3.1. The bank is intended to make profit, as well as:  

3.2. The subject of the Banks activities is provision of the banking services under the principles of Islamic banking and finance in accordance with a license issued by the National Bank of the Kyrgyz Republic.  

4. BANKS BRANCHES AND REPRESENTATIVE OFFICES   

4.1. The Bank may establish branches and open representative offices in the territory of the Kyrgyz Republic and abroad complying with the legislation of the Kyrgyz Republic, as well as the laws of foreign countries at the location of the branches and the representative offices, unless otherwise is provided by the international agreement.  

The branches and representative offices operate on behalf of the Bank, which is fully responsible for their activities.  

4.2. The branches and representative offices are not independent legal entities, are invested with fixed and circulating assets at the expense of the Banks property, act on the basis of the provisions approved by it and carry out their activities on behalf of the Bank within the powers defined in the regulation.  

4.3. The decisions on establishing the branches and opening the representative offices and their liquidation, on approval of the regulations on the branches and representative offices are made by the Board of Directors of the Bank in accordance with the laws of the Kyrgyz Republic and the laws of the country where branches and representative offices are established.  

4.4. The heads of the representative offices and the branches are appointed by the Board of the Bank in coordination with the Board of Directors and act on the basis of a power of attorney issued by the Bank.  

5. BANKING OPERATIONS AND OTHER TRANSACTIONS  

5.1. The Bank may carry out the following types of banking operations under the principles of Islamic banking and finance specifying them in the license (suggested list may be changed depending on introduction of the amendments to the legislation of the Kyrgyz Republic):   

1.1. Mudaraba transactions;  

1.2. Sharika/Musharaka transactions;  

1.3. Murabaha transactions;  

1.4. Ijarah and Ijarah Muntahiya Bittamlik transactions;  

1.5. Qard Hasan transactions;  

1.6. Istisna and Parallel Istisna transactions;  

1.7. Guarantee transactions;  

1.8. Salam/Parallel Salam transactions;  

1.9. documentary letter of credit transactions;  

1.10. trust and guaranteed storage transactions;  

1.11 opening and maintaining accounts;  

1.12 implementation of the settlements and payments on behalf of the customers and the correspondent banks and their cash services;  

1.13 issue, purchase, payment, acceptance, storage and confirmation of payment documents (checks, letters of credit, promissory notes and other documents), including credit and payment cards;  

1.14 issue and placement of the Islamic securities;  

1.15 implementation of the customer remittances, including without opening an account;  

1.16 opening and maintaining correspondent accounts for the non-resident banks of the Kyrgyz Republic;  

1.17 carrying out operations on the accounts in foreign currency for the customers, as well as on acquisition (exchange) of foreign currency on behalf of the customer;   

1.18 purchase and sale (exchange) of foreign currency in its own name;  

1.19 operations with precious metals (only bank silver, gold, platinum and coins from these metals of high fineness);  

1.20 implementation of the operations with the Islamic derivative financial instruments (Islamic derivatives);  

1.21 issue of electronic money;  

1.22 receiving and conducting payments and settlements for goods and services that are not the result of their activities in favor of third parties through payment systems based on information technologies, electronic means, and methods of making payments;  

1.23 receiving, processing and issuing financial information (processing, clearing) on ​​payments and third-party payments to the participants of the payment system of this processing and clearing center.  

5.2. The Bank is entitled to carry out the following activities and transactions:  

1) issuance of a guarantee and other obligations on behalf of third parties;  

2) issue, purchase, sale, maintenance of securities, as well as depositary services;  

3) trust management of property (except for cash) under an agreement with an individual or legal entity;  

4) leasing safes for the individuals and legal entities to store valuables;  

5) sale of pledged property in repayment of obligations to the bank;  

6) investment services;  

7) banking advisory services;  

8) financial leasing transactions;  

9) services as a financial agent.  

The Bank carries out other activities in accordance with the legislation of the Kyrgyz Republic, if it does not contradict the banking legislation of the Kyrgyz Republic. The bank can carry out only such activity, which is necessary for ensuring its main activity or is connected with banking activity.  

5.3. The Bank is entitled to engage in other types of licensed activities with the consent of the National Bank of the Kyrgyz Republic.  

6. BANKS CAPITAL  

6.1. The Banks capital serves to ensure profitable and sustainable growth of the Bank, to cover potential losses characteristic of banking, it is the guarantor of customer confidence in the bank and acts as a measure of protection against possible risks that may arise during implementation of the Banks activities.  

6.2. Authorized capital of the Bank:  

6.2.1. The basis of the Banks capital is fully paid-up authorized capital in respect of which the Bank has no obligation to repay funds invested by the founders (shareholders) and complies with the requirements of the National Bank of the Kyrgyz Republic.  

6.2.2. The authorized capital is paid only from the funds of the founders (shareholders) and is formed in a cashless form, in the national currency of the Kyrgyz Republic.  

6.3. The amount of the authorized capital:  

6.3.1. The authorized capital of the Bank is KGS__________________________. It consists of ________________ (___________ registered ordinary shares (preference)).  

6.4. The increase in the authorized capital of the Bank is carried out in the manner determined by the legislation of the Kyrgyz Republic.  

6.5. Reserves:   

6.5.1. To ensure timely coverage of losses related to the banking activities, as well as to ensure an adequate level of control and reliability of its activities, the Bank creates the necessary reserves. The procedure of formation and methods for calculating reserves created by the Bank are established by the regulatory legal acts of the National Bank of the Kyrgyz Republic.  

7. BANKS SHARES. RIGHTS AND OBLIGATIONS OF THE SHAREHOLDERS  

(provisions for the types of shares, rights and obligations of the shareholders in accordance with the legislation of the Kyrgyz Republic shall be specified)  

8. PLACEMENT OF SHARES AND OTHER ISLAMIC SECURITIES OF THE BANK  

(the procedure and methods of placement of the shares and other securities in accordance with the legislation of the Kyrgyz Republic shall be specified)  

9. DIVIDENDS  

(the procedure, terms and other requirements regarding payment of the dividends, as well as restrictions established by the legislation on their payment shall be specified)  

10. BANKS RELATIONS WITH THE CUSTOMERS  

10.1. Provision of the banking services to the legal entities and individuals is carried out by the Bank on the basis of an agreement subject to the provisions of the legislation of the Kyrgyz Republic.  

10.2. General terms and conditions of banking services are open information, cannot be confidential and are provided by the Bank upon the first request of the customers.  

If the terms of banking services are changed, the Bank notifies the customers about it in the manner established by the legislation of the Kyrgyz Republic or the terms of the agreement concluded between the bank and the customer.  

10.3. The Bank ensures the safety of cash and other valuables entrusted to it by its customers and correspondents. Their safety is guaranteed by all movable and immovable property of the Bank.  

10.4. The Bank is entitled to use any settlement systems used in the international Islamic banking practice in accordance with the legislation of the Kyrgyz Republic.  

10.5. The Bank constantly maintains its readiness to fulfill its obligations in a timely manner and fully by regulating its balance sheet structure in accordance with the mandatory standards established by the National Bank of the Kyrgyz Republic stipulated by the legislation of the Kyrgyz Republic.  

10.6. The Bank guarantees the observance of secrecy on transactions, accounts and deposits, as well as in respect of other information relating to its customers and correspondents. The shareholders of the Bank, the members of the Board of Directors, the members of the Sharia Council, the members of the Board, the employees of the Bank, as well as other persons who are connected to the Bank through contractual and other relations, are obliged not to disclose to third parties and not to use for any purpose any information that has been entrusted to them or to which they had access in the process of relations between the Bank and the customers, as well as between the Bank and its correspondents, except on the grounds provided for by the legislation of the Kyrgyz Republic.  

10.7. Information constituting banking secrets is provided to third parties in accordance with the legislation of the Kyrgyz Republic.  

11. STRUCTURE OF MANAGEMENT AND CONTROL BODIES  

The management bodies of the Bank are:  

The supreme management body is the general meeting of shareholders of the Bank;  

Supervisory body is the Board of Directors of the Bank;  

The executive body is the Board of the Bank;  

The Sharia Council of the Bank.  

The Bank has internal audit, compliance control and risk management services.  

12. BANKS GENERAL MEETING OF SHAREHOLDERS  

(the powers of the general meeting of shareholders, the procedure for convening, voting, in case of mandatory extraordinary general meetings of shareholders and other provisions established by the legislation of the Kyrgyz Republic shall be specified)  

13. BANKS BOARD OF DIRECTORS  

(the powers, requirements and restrictions for the members of the Board of Directors of the bank, the procedure and requirements for conducting meetings, the powers of the chairman of the Board of Directors and other provisions stipulated by the legislation of the Kyrgyz Republic shall be specified)  

14. BANKS SHARIA COUNCIL  

14.1. Sharia Council is the Banks body responsible for the compliance of policies, standard agreements, transactions and conditions of the Banks products with the Sharia standards.  

14.2. The Sharia Council may include the individuals/entities who/which meet the requirements established by the National Bank.  

14.3. The status, goals, tasks, functions, powers and responsibilities of the Sharia Council of the Bank are established by the Regulation on the Sharia Council, approved by the general meeting of shareholders of the Bank.  

14.4. The decisions made by the Sharia Council shall be available to the Banks customers and the public, through publications and other communication channels. The Bank is obliged to provide, at the request of the customer, an explanation of any decision of the Sharia Council. In this case, the explanation to be submitted shall be previously agreed with the Sharia Council.  

14.5. The Bank shall establish internal audit, compliance control and risk management services that are responsible for monitoring of compliance with the Sharia standards.  

14.6. The activities (goals, tasks, functions, powers and responsibilities) of services responsible for monitoring of compliance with the Sharia standards are governed by the Regulation approved by the Board of Directors of the Bank and the legislation of the Kyrgyz Republic.  

15. BANKS BOARD  

(the powers, requirements and restrictions for the members of the Board of the Bank, the procedure and requirements for conducting meetings, the powers of the Chairman of the Board and other provisions stipulated by the legislation of the Kyrgyz Republic shall be specified)  

16. BANKS COMMITTEES  

(Audit Committee, Nomination and Remuneration Committee, Risk Management Committee)  

16.1. _________________________________________ (the information on all mandatory committees, their name, quantitative composition and requirements for the committee members, the procedure for appointment, basic functions, rights and obligations, reporting shall be specified).  

17. REGISTER OF SHAREHOLDERS  

17.1. The Bank, as well as an independent registrar, keeps a register of shareholders.  

17.2. The register of shareholders of the Bank shall contain information on each registered individual/entity (shareholder or nominal holder of shares) with their details (location and settlement account for the shareholders - legal entities, passport details and place of residence for the shareholders - individuals), the number and categories of shares recorded in the name of each registered individual/entity, the date of their acquisition, as well as other information stipulated by the legislation of the Kyrgyz Republic.  

The emergence and termination of pledge of shares, change in the number of shares subject to pledge, and/or their categories, details of the individuals/entities who/which, according to documents submitted to the Bank, have pledge rights to the shares, are also entered in the register of shareholders, indicating whether the shareholder has the right to vote pledged shares.  

17.3. The Bank and the specialized registrar holding the register of shareholders of the Bank are not liable for the consequences resulting from the fact that the shareholder or nominal holder of shares did not inform the Banks holder of the register of shareholders about the changes, which shall be entered into the register of shareholders in accordance with the requirements of this Charter and legislation of the Kyrgyz Republic.  

17.4. The entry in the register of shareholders of the Bank is made at the request of the shareholder or nominal holder of shares no later than 3 (three) days from the date of submission of the documents stipulated by the legislation of the Kyrgyz Republic.  

17.5. Refusal to make an entry in the Banks register of shareholders is not allowed, except for the cases provided for by the legislation of the Kyrgyz Republic. In case of refusal to make an entry in the Banks register of shareholders, the holder of the specified register no later than 3 (three) days from the moment of filing the request to make an entry in the register of shareholders sends to the person requesting the entry a reasoned notice of the refusal to make the entry.  

Refusal to make an entry in the register of shareholders of the Bank may be appealed in the manner prescribed by the legislation of the Kyrgyz Republic.  

17.6. At the request of a shareholder or their legal representatives, a bank or his/her/its official representative, the registrar is obliged within 5 (five) working days from the receipt of the request to provide an extract from the register indicating the number of shares owned by a particular shareholder of the bank, and if necessary, information about transactions made by these shareholders earlier. An extract from the register of shareholders of the Bank is not a security, but confirms the shareholders right to own shares at the time of its issue.  

17.7. Information from the register of shareholders of the Bank is provided by the registrar to the National Bank of the Kyrgyz Republic at the first request.  

18. ACCOUNTING AND REPORTING  

18.1. The Bank is obliged to keep accounting records and submit financial statements, the nature, volume, list of forms and the procedure for providing thereof are established by the legislation of the Kyrgyz Republic.  

18.2. The Board of Directors is responsible for the organization, state, accuracy of accounting and other reporting, timely submission of the annual report and other financial statements to the relevant authorities, as well as information about the Banks activities provided to the shareholders, creditors and the media.  

18.3. The accounting policy, organization of document circulation in the Bank, in its branches and representative offices is established by the decision of the Board of the Bank in accordance with the legislation of the Kyrgyz Republic.  

18.4. The financial year of the Bank is set from January 1 to December 31 inclusive.  

The annual report of the Bank is subject to confirmation by the external auditor of the Bank before the date of informing the shareholders of the annual general meeting of shareholders.  

18.5. The Bank is obliged to publish in the mass media the information that, in accordance with the legislation of the Kyrgyz Republic, is subject to mandatory publication.  

19. BANK AUDIT  

19.1. The Bank audit is carried out by the internal audit service and an independent external auditor in accordance with this Charter, the Regulation “On the Internal Audit Service” and the legislation of the Kyrgyz Republic.  

19.2. The competence of the internal audit service includes:  

19.2.1. Verification and assessment of the adequacy and effectiveness of the internal control system in the Bank.  

19.2.2. Determining the degree of compliance with the legislation of the Kyrgyz Republic and local regulations in the Bank.  

19.2.3. Assessment of the accounting adequacy in the Bank.  

19.2.4. Other issues related to its competence by the legislation of the Kyrgyz Republic, this charter and the Regulation “On the Internal Audit Service”.  

19.3. The quantitative and personal composition of the internal audit service is determined by the Board of Directors of the Bank in accordance with the procedure established by the Regulations “On the Internal Audit Service” and this Charter.  

19.4. The Bank annually attracts a professional independent auditor (external auditor) who is not connected by property interests with the Bank, its shareholders or officials of the Bank to verify and confirm the correctness of the financial statements. An audit of the Bank shall meet the minimum criteria for an audit of the Bank established by the National Bank of the Kyrgyz Republic.  

19.5. The external auditor is approved by the general meeting of shareholders of the Bank.  

19.6. The external auditor carries out activities to confirm the reliability of the financial statements of the Bank in compliance with the requirements of the legislation of the Kyrgyz Republic and in accordance with the agreement made with him/her, signed by the Chairman of the Board on the basis of the decision of the general meeting of shareholders on approval of the external auditor. An audit firm is responsible for the faithful fulfillment of its duties in accordance with the approved charter of the audit firm, the legislation of the Kyrgyz Republic and an agreement with the Bank.  

19.7. According to the results of the external audit of the Bank, the external auditor draws up a conclusion in accordance with the requirements established by the legislation of the Kyrgyz Republic.  

20. BANK REORGANIZATION  

(the main provisions related to the bank reorganization, or a reference to the legislation of the Kyrgyz Republic shall be specified)  

21. BANK LIQUIDATION PROCEDURE  

21.1. The Bank is liquidated in a voluntary and compulsory manner in accordance with the banking legislation of the Kyrgyz Republic.  

Chairman of the Board of the Bank ________________ Full name, signature  

   

   

   

Appendix 5   to the Regulation “On Licensing Bank Activities”  

LIST   

of Founders (Shareholders)  

___________________________________  

(name of the bank according to the approved charter of the bank)  

as of ___________________  

  

1)  

2)  

3)  

4)  

5)  

6)  

7)  

8)  

9)  

No.  

For legal entities  

Postal index, address, telephone, fax   

Declared authorized capital of the bank  

The authorized capital of the bank paid-up as of __________ ____,20___  

   

Full name of legal entity   

Full name of the head and founder (shareholder) of a legal entity  

Country of registration (origin)   

thous. KGS  

Participating interest in the authorized capital (in percent)  

contributed in thous. KGS  

Participating interest in the authorized capital (in percent)   

1  

   

   

   

2  

   

   

   

   

For individuals  

   

   

Full name (for foreign citizens, surname, name, and patronymic shall be additionally specified in English)  

Passport details (passport No., date of issue, validity period, issuing authority)   

Citizenship   

   

   

   

   

   

1  

   

   

   

2  

   

   

   

5  

6  

7  

8  

9  

1)  

2)  

3)  

4)  

5)  

6)  

7)  

8)  

9)  

   

Total  

   

   

   

   

   

   

   

   

The Chairman of the Board of Directors (signature) Full name  

   

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

   

Note.  

1) for obtaining a license, columns 1 through 7 shall be filled in;  

2) when changing the amount of the authorized capital of the current bank, all columns shall be filled;  

3) founders (shareholders) must be specified in alphabetical order.  

   

   

   

Appendix 6   to the Regulation “On Licensing Bank Activities”  

INFORMATION   

about Significant Participants of the Bank   

______________________________________  

(name of the bank according to the approved charter of the bank)  

as of ___________________)  

  

(data completion date)  

Full name of a legal entity or full name of an individual - a significant participant of the bank  

Full name of a legal entity or full name of an individual who is significantly involved in the legal entity specified in column 1  

Full name of the legal entities, which shares are owned by an individual specified in column 1  

1  

2  

3  

Name/Full name (see *)  

Contribution amount (KGS)  

Ownership share (%)  

Name/Full name (see *)  

Contribution amount (KGS)  

Ownership share (%)  

Name/Full name (see *)  

Contribution amount (KGS)  

Ownership share (%)  

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

Chairman of the Board of Directors _______________ (Signature) (Full Name)  

   

Seal (for a newly established bank - the seal of the founder - the legal entity from which the chairman of the Board of Directors is elected (if any); for the current bank - the seal of the bank).  

Note:  

(*) At the same time, in addition to the complete name (full name), the following shall be specified:  

1) for legal entities - postal address, telephone number, settlement account number (s) indicating the name of the financial-credit organization(s) where the account(s) is (are) opened;  

2) for individuals - passport data, home address.  

   

   

   

Appendix 7   to the Regulation “On Licensing Bank Activities”  

Proposed   

Business Plan and the Main Issues that Shall Be Reflected in the Business Plan  

  

((As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)   

I. Introduction  

The business plan is the main document that determines the strategy, direction and scope of the banks activities and the operations that the bank will conduct to achieve desired goal during the upcoming three years of the banks operation and allows evaluating:  

a) the ability of the bank to ensure financial stability, to comply with the prudential standards, mandatory reserve requirements established by the National Bank of the Kyrgyz Republic, and to comply with the requirements of the law;  

b) the ability of the bank for long-term existence as a profitable financial institution;  

c) the adequacy of the risk management system of the bank.  

The business plan shall be drafted taking into account the following:  

1) calculations and forecasts shall be made taking into account the real economic conditions of the market segment where the bank will operate;  

2) the impact of the bank operations on improving the economy of the region or the country shall be described;  

3) the background and forecasting shall be realistic and compiled on the basis of high-quality, verified information;  

4) the business plan shall reflect the good profitability of the bank within a reasonable time frame;  

5) the capital adequacy of the bank shall meet the requirements of the capital adequacy standard set by the National Bank of the Kyrgyz Republic, and be sufficient to support forecasted growth in assets and to support initial expenses related to the organization of the banks activities. This means that the amount of capital shall not be less than that established by the National Bank of the Kyrgyz Republic, after deduction of all expenses and losses after arrangement of activities and opening of the bank.  

The business plan shall obligatorily include:  

1) the economic rationale for bank establishment and the financial outlook for the banks activities (budget, forecasted: balance sheet, profit and loss statement, capital adequacy);  

2) the structure of the management and internal control system of the bank;  

3) the banks lending policy (mechanisms for assessing the risk when granting loans, continuous monitoring of issued loans and all other types of risk, as well as other issues related to the banks lending policy);  

4) proposed measures on combating terrorism financing and money laundering;  

5) a plan to attract customers and to create a customer base of the bank;  

6) a plan to attract personnel and to conduct personnel policy;  

7) asset and liabilities management plan;  

8) other aspects related to the proper organization and functioning of the bank.  

Approximate Business Plan  

1. General Information  

Indicate the name of the bank, the address of the bank location. Indicate whether the bank will be part of a bank holding company or a banking group, and which one.  

Indicate the surname, name, and patronymic of the authorized representative, his/her address, telephone number.  

Provide a summary of the business plan and the purpose of drawing thereof.  

2. Goals and Objectives of Bank Establishment   

In determining the goals and objectives, the bank shall reflect the long-term vision of its role and place in the banking services market.  

3. Market Analysis and Marketing   

It is necessary to reflect how the planned marketing activity will provide the forecasted market share. Describe your assessment of the impact of development of the economic indicators and indicators characterizing financial markets on the main activities, including the main banking products and services and the development of business activity in the regions, a description of the impact of bank operations on improving the economy of the region or the country. In particular, provide a description:   

1) of the banking system characteristics;  

2) of the target segments of the banking and financial services market the banks activities, and the estimated market area where the bank will operate will be directed to, the expected development dynamics, opportunities and restrictions for market conquest;  

3) impact of the bank operations on improving the economy of the region or the country;  

4) banks plans for positioning the products and the services in the market in respect of quality, price, service, etc., plans for distribution, promotion and advertising, pricing policy (setting tariffs based on demand or costs, including planned future tariff levels) , customer service, geographical expansion (in the domestic market, abroad), activities to conquer a niche in the banking services market;  

5) current and probable future competitors with an objective assessment of them and your strengths and weaknesses, the place the bank intends to take among them, their response to appearance of the bank in the market, the methods the bank intends to use to succeed.  

4. Banks Activity   

When covering the issue of the banks activity, it is necessary to take into account that the bank shall be market oriented, i.e. determine its activities taking into account the political, social, legal and economic situation in the republic and properly assess its competitors. The bank shall know the circle of future customers and their features in offering to carry out certain banking operations.  

Describe the main activities of the bank, indicate their volumes, forecasted income and other economic indicators, market growth, interest rates. Describe the structure of assets and liabilities. The forecasted balance sheet and income statement shall reflect changes in assets and liabilities, the volume for each type of service, as well as the salaries of the officials and the staff.  

The envisaged changes in the market, factors affecting these changes and their impact on the banks activities.  

Describe the proposed lending policy (credit risk assessment mechanism, a mechanism for continuous monitoring of issued loans, other issues related to the assumed lending policy), the policy on deposit services, as well as other banking operations that are a priority for the bank being established.   

When describing the concentration of loans, it is necessary for the bank to take into account its own funds when issuing a loan, it is necessary to indicate whether any restrictions will be placed on granting loans to a specific sector of the economy, one borrower, a group of related borrowers, or the affiliates.  

Describe the system of measures that will be taken to combat money laundering and terrorism or extremism financing.  

Describe plans for providing a new bank with an independent external audit.  

It is necessary to reflect the internal control system, including the quantitative and personal composition of the internal audit, risk management and compliance control service; the work of the Audit, Risk Management and Nomination and Remuneration Committees, the quantitative composition of the Audit Committees, the methods to be used by the bank to monitor the compliance with the regulatory requirements of the National Bank of the Kyrgyz Republic, safety insurance, asset quality, cash on hand monitoring, etc., and the methods to be used to carry out work on the materials of the audits.   

Describe the liquidity management policy to ensure the banks ability to meet its obligations, as well as to satisfy the demand for loans.  

In addition, it is necessary to describe loan loss provisions created by the bank, to indicate the proposed assets classification.  

It is necessary to specify the time frames for the policies and procedures to be developed.  

Specify the information about the provision with the building, office, banking equipment, and vehicles to implement the banks activities, as well as the provision of a security system, including software to protect information from unauthorized access, a fire safety system.  

5. Governance and Management   

Describe the organizational structure of the bank, the principles of distributing the managerial functions between the banks management bodies and the terms of reference of the chairman of the board and the members of the board, including accountability and functions of the structural subdivisions. For each type of bank activity, it is necessary to clearly describe the duties of the bank members, their powers, (for example, on the issue of decision-making for loans extending), the risk management system in all areas of activity on a regular basis.  

Indicate the approximate staffing table (planned number of personnel of structural subdivisions) required in connection with the proposed banks activities, a plan to attract personnel and to conduct personnel policy of the bank, plans for hiring and retaining, staff remuneration, including information on estimated bonuses and other remuneration, projected estimated total staff costs. The organizational structure of the bank shall include mechanisms for disseminating information between all levels of the bank, i.e., the frequency of planned meetings of the Board of Directors, the Board and committees and other management meetings, information and the intervals of provision thereof to the Board of Directors and other management bodies of the bank.  

List the proposed candidates for the post of the Chairman of the Board of Directors and the Board of the Bank, and other managers, as well as the qualities that managers shall have to be accepted for this job. Indicate the main criteria that they shall have to achieve the goals set by the bank.  

Describe the main criteria for the heads of the main structural subdivisions, procedures for their approval. Describe the planned growth of the employees during the first three years of the bank operation.  

The banks policy on disseminating and maintaining the principles of corporate governance, the internal regulatory documents which will govern this issue.  

6. Capital  

Indicate the main founders (shareholders), significant participants and/or persons who will exercise control, the nature of the relationship between the founders, the financial status of the founders (shareholders) during the last three years of activity, including information on the balance sheet date, information on the main activities, about the managers (members of the board of directors/supervisory body and the board/executive body). Information about the financial status of the banking group or the bank holding company, if the bank will be a part of the banking group or the bank holding. Financial capabilities of the founders (shareholders) to provide, if necessary, additional capital. Specify the percentage ratio of the ownership share of each founder to the total volume of shares issued by the bank.  

Describe the estimated capital structure, the methods to be used by the bank to maintain capital, assess the adequacy of the forecasted capital taking into account the weighting the assets by risk, according to the regulatory documents of the National Bank of the Kyrgyz Republic, taking into account the intended direction and basic operations of the bank, the strategy to be used to ensure compliance with the (regulatory) own capital adequacy ratio established by the National Bank of Kyrgyz Republic. Describe the number and class of issued shares.  

   

Schedules  

   

   

   

Schedule 1   to Business Plan  

Forecasted Balance Sheet (see 5)  

(is drawn up for the first three years of activity with data as of the end of each year)  

__________________________________________________  

(name of the bank according to the approved charter of the bank)  

Unit of measure: thous. KGS  

№  

Name  

1st year  

2nd year  

3rd year  

   

ASSETS  

   

   

   

1  

Funds  

   

   

   

2  

Correspondent account with the National Bank of the Kyrgyz Republic  

   

   

   

3  

Correspondent accounts and deposits with other banks and financial-credit organizations  

   

   

   

4  

Securities  

   

   

   

5  

Short term placements, including REPOs  

   

   

   

6  

Loans to financial-credit organizations   

   

   

   

7  

Loans and financial leases to other customers  

   

   

   

8  

minus: Provision for potential credit and leasing losses and damages  

   

   

   

9  

Total net loans Sum of 12-14 lines  

   

   

   

10  

Fixed assets of the bank  

   

   

   

11  

Other property of the bank  

   

   

   

12  

Investment and financial participation  

   

   

   

13  

Other assets  

   

   

   

14  

Total: Assets Sum of 7-14, 16-21 lines  

   

   

   

   

LIABILITIES  

   

   

   

15  

Demand deposits of the population and enterprises  

   

   

   

16  

Savings deposits  

   

   

   

17  

Term deposits of the population and enterprises  

   

   

   

18  

Deposits and loro accounts of the banks and other financial institutions  

   

   

   

19  

Total: Deposits Sum of 15-18 lines  

   

   

   

20  

Loans from the banks and other financial institutions   

   

   

   

21  

Loans received from the National Bank of the Kyrgyz Republic  

   

   

   

22  

Deposits and loans of the Government agencies of the Kyrgyz Republic and local authorities  

   

   

   

23  

Other long-term liabilities and loans  

   

   

   

24  

Other liabilities  

   

   

   

25  

Total: Liabilities Sum of 19-24 lines   

   

   

   

26  

CAPITAL  

   

   

   

27  

Ordinary shares  

   

   

   

28  

Preference shares  

   

   

   

29  

Retained earnings  

   

   

   

30  

Total reserves  

   

   

   

31  

LLP  

   

   

   

32  

Other general reserves  

   

   

   

33  

Total: Capital Sum of 40-47 lines  

   

   

   

34  

Total: Liabilities and Capital Sum of 38, 39 and 48 lines  

   

   

   

   

Chairman of the Board of Directors _______________________ (signature) (full name)  

Note.  

(5) Shall be filled in according to the Guidelines for completing the Periodic Regulatory Banking Report.  

   

   

   

Schedule 2   to Business Plan  

Profit and Loss Statement  

for the First Three Years of Activity  

(with data as of the end of the year)  

__________________________________  

(name of the bank according to the approved charter of the bank)  

(thous. KGS)  

A. Interest income  

1st year  

2nd year  

3rd year  

1. Interest income from securities  

   

   

   

2. Interest income from loans  

   

   

   

3. Other interest income from loans  

   

   

   

4. Total interest income  

   

   

   

B. Interest expenses  

   

   

   

5. Interest expenses for deposits  

   

   

   

6. Interest expenses for received loans   

   

   

   

7. Other interest expenses  

   

   

   

8. Total interest expenses  

   

   

   

9. Net interest income  

   

   

   

10. Provision for potential losses and damages on loans  

   

   

   

11. Net interest income after deductions for LLP  

   

   

   

C. Non-interest income  

   

   

   

12. Service charge and commission fees  

   

   

   

13. Income from securities operations  

   

   

   

14. Income from foreign currency operations  

   

   

   

15. Other non-interest income  

   

   

   

16. Total non-interest income  

   

   

   

D. Other operating and administrative expenses  

   

   

   

17. Staff expenses  

   

   

   

18. Expenses for fixed assets  

   

   

   

a) rent  

   

   

   

b) other  

   

   

   

19. Other operating and administrative expenses  

   

   

   

20. Total other operating and administrative expenses  

   

   

   

21. Net operating income (loss)  

   

   

   

22. Loan loss provisions (not from lending operations)  

   

   

   

23. Net income (loss) after LLP  

   

   

   

24. Income tax  

   

   

   

25. Net income (loss) prior to unexpected income and expenses  

   

   

   

26. Net profit (loss)  

   

   

   

   

Chairman of the Board of Directors ________________ (signature) (full name)  

   

   

   

Schedule 3   to Business Plan  

Business Plan Assumptions  

_____________________________________________________  

(name of the bank according to the approved charter of the bank)  

  

1. Indicators characterizing the influence of the external environment on the banks activities  

   

Indicators  

1st year  

2nd year  

3rd year  

1  

Refinancing rate, %  

   

   

   

2  

KGS/USD exchange rate, KGS per USD 1  

   

   

   

3  

KGS/EUR exchange rate, KGS per EUR 1  

   

   

   

4  

Annual inflation rate, growth rate,%  

   

   

   

5  

Cost attributable tax deductions,%  

   

   

   

6  

Ratio of mandatory reserve requirements deposited with the National Bank of the Kyrgyz Republic,%  

   

   

   

7  

Average interest rates on deposits,%  

   

   

   

8  

Average interest rates on loans and other placements,%  

   

   

   

8.1  

Short-term (up to 1 year)  

   

   

   

8.2  

Medium-term (1-3 years)  

   

   

   

8.3  

Long-term (over 3 years)  

   

   

   

9  

Tax rates  

   

   

   

9.1  

Income tax  

   

   

   

9.2  

Value Added Tax  

   

   

   

9.3  

Local taxes  

   

   

   

9.4  

Other taxes  

   

   

   

   

   

   

   

   

   

Chairman of the Board of Directors ________________ (signature) (full name)  

   

   

   

Schedule 4   to Business Plan  

Information  

on Compliance with Prudential Standards (see 6)  

____________________________________________  

(name of the bank according to the approved charter of the bank)  

  

Prudential standards  

Set value of the standard (see. 7)  

At the beginning of the 1st year  

At the beginning of the 2nd year  

At the beginning of the 3rd year   

Maximum risk per one non bank-related borrower (K 1.1)  

   

   

   

   

Maximum risk per bank-related borrower (K 1.2)  

   

   

   

   

Maximum risk for interbank placements at a bank not related to a bank (К 1.3)  

   

   

   

   

Maximum risk of interbank placements at a bank related to a bank (К 1.4)  

   

   

   

   

Total capital adequacy ratio (K 2.1)  

   

   

   

   

Tier I capital adequacy ratio (К 2.2)  

   

   

   

   

Levering ratio (K 2.3) not less than 8%  

   

   

   

   

Bank liquidity ratio (K 3)  

   

   

   

   

   

Chairman of the Board of Directors ________________ (signature) (full name)  

Note:  

(6) It is prepared in accordance with the Regulation “On prudential standards and requirements that must be fulfilled by the commercial banks of the Kyrgyz Republic”.  

(7) The values of the standards are established by the Regulation “On prudential standards and requirements that must be fulfilled by the commercial banks of the Kyrgyz Republic”.  

   

   

   

Appendix 8   to the Regulation “On Licensing Bank Activities”  

Proposed   

Business Plan for an Islamic Bank, a Bank with an “Islamic Window” and the Main Issues that Shall Be Reflected in the Business Plan  

  

((As amended by the Resolution of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018)   

Introduction  

The business plan is the main document that determines the strategy, direction and scope of the banks activities and the operations that the bank will conduct to achieve desired goal during the upcoming three years of the banks operation and allows evaluating:  

a) the ability of the bank to ensure financial stability, to comply with the prudential standards, mandatory reserve requirements established by the National Bank of the Kyrgyz Republic, and to comply with the requirements of the law;  

b) the ability of the bank for long-term existence as a profitable financial institution;  

c) the adequacy of the risk management system of the bank.  

The business plan shall be drafted taking into account the following:  

1) calculations and forecasts shall be made taking into account the real economic conditions of the market segment where the bank will operate;  

2) the impact of the bank operations on improving the economy of the region or the country shall be described;  

3) the background and forecasting shall be realistic and compiled on the basis of high-quality, verified information;  

4) the business plan shall reflect the good profitability of the bank within a reasonable time frame;  

5) the capital adequacy of the bank shall meet the minimum requirements of the capital adequacy standard set by the National Bank of the Kyrgyz Republic, and be sufficient to support forecasted growth in assets and to support initial expenses related to the organization of the banks activities. This means that the amount of capital shall not be less than that established by the National Bank of the Kyrgyz Republic, after deduction of all expenses and losses after arrangement of activities and opening of the bank.  

The business plan shall obligatorily include:  

1) the economic rationale for bank establishment and the financial outlook for the banks activities (budget, forecasted: balance sheet, profit and loss statement, capital adequacy);  

2) the structure of the management and internal control system of the bank;  

3) the banks financing policy (mechanisms for assessing the risk when granting financing, continuous monitoring of issued financing and all other types of risk, as well as other issues related to the banks financing policy);  

4) proposed measures on combating money laundering and terrorism or extremism financing;  

5) a plan to attract customers and to create a customer base of the bank;  

6) a plan to attract personnel and to conduct personnel policy;  

7) asset and liabilities management plan;  

8) other aspects related to the proper organization and functioning of the bank.  

Approximate Business Plan  

1. General Information  

Indicate the name and the address of the bank location. Indicate whether the bank will be part of a bank holding company or a banking group, and which one.  

Indicate the surname, name, and patronymic of the authorized representative, his/her address, telephone number.  

Provide a summary of the business plan and the purpose of drawing thereof.  

2. Goals and Objectives of Bank Establishment   

In determining the goals and objectives, the bank shall reflect the long-term vision of its role and place in the banking services market.  

3. Market Analysis and Marketing   

It is necessary to reflect how the planned marketing activity will provide the forecasted market share. Describe your assessment of the impact of development of the economic indicators and indicators characterizing financial markets on the main activities, including the main banking products and services and the development of business activity in the regions, a description of the impact of bank operations on improving the economy of the region or the country. In particular, provide a description:   

1) of the banking system characteristics;  

2) of the target segments of the banking and financial services market the banks activities, and the estimated market area where the bank will operate will be directed to, the expected development dynamics, opportunities and restrictions for market conquest;  

3) impact of the bank operations on improving the economy of the region or the country;  

4) banks plans for positioning the products and the services in the market in respect of quality, price, service, etc., plans for distribution, promotion and advertising, pricing policy (setting tariffs based on demand or costs, including planned future tariff levels) , customer service, geographical expansion (in the domestic market, abroad), activities to conquer a niche in the banking services market;  

5) procedure for the formation of mark-ups on financing (mark-up in terms of annual profitability, methods for the formation of schedule for mark-ups on financing)  

5) objective assessment the banks strengths and weaknesses, as well as current and probable future competitors, the place the bank intends to take among them, market response to appearance of a new bank, the methods the bank intends to use to succeed.  

4. Banks Activity   

When covering the issue of the banks activity, it is necessary to take into account that the bank shall be market oriented, i.e. determine its activities taking into account the political, social, legal and economic situation in the republic and properly assess its competitors. The bank shall know the circle of future customers and their features in offering to carry out certain banking operations.  

Describe the main activities of the bank, indicate their volumes, forecasted income, other economic indicators, and market growth. Describe the structure of assets and liabilities. The forecasted balance sheet and income statement shall reflect changes in assets and liabilities, the volume for each type of service, as well as the salaries of the officials and the staff.  

The envisaged changes in the market, factors affecting these changes and their impact on the banks activities.  

Describe the proposed financing policy (risk assessment mechanism when financing is issued, a mechanism for continuous monitoring of issued financing, other issues related to the assumed financing policy), the policy on deposit services, as well as other banking operations that are a priority for the bank being established.   

When describing the concentration of credit risk bearing assets, it is necessary for the bank to take into account its own funds when issuing financing, it is necessary to indicate whether any restrictions will be placed on granting financing to a specific sector of the economy, one customer/partner, a group of related customers/partners, or the affiliates.  

Describe the system of measures that will be taken to combat money laundering and terrorism or extremism financing.  

Describe plans for providing a new bank with an independent external audit.  

It is necessary to reflect the internal control system, including the quantitative and personal composition of the internal audit, risk management and compliance control services; the work of the Audit, Risk Management and Nomination and Remuneration Committees, the quantitative composition of the Committees, the methods to be used by the bank to monitor the compliance with the regulatory requirements of the National Bank, safety insurance, asset quality, cash on hand monitoring, etc., and the methods to be used to carry out work on the materials of the audits.   

Describe the liquidity management policy to ensure the banks ability to meet its obligations, as well as to satisfy the demand for financing.  

In addition, it is necessary to describe loan loss provisions created by the bank, to indicate the proposed assets classification.  

It is necessary to specify the time frames for the policies and procedures to be developed.  

Specify the information about the provision with the building, office, banking equipment, and vehicles to implement the banks activities, as well as the provision of a security system, including software to protect information from unauthorized access, a fire safety system.  

5. Governance and Management   

Describe the organizational structure of the bank, the principles of distributing the managerial functions between the banks management bodies and the terms of reference of the chairman of the board and the members of the board, including accountability and functions of the structural subdivisions. For each type of bank activity, it is necessary to clearly describe the duties of the bank members, their powers, (for example, on the issue of decision-making for financing extending), the risk management system in all areas of activity on a regular basis.  

Indicate the approximate staffing table (planned number of personnel of structural subdivisions) required in connection with the proposed banks activities, a plan to attract personnel and to conduct personnel policy of the bank, plans for hiring and retaining, staff remuneration, including information on estimated bonuses and other remuneration, projected estimated total staff costs. The organizational structure of the bank shall include mechanisms for disseminating information between all levels of the bank, i.e., the frequency of planned meetings of the Board of Directors, the Sharia Council, the Board and committees and other management meetings, information and the intervals of provision thereof to the Board of Directors, the Sharia Council and other management bodies of the bank.  

List the proposed candidates for the post of the Chairman of the Board of Directors, the Chairman of the Sharia Council and the Board of the Bank, and other managers, as well as the qualities that managers shall have to be accepted for this job. Indicate the main criteria that they shall have to achieve the goals set by the bank.  

Describe the main criteria for the heads of the main structural subdivisions, procedures for their approval. Describe the planned growth of the employees during the first three years of the bank operation.  

The banks policy on disseminating and maintaining the principles of corporate governance, the internal regulatory documents which will govern this issue.  

6. Capital  

Indicate the main founders (shareholders), significant participants and/or persons who will exercise control, the nature of the relationship between the founders, the financial status of the founders (shareholders) during the last three years of activity, including information on the balance sheet date, information on the main activities, about the managers (members of the Board of Directors/Sharia Council and the board/executive body). Information about the financial status of the banking group or the bank holding company, if the bank will be a part of the banking group or the bank holding. Financial capabilities of the founders (shareholders) to provide, if necessary, additional capital. Specify the percentage ratio of the ownership share of each founder to the total volume of shares issued by the bank.  

Describe the estimated capital structure, the methods to be used by the bank to maintain capital, assess the adequacy of the forecasted capital taking into account the weighting the assets by risk, according to the regulatory documents of the National Bank, taking into account the intended direction and basic operations of the bank, the strategy to be used to ensure compliance with the own capital adequacy ratio established by the National Bank. Describe the number and class of issued shares.  

   

Schedule 1   

to Business Plan  

Suggested Revision (for the Islamic Banks)  

Forecasted Balance Sheet (see 5)  

(is drawn up for the first three years of activity with data as of the end of each year)  

_______________________________________________  

(name of the bank according to the approved charter of the bank)  

Unit of measure: thous. KGS  

№  

Name  

1st year  

2nd year  

3rd year  

   

Assets  

   

   

   

1  

Funds  

   

   

   

2  

Correspondent account with the National Bank of the Kyrgyz Republic  

   

   

   

3  

Correspondent accounts and deposits with other banks and financial-credit organizations  

   

   

   

4  

Securities  

   

   

   

5  

Short term placements, including REPOs  

   

   

   

6  

Financing provided to the banks and financial-credit organizations   

   

   

   

7  

Financing provided to other customers  

   

   

   

8  

minus: LLP for provided financing   

   

   

   

9  

Total net financing  

   

   

   

10  

Fixed assets of the bank  

   

   

   

11  

Other property of the bank   

   

   

   

12  

Investment and financial participation  

   

   

   

13  

Other assets  

   

   

   

14  

Total: Assets  

   

   

   

   

Liabilities  

   

   

   

15  

Demand deposits of the population, enterprises, Government institutions of the Kyrgyz Republic and local authorities  

   

   

   

16  

Savings deposits  

   

   

   

17  

Term deposits of the population, enterprises, Government institutions of the Kyrgyz Republic and local authorities  

   

   

   

18  

Deposits and loro accounts of the banks and other financial institutions  

   

   

   

19  

Total: Deposits  

   

   

   

20  

Financing from the banks and other financial institutions   

   

   

   

21  

Financing received from the National Bank of the Kyrgyz Republic  

   

   

   

22  

Financing received from the Government institutions of the Kyrgyz Republic and local authorities  

   

   

   

23  

Other long-term liabilities and financing  

   

   

   

24  

Other liabilities  

   

   

   

25  

Total: Liabilities  

   

   

   

26  

Capital  

   

   

   

27  

Ordinary shares  

   

   

   

28  

Preference shares  

   

   

   

29  

Retained earnings  

   

   

   

30  

Total reserves  

   

   

   

31  

LLP  

   

   

   

32  

Other general reserves  

   

   

   

33  

Total: Capital  

   

   

   

34  

Total: Liabilities and Capital  

   

   

   

   

Chairman of the Board of Directors _______________________ (signature) (full name)  

Note:  

(5) - Shall be filled in according to the Guidelines for completing the Periodic Regulatory Report of the banks conducting operations under the principles of Islamic banking and finance.  

   

Schedule 2   

to Business Plan  

Profit and Loss Statement  

for the First Three Years of Activity  

(with data as of the end of the year)  

__________________________________________________  

(name of the bank according to the approved charter of the bank) _____________________________  

(thous. KGS)  

N  

Name  

1st year  

2nd year  

3rd year  

   

A. Income from operations  

   

   

   

1  

Income from cash placed on the accounts in the commercial banks  

   

   

   

2  

Income from the correspondent account with the National Bank of the Kyrgyz Republic  

   

   

   

3  

Income from trading securities  

   

   

   

4  

Income from securities available for sale  

   

   

   

5  

Income from securities held to maturity  

   

   

   

6  

Income from short-term placements  

   

   

   

7  

Income from financing provided by financial-credit organizations  

   

   

   

8  

Income from financing provided to other customers  

   

   

   

9  

Income from securities purchased under REPO agreement  

   

   

   

10  

Other income received from financing operations  

   

   

   

11  

Total income  

   

   

   

   

B. Expenses incurred on operations  

   

   

   

12  

Expenses for demand accounts of legal entities  

   

   

   

13  

Expenses for accounts of individuals  

   

   

   

14  

Expenses for term accounts of legal entities  

   

   

   

15  

Expenses for short-term placements  

   

   

   

16  

Expenses for bank accounts  

   

   

   

17  

Expenses for obligations to the NBKR  

   

   

   

18  

Expenses for securities  

   

   

   

19  

Expenses for securities sold under REPO agreements  

   

   

   

20  

Expenses incurred for financing operations  

   

   

   

21  

Expenses for subordinated debt obligations  

   

   

   

22  

Other expenses incurred for financing operations  

   

   

   

23  

Total expenses  

   

   

   

24  

Net income  

   

   

   

25  

Expenses for loan loss provision for provided financing   

   

   

   

26  

Net income after deductions to LLP  

   

   

   

   

C. Other income from bank operations  

   

   

   

27  

Service charge and commission fees  

   

   

   

28  

Income from securities operations  

   

   

   

29  

Income from foreign currency operations  

   

   

   

30  

Income/dividends from investments in shares and participatory interest, including subsidiaries and associated companies   

   

   

   

31  

Other income  

   

   

   

32  

Total other income  

   

   

   

   

D. Other expenses for bank operations  

   

   

   

33  

Expenses for banking charges and commission fees  

   

   

   

34  

Charity and related expenses  

   

   

   

35  

Losses from securities operations  

   

   

   

36  

Losses from operations with foreign currency  

   

   

   

37  

Other expenses  

   

   

   

38  

Total other expenses  

   

   

   

   

E. Other operating and administrative expenses  

   

   

   

39  

Staff expenses  

   

   

   

40  

Fees to the members of the Board of Directors of the bank  

   

   

   

41  

Remuneration to members of the Sharia Council  

   

   

   

42  

Expenses for fixed assets:  

   

   

   

   

a) rent  

   

   

   

   

b) utilities  

   

   

   

   

c) other  

   

   

   

43  

Taxes  

   

   

   

44  

Insurance  

   

   

   

45  

Other operating and administrative expenses  

   

   

   

46  

Total other operating and administrative expenses  

   

   

   

47  

Net operating income (loss)  

   

   

   

48  

Expenses for loan loss provision (not from financing operations)  

   

   

   

49  

Net income (loss) after deductions to the LLP  

   

   

   

50  

Income tax  

   

   

   

51  

Net profit (loss)  

   

   

   

   

   

   

   

   

   

   

   

   

   

   

Chairman of the Board of Directors ________________ (signature) (full name)  

   

Schedule 3   

to Business Plan  

Business Plan Assumptions   

___________________________________________________  

(name of the bank according to the approved charter of the bank)  

1. Indicators characterizing the influence of the external environment on the banks activities  

   

Indicators  

1st year  

2nd year  

3rd year  

1  

Refinancing rate, %  

   

   

   

2  

KGS/USD exchange rate, KGS per USD 1  

   

   

   

3  

KGS/EUR exchange rate, KGS per EUR 1  

   

   

   

4  

Annual inflation rate, growth rate,%  

   

   

   

5  

Cost attributable tax deductions,%  

   

   

   

6  

Ratio of mandatory reserve requirements deposited with the National Bank of the Kyrgyz Republic,%  

   

   

   

7  

Average interest rates on deposits,%  

   

   

   

8  

Ratio of mandatory reserve requirements deposited with the National Bank of the Kyrgyz Republic,%  

   

   

   

8.1  

Short-term (up to 1 year)  

   

   

   

8.2  

Medium-term (1-3 years)  

   

   

   

8.3  

Long-term (over 3 years)  

   

   

   

9  

Tax rates  

   

   

   

9.1  

Income tax  

   

   

   

9.2  

Value Added Tax  

   

   

   

9.3  

Local taxes  

   

   

   

9.4  

Other taxes  

   

   

   

   

   

   

   

   

   

Chairman of the Board of Directors ________________ (signature) (full name)   

  

Schedule 4   

to Business Plan  

Information  

on Compliance with Prudential Standards (see 6)  

____________________________________________________  

(name of the bank according to the approved charter of the bank)  

Prudential standards  

Set value of the standard (see. 7)  

At the beginning of the 1st year  

At the beginning of the 2nd year  

At the beginning of the 3rd year   

Maximum risk per one non bank-related borrower (K 1.1)  

   

   

   

   

Maximum risk per bank-related borrower (K 1.2)  

   

   

   

   

Maximum risk for interbank placements at a bank not related to a bank (К 1.3)  

   

   

   

   

Maximum risk of interbank placements at a bank related to a bank (К 1.4)  

   

   

   

   

Total capital adequacy ratio (K 2.1)  

   

   

   

   

Tier I capital adequacy ratio (К 2.2)  

   

   

   

   

Levering ratio (K 2.3) not less than 8%  

   

   

   

   

Bank liquidity ratio (K 3)  

   

   

   

   

   

Chairman of the Board of Directors ________________ (signature) (full name)  

   

Note:  

(6) It is prepared in accordance with the Regulation “On prudential standards and requirements that must be fulfilled by the commercial banks of the Kyrgyz Republic”.  

(7) The values of the standards are established by the Regulation “On prudential standards and requirements that must be fulfilled by the commercial banks of the Kyrgyz Republic”.  

   

   

   

Appendix 9   to the Regulation “On Licensing Bank Activities”  

NATIONAL BANK OF THE KYRGYZ REPUBLIC  

LICENSE No.   

Authorizing to Conduct Banking Operations in the National and/or Foreign Currency   

_________________________________________________  

(full firm name of a legal entity)  

_________________________________________________  

(abbreviated firm name of a legal entity)   

city of______________________  

1. Is entitled to conduct banking operations specified in the list of authorized banking operations in accordance with the banking legislation of the Kyrgyz Republic  

2. The list of authorized banking operations is an integral part of this license.  

This license comes into force from the date of its signing. The license is inalienable, unlimited.  

The bank is registered in the register of the commercial banks of the Kyrgyz Republic (month, date, year).  

Licensed is registered on (month, date, year).  

   

No. ______ series of the form ______________  

   

Deputy Chairman/Member of the Board of the National Bank  

__________________________ full name, signature  

Seal of the National Bank  

   

   

   

Appendix 10   to the Regulation “On Licensing Bank Activities”  

LIST OF AUTHORIZED BANKING OPERATIONS   

to License No. _______, Issued on (month, date, year) Authorizing to Conduct Banking Operations in the National and/or Foreign Currency   

__________________________________________________  

(full firm name of a legal entity)  

Banking Operation  

Currency of the banking operation  

Date of authorization validity  

Note/Restriction (indicating the date of restriction validity)  

   

No. ________ form series ________________  

   

Deputy Chairman/Member of the Board of the National Bank  

___________________________ full name, signature  

Seal of the National Bank  

   

   

   

Appendix 11   to the Regulation “On Licensing Bank Activities”  

NATIONAL BANK OF THE KYRGYZ REPUBLIC  

LICENSE № _____   

Authorizing to Conduct Banking Operations under the Principles of Islamic Banking and Finance in the National and/or Foreign Currency  

______________________________________________________  

(full firm name of a legal entity)  

______________________________________________________  

(abbreviated firm name of a legal entity)   

city of __________  

1. Is entitled to conduct banking operations specified in the list of authorized banking operations in accordance with the banking legislation of the Kyrgyz Republic under the principles of Islamic banking and finance.  

2. The list of authorized banking operations is an integral part of this license.   

This license comes into force from the date of its signing. The license is inalienable, unlimited.  

The bank is registered in the register of the commercial banks of the Kyrgyz Republic (month, date, year).  

Licensed is registered on (month, date, year).   

   

No. ______ series of the form ______________  

   

Deputy Chairman/Member of the Board of the National Bank  

__________________________ full name, signature  

Seal of the National Bank  

   

   

   

Appendix 12   to the Regulation “On Licensing Bank Activities”  

LIST OF AUTHORIZED BANKING OPERATIONS   

to License No. _______, Issued on (month, date, year) Authorizing to Conduct Banking Operations under the Principles of Islamic Banking and Finance in the National and/or Foreign Currency  

________________________________________________  

(full firm name of a legal entity)  

Banking Operation  

Currency of the banking operation  

Date of authorization validity  

Note/Restriction (indicating the date of restriction validity)  

   

No. ________ form series ________________  

   

Deputy Chairman/Member of the Board of the National Bank  

___________________________ full name, signature  

Seal of the National Bank  

   

   

   

Appendix 13   to the Regulation “On Licensing Bank Activities”  

NATIONAL BANK OF THE KYRGYZ REPUBLIC  

LICENSE No.___/1   

Authorizing to Conduct Banking Operations under the Principles of Islamic Banking and Finance through an “Islamic Window” in the National and/or Foreign Currency  

______________________________________________________  

(full firm name of a legal entity)  

______________________________________________________  

(abbreviated firm name of a legal entity)   

city of _____________________  

1. Is entitled to conduct banking operations specified in the list of authorized banking operations in accordance with the banking legislation of the Kyrgyz Republic under the principles of Islamic banking and finance through an “Islamic window”.  

2. The list of authorized banking operations is an integral part of this license.  

This license comes into force from the date of its signing. The license is inalienable, unlimited.  

The bank is registered in the register of the commercial banks of the Kyrgyz Republic (date, month, year).  

Licensed is registered on (date, month, year).  

   

No. ______ series of the form ______________  

   

Deputy Chairman/Member of the Board of the National Bank  

__________________________ full name, signature  

Seal of the National Bank  

   

   

   

Appendix 14  to the Regulation “On Licensing Bank Activities”  

  

LIST OF AUTHORIZED BANK OPERATIONS  

to License No. ___ /1 Issued (date, month, year) for the Right   

to Conduct Bank Operations In Accordance with the Principles of   

Islamic Banking and Finance through the “Islamic Window”   

In National and/or Foreign Currency  

__________________________________________________  

(full corporate name of a legal entity)  

(As amended by Resolution No. 2018-П-12/44-3 of the National Bank of the Kyrgyz Republic Board as of October 24, 2018)  

Name of a bank operation  

Currency of a bank operation  

Authorization validity start date  

Note/Limitation (indicating limitation validity start date)  

   

No. ________ Series of a headed paper ________________  

   

Deputy Chairman/ member of the National Bank Board  

___________________________ Full name, signature  

Seal of the National Bank  

   

  

  

Appendix 15 to the Regulation “On Licensing Bank Activities” 

  

  

To be filled in by the founders (shareholders) being individuals 

  

  

Space for photograph  (Coloured photo reflecting your current appearance 3:4) 

  

  

 

 

QUESTIONNAIRE 

(see note

(for individuals

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2022-П-12/12-3 as of March 9, 2022)  

I, ____________________________________________________________________________ 

Surname, Name, Patronymic   

confirm that the information provided in the questionnaire is true, complete and is given  

in accordance with my knowledge and information on the questions for an application.  

I admit that in the case of deliberate distortions and omissions on my part, this may give occasion to  

refusal of an application for the acquisition of shares of the bank and entail liability in accordance  

with the legislation.  

Part 1. General Information  

1.1. Full name___________________________________________________________________ 

1.2. If you changed the surname, please specify date and reason of its change, and indicate the  

previous surname (-s) _________________________ 

1.3. Date (day, month, year) and place of birth _____________________ (city, village, country)  

1.4. Passport series ____ number __________ issuing authority _____________ date of issue  

(for non-residents  details of the regular (foreign) passport are specified)  

1.5. Citizenship _______________________ 

Please indicate how it was received; by place of birth, after marriage, by other circumstances -  

give clarification 

_______________________________________________________________________________ 

1.6. Home address (according to documents), cell phone number ____________________________________________ 

Actual place of residence _______________________________________________________________________________ 

1.7. Information on the knowledge in: 

- banking legislation ____________________________________________________________________________ 

- lending activities 

____________________________________________________________________________ 

- corporate governance ____________________________________________________________________________ 

- strategic planning_____________________________________________________________  

- countering the financing of terrorism and the legalization (laundering) of criminal  

proceeds ______________________  

1.8. Business address, tel. number, fax, e-mail ___________________________________________________________________________ 

1.9. Education _________________ (higher, incomplete higher, vocational school, secondary-level)  

Name of educational institution and its location 

Faculty or department 

Year of enrolment and graduation 

Specialty according to diploma 

  

  

  

  

Training courses conducted by various training centers, including   

in the areas indicated  

in Clause 1.7 of this questionnaire__________________________________________________ 

Subject of a seminar or a course 

Seminar organizer  

Place  

Date  

Certificate availability (yes/no) 

  

  

  

  

  

1.10. Work performed since entering employment (including activities as a member of the Board of Directors)  

Entry date (month, year)  

Date of leaving employment (month, year)  

Position held, structural unit  

Name of institution, location  

Change of position (reason) 

  

  

  

  

  

1.11. Proof of impeccable business reputation: 

1) whether there is an unexpunged and outstanding conviction for a financial crime (yes/no);  

2) whether there is a decision that You are not entitled to carry out activities in the banking, financial, auditing, insurance and investment fields by a court decision or are not entitled to carry out activities in the banking sector by decision of the National Bank (yes/no);  

3) whether there are court decisions that do not allow You carrying out activities in other areas (yes/no). If any, attach to the questionnaire;  

4) whether there is a decision of the Board or the Supervisory Committee of the National Bank or a foreign competent authority of banking supervision in order of applying corrective actions to the bank to relieve You of the position You are holding (yes/no). If any, attach to the questionnaire;  

5) were there elicited any facts of violation of the requirements to acquire a threshold participation in the banks capital on Your part (yes/no);  

6) availability of an unfulfilled court decision on the payment of Your financial obligations (yes/no).  

If any, please give a description and reasons for non-fulfillment.  

7) Please indicate whether against You or the company You were associated with as a significant participant and/or a member of the Board of Directors or any other official ever in any country:  

- have been filed charges of administrative offenses during the last 3 (three) years, crimes, including the legalization (laundering) of criminal proceeds and the financing of terrorism (extremism), and in cases of termination of the case or withdrawal of the charge (yes/no) ______________ 

- were applied disciplinary sanctions during the last 3 (three) years, criminal liability (yes/no) _____________ 

If yes, please give a detailed description of the charge, conviction by the law enforcement agency with an indication of the name of the law enforcement agency, the charge or disciplinary sanctions applied by any government agency, the outcome of the proceedings, the courts decision (including in cases of termination of the case, withdrawal of a charge, entry of judgement of acquittal or relief from criminal responsibility):  _____________________________ 

1.12. Indicate whether there is outstanding conviction. If yes, please explain 

_______________________________________________________________________________ 

Indicate whether it was decided to prohibit You from engaging in any professional activity. If yes, please explain 

__________________________________________________________________________ 

1.13. Please indicate each company recognized as a bankrupt in an enforcement procedure or being in the process of forced liquidation You were associated with as an officer (member of the Board of Directors, member of the executive body, chief accountant/financial manager, etc.) or a significant participant 

_______________________________________________________________________________  

Please give a detailed substantiation of Your role and responsibility as an official or a significant participant in the company You were associated with, and which was exposed to forced bankruptcy, liquidation _______________ 

1.14. Whether state or regulatory bodies made an investigation of You or the company You were associated with as an official (member of the Board of Directors, member of the executive body, chief accountant/financial manager, etc.) or a significant participant.  

If yes, please explain a reason.  

_______________________________________________________________________________ 

Whether any corrective actions of supervisory bodies were applied to You or the company You were associated with as an official (member of the Board of Directors, member of the executive body, chief accountant/financial manager, etc.) or a significant participant due to non-compliance with the legislation on countering the financing of terrorism and the legalization (laundering) of criminal proceeds.  

Please give a detailed description of the accusation, conviction by the law enforcement agency with an indication of the name of the law enforcement agency, the accusation or a disciplinary sanction imposed by any government agency, the outcomes of the proceedings, the courts decision (including in cases of termination of a case, withdrawal of a charge, entry of judgement of acquittal or relief from criminal responsibility):  

_______________________________________________________________________________ 

1.15. Are you currently a party to a trial? If yes, please explain 

_____________________________________________________________________________________________________ 

1.16. Marital status ____________________________ 

Please list close relatives (parents, children, spouse, adoptive parents, adopted, full- and half-blood siblings, grandfathers, grandmothers, grandchildren):  

Full name  

Blood relationship  

Date and place of birth  

Position and place of work  

Home address, tel. number  

  

  

  

  

  

Part 2. Additional Information 

2.1. If there is a loan debt (other liabilities) to anyone, including a loan to purchase shares, please provide the following information for each debt (liability):  

Creditor name 

  

  

Date of disbursement  

  

  

Loan amount, in thou. KGS 

  

  

Interest rate  

  

  

Purpose of loan  

  

  

Description and amount of guarantee  

  

  

Date of payment  

  

  

Loan outstanding amount, in thou. KGS  

  

  

Interest on loan outstanding amount, in thou. KGS  

  

  

Overdue amount (principal amount, interest on loan)  

  

  

2.2. Please provide the following information:  

а) Personal report on assets and liabilities as of “___” ___________________ (indicated on the date of filling in the questionnaire)  

(specify currency)  

 

  

Assets 

Amount (in KGS/for foreign founders in USD) 

Cash  

  

Deposit facilities in financial institutions (indicating interest rate, extra charges)  

  

Investments in companies (Table 2.3)  

  

Securities (indicating the type of securities)  

  

Immovable property, which is not under pledge or under seizure  

  

Immovable property, which is pledged or seized  

  

Bills receivable (including the funds provided as a loan)  

  

Other assets  

  

  

  

  

  

Liabilities 

  

Debt under credits (loans)  

  

Account payable  

  

Other liabilities  

  

  

Personal outstanding guarantees  

  

b) Information on sources of income  

(specify currency)  

  

Sources of income  

Previous year  20___   

Current year (expected amount) 20___  

Wages at the primary employment (including bonuses), in a month  

  

  

Wages not at the primary employment, including royalty remuneration, other payments (over a year)  

  

  

Investment dividends  

  

  

Interest on deposits  

  

  

Other property income with an indication of property  

  

  

Other income  

  

  

  

Total  

  

  

  

Expenses 

  

  

Expenses (personal, consumption)  

  

  

Loan repayments:  a) principal amount b) interest  

  

  

Other expenses  

  

  

  

Total expenses  

  

  

  

Net income (expense)  

  

  

2.3. Please indicate companies, including financial institutions in any country, in which You were and/or are a founder, shareholder (owner) during the last 10 (ten) years:  

Name of a legal entity, location  

Type of activity of a legal entity  

Number of shares held  

Share of ownership in equity in KGS  

Taxpayers identification number (TIN)  

Date of share acquisition  

Date of share transfer/  termination of activity 

Part 3.  

Additional information provided by a significant member of the bank:  

a. Have you intention to include new candidates to the Board of Directors of this bank (if so, a brief summary should be submitted).  

b. Have you intention to make significant changes to the banks policies and the banks management (if so, it is necessary to describe the proposed changes in brief).  

Part 4. Concluding Provisions  

4.1. Please provide any other information that you regard important for consideration when approving the position (consideration of the application for the acquisition of bank shares).  

4.2. I, _______________________________________________________________________ 

                                                                        Full Name  

am ready to provide any information requested by the National Bank for the period of considering the issue of a permit, and subsequently, I recognize that in case of refuse to provide the information requested by the National Bank, the latter may require the sale of shares owned by me to the persons not connected with me during a period of time determined by the National Bank.  

__________________________ signature «___» __________________  

Notes:  

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

2) Alterations in the questionnaire are certified by the words "alteration valid" and by the candidates own signature _________________ signature;  

3) If the information contained in this questionnaire is changed during the period of obtaining a permit, the founder (shareholder) - resident of the Kyrgyz Republic shall notify the National Bank to this extent in writing within five working days, and the founder (shareholder) - non-resident of the Kyrgyz Republic  within ten working days from the date, on which the changes were made.  

  

  

  

  

Date 

  

  

Appendix 16 to the Regulation “On Licensing Bank Activities” 

  

Date 

QUESTIONNAIRE 

(for legal entities) 

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2022-П-12/12-3 as of March 9, 2022

 

1.  Full name of a legal entity (hereinafter referred to as “Company”)  

__________________________________________________________________________________________________ 

Abbreviated name of a legal entity ___________________________________________________ 

(indicate full name of a legal entity). 

2. Legal address of the Company ____________________________________________________ 

Actual address of the Company_____________________________________________________ 

3. Date of creation ___________________________________________________ and registration of the company  

4. TIN ______________________________________________________________________ 

5. Country of registration: _______________________________________________________ 

State registration authority: ______________________________________________________  

No. (of certificate of state registration/re-registration). 

6. In what banks the Companys accounts are opened: _______________________________. 

7. Please describe the types of activities the Company is authorized to carry out according to the license (-s) (or  

any other authorization document), indicating the license number (authorization document) and a body having issued a license   

(authorization document):  

8. Please, describe the other types of activities the Company carries out:  

9. Does the company have ratings assigned by rating agencies, if yes, please indicate the rating and  

name of rating agencies:  

_______________________________________________________________________________ 

10. Persons having common interests with_____________________________________________ 

(full name of the Company) 

1) legal entities and individuals exercising control over (full name of the Company):  

Full name of legal entities, individuals  

Number of shares held  

Share in charter capital  

Full name of ultimate beneficiary 

  

  

  

  

2) associated companies_________________________________________________________ 

                                                        (full name of an applicant legal entity) 

Full name of legal entities, individuals  

Number of shares held  

Share in charter capital  

Full name of ultimate beneficiary  

  

  

  

  

3) affiliated _____________________________________________________________________ 

                                                                       (full name of the Company) 

Legal entities: 

Full name of legal entities, individuals  

Number of shares held  

Share in charter capital  

Full name of ultimate beneficiary  

  

  

  

  

4) Legal entities, where____________________________________________________________ 

                                                                       (full name of the Company) 

exercises control over:  

Full name of legal entities  

Number of shares held  

Share in charter capital  

Full name of the Companys director  

  

  

  

  

5) companies, where______________________________________________________________ 

                                                     (full name of an applicant  legal entity

is a significant participant:  

Full name of legal entities  

Number of shares held  

Share in charter capital  

Full name of the Companys director  

  

  

  

  

6) Other persons falling within the individuals holding shares in common:  

Full name of individuals/legal entity/name of position  

How long does he/she take this position/details of the agreement/relationship to/participatory interest  

Other information identifying a person as the individual holding shares in common   

  

  

  

11. If the members of the Board of Directors or officials (members of the Board of Directors (Supervisory authority), members of the Management (Executive authority), financial manager (chief accountant) of the Company are the holders of the shares of the bank, of which the Company intends to become a significant participant. If yes, it is necessary to indicate the number of shares being held by the mentioned officials of the Company:  

No.  

Full name  

Number of shares held (date of acquisition)  

Share in the charter capital of the bank  

Additional information or notes (share sale date)  

  

  

  

  

  

12. Does the Company has an outstanding loan (loan debt) to banks, if yes, please indicate date of drawing up the loan, purposes of drawing up the loan/loans, loan amount received and outstanding amount of loan principal and interest thereupon as of filling of an application:  

No.  

Bank having provided a loan  

Amount of loan  

Date of drawing up a loan  

Loan repayment date  

%  

Loan collateral  

Note  

13. Does the Company intend to include representatives of the Company to the Board of Directors of this bank (if yes, please indicate the candidates), and whether You intend to make significant changes in the banks policies and management of the bank (if yes, please indicate the proposed changes).  

14. Please indicate all divisions of the Company:  

Division (branch, representative office)  

Address  

Director  

Type of activity  

Other information or notes  

  

  

  

  

  

15. Please indicate whether the Company is involved in judicial disputes with anyone, if yes  please provide details of the judicial disputes (the plaintiff, the defendant, the subject of the dispute, the judicial instance considering the case, the stage of the case hearing):  

16. Please indicate the supervisory authority in the country of Companys location, intervals of inspections it carries out.  

17. Proof of impeccable business reputation:  

1) whether there is an unexpunged and outstanding conviction for a financial crime (yes/no);  

2) whether there is a decision that You are not entitled to carry out activities in the banking, financial, auditing, insurance and investment fields by a court decision or are not entitled to carry out activities in the banking sector by decision of the National Bank (yes/no);  

3) whether there are court decisions that do not allow You carrying out activities in other areas (yes/no);  

4) whether there is a decision of the Board or the Supervisory Committee of the National Bank or a foreign competent authority of banking supervision in order of applying corrective actions to the Company with regard to the requirements for the sale of available shares of any company belonging to You;  

5) were there elicited any facts of violation of the requirements to acquire a threshold participation in the banks capital on Your part (yes/no);  

6) availability of an unfulfilled court decision on the payment of Your financial obligations (yes/no).  

If any, please give a description and reasons for non-fulfillment.  

7) Please indicate whether against You or against the company You were associated with as a significant participant ever in any country:  

- have been filed charges of administrative offenses, crimes, including in cases of termination of the case or withdrawal of the charge (yes/no) ______________  

- were applied disciplinary sanctions, criminal liability (yes/no) _____________  

- whether any corrective actions of supervisory bodies were applied to the Company or the other companies, where You are a shareholder (participant) due to non-compliance with the legislation on countering the financing of terrorism and the legalization (laundering) of criminal proceeds (yes/no)_____________  

If yes, please explain.  

8) Have You or the Company You were associated with as a founder, shareholder, have ever applied for a license or other permit to do business in any country? If yes, please indicate, which type of activity You intended to carry out and in which country  

_______________________________________________________________________________ 

9)  

a) Was You, or the company You are associated with as a shareholder, denied a license (permit), or was it withdrawn from You by the licensing authority? If yes, please explain the reason of denial, non-granting, revocation of the license  

_________________________________________________________________________________________________________  

b) Please indicate each company that was forcibly declared bankrupt or being in the process of forced liquidation You were associated with as a shareholder  

_________________________________________________________________________________________________________  

Please give a detailed justification of Your role and responsibility as a shareholder (participant) in the company You were associated with, and which was set in terms of compulsory bankruptcy, liquidation  

_________________________________________________________________________________________________________  

10) Whether the state or regulatory authorities made an investigation against You or the company You were associated with as a shareholder (participant). If yes, please explain why  

_____________________________________________________________________________________________________  

17. Are Your Company or companies You are associated with as a shareholder (participant), subjects of the execution of legislation on countering the financing of terrorism and the legalization (laundering) of criminal proceeds (yes/no)?  

Please indicate the companies and the country of origin.  

18. Other information being relevant in the opinion of the applicant:  

Signature of the Companys director ____________________________________  

Seal of the Company  

  

  

  

Appendix 17 to the Regulation “On Licensing Bank Activities” 

National Bank of the Kyrgyz Republic 

QUESTIONNAIRE 

 

(for a foreign bank) for creation of a bank, opening of a branch of a foreign bank,  

acquisition of the stock of shares of the bank entitling to exercise control over 

______________________________________________________________________________ 

(full corporate (official) name of the bank)  

(hereinafter referred to as “Bank”) 

 

(As amended by the Resolutions of the National Bank of the Kyrgyz Republic Board No. 2018-П-12/44-3 as of October 24, 2018, No. 2022-П-12/12-3 as of March 9, 2022

 

Details of the applicant bank: 

Country of origin (registration) _____________________________________________________.  

Date of registration ______________________________________________________________  

Address of the head office of the applicant bank_______________________________________.  

Postal address of the created bank (branch) __________________________________________.  

1. Please specify the reasons for filing an application for opening a bank (branch):  

2. Please describe the main types of activities that are carried out by the applicant bank and its subsidiaries. Provide information on areas of specialization, non-banking and trust activities of the applicant bank and its subsidiaries.  

3. Please provide information on persons having common interests with the applicant bank:  

1) legal entities and individuals exercising the control over (full name of the Bank):  

Full name of legal entities, individuals  

Number of shares held  

Share in charter capital  

Date of acquisition  

Full name of ultimate beneficiary  

  

  

  

  

  

2) associated companies __________________________________________________________ 

                                                                            (full name of the Bank) 

Full name of legal entities, individuals  

Number of shares held  

Share in charter capital  

Date of acquisition  

Full name of ultimate beneficiary  

  

  

  

  

  

3) affiliated with _________________________________________________________________  

                                                                            (full name of the Bank)  

legal entities: 

Full name of legal entities, individuals  

Number of shares held  

Share in charter capital  

Date of acquisition  

Full name of ultimate beneficiary 

  

  

  

  

  

4) legal entities, where _________________________________________________________ 

                                                                                 (full name of the Bank)  

exercises control over (short description of the system of subsidiaries of the applicant bank around the world (beyond the Kyrgyz Republic):  

Full name of legal entities, indication of a legal and actual address   

Number of shares held/Date of acquisition  

Share in charter capital  

  

  

  

5) companies, where _____________________________________________________________  

                                                                              (full name of the Bank)  

is a significant participant:  

Full name of legal entities, individuals  

Number of shares held or form of government (agreement, through the Board of Directors, etc.)  

Share in charter capital  

Types of activity (if licensed type of activity  license number, date of granting)  

Date of acquisition  

  

  

  

  

  

6) Other persons fitting under the individuals holding shares in common:  

Full name of individuals/legal entity/name of position  

How long does he/she take this position/details of the agreement/relationship to/participatory interest  

Other information identifying person as the individual holding shares in common  

Note  

  

  

  

  

4. Please indicate  

a) rating of the applicant bank in terms of size (assets) in the country of registration;  

b) ratings for the last three years assigned by independent rating agencies (name of the rating agency, the date of assignment of the rating or its change, indication of the rating at the beginning of each financial year and with each change);  

c) please attach the last check report of the applicant bank and the parent company prepared by the rating agency for assessing the companys creditworthiness.  

5. Please list the banks of the Kyrgyz Republic and foreign banks with which the newly-created bank (branch) expects to be in competition.  

6. Please give details of criminal offenses in which the members of the applicant banks Board of Directors and the Management were involved, who themselves were convicted of criminal offenses, including fraud, improper fulfillment of fiduciary duties in any court of any state, including crimes or offenses committed with their assistance.  

7. Describe how and to what extent the applicant intends to manage the activities of the newly created bank (branch):  

_____________________________________________________________________________.  

Financial resources and future prospects  

8. List the __of the Kyrgyz Republic with which the applicant has correspondent relations. Indicate the commercial banks to which the applicant bank provides credit lines of any type and amounts of such credit lines.  

  

Bank name  

Address  

Type of account  

Full name of the Banks head  

  

  

  

  

  

  

  

  

  

  

9. Please indicate the date of closure of financial year of the applicant bank  

______________________________________________________________________________. 

10. Please indicate how and who will finance the newly established (bank) branch of the applicant bank: ______________________________________________________________________________. 

11. Specify how the newly created bank (branch) will attract customers to develop successful activities:  

Supervision in the country of origin (registration)  

12. Please provide a brief description of the regulatory system for banks in the country of origin (registration) of the applicant bank. Indicate the authority and functions of the banking supervisory authority, the frequency and scope of external supervision and on-site inspections, the functions of the central bank and its relation to private banks (is it a supervisory authority, is it involved, how does it participate in the deposit insurance scheme, is it shareholders of other banks, etc.):  

_____________________________________________________________________________. 

13. Please provide the full name of the manager or other authorized person (in Kyrgyz or Russian and English) of the supervisory authority of the applicant banks country of origin (registration), which can respond to requests and provide information about the applicant bank, specify its email address:  

Other matters  

14. Please indicate whether the application of the applicant bank for the establishment of a branch, subsidiary, representative office or other subdivision outside the country of origin (registration) over the past three years was refused or cancelled, and indicate the country, date and reasons for such a decision.  

15. Please indicate the supervisory authority in the country where the company is located, the frequency of its checks.  

16. Proof of impeccable business reputation:  

1) whether there is an unexpunged and outstanding conviction for a financial crime (yes/no);  

2) whether there is a decision that You are not entitled to carry out activities in the banking, financial, auditing, insurance and investment fields by a court decision or are not entitled to carry out activities in the banking sector by decision of the National Bank (yes/no);  

3) whether there are court decisions that do not allow You carrying out activities in other areas (yes/no);  

4) whether there is a decision of the Board or the Supervisory Committee of the National Bank or a foreign competent authority of banking supervision in order of applying corrective actions to the Company with regard to the requirements for the sale of available shares of any company belonging to You;  

5) were there elicited any facts of violation of the requirements to acquire a threshold participation in the banks capital on Your part (yes/no);  

6) availability of an unfulfilled court decision on the payment of Your financial obligations (yes/no).  

If any, please give a description and reasons for non-fulfillment.  

7) Please indicate whether against You or against the company You were associated with as a significant participant ever in any country:  

- have been filed charges of administrative offenses, crimes, including in cases of termination of the case or withdrawal of the charge (yes/no) ______________  

- were applied disciplinary sanctions, criminal liability (yes/no) _____________  

- whether any corrective actions of supervisory bodies were applied to the Company or the other companies, where You are a shareholder (participant) due to non-compliance with the legislation on countering the financing of terrorism and the legalization (laundering) of criminal proceeds (yes/no)_____________  

If yes, please explain.  

8) Have You or the Company You were associated with as a founder, shareholder ever applied for a license or other permit to do business in any country? If yes, please indicate which type of activity You intended to carry out and in which country  

______________________________________________________________________________ 

9)  

a) Was You, or the company You are associated with as a shareholder, denied a license (permit), or was it withdrawn from You by the licensing authority? If yes, please explain the reason of denial, non-granting, revocation of the license  

______________________________________________________________________________ 

b) Please, indicate each company that was forcibly declared bankrupt or being in the process of forced liquidation You were associated with as a shareholder  

______________________________________________________________________________ 

Please give a detailed justification of Your role and responsibility as a shareholder (participant) in the company You were associated with, and which was set in terms of compulsory bankruptcy, liquidation  

______________________________________________________________________________ 

10) Did the state or regulatory authorities make an investigation against You or the company You were associated with as a shareholder (participant). If yes, please explain why  

______________________________________________________________________________ 

17. Are Your Company or companies You are associated with as a shareholder (participant), subjects of the execution of legislation on countering the financing of terrorism and the legalization (laundering) of criminal proceeds (yes/no)?  

Please indicate the companies and the country of origin.  

18. Please describe deposit insurance scheme in the country of origin (registration) of the applicant bank:  

- through the government or the banking system;  

- amounts and limits of insurance compensation provided;  

- whether insurance compensations apply to branches, subsidiaries and banks (companies) and deposits attracted abroad.  

19. Contact person: an additional request for information or correspondence regarding this application should be sent to the following address:  

Applicant bank:  

Postal address: ________________________________________________  

Tel. number: __________________________________________________  

Fax: _________________________________________________________  

E-mail: _____________________________________  

Representative in the Kyrgyz Republic:  

Full name: ____________________________________________________  

Position: _____________________________________________________  

Postal address: _______________________________________________  

Tel. number: _________________________________________________  

Fax: ________________________________________________________  

E-mail: _____________________________________  

We hereby confirm that the information provided in the questionnaire is true and complete. We admit that in the case of deliberate distortions and omissions, and violation of the requirements of the legislation of the Kyrgyz Republic on our part, this may be the basis for refusal of an application (request).  

Filing date  

Signature _______________________________ Full name, position  

Seal  

Note: In case of altering the information contained in this questionnaire, the foreign bank shall notify the National Bank of the Kyrgyz Republic to this extent in writing within one month from the date, on which such alterations have been made .  

 

  

   

   

   

Appendix 18  to the Regulation “On Licensing Bank Activities”  

Information  

on Changes to the Composition of Officials  

_____________________________________________  

(full name of a legal entity),   

Holding or Managing a Threshold Participation in the Banks Capital  

_____________________________________________  

(bank name)  

1. Full name _____________________________________   

(Full name in English for foreign citizens)  

2) Citizenship _____________________________________  

3) Passport details _________________________________   

(series, number, date of issue, issuing authority)  

4) Home address ________________________________  

5) To what position is appointed (elected) _____________  

6) Date of appointment (election) (date, month, year of taking decision on the appointment (election) and/or date of signing the agreement)  

7. Please indicate whether against this person (newly appointed (elected) person) or against the company You were associated with as a significant participant and/or any other official (a member of the Board of Directors, a member of the executive authority, chief accountant/financial manager, etc.) ever in any country:  

- have been filed charges of administrative offenses (yes/no) _____  

- were applied disciplinary sanctions (yes/no) _______  

If yes, please give a detailed description of charges, conviction on the part of the law-enforcement authority indicating the name of a law-enforcement authority, conviction or disciplinary sanction applied by any state authority, results of investigation, court decision:  

___________________________________________________  

8. Please indicate whether there is an outstanding conviction in relation to this person. If yes, please explain  

___________________________________________________  

9. Please indicate whether it was decided to prohibit this person from engaging in any professional activity. If yes, please explain  

___________________________________________________  

10. Please, indicate each company that was forcibly declared bankrupt or being in the process of forced liquidation this person was associated with as an official (member of the Board of Directors, a member of the executive authority, chief accountant/financial manager, etc.) or a significant participant  

____________________________________________________  

11. Did the state or regulatory authorities make an investigation against this person? If yes, please explain the reason  

_____________________________________________________  

12. Is this person currently a party to a trial? If yes, please explain _______________________________________________  

I do hereby confirm that the information contained in this questionnaire is true and complete.  

   

Date