MEASURES TAKEN TOWARDS MICRO-FINANCE ORGANIZATIONS (MFO) FOR THE FIRST HALF OF 2013
The National Bank of the Kyrgyz Republic reports on taking the measures and sanctions towards the micro-financial organizations (referred to as MFO) for the first half of 2013 in the framework of implementation of functions on regulating and supervision over micro-financial sector as defined by the law.
The aim of taking preventive measures towards MFO by NBKR is to ensure sustainable development of MFO, keep trust of the population to their activity, protect interests of depositors and beneficiaries of services provided MFO, counteract financing of terrorism and legalization (laundering) of illegally obtained income. The National Bank of the Kyrgyz Republic have taken the following measures for the purpose of bringing the activity of micro-finance organizations in compliance with the Article 2 of the Law of the Kyrgyz Republic "On micro-finance organizations in the Kyrgyz Republic" and in connection with violations of regulatory acts of the National Bank, based on the analysis of the regulatory reports of MFOs and internal credit policies and procedures, according to the results of the external inspection over the activity of MFOs for the first half of 2013:
NOTE OF WARNING – 51
MFO was submitted a note of warning due to the fact that these MFOs violated certain norms and rules and carried out activities that threaten their stability and reliability, and to warn them that relevant sanctions may be imposed on them in future.
Out of 51 MFOs:
- 35 MFOs in connection with non-compliance with the requirement of the Article 2 of the Law of the Kyrgyz Republic "On micro-finance organizations in the Kyrgyz Republic" which stipulate that the purpose of microfinance organizations is the implementation of accessible services on micro-financing to overcome poverty, increase the employment level, promote entrepreneurship development and social mobilization of the population of the Kyrgyz Republic, with the requirement to submit the Plan of activities on optimization of interest rates. The relevant information of the 35 MFOs was provided.
- 15 MFOs due to failure to submit Periodic Regulatory Report for the fourth quarter 2012. The given requirements have been fulfilled by 10 MFOs, the rest 5 MFOs had their licenses suspended for one month period.
- 1 MFO due to the submission of non-reliable data in the Periodic Regulatory Report for the first quarter 2013. This MFO submitted revised Report.
ORDER - 30
MFO received orders on eliminating the violations of the Law of the Kyrgyz Republic and provisions of the normative regulatory acts of the National Bank of KR within given period.
Out of 30 MFOs:
- 9 MFOs due to failure to submit Periodic Regulatory Report (PRR) for the first quarter 2013. 4 MFOs submitted PRR for the first quarter 2013 and 5 MFOs had their licenses suspended for one month period due to the failure to meet the requirements of the order;
- 10 MFO received orders due to the submission of incorrect PRR for the first quarter 2013. 10 MFOs submitted revised PRR.
- 6 MFOs according to the results of the monitoring on fulfillment of orders of the Inspection Management. These MFOs fulfilled the requirements stipulated in the order;
- 4 MFOs dues to the failure to meet the requirements of par. 4 Article 130 of the Civil Code of the Kyrgyz republic, i.e. net asset value was lower than the nominal capital of the MFO based on the results of the first quarter. The requirements given in this order is at the stage of fulfillment by the MFO;
- 1 MFO due to the incorrect calculation of the effective interest rate in credit agreements. This MFO fulfilled the requirements given in the orders.
SUSPENSION/EXTENSION OF THE LICENSES ON RECORD REGISTRATION - 21
MFO suspended the licenses on record registration fur to the non-compliance with the provisions of the legislation of the Kyrgyz Republic and regulatory acts of NBKR and non-fulfillment of preventive measures and sanctions of NBKR.
Out of 21 MFOs:
- 6 MFOs had their licenses on record registration suspended due to non-compliance with the provisions of the Article 2 of the Law "On micro-finance organizations in the Kyrgyz Republic" and non-compliance of submitted internal documents with the legislation of the Kyrgyz Republic and Recommendations on minimum requirements to the credit policy of MFO which do not attract deposits. Due to the partial fulfillment of the requirements, the suspension of the license of the given MFO was extended for two and more times. As a result of these activities, a notice to recall 1 MFO out of 5 MFOs was filed, 3 MFOs had their licenses renewed and presently, 2 MFOs had their licenses suspended.
- 11 MFOs due to the failure to fulfill orders on provision on the Periodic Regulatory Report. Due to the systematic violations of the requirements of regulatory acts of NBKR, out of 11 MFOs 4 MFOs had their licenses withdrawn, 4 MFOs had their suspension period of their licenses extended due to the incorrect submission of PRR, 3 MFOs had their licenses renewed.
- 2 MFOs due to the failure to submit report on elimination of violations according to the results of the inspection. Presently, requirements to suspend the license of 2 MFOs is in process.
- 1 MFO due to the attraction of loans from the physical entity, which is a violation of the Article 2 of the Law "On micro-finance organizations in the Kyrgyz Republic". Presently, suspension of the license of the given MFO is extended.
- 1 MFO due to incorrect submission of the PRR. The license of the given MFO is suspended.
WITHDRAWAL OF THE LICENSE ON RECORD REGISTRATION- 5
Due to the systematic violations of the legislation and regulatory acts of the National bank of the Kyrgyz Republic (failure to submit Periodic Regulatory Report and non-fulfillment of orders), External Supervision Management have withdrawn the licenses on record registration of 5 MFOs:
Below is the list of micro-finance organizations:
NOTE OF WARNING
1. LLC "MCC "Zhenish";
2. LLC "MCC "Start-Credit";
3. LLC "MCC "Altyn Capital" (two times) ;
4. LLC "MCC "Bay Ordo";
5. LLC "MCC "Perspective Finance";
6. LLC "MCC "FINANCE STANDARD";
7. LLC "MCC "Business Credit";
8. LLC "MCC "Zolotoy Standard";
9. LLC "MCC "Bereke Credit";
10. LLC "MCC "Kutman Credit";
11. LLC "MCC "Ak Capital";
12. LLC "MCC "SOMOV";
13. LLC "MCC "Universal Finance and Credit";
14. CJSC "MCC "AIM Credit" (two times);
15. LLC "MCC "Kut Tolsun";
16. LLC "MCC "Alyans Credit";
17. LLC "MCC "KSZ";
18. LLC "MCC "Elet Capital";
19. LLC "MCC "Progress";
20. MCA "Kut";
21. LLC "MCC "EVI-Credit";
22. LLC "MCC "Nur-Jailoo-Credit";
23. LLC "MCC "Nur Bolot-Credit";
24. LLC "MCC "AkNur-Capital";
25. LLC "MCC "Asyl Finance";
26. LLC "MCC "Akniet";
27. LLC "MCC "Abdymanap Ata";
28. LLC "MCC "Bir Top";
29. LLC "MCC "Mechta;
30. LLC "MCC "ElKut";
31. LLC "MCC "Djur-As";
32. LLC "MCC "Asyl Kapchyk";
33. LLC "MCC "Munduz-Credit"
34. LLC "MCC "MicroFinance";
35. LLC "MCC "Mol Bulak Finance";
36. LLC "MCC "Fortuna Credit";
37. LLC "MCC "Birdik";
38. CJSC "Islamic MCC "Kausar";
39. LLC "MCC "Fincredit";
40. LLC "MCC "Credo Profit Plus";
41. LLC "MCC "Beymaral";
42. LLC "MCC "Incom Capital";
43. LLC "MCC "Aktan Сredit";
44. LLC "MCC "Finance Credit Story";
45. LLC "MCC "Nur-Ai Credit;
46. LLC "MCC "For-Credit";
47. LLC "MCC "Akelbol";
48. MCA "Ala-Too Finance";
49. PA "MCA "Kemin".
ORDER
1. LLC "MCC "GlavCredit;
2. LLC "MCC " FinCredit";
3. LLC "MCC "Azyk Credit Company";
4. LLC "MCC "Alpha Finance Capital";
5. LLC "MCC "Nur-Ai Credit";
6. LLC "MCC "Capital";
7. LLC "MCC "Amanat Kazyna";
8. LLC "MCC "Express Invest"(4 times);
9. LLC "MCC "NT-Credit";
10. LLC "MCC "Beimaral";
11. LLC "MCC "Araket Credit";
12. MCA "Aihan and Co.,";
13. LLC "MCC "UCHcredit";
14. LLC "MCC "Altyn Kadam";
15. LLC "MCC "Incom capital";
16. LLC "MCC "AktanCredit";
17. LLC "MCC "Amir Ken";
18. LLC "MCC "Profit credit company";
19. LLC "MCC "Islam Micro-finance";
20. LLC "MCC "KESHIN";
21. LLC "MCC "My Credit";
22. LLC "MCC "EVI Credit";
23. LLC "MCC "Altyn Kylym";
24. LLC "MCC "Altyn Capital";
25. LLC "MCC "Emir";
26. PF "MCA "Kemin Rayon Development Fund";
27. LLC "MCC "Sheriktesh Finance".
SUSPENSION/EXTENSION OF THE LICENSES ON RECORD REGISTRATION
1. LLC "MCC "Aktan Credit";
2. LLC "MCC "Sheriktesh Finance";
3. PF MCA "Kemin Rayon Development Fund";
4. LLC "MCC "Kayrat Biy";
5. LLC "MCC "Beren Credit";
6. LLC "MCC "Munduz Credit";
7. LLC "MCC "Udobny Credit";
8. LLC "MCC " Glav Credit;
9. LLC "MCC "Alfa Finance Capital";
10. LLC "MCC "Nur-Ai Credit";
11. LLC "MCC "Amanat Kazyna";
12. LLC "MCC "Capital";
13. LLC "MCC "NT Credit";
14. LLC "MCC "Fortuna Credit";
15. CJSC "Islamic MCC "Kausar";
16. LLC "MCC "Finance Credit Story";
17. LLC "MCC "Beimaral";
18. LLC "MCC "Incom Capital";
19. LLC "MCC "Credit Center";
20. LLC "MCC "FinCred";
21. LLC "MCC "Trust Company".
RENEWAL OF LICENSES ON RECORD REGISTRATION:
1. LLC "MCC ""Finance Credit Story";
2. LLC "MCC "Beimaral";
3. LLC "MCC "Incom Capital";
4. LLC "MCC "Munduz Credit";
5. LLC "MCC "Credit Center";
6. LLC "MCC "Fincred".
7. LLC "MCC "Glav Credit";
8. LLC "MCC "Alfa Finance Capital’
9. LLC "MCC "Amanat Kazyna"
10. LLC "MCC "Kapital".
Presently extended the suspension of licenses on record registration
1. LLC "MCC "Beren Credit";
2. LLC "MCC "Udobny Credit";
3. LLC "MCC "Aktan Credit";
4. LLC "MCC "Sheriktesh Finnace";
5. PF MCA "Kemin Rayon Development Fund";
6. LLC "MCC "Kayrat Biy".
Withdrawn licenses on record registration:
1. LLC "MCC "Grandcredit";
2. CJSC "Islamic MCC "Kausar";
3. LLC "MCC "Fortuna Credit";
4. LLC "MCC "NT-Credit";
5. LLC "MCC "Nur-Ai Credit".
Cancelled licenses on record registration (self-liquidation):
1. LLC "MCC "TrustCompany".
NBKR will continue to ensure compliance of the participants of the micro-finance sector with the legislation of the Kyrgyz Republic and regulatory acts of the National Bank of the Kyrgyz Republic within its mandate as stipulated by the legislation of KR.
Licenses of the following non-bank finance credit institutions are withdrawn:
From July 8, 2013, the license on record registration of the PA MCA "UMTUL" under No.70 as of September 22, 2004 on micro-crediting of physical and legal entities was canceled. Self-liquidation. Legal address: Frunzensky Street, Bld., 1, Aprt., 28, Karabalta town, Chui province.
From July 10, 2013, the license of "Avicenna-К" under No.35 as of April 24, 1998 was canceled. Self-liquidation. Legal address: 50/16 Tynystanov Street, Karakol town, Issyk-Kul province.
INTERBANK PAYMENTS
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INTERBANK PAYMENT SYSTEM INDICATORS |
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Total IPS |
Including |
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Clearing system |
Gross system |
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Volume, KGS |
Q-ty, Pc. |
Volume, KGS |
Q-ty, Pc. |
Volume, KGS |
Q-ty, Pc. |
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Indicators for the period of 8 June to 12 July, 2013 (reporting period) |
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Absolute Value |
13 691 578 260.30 |
49 806 |
1 742 146 682.25 |
46 340 |
11949431578.05 |
3 466 |
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Share in IPS payments (%) |
100.0 |
100.0 |
12.7 |
93.0 |
87.3 |
7.0 |
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Including (%): |
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|
|
|
|
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Net positions of the SIPC |
0.2 |
1.5 |
1.4 |
1.6 |
0.0 |
0.0 |
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Outgoing to the Central Treasury |
12.9 |
8.5 |
19.7 |
9.0 |
12.0 |
1.0 |
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Incoming to the Central Treasury |
13.3 |
41.0 |
16.5 |
43.7 |
12.8 |
5.8 |
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Outgoing to the Social Fund |
0.03 |
0.6 |
0.3 |
0.7 |
0.0 |
0.0 |
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|
Incoming to the Social Fund |
1.0 |
8.3 |
8.1 |
8.9 |
0.0 |
0.0 |
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Average weekly indicators for the last month |
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Absolute Value |
15 138 791 174.54 |
47 165 |
1 507 375 768.04 |
43 989 |
13 631 415 406.50 |
3 176 |
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Deviation of indicators for the reporting period from average weekly indicators for the last month |
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Absolute Value |
-1 447 212 914.24 |
2 641 |
234 770 914.21 |
2 351 |
-1 681 983 828.45 |
290 |
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% |
-9.6 |
5.6 |
15.6 |
5,3 |
-12.3 |
9.1 |
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Elcart System Indicators |
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As of |
05.07.2013 |
12.07.2013 |
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The total number of issued cards (excluding re-issued) |
208 006 |
209 480 |
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Number of POS terminals: - in banks - in sale outlets |
1113 625 488 |
1113 625 488 |
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Number of ATMs |
286 |
286 |
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