Foreign Banks in the Kyrgyz Banking Sector

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Overview of Licensing Requirements

The Kyrgyz Republic’s Law “On Banks and Banking Activity” outlines specific regulations for foreign banks operating within its borders. Here are key points related to licensing requirements:

Consideration Period for License Applications

Prolonged Decision-Making Process

• The term of consideration for an application for a license submitted by a bank with participation of foreign investors or by a foreign bank may be prolonged up to 6 months under the decision of the Board of the Bank of Kyrgyzstan.

Grounds for Denial of Licensing

Key Reasons for Rejection

• Non-compliance of founding documents
• Failure to submit required documents
• Change of financial or legal status
• Failure to comply with minimum fitness requirements
• Other grounds provided by legislation

Expansion and Operation Opportunities for Foreign Banks

Opening Daughter Banks in the Kyrgyz Republic

Requirements and Procedures

• A foreign parent bank may open a daughter bank in the Kyrgyz Republic on the basis of a license for implementation of banking transactions issued by the Bank of Kyrgyzstan.

Establishing Affiliates Abroad by Non-Resident Banks

Permission from the Bank of Kyrgyzstan

• Opening of affiliates abroad by non-resident banks requires permission from the Bank of Kyrgyzstan, which shall establish the procedure of presenting notice on opening of an affiliate.
• Non-resident banks with stable financial position and good business reputation are allowed to establish their affiliates on the territory of the Kyrgyz Republic.

Requirements for Permission to Open Affiliates

Documents and Procedures

• To receive a permission to open an affiliate, a non-resident bank shall submit documents including a statement on establishing of an affiliate.