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Bank of Kyrgyzstan Issues New Guidelines on Security Acceptance
In a move aimed at strengthening the country’s financial stability, the Bank of Kyrgyzstan has introduced new guidelines on security acceptance for commercial banks operating in the country.
Acceptable Securities
According to the new guidelines, one of the following types of securities will be acceptable to the Bank of Kyrgyzstan:
- Gold and other precious metals
- Foreign currency
- Bills of exchange in national and foreign currencies maturing within six months and other obligations accepted by the Bank of Kyrgyzstan
- Deposits with the Bank of Kyrgyzstan or another credit institution acceptable to the Bank of Kyrgyzstan
- Securities issued by the Government of the Kyrgyz Republic
- Other types of security approved by the Bank of Kyrgyzstan
Additionally, in cases established by the Bank of Kyrgyzstan, other assets and commodity-backed papers may be eligible for acceptance as security.
Loan Provisions
The Bank of Kyrgyzstan has also outlined its loan provisions for commercial banks. The bank may grant various types of loans to banks and set different interest rates depending on the type of loan issued. However, the bank will not provide credit in the form of overdrafts or other forms of lending that do not comply with international banking standards.
- Minimum capital adequacy ratio
- Maximum exposure to one borrower
Economic Standards
The Bank of Kyrgyzstan has also established economic standards for commercial banks operating in the country. These standards include:
- Minimum authorized capital
- Minimum capital (own funds)
- Capital adequacy ratio
- Liquidity ratios
- Foreign exchange risk limits
- Interest rate risk limits
- Other standards necessary to ensure financial stability
Sanctions for Non-Compliance
The Bank of Kyrgyzstan has also outlined sanctions for commercial banks that fail to comply with the new guidelines. These sanctions include:
- Suspension or revocation of a bank’s license
- Initiation of liquidation proceedings in cases where a bank becomes insolvent
In a statement, the Bank of Kyrgyzstan emphasized its commitment to maintaining high standards of banking practice and stability in the financial system of the country.
Exchange of Information with Foreign Authorities
The Bank of Kyrgyzstan has also announced its intention to cooperate with foreign banking supervisory authorities on principles of reciprocity. The bank will exchange information with these authorities regarding banks operating or intending to operate under their jurisdiction, provided that such foreign supervisory authorities observe the confidentiality of the information received.
Contact Us
For more information on the new guidelines and loan provisions issued by the Bank of Kyrgyzstan, please contact [insert name and email address].