Banking Sector in Kyrgyzstan: New Regulations and Requirements
The Central Bank of Kyrgyzstan (Bank of Kyrgyzstan) has introduced new regulations for banks operating in the country, aimed at ensuring stability and transparency in the banking sector. The new rules cover key aspects such as revenue and costs, managerial structure, crediting policy, anti-money laundering measures, clientele formation, personnel policy, assets and liabilities management, and other international best practices.
License Application Process
According to Article 16 of the regulations, the Bank of Kyrgyzstan is required to consider license applications within a four-month period. However, for banks with foreign investors or foreign banks, the review process may be prolonged up to six months upon decision by the Board of the Bank of Kyrgyzstan.
Grounds for Denial of Licensing
Article 17 outlines the grounds for denying a banking license, including:
- Non-compliance with founding documents and requirements
- Failure to submit necessary documents
- Changes in financial or legal status
- Unfitness of candidates for executive positions
- Inadequate registered capital
- Other issues
Establishment of Daughter Banks and Affiliates
The regulations also provide guidelines for establishing daughter banks (Article 18) and bank affiliates (Article 19). A foreign parent bank may establish a daughter bank in the Kyrgyz Republic, while a non-resident bank may open an affiliate on the territory of the country only with permission from the Bank of Kyrgyzstan.
Key Requirements
To ensure stability and transparency in the banking sector, banks are required to:
- Submit accurate financial information and documents
- Meet minimum registered capital requirements
- Ensure fitness of candidates for executive positions
- Implement anti-money laundering measures
- Manage assets and liabilities effectively
The new regulations aim to strengthen the banking sector in Kyrgyzstan and ensure compliance with international best practices. By introducing these new regulations, the Bank of Kyrgyzstan is committed to creating a stable and transparent banking environment that supports economic growth and development in the country.