Regulatory Requirements for Financial Institutions in Tajikistan

The National Bank of Tajikistan has introduced regulatory requirements for financial institutions in the country to control cash aggregates and maintain a certain level of money supply. These provisions, approved by the Board on November 22, 1997, and amended on March 15, 2001, outline the necessary conditions for banks and credit institutions to operate.

Overview of Regulatory Requirements

• The National Bank of Tajikistan has established regulatory requirements for all banks and credit institutions operating under its license.
• The size of required reserves as a percentage of bank obligations is determined by the Board of the National Bank.
• Banks must deposit these reserves in accordance with the procedure outlined by the Board.

Deposit Requirements

• All banks and credit institutions are subject to depositing required reserves with the National Bank of Tajikistan.
• The size of required reserves is regulated by organizations of the National Bank, with decentralization possible in exceptional cases depending on a bank’s financial position.
• Banks must reconcile their deposited funds on accounts with existing standard rates of reserve requirements monthly.

Special Requirements for Banks with Foreign Branches

• Banks with branches abroad must deposit part of their funds raised independently with the national bank of the relevant state, following local procedures and standard reserve rates.
• They must submit a balance sheet to the National Bank of Tajikistan, excluding branches located in foreign states that are independently depositing means with required reserves.

Responsibility for Observance

• Banks bear responsibility for observing the procedure for depositing required reserves in the National Bank of Tajikistan.
• The obligation to deposit required reserves is a necessary condition for banks and credit institutions to operate.