RESOLUTION OF COMMITTEE ON SUPERVISION OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of December 20, 2024 No. 51/3

About approval of Recommendations about consumer service of banking services
(Statement)

Being guided by Item 2.4. The provision "About Committee on Supervision of National Bank of the Kyrgyz Republic" approved by the resolution of Board of National Bank of the Kyrgyz Republic of March 19, 2005 No. 6/2, Committee on supervision of National Bank of the Kyrgyz Republic decides:

1. Approve Recommendations about consumer service of banking services it (is applied).

2. This resolution becomes effective from the date of its acceptance.

Appendix

to the Resolution of Committee on supervision of National Bank of the Kyrgyz Republic of December 20, 2024 No. 51/3

Recommendations about consumer service of banking services

1. General provisions

1. These Recommendations about consumer service of banking services (further - Recommendations) are developed for the purpose of increase in security of consumers of banking services (further - clients), ensuring the transparent and conscious choice by consumers of the provided services and products of banks, non-bank financial credit institutions (further - banks), stimulations of socially responsible behavior of banks and increase in trust of the population to bank system.

2. For the purpose of these Recommendations the following terms and determinations are used:

Consumer risk - probability of approach of the circumstances connected with acquisition and (or) use of product owing to violation of the rights and (or) legitimate interests of consumers of financial products.

Corporate social liability - set of the undertaken obligations of bank including contribution of bank to development of society in social, economic and ecological spheres and providing sustainable development of both the bank, and society in general.

Application of these Recommendations is aimed at providing with banks accounting of interests of the clients acquiring their products and services, and risk minimization, connected with ignorance of conditions of their provision, and consequences of non-compliance with terms of the contract by clients and also at implementation of the principles of responsible banking.

3. Banks are recommended to develop constantly own internal procedures according to nature and the amount of business and with the best local and international standards and practicians.

2. Responsible banking and social responsibility

4. Banks should understand responsible banking in the context of consumer protection as active participation of banks in providing fair and transparent customer relations. It not just accomplishment of formal requirements of the legislation of the Kyrgyz Republic, and voluntary acceptance on additional obligations on protection of consumer interests taking into account sustainable development.

5. Responsible banking for these Recommendations assumes:

- ensuring transparency and availability of information to the client (including conditions, risks and social/ecological aspects);

- personal data protection of consumers (observance of requirements of the legislation, taking measures from information leakage);

- servicing quality assurance (the high quality standards of customer service, and also quality evaluation of banking services taking into account opinions and needs of clients);

- dispute resolution mechanisms (transparent and available procedures of consideration of claims of clients, fair and operational permission of disputable situations);

- assistance to increase in financial literacy;

- social responsibility;

- providing the fact that clients have complex understanding of sustainable development goals;

- work with clients for encouragement steady the practician and over goal achievement of sustainable development;

- work with clients for rendering to them the help in understanding of their current impact on the environment and society;

- work with clients for rendering to them the help in development of trajectory of transition to more steady business models;

- support by the corresponding consultation and steady bank decisions regarding financing for achievement/realization by clients of their purposes of stability.

6. Banks should implement the principles of corporate social liability and in case of customer interaction of bank and their servicing to adhere to socially responsible approach.

7. Social responsibility includes support of socially important projects, use of environmentally friendly technologies, minimization of negative impact on the environment and holding the training actions for clients for the purpose of increase in their financial literacy.

8. In case of customer service banks are recommended to pay special attention to such aspects as advanced age, disability availability, etc.

9. For the purpose of increase in safety when using banking products banks are recommended to develop rules which can be offered socially vulnerable persons, grant the right to limit to certain limits amount and the number of the performed operations, to appoint the assistant for additional control of these transactions, to constitute the closed list of persons to whom remote money transfer is possible.

3. Rules of provision of information to clients

10. Banks are recommended to provide availability of the internal regulating documents connected with procedure for customer service, including at least:

- need of following to the basic principles by provision of banking services and considerations of addresses of the consumers established by the Provision "About the Minimum Requirements to Procedure for Provision of Banking Services and Consideration of Addresses of Consumers", the Board of National Bank of the Kyrgyz Republic approved by the resolution (further - National Bank) of June 24, 2015 No. 35/10 (further - Regulations on procedure for provision of banking services);

- competent, effective and professional implementation by bank employees of the obligations and provision to the potential and acting clients of information on the provided service according to requirements of the legislation of the Kyrgyz Republic and regulatory legal acts of National Bank;

- availability at employees of sufficient knowledge of conditions of provision of products and services, their characteristics, essence, and also about risks and responsibility of their use;

- provision of exhaustive and reliable information about products and services;

- the procedure of prevention of acceptance of risk by the client in view of insufficient financial literacy;

- the warning and reminder to clients of need of non-proliferation of personal data for risk minimization of exposure to fraud;

- respect for ethical standards and business ethics in case of customer interaction.

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