RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of December 23, 2009 No. 50/7

About approval of the Provision "About the Minimum Requirements on Credit Risk Management in Credit Unions"

According to article 43 of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic", the Board of National Bank of the Kyrgyz Republic decides:

1. Approve the Provision "About the Minimum Requirements on Credit Risk Management in Credit Unions" it (is applied).

2. This resolution becomes effective after one month after official publication.

3. After official publication to send to Legal department this resolution to the Ministry of Justice of the Kyrgyz Republic for entering into the State register of regulatory legal acts of the Kyrgyz Republic.

4. To management of supervision of non-bank organizations to bring this resolution to the attention of structural divisions of National Bank of the Kyrgyz Republic, regional managements, the Batken representative office of National Bank of the Kyrgyz Republic and credit unions of the Kyrgyz Republic.

5. To impose control of execution of this resolution on the Board member of National Bank of the Kyrgyz Republic Alybayeva S. K.

Approved by the Resolution of Board of National Bank of the Kyrgyz Republic of December 23, 2009 No. 50/7

Regulations on the minimum requirements on credit risk management in credit unions

1. General provisions

1.1. Ceased to be valid according to the Resolution of Board of National Bank of the Kyrgyz Republic of 31.05.2017 No. 21/9

1.2. The purpose of this provision is determination of the minimum requirements to forming in credit unions of adequate management system credit risk.

1.3. The credit risk is risk of non-execution by borrowers of the obligations according to terms and terms of the contract, and also partners on financial contracts.

The credit risk is connected as with delay of payment because of the borrower owing to its insolvency, and with quality of pledge, the borrower's type on pattern of ownership, industry accessory, availability and warranty types and reliability of guarantors, assessment of accomplishment of earlier these obligations on the credits, perspectives of further development of the borrower, etc.

The credit risk is present at all types of activity of credit union where the positive result depends on accomplishment by the participating borrower of credit union (further the borrower), or partners of the obligations to credit union provided by agreements and/or agreements.

The purpose of credit risk management consists in determination of degree of exposure of credit union to credit risk, identification of the reasons of its origin and determination of internal and external upward tendencies of risk based on which it is possible to predict credit risk, and acceptance of necessary measures for its minimization to acceptable level.

1.4. Female entrepreneurship - business activity according to the legislation of the Kyrgyz Republic.

(Item 1.4 is entered according to the Resolution of Board of National Bank of the Kyrgyz Republic of 18.06.2025 No. 2025-P-12/28-1-(NPA))

1.5. Self-prohibition on the conclusion of credit deal (further - self-prohibition) - independent declaration of will of physical person on establishment of prohibition on the conclusion with it the credit agreement or other agreement providing on credit money and (or) other property (further - the credit agreement) according to requirements of the Law of the Kyrgyz Republic "About exchange of credit information".

Establishment of self-prohibition, and also removal of self-prohibition is performed by physical person gratuitously, independently by means of the state portal of electronic services of the Kyrgyz Republic or the different way determined by National Bank. The established self-prohibition has no retroactive force concerning the credit agreements signed with credit unions before establishment of this self-prohibition. Information on self-prohibition on the conclusion of credit agreements goes to credit bureaus at the choice of the physical person who established self-prohibition. Credit unions provide intersystem integration with the existing credit bureaus for the purpose of receipt of information on self-prohibition (removal of prohibition) on the conclusion of credit agreements.

The procedure for determination of terms of the beginning of establishment, action and end of action of self-prohibition, and also form of establishment and the requirement to self-prohibition (removal of prohibition) are regulated by the Regulations of activities of credit bureaus in the territory of the Kyrgyz Republic approved by the resolution of Board of National Bank of September 28, 2016 No. 40/5.

2. Credit risk management

2.1. The board of credit union shall provide availability of effective management system with credit risk which shall include accurately certain credit structure with establishment of the rights and obligations on all aspects of management and monitoring of credit risk, and also the corresponding tools allowing to determine, estimate and control credit risk.

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