RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of June 14, 2013 No. 19/2

About approval of the Regulations on the minimum requirements to pricing policy of the banking, payment services and services rendered by the microfinancial organizations

Being guided by articles 7 and 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 to Pricing Policy of the Banking, Payment Services and Services Rendered by the Microfinancial Organizations" it (is applied).

2. To legal management to publish this resolution on the official site of National Bank of the Kyrgyz Republic.

3. This resolution becomes effective after 15 days after official publication.

4. After official publication to send to Legal management this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State register of regulatory legal acts of the Kyrgyz Republic.

5. To management of methodology of supervision and licensing to bring this resolution to the attention of commercial banks, Associations of the microfinancial organizations, National union of credit unions and cooperatives of Kyrgyzstan, Association of credit unions and cooperatives of Kyrgyzstan and JSC Finance Company of Credit Unions.

6. To impose control of execution of this resolution on the vice-chairman of National Bank of the Kyrgyz Republic Chokoyev Z. L.

Approved by the Resolution of Board of National Bank of the Kyrgyz Republic of June 14, 2013 No. 19/2

In all text of the Provision the abbreviation of FKU is shall be replaced with words "persons providing banking services" in the corresponding cases and number according to the Resolution of Board of National Bank of the Kyrgyz Republic of 08.06.2017 to No. 2017-P-14/23-16

Regulations on the minimum requirements to pricing policy of the banking, payment services and services rendered by the microfinancial organizations

I. General provisions

1. Ceased to be valid according to the Resolution of Board of National Bank of the Kyrgyz Republic of 08.06.2017 No. 2017-P-14/23-16

2. The purpose of this provision is ensuring system approach to pricing of the banking, payment services of commercial banks, payment services of operators of payment systems, payment institutes and services of the non-bank financial credit institutions licensed and regulated by National Bank of the Kyrgyz Republic (further - National Bank), including performing activities according to the Islamic principles of banking and financing taking into account the special terminology applied by them in case of banking operations (further - persons providing banking services), for observance of the antitrust law of the Kyrgyz Republic.

3. For the purpose of this provision, the policy on pricing is the activities of person providing banking services, directed to determination of strategy of pricing which shall be formalized in the internal regulating document of person providing banking services, regulating process of pricing (price fixation) on various banking services (products) and the services rendered by the microfinancial organizations and their change according to changes of market conditions.

4. Rates of percent and commission fee, and also rates for rendering the banking, payment services and services rendered by the microfinancial organizations are established by person providing banking services independently according to the legislation of the Kyrgyz Republic.

Service for which persons providing banking services levy commission and other payments shall conform to the following requirements:

- have separate benefit or consumer value for the client;

- be independent and independent of the main service in loan granting;

- not treat services which are provided gratuitously according to requirements of the legislation.

Information about the provided persons providing banking services financial products, the rendered services, interest rates and rates placed in mass media, on official websites and other carriers (advertizing booklets, roadside billboards, stands and another), and also provided in case of consultation of clients, shall be reliable and complete.

4-1. Persons providing banking services, except for operators of the payment systems and payment institutes (which are not bank) are forbidden to conclude with the affiliate and the face tied with bank, and also any other person which is the owner of the trademark, the contract for use of the trademark on paid basis if beneficiary in parts or in full under such agreement is the specified person.

II. Requirements to pricing policy to persons providing banking services

5. Each person providing banking services shall have the pricing policy approved by authorized body of management (The board of directors - for banks and authorized body management/person - for the other persons providing banking services).

6. The executive body (Board - for banks and authorized executive body / person - for the other persons providing banking services) is responsible for development and realization of pricing policy.

7. Pricing policy shall provide, at least, the following:

1) the purposes and tasks of price policy of person providing banking services when implementing active and passive transactions taking into account suspension of risk and reasons for remuneration;

2) the requirement to carrying out market demand analysis and the prices of the banking, payment services and services rendered by the microfinancial organizations;

3) the requirement to the analysis of the forming of structure of interest rates, including interest and not interest expenses, for achievement established by person providing banking services of level of profitability;

4) the requirement to disclosure of components of which there are interest rates for all types of loan (including the cost of the raised funds, maintenance cost of the credit, operating expenses, expenses on forming of reserve on covering of potential losses and losses, the taxes, planned regulation of profitability (margin) and other costs caused by objective factors, regional and other features of functioning of persons providing banking services), and acceptable for person providing banking services the lower and upper bounds of interest rates, and also requirements to procedure for their application and periodic review;

5) requirements to disclosure of components on interest rates of all types of deposits, acceptable for persons providing banking services the lower and upper bounds of interest rates and the requirement to their application and periodic review;

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