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The document ceased to be valid since  June 22, 2017 according to Item 2 of the Resolution of Board of National Bank of the Kyrgyz Republic of  June 8, 2017 No. 2017-P-12/23-2-(NPA)

RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of June 10, 2015 No. 31/1

About approval of the Provision "About Procedure for Investment with Nonresident Bank with the Capital of the Branch"

According to 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 Procedure for Investment with Nonresident Bank with the Capital of the Branch" it (is applied).

2. Declare invalid the resolution of Board of National Bank of the Kyrgyz Republic "About approval of "Procedure for investment with nonresident bank with the capital of the branch" of 27.04.2005 No. 12/8.

3. This resolution becomes effective after fifteen days from the date of official publication.

4. To legal management:

- publish this resolution on the official site of National Bank of the Kyrgyz Republic;

- after official publication to send 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.

5. To management of methodology of supervision and licensing to bring this resolution to the attention of commercial banks.

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

Acting Chairman

N. Zhenish

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of June 10, 2015 No. 31/1

Provision "About Procedure for Investment with Nonresident Bank with the Capital of the Branch"

This Provision determines procedure of the procedure for investment with the capital of the branches opened and registered in the territory of the Kyrgyz Republic by nonresident banks.

This Provision is developed according to the Law of the Kyrgyz Republic "About banks and banking activity in the Kyrgyz Republic".

1. For receipt of permission to opening of branch the nonresident bank shall provide to National Bank of the Kyrgyz Republic (further - National Bank) documents according to the legislation of the Kyrgyz Republic.

2. The nonresident bank shall allocate the branch opened for them in the territory of the Kyrgyz Republic with the capital which is basis for calculation of economic standard rates.

Economic standard rates and procedure for their calculation are established according to regulatory legal acts of National Bank and this Provision.

3. The capital allocated to branch with nonresident bank shall be placed as the clear of debts connected deposit in National Bank.

For the purposes of this provision the connected deposit is the money in national currency of the Kyrgyz Republic placed in National Bank for unrestricted term and without interest payment.

4. The branch of nonresident bank has the right to use the money placed as the connected deposit only for acquisition of the State treasurer bills of exchange and Government treasury bonds of the Kyrgyz Republic. The size of the connected deposit which can be used for acquisition of the State treasurer bills of exchange and Government treasury bonds of the Kyrgyz Republic is determined by coordination between National Bank and nonresident bank and is reflected in the contract between National Bank and nonresident bank on placement of money as the connected deposit in National Bank.

Acquired at the expense of the money placed as the connected deposit in National Bank, the State treasurer bills of exchange and the Government treasury bonds of the Kyrgyz Republic join in basis for calculation of obligatory economic standard rates, except for the economic standard rate of liquidity.

To branch of nonresident bank the repo is forbidden to sign agreements on the State treasurer bills of exchange and State to treasury bonds of the Kyrgyz Republic, acquired at the expense of the money placed as the connected deposit in National Bank.

5. This money placed as the connected deposit cannot be withdrawn before decision making about closing of branch of nonresident bank and approval of its liquidation balance sheet confirming absence of debt before creditors of branch of nonresident bank and serves as ensuring obligation fulfillment of branch of nonresident bank before creditors of branch of nonresident bank.

6. The nonresident bank shall fill up the size of the connected deposit in terms and in the amount at least the size of the minimum authorized capital and own means, according to the requirements established by regulatory legal acts of National Bank for commercial banks.

7. If the branch of nonresident bank will have threat not of accomplishment of the economic standard rates established for commercial banks in the Kyrgyz Republic, the nonresident bank shall bring the size of the connected deposit to the sizes necessary for reduction of economic standard rates in compliance with the requirements established by regulatory legal acts of National Bank.

8. In case of violations of requirements of this provision by nonresident bank the National Bank has the right to apply to the branch of nonresident bank registered in the territory of the Kyrgyz Republic, the sanctions provided by the bank law of the Kyrgyz Republic up to revocation of license.

9. The nonresident bank expressing desire to open branch of the bank in the territory of the Kyrgyz Republic shall sign the contract with National Bank on placement of money as the connected deposit in National Bank. Along with the conditions established by the legislation the agreement shall include following provisions:

- the size of the amount of the connected domestic currency deposit of the Kyrgyz Republic established by regulatory legal acts of National Bank;

- specifying on the fact that this connected deposit of branch of nonresident bank serves as ensuring obligation fulfillment of branch of nonresident bank before creditors of branch, and also that the deposit cannot be encumbered with any obligations;

- specifying of the size of the money allocated for acquisition of the State treasurer bills of exchange and Government treasury bonds of the Kyrgyz Republic at the expense of the connected deposit in National Bank.

 

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