Document from CIS Legislation database © 2003-2021 SojuzPravoInform LLC

RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of December 23, 2015 No. 78/26

About approval of the Provision "About Licensing of Activities of Microfinance Companies"

(as amended on 08-07-2020)

According to articles 7 and 43 of the Law "About National Bank of the Kyrgyz Republic" Board of National Bank of the Kyrgyz Republic decides:

1. Approve the Provision "About Licensing of Activities of Microfinance Companies" it (is applied).

2. Recognize invalid:

- the resolution of Board of National Bank of the Kyrgyz Republic "About approval of the Regulations on the minimum qualification requirements imposed to officials of the microfinance companies licensed by National Bank of the Kyrgyz Republic" of February 8, 2006 No. 4/2;

- the resolution of Board of National Bank of the Kyrgyz Republic "About the Provision "About Licensing, Reorganization and Liquidation of Microfinance Companies in the territory of the Kyrgyz Republic" of January 31, 2007 No. 5/1;

- the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in the resolution of Board of National Bank of the Kyrgyz Republic of January 31, 2007 No. 5/1 "About the Provision "About Licensing, Reorganization and Liquidation of Microfinance Companies in the territory of the Kyrgyz Republic", registered in the Ministry of Justice of the Kyrgyz Republic on March 5, 2007, registration number 27-07" of June 16, 2010 No. 49/4;

- Items 21 and 22 of Appendix to the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some regulatory legal acts of National Bank of the Kyrgyz Republic" of April 25, 2012 No. 18/9;

- the paragraph third Item 1 of the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some regulatory legal acts of National Bank of the Kyrgyz Republic regulating activities of IFI" of July 11, 2012 No. 29/5 and Item 2 of Appendix to the resolution;

- the paragraph third Item 1 of the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some regulatory legal acts of National Bank of the Kyrgyz Republic" of February 13, 2013 No. 4/2 and part II of Appendix to the resolution;

- the subitem 2 of Item 1 of the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some regulatory legal acts of National Bank of the Kyrgyz Republic" of December 23, 2013 No. 52/8 and Item 2 of Appendix to the resolution;

- the paragraph the fifth Item 1 of the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some resolutions of Board of National Bank of the Kyrgyz Republic" of December 24, 2014 No. 58/16 and Item 2 of Appendix 1 to the resolution;

- the paragraph the fourth Item 1 of the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some resolutions of Board of National Bank of the Kyrgyz Republic" of March 11, 2015 No. 16/2 and Item 3 of Appendix to the resolution;

- the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some resolutions of Board of National Bank of the Kyrgyz Republic" of October 14, 2015 No. 62/1.

3. 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.

4. This resolution becomes effective since February 10, 2016.

5. To management of methodology of supervision and licensing to bring this resolution to the attention of the relevant structural divisions of National Bank of the Kyrgyz Republic, its regional managements and representative office of National Bank in Batken Province, the operating microfinancial institutions and credit unions of the Kyrgyz Republic, their associations (associations).

6. To the operating microfinance companies which size of the authorized capital constitutes less than 50 million som, within 6 (six) months from coming into force of this resolution to bring the authorized capital into accord with requirements of the approved Provision "About Licensing of Activities of Microfinance Companies".

7. To impose control of execution of this resolution on the vice-chairman of National Bank Kyrgyz Republics Orozbayeva L.Dzh.

Chairman

T. Abdygulov

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of December 23, 2015 No. 78/26

Provision "About Licensing of Activities of Microfinance Companies"

The provision "About Licensing of Activities of Microfinance Companies" (further - the Provision) determines procedure for creation and licensing of microfinance companies in the territory of the Kyrgyz Republic, including microfinance companies performing transactions according to the Islamic principles of banking and financing (taking into account the special terminology provided by the bank law), and also establishes requirements to officials of microfinance companies and procedure for their approval, procedure for expansion of activities of microfinance companies, creations of the isolated structural divisions, modification and amendments in the charter, procedure for reorganization of non-bank financial credit institutions in microfinance companies and re-registrations of commercial bank in microfinance company.

Chapter 1. General provisions

1. The microfinance company (further - IFC) is created in form of business of joint-stock company of the opened or closed type and performs activities on the basis of the constituent documents conforming to requirements of the legislation of the Kyrgyz Republic, and the license of National Bank of the Kyrgyz Republic (further - National Bank).

2. The IFC receives the status of the legal entity from the moment of state registration according to the legislation of the Kyrgyz Republic. The state registration / re-registration of IFC is made based on written consent of National Bank.

3. The authorized capital of IFC is created only in national currency at the expense of money of founders (shareholders).

Forming of the authorized capital for the fixed asset account and intangible assets is forbidden.

4. The basis of the capital of IFC is constituted by completely paid authorized capital. Only such authorized capital on which the IFC has no obligations on return of investments made by her founders (shareholders) is equity composition.

5. The minimum size of the authorized capital of the IFC which is not performing transaction on acceptance of term deposits from physical persons and legal entities is established in the amount of at least 50 (fifty) million som.

This requirement also extends to the microcredit companies (further - MKK), the mikrocreditny agencies (further - MKA) and the credit unions (further - KS) which are transformed to IFC.

6. The IFC applying for receipt of the right of acceptance of term deposits from physical persons and legal entities shall have the minimum size of the authorized capital in the amount of at least 100 (hundred) million som.

7. For implementation of the activities of IFC shall obtain from National Bank the license of microfinance company for the right of implementation of separate banking activities (further - the license).

In the presence of the corresponding license (specifying in the license) the IFC has the right to perform transactions according to the Islamic principles of banking and financing (except for attraction of money according to the transaction Kard-Hassan).

The license of IFC is inaliennable (nominal). The rights following from the license are not subject to transfer to the third parties. Such transfer leads to withdrawal of the license by National Bank with prohibition of activities of the legal entity as IFC.

8. The IFC can perform the following banking activities taking into account the restrictions set by National Bank and provided that such transactions are specified in the license:

1) issue of the secure and unsecured microcredits;

2) acceptance of term deposits from physical persons and legal entities on the terms of recoverability for the purpose of accumulating of savings of clients;

3) purchase and subsequent sale of debt obligations (factoring);

4) implementation of retail banking services according to the agency agreement with bank - without opening of accounts to clients in IFC;

5) purchase and sale of foreign currency on its own behalf, according to regulatory legal acts of National Bank (in the presence of the additional license / specifying in the license);

6) issue of guarantees in the amount of, not exceeding in total with the microcredit (leasing) the standard rate of the maximum loan amount on one borrower.

9. The IFC can perform the following transactions according to the Islamic principles of banking and financing taking into account the restrictions set by National Bank and provided that such transactions are specified in the license:

1) - Mudarab (only for microfinancing issue);

- "Ball / musharaka and ball / musharaka muntakhiya bittamlik";

- Murabakh;

- "Idzhara and idzhara muntakhiyya bittamlik";

- "Cards Hassan" (only for microfinancing issue);

- Salam;

- "Istisnaa" / "Parallel istisnaa"

2) acceptance of deposits from physical persons and legal entities according to the transaction of "mudarab" for the purpose of accumulating of savings of clients;

3) implementation of retail banking services according to the agency agreement with bank - without opening of accounts to clients in microfinance company;

4) purchase and sale of foreign currency on its own behalf, according to regulatory legal acts of National Bank (in the presence of the additional license / specifying in the license);

5) issue of guarantees in the amount of, not exceeding in total with microfinancing (leasing) the standard rate of the maximum loan amount on one borrower.

10. In the presence of the additional license (specifying in the license) IFC National Bank all has the right to perform or some of the transactions listed in subitems 1-3 and 6 of Item 8 or in subitems 1, of the 2 and 5 Item 9 of this provision in foreign currency.

11. Before receipt of the license occupation by any activities as IFC, except for is forbidden to the organizational activities connected with IFC organization.

12. The IFC is forbidden to participate in all gambling types of activity, including in the organization and holding draws and cash and prize lotteries, including carrying out cash and prize lotteries in premises of IFC or their advertizing.

13. The IFC cannot use as the name of designation, their mixing, identical or similar to degree, with names of the financial credit institutions which are earlier created or created in the territory of the Kyrgyz Republic.

This prohibition does not extend to affiliated microfinancial institutions when using of names of mother companies by them.

14. During creation of IFC, and also in subsequent in case of change of the location, premises of IFC including premises of branches of IFC, shall conform to requirements for technical reinforcement, the equipment, fire safety established by the Instruction "About single requirements for technical reinforcement of financial credit institutions and procedure for their protection in the Kyrgyz Republic" about what the relevant statements between IFC and authorized state bodies shall be drawn up.

15. Each copy of the constituent document or decision of IFC represented to the National Bank according to requirements of this provision containing more than one leaf shall be separately stitched, numbered and signed the head of IFC and is under seal IFC (in the presence).

16. The documents provided by foreign founders (shareholders) shall be legalized in the procedure established by the legislation of the Kyrgyz Republic, including the international treaties which came in the procedure established by the law into force which participant is the Kyrgyz Republic, and are translated into the state and/or official languages of the Kyrgyz Republic (notarially certified transfer is provided).

The copies of documents provided in National Bank shall be certified in accordance with the established procedure.

17. The documents of IFC provided in National Bank according to requirements of this provision move in the IFC location:

- in central office of National Bank - IFC, being to Bishkek and Chuy Region;

- in regional managements of National Bank - IFC, being in areas of the Kyrgyz Republic, except the Chuya and Batken regions;

- in Representative office of National Bank in Batken Province - IFC, being in Batken Province.

18. In case of provision of IFC of the documents established by this Provision in National Bank not in full or in case of discrepancy of documents to the requirements established by the legislation of the Kyrgyz Republic and this Provision, the National Bank has the right to return documents for completion with written statement of the reasons during the term allotted for review of the submitted document package.

19. In case of representation of IFC in National Bank of modifed documents on the bases specified in Item 18 of this provision or if during consideration of documents by National Bank additional documents are submitted, then the term of consideration of documents is reckoned again, from the date of receipt of the documents meeting requirements of this provision.

In case of withdrawal of the petition (statement) and documents for receipt of the license (the additional license / lifting of restriction) or in case of refusal of National Bank in licensing (the additional license / lifting of restriction in the license) one copy of the documents submitted by IFC does not return to licenses.

20. In case of change during consideration of documents of the name by National Bank, the location, the list of founders (shareholders) of IFC, etc. requiring modification and/or amendments of constituent documents of IFC, the applicant shall within 3 (three) working days from acceptance date authorized body of management of IFC of such decision to notify on it National Bank and to submit constituent documents with the made changes and/or additions.

20-1. The decision or information on the made decisions of National Bank within this provision are brought to the attention of applicants (IFC, MKK/MKA and KC) in writing, within three working days from the date of adoption of such decision if other terms are not provided in this Provision.

20-2. The acts of National Bank adopted within this provision (except for licenses, resolutions of Board of National Bank and Committee on supervision of National Bank), do not require assurance by seals of National Bank.

21. For the purpose of this provision the types of activity specified in regulatory legal acts of National Bank on licensing of activities of banks are considered as types of the financial activities and activities connected with banking and/or financial activities.

Chapter 2. Requirements to founders/shareholders of IFC

22. Physical persons and legal entities - residents or nonresidents of the Kyrgyz Republic can be founders and shareholders of IFC.

The legal entities who are not engaged in banking and/or financial activities cannot solely or together with other persons (in total from shares of any other legal entity controlling him controlled by it or being under general with it control) to own more than 20 (twenty) percent of voting shares of IFC.

The specified restriction does not extend to foreign non-profit organization in case of compliance to requirements of National Bank.

23. Persons who have one or several of the following signs cannot be founders or shareholders of IFC:

1) insolvency (bankruptcy) of the founder or shareholder.

The National Bank can consider financial condition of the founder (shareholder) unsatisfactory in the presence of one of the following signs:

- obligations of the founder (shareholder) exceed its assets as of the last reporting date;

- the general size of obligations, including off-balance obligations of the founder (shareholder), can represent significant risk for stability of IFC;

- confirmation is not received or the provided data confirm lack of possibility of the founder (shareholder) to provide if necessary the supplementary capital of IFC;

- on other bases testimonial of possibility of causing damage of IFC or its investors as a result of satisfaction of the request, including availability of outstanding debt before the budget and tax authorities of the Kyrgyz Republic for date of application.

2) availability at the founder or the shareholder who are not removed and not extinguished in the procedure for criminal record established by the legislation in the field of financial and/or economic crimes;

3) availability of the judgment prohibiting to the founder or the shareholder to be engaged in banking and/or financial activities;

4) the legal entities registered in offshore zones or having as members of persons and/or affiliates registered in offshore zones or the physical persons living in the territory of offshore zones which list is established by National Bank;

5) the physical persons which are residents of offshore zones, living in the territory of offshore zones which list is established by National Bank;

6) the legal entities registered or having as members of persons and/or affiliates registered in the high risk countries which do not apply the recommendation of the international organizations about development and deployment of international standards about counteraction to money laundering to financing of terrorism and financing of distribution of weapons of mass destruction also do not participate in international cooperation in the field of counteraction to financing of terrorist activities and legalization (washing) of the criminal income, or the physical persons living in the territory of these states and also the legal entities who are in Sanctions lists and the List of persons, groups and the organizations concerning which there are data on their participation in legalization (washing) of the criminal income, responsible for forming and which updating is body of financial investigation;

7) the physical persons which are residents and/or living in the territory of the high risk countries which do not apply the recommendation of the international organizations about development and deployment of international standards about counteraction to financing of terrorist activities and legalization (washing) of the criminal income and also on counteraction to financing of extremist activities and to financing of distribution of weapons of mass destruction also do not participate in international cooperation in the field of counteraction to financing of terrorist activities and legalization (washing) of the criminal income, and also the physical persons which are in Sanctions lists and the List of persons, groups and the organizations concerning which there are data on their participation in legalization (washing) of the criminal income, responsible for forming and which updating is body of financial investigation;

8) the legal entities registered or having as members of persons and/or affiliates registered in the states on which decisions (resolutions) of the international organizations which the Kyrgyz Republic, about application of the sanctions providing prohibition and/or restrictions for cooperation with physical persons and legal entities from these states joined are made. Authorized state body in the field of foreign affairs and other state bodies of the Kyrgyz Republic provide the available information on the international sanctions at the request of National Bank;

9) the physical persons which are residents and/or living in the territory of the states on which decisions (resolutions) of the international organizations which the Kyrgyz Republic, about application of the sanctions providing prohibition and/or restrictions for cooperation with physical persons and legal entities from these states joined are made. Authorized state body in the field of foreign affairs and other state bodies of the Kyrgyz Republic provide the available information on the international sanctions at the request of National Bank.

24. Founders of IFC are forbidden to acquire shares in case of their primary issue at the price below nominal.

Chapter 3. Requirements to officials and procedure for their approval

25. Officials of IFC whose candidates without fail are subject to approval of National Bank are the Chairman and board members, the Chairman and board members, the Chairman and members of the Sharia council, the chief accountant, the head of the structural unit responsible for internal organizational actions for counteraction to financing of terrorist activities and legalization (washing) of the criminal income (komplayens-officer), and heads of credit division, division on financing according to the Islamic principles of banking and financing / "Islamic window", the division responsible for asset-liability management (in the presence), services of internal audit, (further - heads of structural divisions).

26. The officials of IFC specified in Item 25 of this provision shall conform to the minimum requirements of National Bank and have faultless goodwill according to requirements of National Bank.

27. Candidates for positions of the Chairman and board members shall conform to the following requirements:

1) availability of the higher education;

2) the availability of knowledge of the legislation regulating activities of microfinancial institutions, the bank law and corporate management, supported by the certificate or other document on training in this sphere;

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.