RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of December 23, 2015 No. 78/25

About approval of the Provision "About Licensing of Credit Unions"

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 Credit Unions" it (is applied).

2. Recognize invalid:

- the resolution of Board of National Bank of the Kyrgyz Republic "About the Provision "About Licensing of Credit Unions" of May 4, 2005 No. 14/3;

- the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in the Provision "About Licensing of Credit Unions" of February 8, 2006 No. 4/6;

- Item 1 of Appendix to the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some regulations of National Bank of the Kyrgyz Republic" of November 5, 2008 No. 40/7;

- 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 May 4, 2005 No. 14/3 "About new edition of the Provision "About Licensing of Credit Unions", registered in the Ministry of Justice of the Kyrgyz Republic on June 10, 2005, registration number 75-05" of July 29, 2009 No. 32/5;

- Item 1 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 December 12, 2012 No. 48/10;

- paragraph two 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 February 13, 2013 No. 4/2 and part I of Appendix to the resolution;

- the subitem 3 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 3 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 resolutions of Board of National Bank of the Kyrgyz Republic" of December 24, 2014 No. 58/16 and Item 5 of Appendix 1 to the resolution;

- paragraph two of 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 October 14, 2015 No. 62/1 and part I of changes and amendments in some resolutions of Board of National Bank of the Kyrgyz Republic.

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 after fifteen calendar days from the date of official publication.

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 credit unions of the Kyrgyz Republic and their associations (associations).

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

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of December 23, 2015 No. 78/25

Provision "About Licensing of Credit Unions"

The regulations on licensing of credit unions (further - the Provision) determine procedure for licensing of credit unions, including the credit unions performing transactions according to the Islamic principles of banking and financing (taking into account the special terminology provided by the bank law), and also requirements to officials of credit unions, procedure for opening of branches and introduction of amendments and amendments to the charter of credit unions.

Chapter 1. General provisions

1. The credit union is created in the form of cooperative and performs the activities based on the license granted by National Bank of the Kyrgyz Republic (further - National Bank), and the constituent documents corresponding to the legislation of the Kyrgyz Republic.

2. The credit union receives the status of the legal entity from the moment of its state registration according to the legislation of the Kyrgyz Republic. In case of the state registration / re-registration of credit union the written consent of National Bank is required.

3. The credit union to start implementation of the activities shall obtain the license of National Bank granting the right to carrying out the following transactions:

- attraction of money from the participants by acquisition of savings share by them;

- provision to members of credit union of the credits on the terms of urgency, recoverability and the paid nature.

4. The credit union can perform in addition the following banking activities provided that these transactions are specified in the additional license obtained according to requirements of National Bank:

1) attraction of deposits (deposits) from members of credit union in national and foreign currency;

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

3) implementation of calculations at the request of members of credit union for the agreement with bank or other representative financial credit institution without opening of the account in credit union;

4) implementation of purchase and sale of foreign currency on its own behalf;

5) provision to members of credit union of the credits on the terms of urgency, recoverability and the paid nature in foreign currency.

5. In the presence of the corresponding license (specifying in the license) National Bank the credit union has the right to perform financial services (transactions) specified in Items 3 and 4 of this provision according to the Islamic principles of banking and financing according to regulatory legal acts of National Bank.

6. The credit union has the right to perform the transactions specified in Items 3 and 4 of this provision only in case of compliance of its cash rooms to the minimum requirements of National Bank to cash premises of credit union (Appendix 1).

If all transactions of credit union are performed in non-cash form and/or all operations is performed through the settlement account in commercial bank, availability of the cash room is optional.

7. Before receipt of the license of National Bank to credit union occupation by any activities as the legal entity, except for is forbidden to the organizational activities connected with organization of credit union.

8. The credit union has the right to perform only those operations which are specified in the license (the additional license) of credit union.

9. Documents of credit union on receipt of the license (the additional license) according to requirements of this provision are filed to National Bank in the place of its arrangement in the state and/or official languages of the Kyrgyz Republic:

- in central office of National Bank - the credit unions which are to Bishkek and Chuy Region;

- in regional managements of National Bank - the credit unions which are in areas of the Kyrgyz Republic except the Chuya and Batken regions;

- in representative office of National Bank in Batken Province - the credit unions which are in Batken Province.

10. Each copy of the constituent document of credit union or other decision made by credit union, provided in the National Bank according to this Provision containing more than one leaf shall be separately stitched, numbered and signed the head of credit union and is under seal credit union (in the presence).

Copies of the provided documents shall be certified in accordance with the established procedure.

10-1. Together with provision of the documents provided by this Provision credit unions, physical persons and legal entities shall provide the consent to collection and processing of personal data according to Appendix 10 to this Provision concerning persons whose personal data are provided in National Bank.

11. The foundation agreement of credit union shall be signed by all members (authorized representatives of participants) of credit union. The signature of the participant - physical person shall be certified notarially, the authorized signature, the participant who is the representative - the legal entity, shall be certified by seal the legal entity.

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