of December 16, 2016 No. 206
About National Bank of the Kyrgyz Republic, banks and banking activity
1. The bank law governs the relations in the field of implementation of banking activity, carrying out monetary and monetarist policies, functioning of payment system (bank legal relationship), and also legal status, competence, relations and responsibility of participants of bank legal relationship.
2. Participants of bank legal relationship are the state, on behalf of authorized body, National Bank of the Kyrgyz Republic (further - National Bank), banks, legal entities and physical persons, including individual entrepreneurs, and also nonresidents.
3. Activities of non-bank financial credit institutions and other legal entities, persons under surveillance to National Bank, are regulated by the laws, taking into account the features provided by regulatory legal acts of National Bank if other is not provided by this Law.
1. The bank law of the Kyrgyz Republic - the system of regulatory legal acts of the Kyrgyz Republic regulating bank legal relationship in the Kyrgyz Republic.
2. In case of collision between regulations of this Law and regulations of the Civil code of the Kyrgyz Republic regulations of the Civil code of the Kyrgyz Republic are effective. In collision cases between regulations of this Law and regulations of other laws of the Kyrgyz Republic for regulation of bank legal relationship regulations of this Law are effective.
3. Regulations of codes and laws of the Kyrgyz Republic are applied to bank legal relationship taking into account the features established by this Law.
4. The projects of regulatory legal acts of the Kyrgyz Republic affecting bank legal relationship are subject to obligatory approval of National Bank.
The basic principles of bank legal relationship are:
1) legality, honesty, conscientiousness, transparency, rationality, justice, social responsibility;
2) reliability and safety of banking activity;
3) independence of National Bank;
4) use of different forms and principles of bank financing, including Islamic principles of banking and financing;
5) other commonly fundamental accepted principles provided by the bank law of the Kyrgyz Republic and the international bank standards.
1. In the Kyrgyz Republic, along with traditional banking and crediting, the Islamic principles of banking and financing are applied.
2. The Islamic principles of banking and financing - the principles and rules of banking operations and transactions according to standards of Sharia developed and approved by the international organizations establishing standards of conducting Islamic banking (The organization of financial accounting and audit for Islamic financial institutions, Council of Islamic financial services).
3. To the banks and non-bank financial credit institutions performing the activities according to the Islamic principles of banking and financing, regulations of this Law and the bank law of the Kyrgyz Republic are applied taking into account the specifics and features provided by provisions of the Islamic principles of banking and financing.
1. The terms and determinations used in this Law are understood according to their commonly accepted value in the legislation of the Kyrgyz Republic and in the international banking practice if other is not determined by this Law or other bank law of the Kyrgyz Republic.
2. The National Bank has the right to publish the glossary (code) of banking terms and to make explanations on banking terminology.
1. Relations of banks, non-bank financial credit institutions and other legal entities, persons under surveillance to National Bank (person providing banking services), with clients are under construction on the basis of the principle of partnership according to this Law, on the basis of civil and other legislation of the Kyrgyz Republic. Clients are understood as the legal entities, physical persons, individual entrepreneurs using banking services.
2. Clients are free in the choice of financial credit institution and banking services. Persons providing banking services shall give upon the demand of the client to him access to constituent, allowing documents and financial statements.
Provisions of this Chapter extend as well to the banks and non-bank financial credit institutions performing the activities according to the Islamic principles of banking and financing taking into account the features provided by provisions of the Islamic principles of banking and financing.
1. General terms of provision of banking services are open information and cannot be subject of trade or bank secrecy.
2. To the conclusion of any agreement on rendering banking services to the client complete disclosure of information on the provided services shall be provided.
The refusal in provision of exhaustive information on conditions and cost of the provided services is not allowed.
3. Persons providing banking services shall be convinced of complete understanding by the client of conditions of the provided services, the related risks and responsibility.
4. Changes of general terms of provision of banking services, except for information on interest rates and the currency exchange rate, shall be published in mass media or on the websites at least in ten working days prior to their introduction in force, and also to take place constantly at information stands. Information on interest rate realignments and the currency exchange rate is published without delay.
5. The procedure for disclosure of information on the provided services is determined by National Bank.
1. The agreements signed with clients shall correspond to bank and other law of the Kyrgyz Republic. The agreements signed with clients according to the Islamic principles of banking and financing shall correspond as well to standards of Sharia.
2. Texts of agreements shall be printed with font of the identical size, are stated extremely clearly and availablly to perception and understanding by clients. In coordination with the client the text of the agreement is constituted in the state or official language. If necessary the text of the agreement can be translated into other language.
1. Persons providing banking services shall ensure safety of the money which is on bank accounts and to return them on the first demand of the investors, except as specified, provided by this Law and other codes and the laws of the Kyrgyz Republic.
2. Persons providing the banking services having no right to set any restrictions for investors, which are not provided by the bank law of the Kyrgyz Republic.
3. The operating procedure with bank accounts is established by National Bank.
1. Persons providing banking services shall perform credit activities (investment of funds) with respect for the principles of responsible crediting: conscientiousness, transparency, reliability, partnership in relation to borrowers, accounting of their economic interests and financial opportunities. Borrowers shall make the weighed and crucial decisions in case of the appeal to services in crediting.
2. Persons providing banking services shall provide accomplishment of the following requirements when rendering services in crediting of borrowers:
1) the effective interest rate on the credit shall not exceed value of the declared (published) effective interest rate on date of issue of the credit;
2) to the conclusion of the loan agreement complete disclosure shall be provided to clients (potential borrowers) of exhaustive information on loan granting conditions, including information on all-in cost of credit product. The National Bank has the right to establish other requirements to disclosure of information to borrowers;
3) shall be explained to the borrower under list of effect of non-execution or improper execution of obligations assumed by it according to the loan agreement;
4) to the conclusion of the loan agreement real solvency of the borrower according to requirements of National Bank shall be carefully studied. Concerning the borrower - physical person including his personality, employment figures, the income of family members, amounts of expenses, the number of dependents and other indicators shall be carefully studied;
5) inclusion in conditions of the loan agreement of the additional charges, commission and other payments, in addition to the published or established by the legislation of the Kyrgyz Republic, and also other accompanying services on paid basis, regardless of the arrangement with the borrower is forbidden;
6) the loan agreement shall provide the client's right to refuse on a grant basis receipt of the credit during the period after the conclusion of the agreement and until receipt of money by the client or implementation of payment in payment for property on leasing;
7) the loan agreement shall provide the client's right to early repayment of the credit (leasing) without any penalties, on condition of the prior notice of it in thirty calendar days at any time;
8) in case of the address exhaustive information on the size of the actual debt on the credit, and also the changed payment schedule no later than the next working day shall be provided to borrowers;
9) the persons providing banking services, having no right to change or supplement unilaterally conditions of the loan agreement if it worsens the rights and/or increases the borrower's obligations;
10) the maximum amount of accrued penalty (penalty fee, penalties) on overdue credit debt cannot exceed the value established by National Bank;
11) the real mortgage estate in the form of premises is implemented only through the public biddings if in the course of the address of collection regarding pledge the agreement of the parties does not provide different way of realization;
12) other requirements provided by the law.
3. The National Bank has the right to set the minimum limit of mortgage providing on the credits and other transactions, the maximum ratio of the amount of payments on the credit to the income of the borrower and other requirements to crediting of physical persons.
1. The commission fee and rates for rendering banking services are established by persons providing banking services, independently according to requirements of the bank law of the Kyrgyz Republic.
If for rendering banking services charge of percent is provided, the size of rate of percent is established by persons providing banking services, independently according to requirements of the bank law of the Kyrgyz Republic.
The bank performing transactions and transactions according to the Islamic principles of the banking and financing having the right to establish independently conditions of making of transactions and transactions according to requirements of the bank law of the Kyrgyz Republic.
2. Information on commission fee, rates and interest rates for rendering banking services shall be open and available to clients and cannot be subject of trade or bank secrecy.
3. When specifying in advertizing, the publication and distribution of information on the cost of banking services it is necessary to specify without fail nominal and effective rates of percent on the issued credits and the sizes of commission fee.
4. Nominal and effective rates of percent in effective and comparable calculation shall be specified in agreements.
5. Along with information on the size of nominal and effective rate of percent, to the conclusion of the loan agreement, persons providing banking services shall provide to the client information on true interest cost in absolute value, showing separately the main credit amount, percent, sales charges and other payments connected with the conclusion and agreement performance. Interest payments are charged at the nominal rate on the decreasing remaining balance of the main credit amount. Determination and method of calculation of effective rate of percent are established by National Bank.
6. Use of the credit products distorting the cost of services and providing indexing of payments on the credit in binding to the currency other than currency of the loan agreement is not allowed.
7. The size of interest rates for term deposits and the credits cannot be changed by bank unilaterally if it worsens the rights and/or increases the client's obligations.
1. Persons providing banking services shall have the documents regulating claim treatment procedure and statements (disputes) of clients. Claims and applications of clients shall be considered no later than thirty calendar days with provision of the answer in writing in time.
2. Documents by results of considered claims and applications (disputes) of clients shall be stored in accordance with the established procedure at least three years.
3. The disputes arising in the course of agreement performance if they were not resolved by agreement of the parties, are permitted according to the procedure, stipulated by the legislation the Kyrgyz Republic, including within pre-judicial dispute settlement.
For violation of requirements of this Chapter to persons providing banking services, National Bank has the right to apply the corrective actions provided by this Law and the laws of the Kyrgyz Republic.
1. The National (Central) Bank is bank of the Kyrgyz Republic (Bank of Kyrgyzstan) and is in its property.
2. Legal status, the purposes of activities, function and power of National Bank are determined by the Constitution of the Kyrgyz Republic and this Law.
3. The National Bank is legal entity with independent form of business - "Central Bank of the Kyrgyz Republic", performing the activities according to this Law and not pursuing the profit earning aims.
4. The location of National Bank is the city of Bishkek. The National Bank has the right to create branches, representations and to appoint the representatives in the Kyrgyz Republic and beyond its limits.
5. The National Bank has seal with the image of the State Emblem of the Kyrgyz Republic and with the name.
6. The Kyrgyz Republic does not bear responsibility according to obligations of National Bank, is equal as the National Bank does not bear responsibility according to obligations of the Kyrgyz Republic.
7. The National Bank as the legal entity bears responsibility according to the obligations all property belonging to it.
8. The National Bank has the right to take a legal action in protection of own, state and public concerns.
The purpose of activities of National Bank is achievement and maintenance of price stability by means of carrying out the corresponding monetary policy.
The main objectives promoting goal achievement of activities of National Bank are maintenance of consumer capability of national currency, ensuring efficiency, safety and reliability of bank and payment systems of the Kyrgyz Republic for assistance to the long-term economic growth of the republic.
National Bank:
1) exercises supervision of bank system of the Kyrgyz Republic, including of activities of banks and other legal entities, persons under surveillance to National Bank;
Determines 2) and pursues monetary policy, promotes financial stability of the Kyrgyz Republic;
Develops 3) and performs single monetarist policies;
4) has exclusive right of carrying out issue of bank notes;
5) implements different forms and the principles of bank financing;
6) exercises supervision of payment system (oversight), promotes effective, reliable and safe functioning of payment system of the Kyrgyz Republic;
7) performs issue of allowing documents, including within the special regulating modes, according to this Law and the laws of the Kyrgyz Republic;
8) establishes rules of carrying out banking activities;
9) is last resort lender for banks according to this Law;
10) owns and manages all international reserves according to this Law and the legislation of the Kyrgyz Republic;
11) is constituted together with state body in the field of official statistics by paying balance and determines the international investment line item of the Kyrgyz Republic;
Develops 12) and publishes regulatory legal acts according to the bank law of the Kyrgyz Republic;
13) represents the interests and speaks on behalf of the Kyrgyz Republic at the international forums, conferences and the organizations concerning monetary policy, bank and payment systems;
14) performs banking activities according to this Law;
15) has rights of carrying out issue (release) of electronic money;
16) performs consumer protection of banking services;
17) performs other powers according to the legislation of the Kyrgyz Republic.
1. For goal achievement of activities and accomplishment of the main objectives the National Bank has the right to perform the following transactions:
1) to grant the loans to banks according to this Law;
2) to buy and sell checks, simple and drafts in the secondary market;
3) to buy and sell the securities issued by the Government of the Kyrgyz Republic in the secondary market;
4) to buy and sell the securities issued by National Bank and also the securities issued by foreign states, the international organizations and other securities determined by National Bank;
5) to buy and sell precious metals and other types of currency values;
6) to buy and sell foreign currency;
7) to accept deposits from banks, other financial institutions, including the foreign organizations;
8) to open accounts in banks and other financial institutions;
9) to open correspondent accounts for banks, including foreign banks;
10) to act as the intermediary in the transactions connected with the means provided by the international financial institutions for financing of different programs;
11) to perform transactions on purchase of foreign currency with the obligation of its return sale with the international organizations created by the Kyrgyz Republic together with other states within the Eurasian Economic Union (EEU) on the funds allocated by them for preferential financing of economy of the Kyrgyz Republic;
12) to provide money in national currency on the terms of the paid nature, to urgency, recoverability to the international organizations created by the Kyrgyz Republic together with other states within the Eurasian Economic Union (EEU) on the projects and programs of preferential financing of economy of the Kyrgyz Republic performed by them on security foreign currency or government securities of the Kyrgyz Republic;
13) to provide money in national currency on the conditions determined by Board of National Bank, to Agency on protection of deposits of the Kyrgyz Republic for the purpose of ensuring financial stability of system of protection of deposits of the Kyrgyz Republic;
To import 14) into the country and to export precious metals and any currency from the country;
15) to perform other banking activities according to the bank law of the Kyrgyz Republic.
2. The National Bank performs separate banking activities and services on paid basis. Types of service and the amount of payment are determined by National Bank independently, taking into account provisions of article 14 of this Law.
3. The National Bank has the right to perform the transactions specified regarding 1 this Article including according to the Islamic principles of banking and financing.
1. The National Bank will independently organize and performs the activities within the competence established by this Law and the bank law of the Kyrgyz Republic.
2. Intervention of state bodies in legal activities of National Bank is not allowed. The state guarantees independence of National Bank in implementation of its powers. Acceptance of the regulatory legal acts of the Kyrgyz Republic contradicting powers of National Bank is forbidden.
3. Employees of National Bank are forbidden to accept instructions and the instructions from state bodies, government employees and other persons contradicting the main objectives and the purposes of activities of National Bank.
4. The National Bank has the right to receive gratuitously from any physical persons and legal entities, and also state bodies necessary information, data and documents according to the procedure, provided by this Law and the legislation of the Kyrgyz Republic.
5. The National Bank is forbidden to perform the activities which are going beyond its competence provided by this Law.
1. The National Bank publishes regulatory legal acts which are component of the bank law of the Kyrgyz Republic. National Bank of the regulatory legal acts having the right to take in case of project development into account international standards of banking supervision and regulation, including Basel committee.
2. Regulatory legal acts of National Bank are subject to inclusion in the Register of regulatory legal acts of the Kyrgyz Republic.
3. The regulatory legal acts of National Bank which are directly infringing on interests of physical persons and legal entities, and also regulating business activity are subject to official publication according to the procedure, stipulated by the legislation the Kyrgyz Republic, in the official publication and on the official website of National Bank.
4. Official interpretation (explanation) of regulatory legal acts of National Bank is performed by National Bank by acceptance of the corresponding regulatory legal act.
1. The National Bank provides the publication of official publications of National Bank.
2. The National Bank has the official website. The procedure for the organization of work with the website is determined by National Bank.
1. The capital of National Bank consists of the authorized capital, required reserve, reserve on asset revaluation and obligations, retained earnings or loss.
2. The National Bank has the authorized capital in the amount of 2 (two) billion som. The National Bank cannot alienate or pledge the authorized capital.
3. Increase or reduction of the amount of the authorized capital of National Bank cannot be performed without entering of corresponding changes into this Law.
4. The required reserve and reserves on asset revaluation and obligations are created according to this Law. Required reserves can be used only on covering of losses of National Bank according to part 7 of article 23 of this Law.
5. The retained earnings or loss are determined as difference between the income and expenses taking place within financial year until distribution or the repayment of this profit or loss performed according to this Law.
1. The profit of National Bank is determined by results of financial year, after accounting of all income and expenses taking place in this period taking into account part 3 of this Article.
2. Revaluation of gold and exchange assets and liabilities is reflected in the capital in the provision account on revaluation of gold and exchange assets and liabilities.
3. If the reserve on asset revaluation and obligations has negative balance, then all this negative balance shall be carried on expenses of current period and is considered when calculating profit to the distribution performed according to part 4 of this Article.
4. The profit of National Bank calculated taking into account part 3 of this Article is distributed in the following procedure:
1) if by results of financial year the amount of the authorized capital and required reserve of National Bank is less than ten percent from monetary liabilities of National Bank, then in the income of the republican budget of the Kyrgyz Republic seventy percent of profit are transferred. The profit remaining balance after contribution to the income of the republican budget is transferred to required reserve of National Bank;
2) if by results of financial year the amount of the authorized capital and required reserve is equal or to exceed ten percent from monetary liabilities of National Bank, then in the income of the republican budget of the Kyrgyz Republic hundred percent of profit are transferred.
5. Transfer of profit is made upon termination of financial year, after carrying out substantive external audit and approval of the annual statement by Board of National Bank.
6. For the purposes of this Article join in monetary liabilities of National Bank:
1) the banknotes and coins released by National Bank;
2) financial liabilities on instruments of monetary control;
3) the accounts of residents of the Kyrgyz Republic opened in National Bank including accounts of the Government of the Kyrgyz Republic and other financial liabilities before the Government of the Kyrgyz Republic;
4) the accounts of nonresident banks of the Kyrgyz Republic opened in National Bank.
7. If by results of financial year and taking into account part 3 of this Article the National Bank has the loss which is not settled by required reserve, then the Government of the Kyrgyz Republic settles this loss for completion of the authorized capital to the size established by this Law, direct transfer of money to National Bank in time no later than twelve months.
1. Monetary policy is determined and carried out by National Bank. When carrying out monetary policy the National Bank has the right to interact with the Government of the Kyrgyz Republic.
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The document ceased to be valid since August 17, 2022 according to Article 74 the Constitutional Law of the Kyrgyz Republic of August 11, 2022 No. 92