National Bank of Kyrgyzstan changes requirements for work of commercial banks
Certain requirements of regulatory legal acts regulating the activities of commercial banks have been revised. Official website of the National Bank of Kyrgyzstan reports.
The decision was made to maintain the financial stability of the banking system, stabilize the situation on the financial market and ensure the continuity of the banks’ operations.
Thus, before the appropriate decision of the Board of the National Bank of the Kyrgyz Republic is made, banks need to assess the newly issued loans in foreign currency by the degree of credit risk in the amount of 300 percent instead of the existing 150. Credit risk assessment is the assessment of the maximum possible loss that a bank can bear with a given probability within a certain period of time.
This decision of the National Bank means that commercial banks, when issuing loans in foreign currency, will assess the possible risks more strictly.
In addition, in order to maintain liquidity in the banking system and provide an opportunity to store funds of commercial banks, it is allowed to establish correspondent relations on accounts in foreign currency between resident banks.
