President Sadyr Japarov signed a decree introducing measures to create legal conditions for banks of the Kyrgyz Republic to operate in foreign countries.
The document aims to develop the country’s banking sector and enhance its competitiveness in international financial markets.
According to the decree, the National Bank of the Kyrgyz Republic has been instructed to improve regulatory and legal acts governing the activities of Kyrgyz banks abroad within three months. The regulator should take into account the need to ensure the financial stability of the banking system, protect depositors’ funds and maintain proper banking supervision.
The National Bank is also tasked with establishing requirements for the annual capitalization of banks operating outside the country to ensure their safe and stable operations.
In addition, the central bank has to prepare proposals for amendments to the legislation and submit them to the Cabinet of Ministers.
The decree also contains recommendations for banks opening branches abroad. They are advised to strictly comply with legislation of Kyrgyzstan, rules on combating terrorist financing and money laundering, and to consider sanctions restrictions as well as the laws of host countries.
Banks are required to ensure the completeness and accuracy of information about the activities of their foreign branches provided to the National Bank.
The decree will come into force in 10 days.
