LAW OF TURKMENISTAN

of March 25, 2011 No. 168-IV

About credit institutes and banking activity

This Law determines legal, organizational and economic basis of banking activity in Turkmenistan and is directed to effective functioning of bank system of Turkmenistan.

Chapter 1. General provisions

Article 1. Basic concepts

In this Law the following basic concepts are used:

1) the affiliate - the physical person having opportunity to influence decision making in this credit institute, or the legal entity (credit institute) which is taking the equity or having other interest in other legal entity (credit institute), and on this basis having opportunity to influence decision making in it;

2) bank - credit institute which is granted exclusive right to raise money of physical persons and legal entities, to place them on its own behalf and at own expense on the terms of recoverability, the paid nature and urgency, to open and manage bank accounts of legal entities and physical persons, and also to perform other banking activities;

3) non-bank credit institute - the credit institute having the right according to the legislation of Turkmenistan to perform separate types of banking activities which list is established by the Central bank of Turkmenistan;

4) banking activity - activities of credit institutes for banking operations and transactions;

5) interest rate - quantitative measure of the percent established by credit institutes on different types of the operations performed by them;

6) credit institute - the legal entity (bank or the non-bank credit institute, including investment company) having the right based on the license granted by the Central bank of Turkmenistan to perform all or separate types of banking activities which are stipulated by the legislation Turkmenistan and which main objective is profit earning;

7) correspondence relations - the contractual relations between credit institutes established for the purpose of implementation of payment and settlement transactions at the request of each other;

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