RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of December 27, 2012 No. 51/3

About modification and amendments in some regulatory legal acts of National Bank of the Kyrgyz Republic

For the purpose of consumer protection of financial services, being guided by articles 7 and 43 of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic" the Board of National Bank of the Kyrgyz Republic decides:

1. Approve the enclosed changes and amendments in the following regulatory legal acts of National Bank of the Kyrgyz Republic:

- The provision "About Calculation of Effective Interest Rate in case of Distribution of Information on Amount of Remuneration on Banking Services" approved by the resolution of Board of NBKR No. 33/4 of August 27, 2008, registered in the Ministry of Justice of the Kyrgyz Republic on September 29, 2008, registration number 119-08;

- The regulations on the minimum requirements on credit risk management in the commercial banks and other financial credit institutes licensed by National Bank approved by the resolution of Board of National Bank of the Kyrgyz Republic No. 52/4 of June 30, 2010.

2. To legal management:

- publish this resolution on the official site of National Bank of the Kyrgyz Republic and in the "Regulations of National Bank of the Kyrgyz Republic" magazine;

- after official publication to send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State register of regulatory legal acts of the Kyrgyz Republic.

3. To management of methodology of supervision and licensing to bring this resolution to the attention of commercial banks, Associations of the microfinancial organizations, National union of credit unions and cooperatives of Kyrgyzstan, Association of credit unions and cooperatives of Kyrgyzstan and joint stock company "Finance company of credit unions.

4. This resolution becomes effective after 30 days after official publication.

5. To impose control of execution of this resolution on the vice-chairman of National Bank of the Kyrgyz Republic Chokoyev Z. L.

Approved by the resolution of Board of National Bank of the Kyrgyz Republic of December 27, 2012, No. 51/3

Changes and amendments in some regulatory legal acts of National Bank of the Kyrgyz Republic

I. Bring in the Provision "About Calculation of Effective Interest Rate in case of Distribution of Information on Amount of Remuneration on Banking Services" approved by the resolution of Board of NBKR No. 33/4 of August 27, 2008, the following changes and amendments:

1. To state paragraph 2 of Section 2 in the following edition:

"Annual effective interest rate - interest rate in reliable, annual, effective, comparable basis when which calculating the payments of the client connected with receipt of the credit or remuneration to the client for placement of money on the deposit account are considered. The annual effective interest rate is calculated according to this Provision.".

2. Item 3.3. Section 3 to state in the following edition:

"3.3. In the total amount of payments of the client in case of receipt of the credits and all related services of bank, except for the amounts of remuneration paid to the client on the deposit connected with the credit join:

1) payments on repayment of the main amount of debt and on payment of remuneration on the credit;

2) the payments for benefit of bank connected with obtaining, registration and servicing of the credit (payment for consideration of documents, the commissions for receipt of cash, maintenance cost of bank accounts and another), except for the late charges of payments, penalties for non-compliance with conditions of the credit agreement.".

3. Add Section 3 with Item 3.3.-1. following content:

"3.3.-1. On the credits issued with use of payment credit cards within the set credit limits do not join in calculation of annual effective interest rate:

- the commission for implementation of transactions in the currency other than account currency (currency of granted loan);

- the commission for release and servicing of credit card, including for suspension (renewal) of transactions on credit card;

- the commission for receipt of credit amount cash with use of ATMs.".

4. Add Section 4 with Item 4.1-1. following content:

"4.1-1. Along with information on the size of effective interest rate, banks shall provide to the client information on the true interest cost (financing) in absolute value, showing separately the main credit amount (financings), percent (markup), sales charges and all other payments, including payments for benefit of the third parties on applicable fares if the client's obligation on such payments follows from conditions of the credit agreement / agreement of financing.".

5. Add Section 4 with Item 4.1-2. following content:

"4.1-2. In case of distribution of information on amount of remuneration on services, irrespective of carrier type (advertizing booklets, roadside billboards, stands, leaflets and another), including through mass media, banks shall specify that in case of the appeal to bank all-in cost of credit/financing taking into account the expenses of the client connected with receipt of credit/financing will be calculated."

6. In the paragraph of 1 Item 4.2. Section 4 to replace the word of "transactions" with the word of "services".

7. Item 4.3. Section 4 to add with paragraphs of the following content:

"In the service provision agreements signed with clients, the effective interest rate and all-in cost of credit/financing are printed by means of devices of the computer equipment numerically, and also in identical in size and style of registration of fonts (italics, semifat, highlighting, the size) form in one Item with other rates of remuneration.

The bank can specify the extent of all-in cost of credit/financing in appendix to the credit agreement / agreement of financing if in the most credit agreement / agreement of financing the corresponding reference to this appendix is had.".

II. Bring in the Regulations on the minimum requirements on credit risk management in the commercial banks and other financial credit institutes licensed by National Bank approved by the resolution of Board of National Bank of the Kyrgyz Republic No. 52/4 of June 30, 2010, the following changes and amendments:

1. Item 39 of Section 4.2. add with offers of the following content:

"The rights and the client's obligations following from conditions of the credit agreement shall be reflected in the separate Section. The font used in the credit agreement with all appendices shall be identical in all text of the agreement. Font size shall be at least 12.".

2. In the paragraph 3 Items 42 of Section 4.2. the second offer to state in the following edition:

"When the bank does not provide such services, the bank for awareness of the client shall specify the cost of such expenses on applicable fares of the third parties date of the conclusion of the agreement that these expenses for benefit of the third parties, and also the fact that this quotation can change in the future.".

3. Item 46 of Section 4.2. state in the following edition:

"46. Each leaf of the credit agreement with all appendices shall be signed by the client.

By bank the receipt shall be received from the client or by the client the text on the credit agreement that the client studied all terms of the contract shall be made, terms of the contract are clear and the client agrees with them. The receipt (if it was received) is filed in the credit folder of the client.".

4. Item 47 of Section 4.2. add with the offer of the following content:

"The fact of receipt of money by the client shall be supported by the relevant document.".

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