This document introduces mandatory conditions for the development and submission of such plans, which must be prepared in advance. They should contain specific measures aimed at restoring the financial stability of banks in case of deterioration in their economic situation.
Unlike previous approaches, where plans were developed in response to regulator requests and after problems were identified, the new provision emphasizes a preventive approach. Now, banks must anticipate possible stress situations in advance, such as deposit outflows, deterioration in asset quality, and liquidity shortages, as well as describe mechanisms for their prevention.
The document highlights the importance of the realism of financial plans. Banks are required to identify specific sources of funding and recapitalization, confirm their availability, and set clear deadlines for implementing measures. Formal and declarative submissions of plans are no longer allowed.
Additionally, the provision establishes personal responsibility for the bank's management for the creation and implementation of the financial rehabilitation plan.
The National Bank also gains the right to assess the adequacy of the proposed measures and demand their revision.
The adoption of these new standards is aimed at strengthening the resilience of the banking sector, as well as protecting the interests of depositors and creditors.
Information about the resolution is available on the official website of the National Bank of the Kyrgyz Republic.
