The National Bank of Kyrgyzstan has approved new requirements regarding the development and updating of financial recovery plans for commercial banks. These measures are aimed at creating action scenarios in crisis conditions, which will help protect the interests of depositors and strengthen the financial stability of the sector.
As it became known, the relevant resolution of the Board of the National Bank of the Kyrgyz Republic "On the Approval of the Regulation 'On the Requirements for the Bank's Financial Recovery Plan'" was adopted on December 26, 2025.
The purpose of the document is to establish unified approaches to the content and process of developing financial recovery plans, which will be applied to all commercial institutions, including those that operate in accordance with Islamic financial principles.
According to the new regulation, each bank is required to create a plan that must include measures to maintain or restore capital adequacy, liquidity, and overall financial stability in the event of a sharp deterioration in its financial condition. At the same time, it is necessary to consider the specific risks, scale, and characteristics of the bank's activities.
Contents of the Recovery Plan
Important elements of the financial recovery plan should include:
- assessment of the minimum financial impact of the proposed measures, including the effect on capital and liquidity;
- maximum timelines for implementing the proposed measures;
- analysis of the feasibility of the proposed steps considering possible obstacles and the bank's experience;
- confirmation of the applicability of the measures within at least one of the crisis scenarios;
- assessment of the impact of the measures on the bank's business model without compromising its stability.
The plan must analyze at least the following recovery options:
- increase in equity capital considering the financial capabilities of the main shareholders;
- reduction of lending volumes in various directions;
- suspension or reduction of dividend payments;
- measures to reduce debt burden;
- optimization and reduction of expenses.
- sale of individual assets, including government securities;
- attracting alternative forms of capital;
- reduction of the trading portfolio;
- limiting operations in foreign exchange markets;
- reducing investments in high-risk assets.
Plans for Banking Groups and Submission Deadlines
The regulation also requires the development of a financial recovery plan for banking groups, where the parent bank must ensure the consistency of actions of all organizations within the group.
Systemically important banks are required to submit their recovery plans to the National Bank of the Kyrgyz Republic annually, no later than March 15.
The National Bank noted that international experience after the financial crisis of 2008 confirmed the effectiveness of such plans as an important element of the regulatory framework, contributing to risk reduction and strengthening trust in the banking system.
This resolution will come into effect 15 working days after its official publication.
