New Licensing and Operational Rules for FCKS and Credit Unions Introduced in the KR

The National Bank of the Kyrgyz Republic has announced the adoption of a resolution "On Amendments to Certain Regulatory Legal Acts," which addresses issues related to the licensing and regulation of the activities of the Financial Company of Credit Unions and credit unions. This decision aims to expand the capabilities of the Financial Company of Credit Unions, allowing it to provide loans to both legal entities and individuals.

According to the updated licensing regulations, shareholders of the company can be both individuals and legal entities. However, the share of the credit union in the capital must not exceed 20% of the total number of voting shares. Additionally, the share of individuals and legal entities that are not credit unions is limited to 15% of the voting shares, and the combined share of these shareholders must not exceed 49% of the company's authorized capital.

Regarding the sources of funds, legal entities are required to provide:

- financial statements for the last year (including the balance sheet and income statement), tax returns, or other documents confirming financial status, certified by the legal entity's seal;

- an auditor's report, if required by law, or a certified copy of it;

Individuals may provide:

- income tax returns, documents confirming transactions with movable and immovable property, inheritance rights, and other supporting documents.

Moreover, legal and natural persons may provide additional documents confirming the legality of the sources of funds that have been contributed to the authorized capital and do not contradict the legislation of the Kyrgyz Republic.

This resolution will come into effect 15 days after its official publication. The document can be reviewed via the provided link.

It is worth noting that the draft resolution was submitted for public discussion in early December 2025. This proposal was developed to expand the capabilities of the Financial Company of Credit Unions and to revise the minimum requirements for the management of credit unions.

https://banks.kg/ky/news/new-licensing-rules-fkks-credit-unions

Source: banks.kg