The National Bank of Kyrgyzstan has submitted for public discussion a draft resolution amending several of its regulations concerning antimonopoly policy, pricing, and banks’ subsidiaries. The bank reported.
The National Bank explained that the document is aimed at strengthening the protection of financial institution clients’ rights and increasing competition in the banking and payment services market.
According to the draft:
- Banks, microfinance organizations, and payment companies will be prohibited from inflating or deflating service prices in a manner that drives competitors out of the market;
- Control over the imposition of unfavorable terms and hidden fees on clients will be tightened;
- Advertising of banking products will be required to include not only attractive interest rates but also actual fees and surcharges. Banks will be prohibited from misleading clients with incomplete information;
- The National Bank reserves the right to fine banks, payment system operators, and their executives for violating antitrust laws, as well as to pursue legal action to recover illegally obtained profits to the budget.
- In the event of evidence of collusion or abuse of a dominant position, the bank will be able to send the materials to law enforcement agencies.
The rules for bank subsidiaries and affiliates are being clarified separately. Specifically, if a bank creates a structure operating under Islamic finance principles, it must have its own Shariah board. Its composition will need to be submitted to the National Bank.
The central bank is also updating competition and pricing documents previously adopted in 2005, 2007, 2009, and 2021. These documents address antitrust regulation policy, the procedure for determining dominant positions in the banking services market, rules for establishing subsidiaries, and pricing requirements.
The draft resolution has been published for public comment. The National Bank asks to send comments and suggestions until November 11, 2025.
