The Board of the National Bank of the Kyrgyz Republic has approved a regulation on requirements for financial recovery plans.
The document establishes uniform and mandatory standards for the content, development process, and submission of financial recovery plans by banks. These plans must be prepared in advance and outline specific measures to restore the financial stability of credit institutions in the event of deterioration in their financial condition.
Unlike previous practice, when recovery measures were mainly developed at the regulator’s request after problems were identified, the new regulation introduces a preventive approach. Banks are required to anticipate possible stress scenarios, including deposit outflows, asset quality deterioration, and liquidity shortages, and describe mechanisms to respond to such risks.
Special emphasis is placed on the feasibility of the plans. Banks must identify specific sources of recapitalization and financing, confirm their availability, and set clear timelines for implementing the measures. A formal or declarative approach to planning is not permitted.
The regulation also establishes personal responsibility for bank management bodies in the development and execution of the financial recovery plan.
The National Bank has the right to assess the adequacy of proposed measures and require revisions if necessary.
The central bank notes that the adoption of the regulation is aimed at strengthening the resilience of the banking sector and enhancing the protection of depositors’ and creditors’ interests.
The resolution has been published on the official website of the National Bank of the Kyrgyz Republic.
