Minimum capital of banks in Kyrgyzstan increased to 1 billion soms
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The Board of the National Bank of Kyrgyzstan adopted a resolution on the minimum amount of authorized and own (regulatory) capital of commercial banks. Website of the bank reports.
The minimum authorized capital for newly created commercial banks (including the requirement for the capital of branches of foreign banks) is set at not less than 1 billion soms.
For operating commercial banks (including branches of foreign banks), the minimum amount of authorized capital should be:
From April 1, 2023 — 600 million soms;
From July 1, 2024 — 800 million soms;
From July 1, 2026 — 1 billion soms.
For operating systemically important commercial banks, the minimum authorized capital should be 2 billion soms with a formation period of up to July 1, 2023.
If a commercial bank becomes systemically important, it must bring the capital in compliance within one year.
The National Bank believes that the presence of sufficient capital stock directly reflects the ability of banks to absorb losses. In addition, the increase in the minimum size of the authorized and own (regulatory) capital of banks will also help increase the competitiveness of domestic banks in the framework of integration processes within the EAEU.
«For some banks that do not have external financing, equity and deposit base remain the main sources of loan portfolio formation. Equity capital, being a short-term financing instrument, can affect the ability of banks to lend at more or less low interest rates,» the National Bank of the Kyrgyz Republic concluded.
Source: 24.kg News Agency