The purpose of this document is to expand the capabilities of the FCCU and revise the minimum requirements for the executive officers of credit unions, including the following key changes:
- The FCCU will gain the right to issue loans not only to credit unions but also to individuals and legal entities. Currently, existing regulations limit the FCCU's ability to lend directly, which hinders the growth of the loan portfolio and reduces profitability. Expanding these powers will allow the FCCU to diversify its client base and maintain financial stability, especially in the face of increased competition from commercial banks and microfinance organizations;
- Reduction of independence requirements for members of the FCCU's board of directors. Current conditions limit access to qualified candidates, making it difficult to refresh the Board of Directors and attract external experts. This also does not guarantee real independence without additional measures for disclosure;
- Increase in the number of shareholders of the FCCU. Current restrictions on the composition of shareholders (credit unions operating in the territory of the Kyrgyz Republic) reduce the potential for attracting capital and strategic investors, which slows down development and innovation;
- Change in minimum qualification requirements for credit union officials. Existing requirements may create difficulties in attracting professionals and implementing modern risk management and compliance methods.
Note
According to the Ministry of Justice of the Kyrgyz Republic, the head of JSC "Financial Company of Credit Unions" is Kozhekov Omurbek Akylbekovich, and the founders are the shareholders.
