The National Bank of Kyrgyzstan has proposed for discussion a project that changes the operating conditions of the Financial Company of Credit Unions (FKKC) and credit unions (CU). The main goal of these changes is to enhance the financial capabilities of these organizations and strengthen the country's financial sector.
Key aspects of the changes include:
1. FKKC will have the right to issue loans to all residents of Kyrgyzstan, whereas previously it only lent to credit unions. This will allow for an increase in the client base and profitability.
2. The requirements for the Board of Directors have been simplified, allowing for the attraction of external specialists and improving the management of the organization.
3. Increase in the number of shareholders. Now residents will be able to participate in the capital of FKKC, creating opportunities for attracting investments and implementing new technologies.
4. Improvement of the qualifications of credit union managers. New regulations will allow for the hiring of experienced specialists, introducing modern management practices, including Islamic finance.
5. Increased transparency of operations and control. Checks on the sources of shareholders' funds have been strengthened, and restrictions have been introduced on the purchase of shares for individuals with criminal convictions or those under sanctions.
The National Bank emphasizes that the proposed changes are aimed at strengthening credit unions and improving access to loans for citizens and businesses.
The draft resolution is open for feedback and suggestions from the public.
