This document introduces mandatory and uniform requirements for the content, procedure for development, and submission of financial recovery plans by credit organizations. Such plans must be prepared in advance and include specific measures to restore financial stability in the event of a deterioration in their economic condition.
Unlike the old practice, where measures were developed at the request of the regulator only after problems were identified, the new regulation assumes a preventive approach. Banks are now required to assess potential stress scenarios in advance, such as deposit outflows, declining asset quality, and liquidity shortages, as well as to develop mechanisms for responding to such risks.
The document also emphasizes the realism of the submitted plans. Credit organizations must specify concrete sources for recapitalization and financing, confirming their availability, as well as set clear deadlines for the implementation of proposed measures. A formal approach to planning is prohibited.
The regulation establishes the responsibility of the bank's governing bodies for creating and executing the financial recovery plan.
The National Bank also gains the right to assess the adequacy of the proposed measures and require their revision.
In the country's main financial institution, it is emphasized that the adoption of this regulation is aimed at strengthening the resilience of the banking sector and protecting the interests of depositors and creditors.
The official decree has been published on the website of the National Bank of the Kyrgyz Republic.
