The National Bank has expanded the requirements for assessing risks at commercial banks

The National Bank of Kyrgyzstan has amended the rules governing the assessment of capital adequacy at commercial banks. Banks must now take into account, when carrying out a forward-looking assessment of their capital, the risks that may arise from changes in the operating environment and the implementation of their strategies.

The National Bank has included in the list of such risks, in particular, those associated with climate change, cryptocurrency assets and the activities of bank branches in foreign countries.

However, banks will not be required to classify such risks into separate categories. They may be taken into account as part of the main banking risks — credit, market, operational, country, compliance and other material risks.

Banks must also assess their exposure to material risks associated with the operations of branches abroad and set aside capital to cover them. The capital requirement for such risks may also be determined as part of other types of banking risks.

Amendments have been made to the regulation ‘On Internal Procedures for Assessing the Sufficiency (Adequacy) of Capital of Commercial Banks in the Kyrgyz Republic’. The resolution will come into force seven days after its official publication.