Published
04/29/2026, 13:28The National Bank has released a draft resolution for public comment, which is intended to establish the legal framework for Kyrgyz commercial banks to operate outside the country.
According to the explanatory note, the document was developed with the aim of enabling Kyrgyz banks to expand their operations in foreign countries, increase the competitiveness of the banking sector in international financial markets, and maintain control over risks.
The draft was prepared in accordance with the presidential decree of March 6 of this year on measures to create legal conditions for the republic’s banks to operate abroad. Currently, according to the National Bank, one commercial bank is already in the process of obtaining permission to operate a branch abroad.
The proposed changes concern two National Bank documents—the rules for asset classification and the instructions on bank capital adequacy. Specifically, the regulator proposes clarifying how to account for assets related to the opening of foreign branches and how to assess risks associated with individual loans issued by such branches.
For example, a foreign currency loan issued by a Kyrgyz bank’s overseas branch may be classified more leniently if it is issued and serviced in the country where the branch is located, that country has a sovereign rating of at least BBB, and the loan currency matches the borrower’s income currency.
The National Bank believes that these changes will help banks enter international markets, develop foreign operations, and expand access to banking services. At the same time, the regulator emphasizes that supervision, capital requirements, and risk assessment will remain in place.
The regulator is accepting comments and suggestions on the draft until May 15.
