Published
07/29/2026, 17:59The National Bank of Kyrgyzstan has put forward for public consultation draft amendments to the regulatory legal acts governing Islamic banking and finance. The document sets out new rules for the application of ‘sharikah/musharaka’ and ‘declining musharaka’ contracts when acquiring movable and immovable property.
The draft resolution has been drawn up to bring the regulatory framework into line with amendments to the Civil Code of Kyrgyzstan and international Sharia standards. The changes will affect banks, microfinance organisations and credit unions operating in accordance with Islamic financing principles.
One of the key innovations will be the regulation of the ‘declining musharaka’ contract. This mechanism provides for the joint acquisition of property by a financial and credit organisation and a client, after which the client gradually buys out the organisation’s share whilst simultaneously paying for the use of the part of the property belonging to the organisation. The draft also sets out the procedures for insuring such property, the allocation of costs between the parties, and the formalisation and registration of contracts.
The public consultation on the draft will run until 13 August 2026. Comments and suggestions may be submitted to the National Bank electronically. If adopted, the resolution will come into force on 13 December 2026.
As noted in the explanatory memorandum, the amendments are aimed at expanding access to banking services that comply with Islamic financing principles and at implementing the National Bank’s strategic priorities for 2025–2030. The draft also takes into account the amendments made to the Civil Code in June 2026.
