According to the new document, banks are now required to prepare plans in advance that will include specific steps to restore financial stability in the event of a deterioration in their financial condition. This approach differs from the previous practice, where measures were taken only at the request of the regulator and after problems were identified.
Now, institutions must consider potential stress scenarios, such as deposit outflows, deterioration in asset quality, and liquidity shortages, and develop mechanisms in advance to respond to these risks.
The document also emphasizes the need for the plans to be realistic. Banks must specify sources for recapitalization and financing, confirm their availability, and establish clear deadlines for implementing measures. A formal approach to planning is excluded.
The regulation also introduces personal responsibility for bank management for the creation and implementation of the financial recovery plan.
The National Bank has the right to assess the adequacy of the proposed measures and require their revision if necessary.
In the 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 resolution is available on the official website of the National Bank of the Kyrgyz Republic.
