The National Bank of Kyrgyzstan has approved new requirements regarding the development, updating, and implementation of financial recovery plans for commercial banks. These regulations are aimed at enabling financial institutions to prepare action strategies in advance in case of crises, which in turn will help protect the interests of depositors and enhance the resilience of the financial sector.
It is reported that the resolution of the Board of the National Bank of the Kyrgyz Republic "On the Approval of the Regulation 'On the Requirements for the Bank's Financial Recovery Plan'" was adopted on December 26, 2025.
The purpose of the document is to establish unified methodologies for the content, development, and submission of financial recovery plans, which will be mandatory for all commercial banks, including those operating on Islamic principles.
According to the Regulation, each bank must create a financial recovery plan that includes measures to restore or maintain capital adequacy, liquidity, and overall financial stability in the event of a significant deterioration in its financial condition. It is necessary to take into account the nature of the risks, the scale, complexity, and specific features of the particular bank's operations.
Components of the Recovery Plan
The financial recovery plan must include the following elements:
- an analysis of the minimum financial impact of the proposed measures on capital, liquidity, and financial results;
- determination of maximum deadlines for the implementation of recovery measures;
- assessment of the feasibility of the proposed measures considering potential obstacles and the experience of both the bank itself and other financial institutions;
- confirmation of the applicability of the proposed measures in one of the crisis scenarios;
- analysis of the impact of the measures on the bank's business model without jeopardizing its stability.
The plan must contain and analyze at least the following recovery options:
- increase in shareholder equity considering the financial capabilities of major shareholders;
- reduction of lending volumes across various portfolios;
- suspension or reduction of dividend payments;
- measures to reduce debt burden;
- optimization and reduction of expenses.
- sale of certain assets, including government securities;
- attracting additional forms of capital;
- reduction of the trading portfolio;
- limiting operations in foreign exchange markets;
- reducing investments in high-risk assets.
Plans for Banking Groups and Submission Deadlines
The Regulation also covers the development of a financial recovery plan for a banking group. In this case, the parent bank must ensure the consistency of actions among all organizations within the group.
Systemically important banks are required to submit their financial recovery plans to the National Bank of the Kyrgyz Republic by March 15 each year.
The National Bank emphasized that international experience following the financial crisis of 2008 confirmed the effectiveness of such plans as an important element of the regulatory architecture, contributing to risk reduction and increasing trust in the banking system.
The resolution will take effect 15 working days after its official publication.
