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Kyrgyzstan Review, 10 years ago

[10.04.23] Law "On Banks and Banking in Kyrgyzstan"

A new edition of the law "On Banks and Banking in Kyrgyzstan" is in force in the KR as of April 01, 2003. The law is intended to strengthen the banking system of the country, reported NBKR chairman U.Sarbanov. He also noted that the previous version, as pointed out by the KR President during his meeting with the government, lacked a strict mechanism of liability for the commercial bankers.
U.Sarbanov stated that the new law will promote confidence of both domestic and foreign investors in the banking sector of the country. For instance, the new law sets eligibility criteria for board of directors to increase responsibility of bank management. As NBRK chairman points out, the sad experience of bank bankruptcies in the KR was mainly the result of incompetent actions of the board of directors. The new edition also includes creating internal auditing commission in the banks, introducing an independent member into the board of directors and prioritizing interests of the clients
KNNA "Kabar", April 10, 2003

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