The Central Bank’s board has made an important decision and approved new regulations governing the process of changing the activities of microfinance institutions and banks. This document outlines the specific requirements and features when altering the type of financial institution.
Now it is possible:
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for a microfinance institution to become a microfinance bank,
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for a microfinance bank to transform into a full bank,
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for a bank to switch into a microfinance bank or vice versa,
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for a microfinance bank to revert back to operating as an MFI.
At the same time, if a microfinance institution wishes to change its status to a microfinance bank, it must be established as a joint-stock company.
According to the new regulations, the process of establishing a microfinance bank will take place in two stages:
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issuance of a preliminary permit,
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registration of the bank with simultaneous granting of a license.
Banks, microfinance banks, or microfinance institutions that want to change their activity type must apply electronically to the Central Bank. Applications are reviewed in accordance with the laws “On Banks and Banking Activities” and “On Non-Bank Credit Organizations and Microfinance Activities.”
The following fees are set:
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for consideration of an application for a preliminary permit – 5 times the base calculation value,
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for granting a license – 0.1% of the minimum authorized capital of a microfinance bank,
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for reissuing a license – half of the above amount.
Thus, the new procedure introduced by the Central Bank is expected to strengthen transparency and systematization in the financial sector, while also making transitions in the financial market more clear and orderly.
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