Edict of the President of the Republic of Kazakhstan,
having the effect of a law, № 2444 the 31st of August, 1995
Concerning Banks And Banking Activities
In accordance with Article I of the Law of the Republic of Kazakhstan, dated December 10, 1993 "Concerning the Temporary Delegation of Additional Powers to the President of the Republic of Kazakhstan and the Heads of Local Administrations" and in for the purposes of determining the type, the legal status, the procedure for creation, functioning and termination of activities of the banks of the second tier, I am issuing this Edict.
Section I. The Bases and Terms of Creation and
Operation of Banks
Chapter 1. General Provisions
Article 1. A Bank, Its Status and Location
1. A bank shall be a legal entity. which is a commercial organization, and which performs banking activities in accordance with this Edict.
2. Official status of a bank shall be determined by the permission of the National Bank for its opening, by state registration of a legal entity as bank at the Ministry of Justice, and by existence of licenses of the National Bank of the Republic of Kazakhstan (henceforth, the National Bank) for carrying out of banking transactions.
3. No legal entity which has not the official status of a bank, shall be referred to as a bank nor describe itself as one engaging in banking activities.
4. The place where the Board of a bank is located (its postal address) shall be recognized as the place of the bank's location (residence).
Article 2. Deposit
1. Deposit shall mean a sum of money transferred by one person (depositor) to any other person under the term of repayment of that sum in the nominal measurement plus prior stipulated addition (irrespective of whether the sum must be repaid at the first demand, or after a certain period, in full or In installments, whether with a zero or positive addition, whether repaid directly to depositor, or transferred in accordance with the depositor's instructions to any third parties).
2. Irrespective of the title of a transaction and Intentions of the parties, the following shall be (recognized as) acceptance of deposits:
a) issuing of documents to confirm a receipt of monetary resources, which is not relating to selling of goods, performance of work, or rendering of services, under the terms of repayment of the monetary resources in exchange for those documents,
b) selling of securities under the term of their revert purchase.
Article 3. The Banking System of the Republic of Kazakhstan
1. The Republic of Kazakhstan shall have a double tier banking system.
2. The National Bank shall be the central bank of the State and it shall represent the top (first) tier of the banking system.
The purposes, principles of operation, the legal status and the authority of the National Bank of the Republic of Kazakhstan shall be defined by Edict Which Has Force of Law of the President of the Republic of Kazakhstan concerning the National Bank of the Republic of Kazakhstan".
3. All the other banks shall represent the bottom (second) tier of the banking system.
4. A state-owned bank shall be a bank of the second tier, created on the basis of a separate legislative act or a resolution of the government of the Republic of Kazakhstan which is the sole owner of its charier fund.
A state-owned bank shall carry out its activities in accordance with this Edict, subject to special considerations stipulated in legislative and normative acts concerning their creation and operation.
5. A deposit bank shall be a bank of the second tier, which has the right to accept deposits and to carry out any other banking transactions which are not prohibited by this Edict.
6. An investment bank shall be a bank of the second tier, whose principal type of activities arc the performance of direct and portfolio investments.
7. A bank with foreign participation shall be a bank of the second tier, whose more than fifty per cent of shares are held, owned and/or managed by the following:
a) non-residents of the Republic of Kazakhstan,
b) legal entities which are residents of the Republic of Kazakhstan, whose more than fifty per cent of shares and held, owned and/or managed by non-residents of the Republic of Kazakhstan or similar legal entities which are residents of the Republic of Kazakhstan;
c) residents of the Republic of Kazakhstan which are managers of resources (trusted poisons) of non-residents of the Republic of Kazakhstan, or of the legal entities listed in sub-paragraph b) of this Paragraph.
8. An interstate bank shall be a bank which is created and which operates on the basis of an international agreement (treaty), whose charter fund is owned by the Government of the Republic of Kazakhstan and the government (governments) of a state (states) which signed that agreement (treaty).
Article 4. Legal Regulation of Banking Activities
Banking activities shall be regulated by the Constitution and legislative acts of the Republic of Kazakhstan, by this Edict, other acts of the President of the Republic of Kazakhstan, international agreements (treaties) concluded by the Republic of Kazakhstan and also by the normative acts of the National Bank, which are issued on the basis and for the implementation of the legislative acts and Edicts of the President of the Republic of Kazakhstan, in respect of the issues conferred to its authority.
Article 5. A Non-Banking Financial Institution
A non-banking financial institution shall be a legal entity which is not a bank, and which lias the right to early out certain banking transactions on the basis of the license of the National Bank.
Article 6. The Prohibition of Unauthorized Activities
1. No entity that has not the appropriate license from the National Bank, except for the cases stipulated in paragraph 2 of this Article, shall have the right to:
a) accept deposits, and also perform any other banking transactions as their principal or incidental business,
b) carry out audits of banking activities as their principal or incidental business;
c) use in their name, documents, announcements and advertisements the word "bank" or a word (expression) which is its deviate and which creates the impression that that entity accepts deposits, performs any other banking transactions, or carries out audits of banking activities. This prohibition shall not apply to the National Bank, affiliates and representations of banks, international financial organizations.
2. Possible exceptions from the prohibition of acceptance of deposits by entities which have not the license from the National Bank, shall be determined by the normative acts of the National Bank and they shall include the cases of accepting deposits as follows:
a) from the National Bank of the Republic of Kazakhstan, banks and non-banking financial institutions which have the license of the National Bank for issuing credits in monetary form,
b) as amount payable in relation to a valid transaction of purchase and sale of assets, performance of work or rendering of services (in form of pledge or amounts which are to be repaid in the event that the transaction is dissolved),
c) as a loan under the terms of repayment of the amount which does not exceed the initial one.
3. Banking transactions which are carried out without licenses of the National Bank shall be invalid.
Article 7. Division of Responsibilities of Banks and the State. Independence of Banks
1. Banks shall not be liable for the obligations of the State, equally, the State shall not be liable for their obligations, except for the cases stipulated in paragraph 2 of this Article and also the cases where banks and the State assume such responsibility.
2. The State shall be responsible for the liabilities of the state-owned banks within the limits of resources invested to their charter hinds. The government may by its separate decision assume and delegate to state-owned banks additional responsibilities in relation to their liabilities.
The State shall guarantee the safety of deposits accepted by interstate banks which are residents of the Republic of Kazakhstan and it shall be liable for their obligations in proportion to the share of the Government of the Republic of Kazakhstan in the charter funds of such banks.
3. Interference of the state bodies or their official persons with the activities of banks shall be prohibited in any form, except for the cases directly stipulated in legislation of the Republic of Kazakhstan.
Article 8. Activities Which are Prohibited and Restricted for Banks
1. All banks shall be prohibited to carry out activities in the sphere of material production, trade in movable and immovable assets (except for currency assets) and to perform any types of insurance activities (except for collective insurance of deposits), as well as to participate in charter funds of legal entities, except for the cases stipulated in paragraph 3 of this Article.
2. It shall be prohibited to investment banks to accept any types of deposits, except for definite term deposits of any other banks.
3. The prohibition established in paragraph I of this Article shall not apply to the following cases:
a) participation of investment banks in charter funds of the legal entities which carry out the types of activities stipulated in paragraph I of this Article;
b) participation of banks in charter funds of banks and interbank organizations which do not set the goal of deriving profits and their distribution between the members,
c) participation of banks in charter funds of legal entities which are formed for automation of functions of banks and non- banking institutions,
d) elaboration and implementation of specialized software to be used for automation of functions of banks and non- banking institutions;
e) publication and selling of special literature feinting to Issues of banking activities, on any types of information carriers,
f) selling of banks own assets,
g) selling in accordance with the procedure established by this Edict and other current legislation of assets pledged by debtors,
h) hedging (minimization) of exchange and Interest risks by way of creating counter claims and liabilities, or by any other methods which do not envisage formation of special-purpose provisions (reserves).
Article 9. Prohibition of Advertising Which is Not True to Fact
1. Banks shall be" prohibited to advertise their activities which are not true to fact on the date of publishing of the advertisements.
2. The National Bank shall have the right to require from a bank to introduce amendments to advertisements which are not true to fact, to terminate it, or to publish a refutation.
In the case of a failure to execute such a requirement within the period established by the National Bank, the National Bank shall have the right to publish information concerning the deviation from reality of the information contained in an advertisement or to make it more specific at the expense of the bank which published such an advertisement.
3. Legal entities which have not the license of the National Bank for conducting of banking transactions shall be prohibited to advertise activities winch fall under the category of banking transactions.
Article 10. Associations (Unions) of Banks
1. For co-ordination of their activities, protection and representation of common interests, implementation of joint projects and solution of other common tasks, banks shall have the right to form in accordance with current legislation associations and unions of banks.
2. Associations (unions) of banks shall be non-profit organizations.
3. Associations (unions) of banks may not be used for purposes of restricting competition in the banking system, manipulation of interest rates, terms of selling credits and other banking services.
Article 11. Subsidiary Banks, Affiliates and Representations of Banks
1. Banks shall have the right to open their subsidiary banks, affiliates and representations both in the territory of the Republic of Kazakhstan and outside of its boundaries.
2. A subsidiary bank shall be a bank of the second tier, more than fifty per cent of the charter fund wherein belongs to the parent bank.
Subsidiary banks shall be independent legal entities and they shall be created in accordance with the procedure established by Articles 12-28 of this Edict.
3. Affiliates and representations of banks shall be created in accordance with the procedure established by Article 29 of this Edict.
4. Representations of banks which are not residents of the Republic of Kazakhstan shall be opened in the Republic of Kazakhstan with the consent of the National Bank.
Chapter 2. Creation of Banks
Article 12. Organizational and Legal Form of Banks
1. Banks (except for state-owned banks) shall be created in form of joint stock societies of a closed-type without the right to issue bearer's shares.
2. Transformation of a bank into a Joint stock society of an open-type shall be admitted only under the term of its continuous non-loss operation during one calendar year from the moment of receipt of the license from the National Bank for acceptance of deposits and granting of credits in monetary form and compliance during that year with the prudential norms and other obligatory requirements and limits established by the National Bank.
3. The shareholders of a bank, which are its foundation parties, after its transformation into an open-type joint "stock society may not have any additional advantages or bear any additional obligations as compared to any other shareholders.
4. In relation to the type of a bank, the National Bank shall establish different standards for annual publication of the annual report, accounting balance sheet and profit and loss account.
Article 13. Forms of Ownership of Banks
Banks may be created on the basis of any form of ownership, except for state-owned banks which are created only on the basis of the state property.
Article 14. Foundation Documents of a Bank
1. A bank shall be created on the basis of a foundation agreement and It shall operate in accordance with Its charter.
2. A foundation agreement to create a bank must, apart from the information stipulated in current legislation concerning business partnerships, contain the following in a compulsory procedure:
information concerning the foundation parties, including full commercial name and place of location of each of them as well as Information concerning the state registration (for legal entitles), name, citizenship, place of residence and details of the documents confirming identities (for physical persons),
information concerning the number, categories and the nominal value of the shares.
3. A bank charter must, apart from the information stipulated in current legislation concerning business partnerships, contain the following in an compulsory procedure:
full and brief commercial name of the bank;
information on the Organizational and legal form and the form of ownership of the bank;
principles for the formation and use of the bank's funds;
procedure for adoption of decisions by the governing bodies of the bank, including the list of issues which require a qualified majority of shareholders" votes.
Article 15. Name of a Bank
1. A bank shall use the name which is inscribed in its charter as its commercial name.
No bank shall have the right to refer to itself in any documents, notices or advertisements otherwise than by the name which is inscribed in its charter.
2. It shall be prohibited to all banks, except for the National Bank, to use in their names the words "National", "Central" in full or abbreviated form in any language.
3. It shall be prohibited to all banks, except for the state-owned banks, to use In their names the word "state" In full or abbreviated form in any language.
4. It shall not be allowed to use as names the designations which are identical or similar to the degree of confusion with the names of earlier-created banks, including banks which are non-residents of the Republic of Kazakhstan.
This prohibition shall not apply to subsidiary banks when they use the parent names.
Article 16. The Charter Fund of a Bulb
1. The charter fond of a bank shall serve as a security for its obligations and the main source for performing banking transactions.
The charter fund of a bank (except for a state-owned bank) shall be initially formed at the expense of selling shares or at the expense of the foundation parties" contributions.
2. The foundation parties and shareholders of a bank shall be obliged to pay for acquired shares exclusively by monetary resources.
3. It shall be prohibited to use resources received as a credit, under a pledge, and any other borrowed resources for payment on shares of a bank which operates In the form of a closed-type joint stock society.
Resources contributed to the charter fund in violation of this requirement, together with accrued dividend and also income received by a bank from their use shall be confiscated as revenue of the Budget, and the shares shall be returned to the bank for their further marketing.
4. Primary sales of bank shares may only be carried out at the price which Is not lower than their nominal value and which is uniform for all the foundation parties (shareholders) .
5. The charter fund of a newly- created bank, declared in its foundation documents, must be paid by its shareholders by fifty per cent by the time of its registration and fully within one calendar year from the date of its registration.
6. Increasing of the charter fund may be carried out by the following ways:
a) issue of additional shares including at the expense of capitalization of the bank's profits and by exchanging debentures of the bank for its shares;
b) increasing of the nominal value of the shares.
Article 17. Foundation Parties and Shareholders of a Bank
1. Legal entities and physical poisons who are residents and non-residents of the republic of Kazakhstan (subject to restrictions outlined in Article 18 of this Edict) may be foundation parties and shareholders of banks.
2. On behalf of the State, only the Government may be a foundation party and a shareholder in a bank.
3. During the period of creation and operation of a bank, none of its foundation parties (shareholders) may directly or Indirectly own, dispose of and/or manage more than twenty-five per cent of voting shares of the bank.
This prohibition shall not apply to foundation parties (shareholders) of state- owned, interstate banks and their parent banks.
4. A legal entity which has the status of a non-resident or a company registered in an offshore territory in accordance with the legislation of state of its registration, may not be a foundation party or a shareholder of a bank which is a resident of the Republic of Kazakhstan. The list of the jurisdictions which are recognized as offshore ones shall be established by the National Bank.
Article 18. Special Considerations in Creating Subsidiary Banks by Banks Which are Non-Resident to the Republic of Kazakhstan
1. Banks which are non-resident to the Republic of Kazakhstan having a certain rate by one of the principal rating agencies may be parent banks in relation to a subsidiary bank. The list of the principal rating agencies and the minimum required rate shall be established by the National Bank of the Republic of Kazakhstan.
2. A bank which is non-resident of the Republic of Kazakhstan shall have the right to submit to the National Bank of the Republic of Kazakhstan and application to be issued permission to open a subsidiary bank after one year of operation in the territory of the Republic of Kazakhstan of that banks representation.
Article 19. Applications to be Issued Permission for Opening of a Bank
1. A legal entity or" a physical person shall have the right to petition to the National Bank with an application to be issued permission for opening of a bank.
2. Applications shall be submitted in the Kazakh or Russian languages and it must contain the address of the applicant.
3. The following documents must be attached to the application to be issued permission for opening of a bank:
a) foundation documents of the bank to be established: the foundation agreement, the charter, the minutes of adoption of the charter and appointment (election) of the bank's authorities;
b) information on the foundation parties (according to the questionnaire approved by the National Bank), accounting balance sheets of the legal entities which are the foundation parties at two latest reporting dates, auditors" (firm of auditors) statement on financial condition of the foundation parties;
c) in the event that one or more of foundation parties is not a resident of the Republic of Kazakhstan: a written notification from a state or supervision agency of the relevant state that it permits participation in the charter fund of a bank which is resident to the Republic of Kazakhstan, or a statement of a state or supervisory agency of the relevant state that such a permission is not required in accordance with legislation of the foundation party's State;
d) in the event that a non-banking financial institution is transformed into a bank:
the foundation agreement, charter, accounting balance sheet at the last reporting date;
the statement of auditors (firm of auditors) on the financial condition of the non-banking financial institution;
e) the list of members of the supervisory council of the newly-created bank with the indication of the chairman and Ills first deputy, which contains information concerning names of each person, nationality and address, and also information which confirms their compliance with the requirements established in paragraph 3 of Article 20 of this Edict;
f) in respect of the chairman of the Board of the newly created bank: Information indicated in subparagraph e) of this Paragraph;
g) for any other managers of newly- created halite: information indicated in subparagraph e) of this paragraph, as well as information concerning previous labor activities;
h) detailed organizational chart of the bank to be created;
i) articles on the internal audit services of the bank to be created;
j) articles on the credit committee of the bank to be created;
k) the business plan of the bank to be created, which discloses the strategy, directions and scale of activities, financial prospects (budgets, estimated balance sheet, profit and loss account for the first three financial (operational) years, marketing plan (formation of the bank's clientele), plan for attraction of manpower;
l) report on preparation measures undertaken by the foundation parties in accordance with the presented business plan;
m) notarially or in any other legitimate way certified a document to confirm the authority of the applicant to submit the application on behalf of the foundation parces.
4. Statements of auditors (firms of auditors) shall be recognized to be valid, provided the following confirmation documents are presented that the auditors:
is independent from the foundation parties of the reviewed bank and their official pawns;
is authorized to carry out audits of banking activities in accordance with the license of the National Bank or an appropriate authority of the state where the auditor is resident.
5. The National Bank shall have the right to request additional information or documents which are required" for adoption of decision to issue permission to open the bank.
6. The application to obtain permissions to open a bank may be revoked by the applicant at any Mage of its processing by the National Bank.
Article 20. Requirements to Executive Workers of a Bank
1. The Chairman and the Supervisory Council members, the Chairman of the Board and his deputies. Chief Accountant of a bank and his "deputies" first manager of a bank affiliate and their deputies shall be banking executives.
2. Executives of a bank as well as candidates who are recommended to be appointed or elected to hold executive positions must meet the minimum requirements established in paragraph 3 to 5 of this Article. Compliance with the indicated requirements shall be established by the qualification commission of the National Bank.
3. The following persons shall be recognized as not appropriate for holding the positions and they may not be appointed to be Chairman of the Board, Chairman or Member of the Supervisory Council:
who have not higher education;
who have convictions uncancelled or unalleviated in accordance with the procedure established by law;
who have not sufficient knowledge of banking and business legislation;
who in the past was all executive of a legal entity which went bankrupt, or of a bank whose license to open a bank was revoked for a failure to comply with requirements of legislation.
4. Any other executives of a bank to be appointed (elected) to positions not subject to compliance with the requirements of Paragraph 3 of this Article, must have higher or secondary special training appropriate for their line of work.
5. Chairman of the Board of a bank and his deputies. Chief Accountant of a bank and his deputies. Chief Executive and Chief Accountant of a bank affiliate shall be appointed (elected) for positions after the approval by the National Bank and as a rule must have length of service within the banians system: Chairman and Chief Accountant not less than three years, Deputy Chairman of the Board and Deputy Chief Accountant not less than two years.
The listed workers may not execute their duties for longer than three months prior to receipt of approval from the National Bank.
6. Requirements stipulated in this Article shall be compulsory for compliance by bank during the entire period of their activities.
Article 21. Additional Documentation Which is Required to establish a Bank with Participation of a Non-Resident of the Republic of Kazakhstan
1. A bank winch Is non-resident of the Republic of Kazakhstan and which is a foundation party to a bank, shall, aside from the documents indicated in Article 19 of this Edict, be obliged to attach the following documents to the application for the license:
a) resolution of the appropriate body of the bank which is the foundation party, on its participation in the bank to be resident of the Republic of Kazakhstan;
b) a written confirmation from the body of banking supervision of the relevant state that the bank which is the foundation party has a valid license for carrying out banking activities;
c) a written confirmation from a body of banking supervision of the relevant state that the bank which is a foundation party is subject to supervision on a consolidated basis;
d) duly formulated annual reports of the bank which is a foundation party (including the consolidated balance sheet and profit and loss account) for three last financial (operational) years confirmed by a firm of auditors (auditor) in compliance with Paragraph 4 of Article 19 of this Edict;
e) written notice of the banking supervision authority of the relevant state, that it permits the participation of the bank which is a foundation party in the charter fund of a bank which is resident to the Republic of Kazakhstan, or the application by the banking supervision body of the relevant state that such a permission is riot required in accordance with legislation of the state of the bank which is a foundation party.
2. The provisions of this Article shall also apply to non-resident banks of the Republic of Kazakhstan in the case of their acquisition of a share in the charter fund of an operating bank which is a resident of the Republic of Kazakhstan.
Article 22. Additional Requirements to Creation and Operation of Banks With Foreign Participation
1. The following requirements must be compiled with in creation and operation of banks with foreign participation in the Republic of Kazakhstan:
a) the aggregate registered charter fund of banks with foreign participation may not exceed twenty-five per cent of the aggregate registered charter fund of all banks of the Republic of Kazakhstan;
b) not less than one supervisory council member of a bank with foreign participation must be a citizen of the Republic of Kazakhstan and present the documents which witness his executive experience of not less than three years in a bank operating in the territory of the Republic of Kazakhstan, and his knowledge of banking and business legislation of the Republic of Kazakhstan;
c) a bank with foreign participation shall be obliged to deploy resources into domestic assets in amounts and in accordance with the procedure to be established by the National Bank.
Domestic assets of a bank with foreign participation shall be understood to be Tenge and foreign currency assets deployed in the territory of the Republic of Kazakhstan, in particular:
banknotes, coins and payment documents;
resources of a bank with foreign participation in correspondent or any other accounts in banks of the Republic of Kazakhstan;
securities of the Government and residents of the Republic of Kazakhstan;
credits granted to the Government and residents of the Republic of Kazakhstan.
2. The National Bank shall have the right to apply additional requirements to banks with foreign participation in respect of the membership of their bodies, the range of banking transactions to be performed, prudential norms and the procedure for reporting.
Article 23. The Procedure for Processing Applications for Obtaining Permissions to Open a Bank
1. Applications to be issued the permission to open a bank must be processed by the National Bank within six months from the date of submission by the applicant of last piece of information or a document required by the National Bank, but not more than nine months from the date of acceptance of the application.
2. The National Bank shall in writing notify applicants of adopteddecisions. Notices shall be forwarded to the address indicated in the application for permission to open a bank.
3. The National Bank shall keep account of permissions Issued for opening of banks.
Article 24. Denial to Issue Permission to Open a Bank
1. Denial to Issue permission to open a bank shall take place for any of the following reasons:
a) non-compliance of the foundation documents of the bank with current legislation;
b) non-compliance of the bank's name with the requirements of paragraphs 24 of Article 1.5 of this Edict;
c) non-compliance of the amount, composition and structure of the charter fund of the bank with the requirements of Article 16 of this Edict;
d) unstability of the financial" position of the bank's foundation parties;
e) non-compliance with the restrictions established by Article 17 of this Edict;
f) non-compliance of the candidates for executive positions of the bank with the minimum requirements established in paragraphs 3-5 of Article 20 of this Edict;
g) non-compliance of the foundation documents of a bank with foreign participation with the provisions established in paragraph I of Article 22 of this Edict;
h) the business plan of the bank to be established and any other documents presented by the applicant do not indicate that:
upon expiry of the first three financial (operational) years activities of the bank will be profitable;
the bank intends to comply with the requirements of risk limitation, nor to create proper structure of management;
the bank has its institutional structure which is consistent with its plan of activities;
the bank has accounting and controls structure which are consistent with the plans of its activities.
2. The National Bank shall be obliged to notify applicants about the reasons of denial in writing.
3. Issuing of a permission to open a bank in the case of non-compliance with the provisions of Articles 18-22 of this Edict shall not be allowed.
Article 25. The State Registration of a Bank
The State registration of a bank shall be carried out by the Ministry of Justice on the Basis of the National Bank's permission to open the bank.
Foundation parties must apply to the Ministry of Justice for the State registration of their bank within one month from the date of receipt of permission from the National Bank to open the bank.
Article 26. Licensing of Banking Transactions
1. The National Bank shall be the sole licenser in the territory of the Republic of Kazakhstan authorized to issue licenses for conducting of transactions conferred in accordance with this Edict to the category of banking transactions.
Licenses for conducting of banking transactions shall be issued In accordance with the procedure established by the National Bank.
2. In order to obtain a license to perform banking transactions during one year after the date of the State registration, an applicant shall be obliged as follows:
a) to adopt all the institutional and technical measures, in particular, to prepare the premises and equipment which comply with the normative requirements of the National Bank, and also to hire personnel with appropriate qualifications;
b) pay up the declared charter fund.
3. Simultaneously with the application to be issued a license to carry out banking transactions, a licensee shall be obliged to submit documents which confirm compliance with the requirements of paragraph 2 of this Article.
4. Applications to be issued the license to carry out banking transactions must be processed by the National Bank within one month from the date of their acceptance.
5. A license to carry out banking transactions shall be issued for all indefinite term.
6. A license to carry out banking transactions shall be name-registered and it shall not be subject to transfer to third parties. 7. The full range of banking transactions may be carried out only where there Is express Indication In the license of the right to perform them.
8. A decision to grant a license to carry out banking transactions shall be published by the National Bank in two National newspapers.
Article 27. Bases for Denial to Issue a License to Carry out Banking Transactions
A denial of issuing of a license to carry out banking transactions shall take place in the following cases:
a) non-compliance with any of the requirements established by paragraph 2 of Article 26 of this Edict;
b) where a bank during one year from the date of its State registration failed to apply to be issued a license.
Article 28. Amendments and Additions to Foundation Documents of Banks
1. Amendments and additions to be introduced to foundation documents of banks, which require re-registration at the Ministry of Justice shall be subject to preliminary agreement with the National Bank.
2. The issue of granting consent to introductions of amendments and additions to the foundation documents of a bank must be handled by the National Bank within one month.
Article 29. Formation of Affiliates and Representations of Banks
1. An affiliate of a bank shall be a subdivision which is not a legal entity, which is located outside of the bank's location, which performs banking transactions on behalf of the bank and operates within the bounds of authority granted to it by the bank.
