Credit Resources Inter-Bank Market
Increase in the demand for financial resources in the national currency could be observed on the part of separate commercial banks in the inter-bank credit market. As a result, the total volume of transactions in the national currency has increased by 50.1 percent over the month and amounted to KGS 1116.0 Million. This growth was conditioned by both the increase in the volume of REPO transactions by 65.0 percent, to the amount of KGS 880.5 Million, and by the growth in the volume of credit transactions by 11.9 percent, to the amount of KGS 235.0 Million. However, the volume of credit resources supply remained sufficient under conditions of high level of excessive reserves in the banking system. Interest rates on inter-bank credit transactions in the national currency continued decreasing. The weighted average interest rate on REPO transactions has decreased by 0.3 percent within the month and amounted to 6.9 percent. Within the month, the weighted average interest rate on REPO transactions has decreased by 0.3 pp and amounted to 6.9 percent, the credit rate in the national currency has decreased by 0.9 pp and reached 6.6 percent.
In July, the weighted average period on REPO transactions has increased from 5 to 7 days, and the weighted average period on inter-bank credits in the national currency has decreased from 7 to 5 days.
In the reporting month, the number of creditors in the inter-bank credit market has decreased from 9 to 7 banks, and the number of borrowers has increased from 6 to 7 banks. While the concentration index of creditors has increased from 0.28 to 0.47 compared to the previous month, and the concentration index of borrowers has increased from 0.25 to 0.29. The given indices witness high concentration level of creditors and borrowers in the inter-bank credits market and are equivalent to the market presence of two creditors and three borrowers with equal shares.
In the reporting month, one foreign exchange transaction was made in the domestic inter-bank credit market to the amount of 75.0 Million in KGS equivalent at the rate of 6.3 percent. The volume of transactions of commercial banks with non-resident banks has amounted to 11.1 Billion in KGS equivalent, having reduced by 43.1 percent, as compared to the previous month. The weighted average interest rate on these credits has amounted to 0.2 percent.