Inter-Bank Market of Credit Resources 

(November 2007) 

The demand for borrowed funds in national currency in the inter-bank credit market was down in November against the background of excess reserves increase in the banking system. The total volume of inter-bank credits in national currency in the reporting month was down by 12.9 per cent and amounted to KGS 807.0 Million. The drop occurred due to 27.5 per cent decrease in REPO transactions amount which was KGS 571.3 Million, while the amount of ordinary credit transactions in national currency increased by 69.5 per cent and made KGS 235.6 Million. 

The weighed average interest rate for REPO transactions was 7.0 per cent, having decreased by 0.4 points under the influence of rate reduction in other financial market segments. The rate for ordinary credits in national currency for the reporting period was 4.2 per cent, having decreased by 1.5 points.  

The weighed average maturity of REPO transactions in November remained at the level of 6 days, and the maturity of inter-bank credits in national currency increased from 5 to 13 days.  

The number of creditors in the market of inter-bank credits in national currency remained at the same level of 10 banks within the reporting month, the number of borrowers increased from 6 to 10 banks. Creditors concentration index increased from 0.15 to 0.25, and the borrowers concentration index decreased from 0.26 to 0.17. These parameters indicate a high level of creditors concentration and a moderate level of debtors concentration at the inter-bank credits market, and their values are equivalent to the market presence of four creditors and six borrowers with equal shares.  

The volume of transactions in foreign currency in the domestic inter-bank credit market increased in November more than three times, up to KGS 117.3 Million, and their weighed average rate was 6.2 per cent, having decreased by 3.2 points due to the reduction of crediting period. The volume of transactions of resident banks with foreign banks decreased by 5.9 per cent in the reporting period and amounted to KGS 16.8 Billion, while the weighed average rate on these transactions decreased by 0.2 points and made 3.69 per cent.