Inter-Bank Market of Credit Resources 

(March 2009) 

In March, on the inter-bank market of credit resources, the demand for financial resources in the national currency increased. However the cost of credits in the segment of repo-transactions remained at the level of the previous month whereas in the segment of credit transactions, the rates decreased, that affected the decrease of interest rates in other segments of the financial market. The overall volume transactions in the national currency increased in almost two times in comparison with the previous month and constituted 1934.2 million soms. This increase was provided by the growth of transactions volume on repo-transactions in 2.5 times constituting 1477.8 million soms; credit transactions in the national currency increased by 14.2 percent up to 395.0 million soms. Moreover in the reporting month, the National Bank of the Kyrgyz Republic issued credits for the sum of 6.3 million soms.  

In general in March the weighted average interest rate on REPO-transactions decreased by 0.1 percentage points and constituted 14.7 percent whereas the rate of credits in the national currency decreased by 2.4 percentage points to 12.2 percent and the rate on overnight credits constituted 15.8 percent.  

The weighted average maturity period on REPO-transactions constituted 5 days, having remained at the level of February and on inter-bank credits in the national currency the period increased from 4 to 5 days.  

In the reporting month, the number of creditors in the inter-bank market increased from 9 to 10 banks and the number of borrowers increased from 8 to 12 banks. The concentration index of creditors increased from 0.23 to 0.26 in comparison with the previous month, whereas the concentration index of borrowers from 0.23 to 0.27. These indexes indicate a high level of creditors and borrowers’ concentration on the inter-bank credits market and are equal to the market presence of four creditors and four borrowers with equal shares.  

The volume of transactions in a foreign currency in the domestic inter-bank credit market in the reporting month increased in 2.5 times and constituted 221.6 million soms, whereas the weighted average interest rate on them constituted 7.3 percent (having increased by 3.1 percentage point). The volume of transactions of commercial banks with non-resident banks constituted 28.6 billion soms, having increased by 41.2 percent in comparison with the previous month, whereas the weighted average rate on these credits decreased inconsiderably (by 0.05 percentage points) and constituted 0.3 percent.