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Development trends of the banking sector 

(as of June 30, 20191

As of June 30, 2019, 25 commercial banks (including the branch of the National Bank of Pakistan in Bishkek city) and 319 branches of the commercial banks operated in the territory of the Kyrgyz Republic. 

Aggregate assets of the banking sector increased by 3.3 percent year-to-date and totaled KGS 229.3 billion (at the end of 2018 KGS 222.0 billion). 

Volume of the credit portfolio2 of the banking sector increased by 8.3 percent year-to-date and amounted to KGS 138.5 billion (at the end of 2018 KGS 127.9 billion), including the sectors as follows: 

• loans for industry amounted to KGS 11.4 billion (decrease by 0.7 percent); 

• loans for agriculture amounted to KGS 27.3 billion (increase by 15.5 percent); 

• loans for commerce amounted to KGS 36.8 billion (increase by 5.3 percent); 

• loans for construction activity amounted to KGS 12.7 billion (increase by 12.2 percent); 

• loans for mortgage amounted to KGS 13.2 billion (increase by 7.5 percent); 

• consumer loans amounted to KGS 14.9 billion (increase by 8.6 percent); 

• other loans amounted to KGS 22.2 billion (increase by 8.5 percent). 

The share of non-performing loans in the credit portfolio of the banking system made 7.8 percent or KGS 10.7 billion (at the end of 2018 7.5 percent or KGS 9.6 billion).  

Total liabilities of the banking sector increased by 1.4 percent year-to-date and amounted to KGS 189.3 billion (at the end of 2018 KGS 186.6 billion). 

Aggregate deposit base of the banking sector3 increased by 3.2 percent year-to-date and amounted to KGS 137.3 billion (at the end of 2018 KGS 133.1 billion soms), including: 

• deposits of the legal entities totaled KGS 42.9 billion (decrease by 5.8 percent); 

• deposits of the individuals totaled KGS 78.2 billion (increase by 9.3 percent); 

• deposits of the authorities totaled KGS 4.5 billion (decrease by 5.9 percent); 

• deposits of the non-residents totaled KGS 10.2 billion (increase by 5.0 percent); 

• deposits of other financial-credit organizations totaled KGS 1.5 billion (increase by 0.3 percent). 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 13.0 percent year-to-date and amounted to KGS 41.2 billion (at the end of 2018 KGS 36.5 billion). The share of foreign contribution in capital of the banking system made 32.2 percent or KGS 9.2 billion of the paid up authorized capital of the banking sector. 

The total capital adequacy ratio of the banking system made 25.5 percent (at the end of 2018 23.7 percent) with the standard of 12.0 percent, the leverage ratio of the banking system made 18.0 percent (at the end of 2018 16.5 percent) with the standard of 8.0 percent. 

The liquidity ratio of the banking system made 64.8 percent (at the end of 2018 66.9 percent) with the standard of 45.0 percent.  

Return of assets of the banking sector (ROA) was 0.9 percent (at the end of 2018 1.4 percent), and return on equity (ROE) made 5.6 percent (at the end of 2018 9.5 percent). 

The total financial intermediation (assets/GDP) made 40.4 percent. 

1 Preliminary data taking into account adjustments introduced by the banks for the previous periods. 

2 Excluding loans extended to the banks and other financial-credit organizations. 

3 Excluding deposits of the banks.