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Development trends of the banking sector

(as of December 31, 2019) 

 

As of December 31, 2019, 24 commercial banks (including the branch of the National Bank of Pakistan in Bishkek city) and 323 branches of the commercial banks operated in the territory of the Kyrgyz Republic. 

Aggregate assets of the banking sector increased by 12.2 percent year-to-date and totaled KGS 249.0 billion (at the end of 2018 KGS 222.0 billion). 

Volume of the credit portfolio2 of the banking sector increased by 14.5 percent year-to-date and amounted to KGS 146.4 billion (at the end of 2018 KGS 127.9 billion), including the sectors as follows: 

· loans for industry amounted to KGS 11.6 billion (increase by 1.0 percent); 

· loans for agriculture amounted to KGS 27.7 billion (increase by 17.0 percent); 

· loans for commerce amounted to KGS 37.2 billion (increase by 6.6 percent); 

· loans for construction activity amounted to KGS 13.1 billion (increase by 15.5 percent); 

· loans for mortgage amounted to KGS 15.3 billion (increase by 24.6 percent); 

· consumer loans amounted to KGS 17.2 billion (increase by 25.5 percent); 

· other loans amounted to KGS 24.3 billion (increase by 18.7 percent). 

The share of non-performing loans in the credit portfolio of the banking system made 8.0 percent or KGS 11.7 billion (at the end of 2018 7.5 percent or KGS 9.6 billion).  

Total liabilities of the banking sector increased by 10.9 percent year-to-date and amounted to KGS 206.9 billion (at the end of 2018 KGS 186.6 billion). 

Aggregate deposit3 base of the banking sector increased by 13.4 percent year-to-date and amounted to KGS 151.0 billion (at the end of 2018 KGS 133.1 billion soms), including: 

· deposits of the legal entities totaled KGS 47.4 billion (increase by 4.1 percent); 

· deposits of the individuals totaled KGS 83.8 billion (increase by 17.2 percent); 

· deposits of the authorities totaled KGS 6.9 billion (increase by 43.7 percent); 

· deposits of the non-residents totaled KGS 10.6 billion (increase by 9.0 percent); 

· deposits of other financial-credit organizations totaled KGS 2.1 billion (increase by 44.8 percent). 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 19.5 percent year-to-date and amounted to KGS 43.6 billion (at the end of 2018 KGS 36.5 billion). The share of foreign contribution in capital of the banking system made 31.9 percent or KGS 9.1 billion of the paid up authorized capital of the banking sector. 

The total capital adequacy ratio of the banking system made 24.1 percent (at the end of 2018 23.7 percent) with the standard of 12.0 percent, the leverage ratio of the banking system made 17.5 percent (at the end of 2018 16.5 percent) with the standard of 8.0 percent. 

The liquidity ratio of the banking system made 64.0 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 1.3 percent (at the end of 2018 1.4 percent), and return on equity (ROE) made 7.9 percent (at the end of 2018 9.5 percent). 

The total financial intervention (assets/GDP) made 42.2 percent (at the end of 2018 39.8 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.