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Development trends of the banking sector 

(as of June 30, 20201

 

As of June 30, 2020, 23 commercial banks (including the branch of the National Bank of Pakistan in Bishkek city) and 322 branches of the commercial banks operated in the territory of the Kyrgyz Republic. 

Aggregate assets of the banking sector increased by 7.3 percent year-to-date and totaled KGS 267.2 billion (at the end of 2019 KGS 249.0 billion). 

Volume of the credit portfolio2 of the banking sector increased by 4.7 percent year-to-date and amounted to KGS 153.4 billion (at the end of 2019 KGS 146.4 billion), including the sectors as follows: 

· loans for industry amounted to KGS 12.7 billion (increase by 9.5 percent); 

· loans for agriculture amounted to KGS 30.0 billion (increase by 8.2 percent); 

· loans for commerce amounted to KGS 38.8 billion (increase by 4.3 percent); 

· loans for construction activity amounted to KGS 13.1 billion (increase by 0.5 percent); 

· loans for mortgage amounted to KGS 15.7 billion (increase by 2.4 percent); 

· consumer loans amounted to KGS 16.4 billion (decrease by 4.8 percent); 

· other loans amounted to KGS 26.6 billion (increase by 9.6 percent). 

The share of non-performing loans in the credit portfolio of the banking system made 8.6 percent or KGS 13.1 billion (at the end of 2019 8.0 percent or KGS 11.7 billion).  

Total liabilities of the banking sector increased by 7.4 percent year-to-date and amounted to KGS 222.3 billion (at the end of 2019 KGS 206.9 billion). 

Aggregate deposit3 base of the banking sector increased by 9.0 percent year-to-date and amounted to KGS 164.5 billion (at the end of 2019 KGS 151.0 billion), including: 

· deposits of the legal entities totaled KGS 53.7 billion (increase by 13.2 percent); 

· deposits of the individuals totaled KGS 89.0 billion (increase by 6.2 percent); 

· deposits of the authorities totaled KGS 8.5 billion (increase by 22.9 percent); 

· deposits of the non-residents totaled KGS 11.5 billion (increase by 8.2 percent); 

· deposits of other financial-credit organizations totaled KGS 1.8 billion ( decrease by 14.5 percent). 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 6.4 percent year-to-date and amounted to KGS 46.4 billion (at the end of 2019 KGS 43.6 billion). The share of foreign contribution in capital of the banking system made 30.3 percent or KGS 9.2 billion of the paid up authorized capital of the banking sector (at the end of 2019 31.9 percent or KGS 9.1 billion). 

The total capital adequacy ratio of the banking system made 25.6 percent (at the end of 2019 24.0 percent) with the standard of 12.0 percent, the leverage ratio of the banking system made 17.3 percent (at the end of 2019 17.5 percent) with the standard of 8.0 percent. 

The liquidity ratio of the banking system made 63.2 percent (at the end of 2019 64.0 percent) with the standard of 30.0 percent.  

Return of assets of the banking sector (ROA) was 1.2 percent (at the end of 2019 1.2 percent), and return on equity (ROE) made 7.8 percent (at the end of 2019 7.7 percent). 

The total financial intervention (assets/GDP) made 45.1 percent (at the end of 2019 42.2 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.