Development trends of the banking sector  

(as of February 28, 20231) 

As of February 28, 2023 (hereinafter referred to as the reporting date), 23 commercial banks and 318 branches of the commercial banks operated in the Kyrgyz Republic.  

The banking system received net profit in the amount of KGS 3.090.1 million year-to-date2.  

Aggregate assets of the banking sector increased by 4.7 percent year-to-date and totaled KGS 504.7 billion (at the end of 2022 – KGS 482.2 billion).  

Volume of the credit portfolio3 of clients of the banking sector increased by 0.3 percent year-to-date and amounted to KGS 204.6 billion (at the end of 2022 – KGS 204.0 billion), including the sectors as follows:  

- loans for industry amounted to KGS 13.2 billion (decreased by 3.4 percent); 

- loans for agriculture amounted to KGS 36.1 billion (decreased by 2.5 per cent); 

- loans for commerce amounted to KGS 57.1 billion (increased by 1.6 percent); 

- loans for construction amounted to KGS 12.5 billion (decreased by 2.9 percent); 

- loans for mortgage amounted to KGS 24.6 billion (increased by 0.8 percent); 

- consumer loans amounted to KGS 34.0 billion (increased by 2.9 percent); 

- other loans amounted to KGS 27.1 billion (increased by 1.2 percent).  

The share of non-performing loans in the credit portfolio of the banking system made 13.0 percent or KGS 26.5 billion (at the end of 2022 – 12.8 percent, or KGS 26.1 billion). The volume of overdue loans increased by KGS 0.4 billion year-to-date, or 7.6 percent and amounted to KGS 5.9 billion or 2.9 percent of the credit portfolio of the banking system.  

Total liabilities of the banking sector increased by 4.5 percent year-to-date and amounted to KGS 420.2 billion (at the end of 2022 – KGS 402.0 billion).  

Aggregate deposit base of clients of the banking sector4 increased by 1.8 percent year-to-date and amounted to KGS 344.9 billion (at the end of 2022 – KGS 339.0 billion), including:  

- deposits of the legal entities totaled KGS 128.2 billion (decreased by 4.7 percent); 

- deposits of the individuals totaled KGS 130.8 billion (decreased by 1.0 percent); 

- deposits of the authorities totaled KGS 30.0 billion (increased by 29.2 percent); 

- deposits of the non-residents totaled KGS 53.6 billion (increased by 8.1 percent); 

- deposits of other financial-credit organizations totaled KGS 2.3 billion (increased by 13.2 percent). 

The level of dollarization of the credit portfolio of the banking sector has decreased by 0.1 percent since the beginning of 2023 and made 23.4 percent. The level of dollarization of the deposit base of the banking sector increased by 2.3 percentage points compared to the beginning of 2023 and made 47.9 percent.  

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 5.1 percent year-to-date and amounted to KGS 85.8 billion (at the end of 2022 – KGS 81.7 billion). The share of foreign participation in capital of the banking sector made 24.0 percent or KGS 10.8 billion of the paid-up authorized capital of the banking sector (at the end of 2022 – 24.5 percent or KGS 10.8 billion).  

The total capital adequacy ratio of the banking sector made 25.9 percent (at the end of 2022 – 25.6 percent) with the standard of 12.0 percent, the leverage ratio of the banking sector made 15.3 percent (at the end of 2022 – 17.0 percent) with the standard of 6.0 percent.  

The liquidity ratio of the banking system made 85.5 percent (at the end of 2022 – 82.8 percent) with the standard of 45.0 percent.  

Return on assets of the banking sector (ROA) was 3.8 percent (at the end of 2022 – 5.9 percent) and return on equity (ROE) made 25.3 percent (at the end of 2022 – 43.4 percent).  

The level of financial intermediation was as follows:  

- (assets/GDP) made 53.9 percent (at the end of 2022 – 52.4 percent); 

- (loans3/GDP) made 21.8 percent (at the end of 2022 – 22.2 percent);  

- (deposits4/GDP) made 36.8 percent (at the end of 2022 – 36.9 percent). 

Preliminary data. 

2 For reference: in the same period of 2022, the amount of profit totaled KGS 609.5 million.  

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

4 Excluding monetary funds of the banks and other financial-credit organizations on the deposit and settlement accounts.