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Development trends of the banking sector 

(as of October 31, 20231

As of October 31, 2023 (hereinafter referred to as the reporting date), 23 commercial banks and 320 branches of the commercial banks operated in the Kyrgyz Republic. 

The banking system received net profit in the amount of KGS 20969.3 million year-to-date2

Aggregate assets of the banking sector increased by 23.8 percent year-to-date and totaled KGS 597.1 billion (at the end of 2022 KGS 482.2 billion). 

Volume of the credit portfolio3 of clients of the banking sector increased by 22.8 percent year-to-date and amounted to KGS 250.5 billion (at the end of 2022 KGS 204 billion), including the sectors as follows: 

- loans for industry amounted to KGS 12.2 billion (decreased by 10.4 percent); 

- loans for agriculture amounted to KGS 42.8 billion (increased by 15.4 percent); 

- loans for commerce amounted to KGS 70.3 billion (increased by 25.1 percent); 

- loans for construction amounted to KGS 12.2 billion (decreased by 5.5 percent); 

- loans for mortgage amounted to KGS 29.2 billion (increased by 19.8 percent); 

- consumer loans amounted to KGS 53.4 billion (increased by 61.4 percent); 

- other loans amounted to KGS 30.4 billion (increased by 13.7 percent). 

The share of non-performing loans in the credit portfolio of the banking system made 9.7 percent or KGS 24.2 billion (at the end of 2022 12.8 percent, or KGS 26.1 billion). The volume of overdue loans increased by KGS 1.1 billion year-to-date, or 20.2 percent and amounted to KGS 6.6 billion or 2.6 percent of the credit portfolio of the banking system. 

Total liabilities of the banking sector increased by 23.4 percent year-to-date and amounted to KGS 496.1 billion (at the end of 2022 KGS 402 billion). 

Aggregate deposit base of clients of the banking sector4 increased by 19.3 percent year-to-date and amounted to KGS 404.5 billion (at the end of 2022 KGS 339 billion), including: 

- deposits of the legal entities totaled KGS 144.5 billion (increased by 7.4 percent); 

- deposits of the individuals totaled KGS 151.7 billion (increased by 17.1 percent); 

- deposits of the authorities totaled KGS 46.8 billion (increased by 101.3 percent); 

- deposits of the non-residents totaled KGS 58.7 billion (increased by 18.3 percent); 

- deposits of other financial-credit organizations totaled KGS 2.9 billion (increased by 41.2 percent). 

The level of dollarization of the credit portfolio of the banking sector has decreased by 1.7 percent since the beginning of 2023 and made 21.9 percent. The level of dollarization of the deposit base of the banking sector increased by 0.8 percentage points compared to the beginning of 2023 and made 46.42 percent. 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 26.2 percent year-to-date and amounted to KGS 103.1 billion (at the end of 2022 KGS 81.7 billion). The share of foreign participation in capital of the banking sector made 20.2 percent or KGS 12.1 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 24.5 percent (at the end of 2022 25.6 percent) with the standard of 12 percent, the leverage ratio of the banking sector made 12.7 percent (at the end of 2022 17 percent) with the standard of 6 percent. 

The liquidity ratio of the banking system made 78.6 percent (at the end of 2022 82.8 percent) with the standard of 45 percent. 

Return on assets of the banking sector (ROA) was 4.6 percent (at the end of 2022 5.9 percent) and return on equity (ROE) made 33.8 percent (at the end of 2022 43.4 percent). 

The level of financial intermediation was as follows:  

- (assets / GDP) made 52.5 percent (at the end of 2022 49.7 percent); 

- (loans3 / GDP) made 22 percent (at the end of 2022 21 percent); 

- (deposits4 / GDP) made 35.5 percent (at the end of 2022 34.9 percent). 

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1 Preliminary data. 

2 For reference: in the same period of 2022, the amount of profit totaled KGS 19728.8 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.