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Banking

Revolut Blocks Top-Ups from Central Asian Bank Cards for EU-Based Users

Russian citizens residing in the European Union have reported being unable to top up their Revolut accounts using bank cards issued in Kazakhstan, Uzbekistan, and Tajikistan. According to Oninvest, at least five individuals encountered the same issue, with Revolut rejecting the transfers and stating that the cards used are “no longer supported.” Revolut’s customer support confirmed that as of December 1, the bank no longer processes top-ups from cards issued in Kazakhstan, Uzbekistan, and Tajikistan for users living in EU member states. The restriction is not temporary; the bank said similar transactions will not be accepted going forward. Notably, none of the banks in question are subject to international sanctions. Revolut attributed the change to internal policies and updated compliance requirements from international payment systems. These systems have reportedly classified Kazakhstan, Uzbekistan, and Tajikistan as high-risk jurisdictions for card-based top-up operations. The bank emphasized that the decision was mandated by its payment partners, not initiated by Revolut itself. Users also reported that top-up attempts through mobile apps of Central Asian banks resulted in error messages. However, Revolut advised that alternative methods, such as Apple Pay, Google Pay, and international bank transfers, remain available. Some customers based in France received a notification from Revolut stating that the platform will no longer accept card transfers from 52 countries. The list includes several countries where Russians relocated after 2022, such as Armenia, Georgia, Kazakhstan, Kyrgyzstan, Uzbekistan, Turkey, Serbia, and the UAE, as well as popular travel destinations like Thailand and Vietnam.

Banking

National Bank of Kyrgyzstan Reports Profit Surge in 2025

The National Bank of the Kyrgyz Republic (NBKR), the country’s central bank, reported a net profit of 33.2 billion soms (about $380.7 million) for the first nine months of 2025, nearly 13 times higher than in the same period last year. The sharp increase was driven by gains from monetary gold transactions, the revaluation of foreign currency reserves, and overall asset appreciation. According to the central bank, gold now accounts for around $5 billion of its total assets, a 2.5-fold rise from 2024. Gold holdings currently represent about half of the NBKR’s total assets. Officials attributed the growth to the bank’s risk-diversification strategy and higher global gold prices. The NBKR also reported a rise in household investment in government securities, reflecting stronger public confidence in domestic financial instruments. While the overall asset structure remains stable, several notable shifts have occurred. The volume of nonmonetary gold and bullion has declined to $1.1 billion, reflecting strong demand from the jewelry industry and increased gold exports. Gold continues to be a key contributor to Kyrgyzstan’s export portfolio. The commercial banking sector is also expanding. The total loan portfolio reached $2 billion, up from $1.5 billion a year earlier. As previously reported by The Times of Central Asia, Kyrgyzstan’s GDP grew by 11.5% in January–July 2025, supported by strong investment in finance, manufacturing, and construction. Construction firms have been borrowing more from local banks, which are expanding lending to meet rising demand from businesses.

Banking

Kazakh Lawmakers Propose Ban on the Word “Halyk” in Bank Names

A group of deputies in the Mazhilis, Kazakhstan’s lower house of parliament, has proposed amendments to the Law “On Banks and Banking Activities,” seeking to prohibit the use of specific words in the names of financial institutions, most notably “halyk” (“people's”). Deputy Murat Abenov announced the initiative via his official Facebook page, stating that more than 50 lawmakers are backing the proposal to revise Article 7 of the banking law. The draft amendment would expand existing restrictions on bank names, currently banning terms such as “national,” “central,” “state,” and “republican”, to also exclude “people's” and “halyk,” in any language or form. If adopted, the legislation would directly affect Halyk Bank JSC, one of Kazakhstan’s most prominent and systemically important financial institutions. Halyk Bank, whose name translates to “People’s Bank,” is part of the broader Halyk Group, which is active in banking, insurance, brokerage, and leasing services. The bank’s largest shareholder is ALMEX Holding Group JSC, controlled by Timur and Dinara Kulibayev, the son-in-law and daughter of former President Nursultan Nazarbayev. Abenov argued that the term “people's” carries specific legal and symbolic significance. Under Article 3 of Kazakhstan’s Constitution, the people are the bearers of sovereignty and the sole source of state power. He contended that allowing a private commercial institution to use this term may mislead the public into believing it serves or is governed by the population at large. The proposal has drawn strong criticism from the Kazakhstan Investors Association, which views the amendment as selectively targeting Halyk Bank. “The discussion and especially the adoption of this amendment pose significant risks to legal certainty, the investment climate, and the national economy,” the Association said in a public statement. The Association further emphasized that brand names are legally protected intellectual property. Under Kazakhstan’s Constitution, private property, including trademarks, can only be expropriated through a court ruling. “A legislative prohibition on an established, lawfully registered brand violates core principles of Kazakhstan’s legal system,” the statement read. Investor representatives also warned that the move could damage Kazakhstan’s reputation among foreign investors. “The Halyk Bank brand has existed for decades and holds historical significance. Forcing a name change may be viewed as retroactive regulation, undermining investor confidence, especially considering the bank’s shares are listed on the London Stock Exchange,” the Association noted. The group called for a “constructive dialogue grounded in legal principles, economic rationale, and common sense,” warning that arbitrary restrictions could harm financial stability and deter investment. As previously reported by The Times of Central Asia, Halyk Bank has expanded regionally, acquiring a 49% stake in Uzbek digital payments firm Click, marking a major fintech investment in Central Asia.

Banking

Dollarization in Kyrgyzstan Declines as Banks Report Lower Profits

The National Bank of the Kyrgyz Republic (NBKR) has reported a continued decline in dollarization within the country’s banking sector, reflecting growing public confidence in the national currency. As of early September, the share of foreign currency loans in the banking sector dropped to 18%, down from over 20% at the start of the year. The decrease is even more pronounced in the deposit base: the share of foreign currency deposits fell from 43% to 38% during the first eight months of 2025. NBKR officials say households are increasingly moving away from the U.S. dollar and other foreign currencies as trust in the national currency, the som, strengthens. Despite the reduction in foreign currency lending and deposits, the sector overall continues to grow. Since the beginning of the year, deposits in Kyrgyz soms have increased by 21%, reaching 717.6 billion KGS ($8.2 billion). The total loan portfolio rose by 26% to 430 billion KGS ($4.9 billion). However, commercial banks are reporting weaker profitability. Financial statements for January to August 2025 indicate a steep drop in earnings from foreign exchange operations. During this period, turnover in foreign currencies fell by more than 2 billion KGS ($23 million), totaling 18 billion KGS ($206.5 million). Analysts note that the current environment contrasts sharply with conditions just a few years ago. After the onset of Russia's war in Ukraine in 2022 and the introduction of Western sanctions, Kyrgyzstan’s currency market experienced significant volatility. Banks then benefited from heightened demand for exchange operations. But with today’s more stable ruble and reduced fluctuations, those profits have diminished. Just five years ago, the National Bank was actively urging citizens to use the som more broadly. At the time, dollar-denominated loans were more expensive, yet remained popular among Kyrgyz borrowers. Now, the trend has reversed, with households increasingly choosing the national currency over foreign alternatives.

Banking

Uzbekistan Advances Draft Law to Introduce Islamic Banking System

Uzbekistan has taken a major step toward diversifying its financial sector with the approval of a draft law on Islamic banking in its first reading. Lawmakers in the legislative chamber of the parliament, the Oliy Majlis, debated the bill during a session held on September 16. The initiative is part of the government's broader effort to expand access to financial services for citizens and businesses, attract foreign investment, and create new mechanisms for economic support. To this end, the draft proposes amendments to the Tax Code, Civil Code, and eight other laws. The bill formally introduces into legislation the concepts of Islamic banks, financial operations, standards, and investment deposits. It also outlines a licensing regime allowing for the establishment of either fully-fledged Islamic banks or Islamic “windows” within existing conventional banks. Permitted financial instruments will include murabaha, mudaraba, musharaka, wakala, and salam, contracts widely used in Islamic finance. Abrorkhoja Turdaliev, Deputy Chairman of the Central Bank, stated that the reforms go beyond removing legal barriers and are aimed at building the institutional foundations of Islamic finance. He highlighted the need to establish dedicated councils, audit bodies, and accounting systems to ensure compliance with Islamic financial principles. The bill also includes provisions for a special tax regime tailored to Islamic finance operations. Turdaliev noted that Islamic banking prohibits the charging of interest, the financing of activities forbidden under Islamic law, and excessive uncertainty in contracts. Instead, it emphasizes partnership and risk-sharing. To support this model, the draft law would eliminate restrictions that currently prevent banks from directly participating in trade or acquiring equity stakes in companies. Drawing on international experience from Malaysia, Turkey, the UAE, and neighboring countries, the proposed legal framework seeks to build a modern infrastructure for Islamic finance in Uzbekistan. “This law will provide legal grounds for establishing Islamic banks, Islamic windows, and microfinance institutions, thereby expanding access to alternative financial services and introducing new tools to support business,” Turdaliev said.

Green economy

UNDP and Eldik Bank Partner to Advance Green Finance in Kyrgyzstan

Kyrgyzstan is taking a significant step toward building a greener and more resilient economy. On September 9, state-owned Eldik Bank and the United Nations Development Programme (UNDP) signed a memorandum of understanding to deepen cooperation in sustainable finance. The agreement aims to mobilize climate-related investments, develop sustainable financial products, and integrate Environmental, Social, and Governance (ESG) principles into Kyrgyzstan’s banking sector. It also outlines plans for joint research and knowledge exchange in climate finance, including the creation of tools to assess climate risks in lending operations. This initiative supports Kyrgyzstan’s updated Nationally Determined Contributions (NDC 3.0) under the Paris Agreement, which commit the country to reducing greenhouse gas emissions, expanding renewable energy, and enhancing climate resilience. It also aligns with the National Development Program through 2030, which prioritizes expanding the regulatory framework for green finance. “UNDP supports the development of sustainable finance solutions that reduce the carbon footprint of the economy, enable the green transformation of businesses, and create new opportunities for investment,” said Alexandra Solovieva, UNDP Resident Representative in Kyrgyzstan. For Eldik Bank, the partnership represents more than a financial commitment; it is a strategic step toward becoming a catalyst for climate-conscious economic development. “Together with UNDP, we aim to introduce products that promote green growth and sustainable business development for our clients,” said Ulanbek Nogaev, Chair of the bank’s Management Board. Green finance is gaining traction across Central Asia, a region still heavily reliant on extractive industries but increasingly vulnerable to climate risks such as water scarcity, extreme weather, and glacial melt. Kyrgyzstan’s efforts to empower domestic financial institutions signal that achieving climate goals will require more than policy declarations; it will demand concrete investments and innovation. The Eldik Bank-UNDP partnership also underscores the importance of regional cooperation. Similar initiatives are under discussion in neighboring countries, as Central Asia seeks to attract international capital for renewable energy, sustainable agriculture, and green infrastructure projects. If effectively implemented, Kyrgyzstan’s model could serve as a regional benchmark, demonstrating how national banks can help transform global climate commitments into tangible, growth-oriented outcomes.