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Banking

Kyrgyzstan Sets Higher Capital Thresholds for Commercial Banks

The National Bank of the Kyrgyz Republic (NBKR) has approved new minimum capital requirements for commercial banks, including foreign bank branches, which will take effect in January 2026. Under the revised regulations, the minimum authorized capital must reach $34.5 million by 2030. The central bank stated that the increase is intended to foster a more resilient and stable banking sector. To mitigate the impact on existing financial institutions, the capital thresholds will be raised incrementally over the coming years. According to the schedule, commercial banks must raise their authorized capital to: $9 million by July 1, 2026 $11.5 million by July 2026 $17.1 million by July 2027 $23 million by July 1, 2028 $28.6 million by July 1, 2029 $34.5 million by July 2030 Systemically important banks, defined as the largest players in the market, will face stricter standards. These institutions must raise their authorized capital to $91.5 million. If designated as systemically important, a bank will have one year to meet the authorized capital requirement and three months to bring its regulatory capital in line, according to the NBKR. Previously, the minimum authorized capital for commercial banks stood at $9.1 million, and $22.8 million for systemically important institutions. The NBKR said the revised requirements reflect the growth of both the national economy and the banking sector. The banking industry in Kyrgyzstan is expanding rapidly. As of the end of October 2025, the sector's total assets reached $12.8 billion, an increase of 38% since the beginning of the year. Customer deposits climbed to $9.1 billion, marking a 35% rise. The growth is largely attributed to higher interest income from loans. There are currently 21 commercial banks and 306 branches operating across the country.

Banking

Uzbekistan to Launch Islamic Finance Services in 2027

Uzbekistan plans to introduce Islamic finance services at a national level, with the first offerings set to launch in 2027. According to the updated draft of the Uzbekistan 2030 development strategy, at least three commercial banks are expected to provide Sharia-compliant financial services by the end of the decade. The strategy outlines the creation of a legal and institutional framework to support Islamic finance, beginning with one commercial bank in 2027 and expanding to three banks by 2029-2030. The initiative will be financed through the banks’ own resources, with the Central Bank designated as the lead regulatory authority. This initiative follows earlier legislative steps aimed at diversifying Uzbekistan’s financial system. In September 2023, the Legislative Chamber of the country's parliament, the Oliy Majlis, passed a draft law on Islamic banking in its first reading, a milestone in the country’s push toward financial innovation and inclusion. As previously reported by The Times of Central Asia, the draft legislation includes amendments to the Tax Code, Civil Code, and other legal statutes. It introduces formal definitions for Islamic banks, Sharia-compliant operations, investment deposits, and relevant regulatory standards. Central Bank Deputy Chairman Abrorkhuja Turdaliev has emphasized that the reforms go beyond removing legal obstacles. In comments to local media, he highlighted the need to establish institutional mechanisms, including specialized Sharia councils, audit and accounting frameworks, and a dedicated tax regime, to ensure the system functions in accordance with Islamic financial principles. In an interview with Spot, Turdaliev stated that the Central Bank expects up to ten Islamic banks to be operating in Uzbekistan by 2030. In addition, several traditional banks, including three state-owned institutions, are expected to launch Islamic “windows” to provide Sharia-compliant services alongside conventional products.

Banking

ADB Provides Tajik Bank with First Direct Loan of $10 Million

Bank Eskhata OJSC (Open Joint-Stock Company) and the Asian Development Bank (ADB) have signed a direct lending agreement, marking a new stage in financing for small and medium-sized enterprises (SMEs) in Tajikistan. This is the first time the ADB has issued a direct loan to a Tajik bank, bypassing intermediary financial institutions. The ADB stated that the format reflects a high level of trust in the partner bank and confidence in its stability within the national financial market. Tajikistan has been a member of the ADB since 1998. Under the terms of the agreement, the ADB is providing a loan in local currency equivalent to $10 million. The funds are intended to support entrepreneurs implementing environmentally friendly and energy-efficient technologies, as well as projects that reduce environmental impact and contribute to building a sustainable economy. Akmaljon Saifidinov, CEO of Bank Eskhata, described the agreement as strategically important. “We are honored to be the first financial institution in Tajikistan to receive direct lending from the ADB. This landmark event opens new horizons for supporting MSMEs and advancing green finance,” he said, referring to micro, small, and medium-sized enterprises. He added that the partnership with the ADB further strengthens the bank’s role as a leader in innovative financial solutions. The ADB expects the direct lending mechanism to significantly improve access to financing for businesses. “Direct lending will significantly expand enterprises’ access to financing and serve as a key stimulus for the development of green initiatives in Tajikistan,” said Ko Sakamoto, head of the ADB office in Dushanbe. The loan is expected to support projects in energy efficiency, green technologies, and sustainable business models, areas that have traditionally lacked access to long-term financing. In a separate initiative, the ADB recently approved a $3 million grant to enhance Tajikistan’s capacity for glacier monitoring and natural disaster forecasting. The project includes the creation of a unified digital system for analyzing risks related to snow and ice melt and aims to improve public safety in mountainous regions.

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.