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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.

Finance

Kyrgyz National Bank Conducts Largest Currency Intervention of 2025

To stabilize the som exchange rate, the National Bank of the Kyrgyz Republic (NBKR) carried out its largest currency intervention of 2025, selling nearly $174 million on the foreign exchange market. According to the NBKR, $65.3 million was sold on the day of the transaction, with an additional $108.6 million sold under deferred payment terms. This marks the bank’s sixth intervention of the year and its most substantial by volume. In previous months, the NBKR intervened with $158.3 million in April, $81.5 million in September, and $38 million in October. The regulator emphasized that the som remains a floating currency and that interventions are undertaken solely to limit excessive volatility and ensure market stability. Throughout 2025, the NBKR has only conducted dollar sales, without any reverse interventions to repurchase foreign currency. This pattern reflects sustained demand for foreign currency and active trade flows within the country. As a result of these actions, the som has remained stable, with the exchange rate holding just above 87 soms per $. Since the beginning of the year, the NBKR’s total foreign currency sales have exceeded $590 million. Over the past five years, the bank has carried out 99 interventions, selling nearly $3 billion on the market.

Gold

Kyrgyzstan Unveils New Gold Storage Facility Built to International Standards

Kyrgyzstan has launched its own gold storage facility, built to international standards and capable of holding up to 1,000 tons of gold. Until now, the country stored its gold reserves abroad. President Sadyr Japarov announced the development during the October 28 inauguration of the new National Bank of the Kyrgyz Republic (NBKR) building in Bishkek. Japarov stated that Kyrgyzstan can now not only securely store its gold domestically but also offer storage services to foreign partners. According to the National Bank, Kyrgyzstan’s international reserves, comprising gold and foreign currency, have reached a historic high of $7.55 billion. Data from the World Gold Council shows that Kyrgyzstan's gold reserves rose by 4.68 tons in the second quarter of this year, totaling 38.95 tons. Japarov reaffirmed that maintaining the stability of the national currency, the som, remains the National Bank’s top priority. “This is a responsible mission that directly affects the lives of every citizen and the well-being of every family. Public trust in the som is an indicator of the state's strength,” he said, noting that the currency is now regarded as one of the most stable in Central Asia. During the ceremony, officials announced that domestic printing of 20- and 50-som banknotes will begin on November 17, with production of all other denominations scheduled to start by mid-2026 Currently, Kyrgyzstan circulates banknotes in denominations of 20, 50, 100, 200, 500, 1,000, 2,000, and 5,000 som. Previously, the country’s banknotes were produced in several European countries. The new series will be printed by the Bishkek-based company Uchkun (Open Joint Stock Company) and will meet international standards for security and counterfeit protection.

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

Public Confidence in Kyrgyz Banking Sector Rises Amid Robust Growth

Kyrgyzstan’s banking sector recorded strong performance in the first half of 2025, signaling growing public trust and active private sector engagement. The latest data from the National Bank of the Kyrgyz Republic (NBKR) shows marked increases in total assets, deposits, and loans, reflecting both economic resilience and successful monetary policy implementation. According to the NBKR, the total assets of commercial banks have risen by 24% since the beginning of the year, reaching $11.63 billion. Deposits increased by 20% to over $8.05 billion, while the loan portfolio expanded by 22.5% to $4.8 billion. The central bank emphasized the sector’s stability and high liquidity in the national currency. “The monetary policy being pursued allows us to maintain stability in the interbank money market. The banking system continues to enjoy high liquidity in the national currency. The National Bank is conducting operations to maintain a balanced level of money supply in the economy,” the NBKR stated. The sector’s expansion has also been fueled by the adoption of digital banking technologies and the removal of fees for interbank transfers between individuals. In the first six months of 2025, QR code-based non-cash payments surged more than twelvefold in volume and twentyfold in value. Altogether, 167 million transactions totaling $3.16 billion were processed. “From October 23, 2024, until the end of 2025, Kyrgyzstan has a ban on charging individuals fees for transfers in som via mobile apps and internet banking,” said NBKR Chairman Melis Turgunbaev. The regulator also pointed to the strength of the broader Kyrgyz economy and the relative stability of the currency market. Nevertheless, inflationary pressures are mounting amid ongoing geopolitical tensions and shifting global trade dynamics. Price volatility in food and raw materials markets has been particularly acute, driven by external economic shocks and rising inflation in key partner countries. To curb inflation and stabilize the domestic economy, the NBKR raised its key policy rate by 25 basis points to 9.25%. The central bank expects the rate adjustment to help preserve consumer purchasing power and support household financial stability.

Finance

Kyrgyzstan Enacts Code to Boost Financing for Female Entrepreneurs

Kyrgyzstan has officially enacted the Code on Financing Women Entrepreneurs, a regulatory framework aimed at expanding women’s access to financial products from banks and microfinance institutions. The National Bank of the Kyrgyz Republic (NBKR) will oversee the implementation of the Code, which it regards as a milestone in institutional support for women’s entrepreneurship. Speaking at the launch ceremony, NBKR Chairman Melis Turgunbaev emphasized the crucial role of women in the country’s economy, particularly within the small and medium-sized business sector. “The launch of the Code, backed by the recent legislative recognition of the concept of ‘women’s entrepreneurship,’ creates a solid institutional foundation for mobilizing financial sector resources and directing them toward the development of this strategically important segment of the economy,” Turgunbaev said. The legal definition of women’s entrepreneurship was introduced into Kyrgyz legislation only last year. Lawmakers noted that female entrepreneurs often face structural challenges, such as balancing business activities with domestic responsibilities and limited access to property assets that can serve as loan collateral. According to the Ministry of Economy and Commerce, the typical Kyrgyz female entrepreneur is between 40 and 50 years old, has a secondary education, runs a small or medium-sized enterprise, often individually and began her business career before turning 30. The new Code modifies financial regulations to simplify access to credit for women. Key provisions include expanded opportunities for unsecured lending and the removal of a previous requirement for financial institutions to set aside 1% of the loan amount for potential losses when lending to women. The NBKR believes these changes will make financing for women both strategically and commercially attractive across the banking sector. “Our actions are not just advocacy, they are about building sustainable market mechanisms,” said Turgunbaev. “The National Bank is establishing economically sound conditions that incentivize the entire financial sector to support women entrepreneurs.” According to the NBKR, the Code applies specifically to enterprises in which women own at least 51% of the capital and make up at least 51% of the workforce. Financial institutions are encouraged to offer more accessible, long-term loans to qualifying women-led businesses on preferential terms. However, The Times of Central Asia has learned that the Code currently lacks a dedicated mechanism to support women facing loan repayment difficulties. Nonetheless, the regulator clarified that this does not restrict banks from granting relief measures. “The NBKR will not prevent commercial banks from offering concessions to women entrepreneurs with overdue loans under programs focused on financing women-led businesses,” a spokesperson said. The National Bank plans to coordinate the Code’s rollout and ongoing refinement, emphasizing that support for women entrepreneurs is viewed as a long-term institutional priority.