Banks in Kyrgyzstan are less willing to grant loans than banks in other EAEU countries

Kyrgyzstan’s banking sector differs markedly from that of the other countries in the Eurasian Economic Union. At the end of the reporting period, loans and other advances accounted for just 45 per cent of Kyrgyz banks’ assets — the lowest figure in the union.

In the other EAEU countries, lending accounts for more than half of banking assets:

• Russia – 73%;
• Belarus – 69%;
• Kazakhstan – 63 per cent;
• Armenia – 60 per cent.

At the same time, Kyrgyzstan’s banks hold a record share of assets in foreign currency and deposits for the EAEU – 41 per cent. This is almost double that of Armenia, where the figure stands at 22 per cent, and Belarus – 21 per cent. In Kazakhstan, foreign currency and deposits account for 19 per cent of banks’ assets, whilst in Russia the figure is just 11 per cent.

A further 13 per cent of Kyrgyzstan’s banking assets is invested in securities other than shares. In this respect, the republic outperforms Belarus (10 per cent) but lags behind Russia (16 per cent), as well as Armenia and Kazakhstan (both 18 per cent).

Derivative financial instruments account for 0.8 per cent of Kyrgyz banks’ assets. Although this share remains insignificant, it is the highest figure among the EAEU countries. In Russia, it stands at 0.4 per cent; in Kazakhstan, 0.1 per cent; whilst in Armenia and Belarus it is practically zero.