Published
09/17/2025, 09:59The banking system of Kyrgyzstan is demonstrating stability and remains highly profitable, despite a slowdown in key profitability indicators.
According to the National Bank of the Kyrgyz Republic, the return on assets (ROA) at the end of August was 4%, compared to 4.3% a year earlier.
Return on equity (ROE) also declined to 28.9% from 32.5%. Despite the decline, both indicators significantly exceed the average values for developing countries, confirming the high efficiency of domestic banks.
At the same time, the financial stability of the sector has strengthened significantly. The capital adequacy ratio, an indicator of whether a bank has sufficient own funds to cover potential risks and losses, rose to 29.2% from 22% a year earlier (the norm is 12%). The leverage ratio, which shows the share of own funds in a bank's assets and thus its level of dependence on borrowed resources, rose to 17% from 11.4% (with a minimum acceptable level of 6%).
Bank liquidity also remains comfortable at 77.9% against a standard of 45%, indicating a significant margin of safety.
The banking sector's involvement in the economy continues to grow:
The sector remains profitable, but the pace of growth in profitability is beginning to slow. At the same time, capital and liquidity indicators provide a margin of stability against the backdrop of an increase in the share of banks in the economy.
