Published
08/05/2025, 09:18In 2024, commercial banks in Kyrgyzstan significantly increased their overnight deposits (author's note: short-term deposits, money is deposited at the end of the day and returned the next morning) at low interest rates with the National Bank.
The total volume of such deposits amounted to 13.3 trillion KGS. This is three times more than in 2023. The average daily volume of transactions reached 53.7 billion KGS. This trend shows that commercial banks preferred to put their free liquidity into overnight deposits instead of using it in more active interbank market instruments.
Thus, in the interbank credit market, where banks lend to each other, there were significantly fewer transactions in 2024 than in 2023. Their volume amounted to 11.1 billion KGS, which is 56.5% less than a year earlier. The majority of transactions were conducted using repurchase agreements (reverse repurchase transactions).
The average term of interbank transactions increased from four to five days.
The interest rate on interbank market transactions decreased on average to 7.5% (-3.9 percentage points). This is due to the easing of monetary policy and the National Bank's decision to leave the key interest rate at 9% (author's note — on 28 July 2025, the discount rate was raised by 25 basis points).
It is important to note that in 2024, the National Bank of the Kyrgyz Republic did not issue overnight loans, as commercial banks did not experience a liquidity shortage. They were able to manage without the regulator's assistance.
