Published
11/05/2025, 10:26In Kyrgyzstan, the legal status of the State Development Bank, a financial institution responsible for implementing state investment policy, has been clarified. Amendments to the Constitutional Law ‘On the National Bank of the Kyrgyz Republic’ and the Law ‘On Banks and Banking Activities’ have finally cemented its special position in the country's financial system.
The bank's activities are now regulated by a separate law and a Cabinet of Ministers resolution dated 9 October 2023, which define its functions, objectives and management principles in detail. Unlike commercial banks, the State Development Bank is not subject to direct supervision by the National Bank — not as a concession in regulation, but as an element of a new management model characteristic of development institutions.
This approach has long been used in global practice: KfW in Germany, Korea Development Bank, VEB.RF and China Development Bank also operate outside the traditional framework of banking supervision, but under state control.
The activities of the development bank are supervised by the board of directors, internal and external audits, as well as the cabinet of ministers and the relevant committee of the Jogorku Kenesh. In addition, the Ministry of Finance plays a supervisory role, ensuring transparency and accountability.
The bank's main mission is to finance priority sectors, including industry, energy, processing, and infrastructure. Its special status allows it to flexibly attract international resources, develop public-private partnership projects, support small and medium-sized businesses, and introduce green financial instruments.
