Banks lack liquidity to cover liabilities with maturities of up to one month

At the end of 2024, Kyrgyzstan's banking sector once again demonstrated the classic problem of short-term liquidity, with liabilities maturing within one month exceeding assets by almost 68 billion KGS. This is evidenced by data published by the National Bank.

The negative gap in short-term maturities in the structure of assets and liabilities has persisted for several years. In 2024, it amounted to 67.7 billion KGS. The imbalance is particularly noticeable in the loans and deposits segment, where the negative gap is estimated at 147.1 billion KGS. This means that if banks need to quickly pay off their liabilities, they simply won't have enough liquid assets in such a short time.

However, the picture isn't so dramatic in the longer term, with a positive gap recorded across all time categories starting from one month. This indicates that banks' liquidity in the medium term remains within normal limits.

Nevertheless, the National Bank noted a decline in the current liquidity ratio from 77.4% a year earlier to 73.1% in 2024. This is the lowest figure since 2021. The main reason cited is the rapid growth of banks' short-term liabilities relative to their liquid assets.

Formally, current indicators remain above regulatory thresholds, but the dynamics indicate a shift in the risk structure towards short-term money, which could be a sensitive factor in an unstable financial market.