The banking sector in Kyrgyzstan is expanding rapidly, Chairman of the National Bank Almaz Baketaev said in an interview with Bloomberg.

Citing the results for 2025, he said that total banking assets increased by 50 percent to $14 billion, up from $9.4 billion a year earlier.

Baketaev noted that the positive trend has continued this year. During the first eight months, assets of the banking system grew by further 24.2 percent. The loan portfolio accounts for around 42 percent of total banking assets.

The development of the financial sector is particularly important for Kyrgyzstan’s economy, which is largely driven by trade, services and logistics, the National Bank chief said.

These sectors need access to affordable financing to expand their businesses and implement investment projects.

According to Baketaev, one of the measures to strengthen the banking sector has been raising funds on international financial markets. For example, part of the proceeds from the country’s first sovereign Eurobond issuance last year was allocated to increase the capital of state-owned Eldik Bank.

Bloomberg notes that high inflation is forcing the National Bank of the Kyrgyz Republic to maintain tight monetary policy, including keeping its discount rate at 12 percent.