Overview and Opportunities

While the banking market opportunity in the Kyrgyz Republic is small compared to neighbors Kazakhstan and Uzbekistan, there is still demand for U.S. banking products from the private and public sectors. Local companies and banks seek correspondent accounts with U.S. banks because many transactions are dollar-denominated, and over 47 percent of deposits in Kyrgyz banks are dollar-denominated as of March 31, 2023. Banking options for transactions in dollars have decreased since the Russian invasion of Ukraine in 2022, with local banks having to switch away from Russian correspondent banks to avoid violating international sanctions. Close ties between Russian and Kyrgyz financial sectors continue to give some cause for caution. However, Kyrgyz commercial banks have worked to increase risk management, improve due diligence, and meet FATF standards for countering money laundering and the financing of terrorism.  U.S. banks also have the opportunity to provide professional and consulting services to the government as it considers projects such as sustainability and social responsibility-linked bonds and Eurobonds.