Deposit rates grow in Kyrgyzstan due to competition between banks
«The rates on time deposits in the national currency continued to grow as in 2021. This reflects increased competition among banks for household deposits amid a tighter monetary policy and high inflation,» the National Bank said in a report.
It is noted that in March 2022, the interest rate on term deposits in the national currency increased by 0.2 percent compared to December 2021 and amounted to 11.1 percent.
Dollarization of deposits increased by 0.8 percent to 41.9 percent.
«In January-March 2022, the volume of deposits in both national and foreign currencies decreased against the backdrop of a volatile situation in the foreign exchange market. By the end of March, the deposit base in the national currency decreased by 13.8 percent compared to December 2021, in foreign currency — by 10.9 percent,» the National Bank of the Kyrgyz Republic said.
