World Bank2013-03-072013-03-072010-06https://hdl.handle.net/10986/12600The purpose of this paper is to report on the level of access to formal financial services in the Kyrgyz Republic, assess the key obstacles to improving access, and make recommendations to overcome these obstacles. The paper is organized as follows. Sections II to IV examine the supply of financial services. Specifically, section II presents a profile of financial intermediation by banks, focusing their supply of financial services, particularly lending and deposits. Section III presents a profile of lending by Aiyl Bank, a specialized bank with a limited license, which is mandated to lend for agriculture. Section IV presents a profile of lending by non-bank financial institutions (NBFIs), including microfinance organizations (MFOs) and credit unions. Section V examines the demand side for financial services, drawing on enterprise surveys to assess firms' perceptions of their access to finance. Section VI presents a brief analysis of the impact of the events of April 2010 on access to finance. Section VII discusses key obstacles in increasing access to finance from banks and NBFIs. Section VIII concludes with policy recommendations that derive from the preceding analysis.en-USCC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FINANCINGACCESS TO INFORMATIONACCESS TO RESOURCESACCOUNTINGACCOUNTING PRACTICESACCOUNTING STANDARDSACCOUNTS RECEIVABLEADBADVANCED ECONOMIESAGRICULTURAL ACTIVITIESAGRICULTURAL FINANCEAGRICULTURAL SECTORAGRICULTURAL TRADEASSET QUALITYAUDITINGAUDITORSBANK ASSETSBANK BRANCHBANK BRANCH NETWORKBANK BRANCHESBANK CREDITBANK LENDINGBANK LOANBANK LOANSBANKING SECTORBANKING SERVICESBANKING SYSTEMBANKSBORROWERBORROWINGBORROWINGSCAPACITY BUILDINGCAPITAL ADEQUACYCAPITAL REQUIREMENTSCLASSIFIED LOANSCOLLATERALCOLLATERAL REQUIREMENTSCOLLATERALSCOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL CREDITCONFIDENCE IN BANKSCONSUMER PROTECTIONCONTRACT ENFORCEMENTCORRUPTIONCREDIT BUREAUCREDIT COOPERATIVESCREDIT DECISIONSCREDIT EXPANSIONCREDIT HISTORYCREDIT INFORMATIONCREDIT INFORMATION SYSTEMCREDIT INFORMATION SYSTEMSCREDIT LINECREDIT LINESCREDIT MARKETCREDIT PORTFOLIOCREDIT PORTFOLIOSCREDIT RISKCREDIT RISK MANAGEMENTCREDIT SCORINGCREDIT SCORING MODELSCREDIT UNIONCREDIT UNIONSCREDITORCREDITORSCURRENCY EXCHANGECURRENT ACCOUNTSCUSTOMER SERVICEDEBTDEBTSDEMAND DEPOSITSDEPOSITDEPOSIT ACCOUNTSDEPOSIT INSURANCEDEPOSITORDEPOSITSDEVELOPMENT BANKDONOR FUNDINGEARNINGSECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC GROWTHEMPLOYMENTEXCESS LIQUIDITYEXCHANGE RATEEXPORT FINANCINGEXTERNAL FINANCINGFACTORINGFARMERSFINANCE COMPANIESFINANCE COMPANYFINANCIAL ACCESSFINANCIAL HEALTHFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARYFINANCIAL INTERMEDIATIONFINANCIAL MANAGEMENTFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL NEEDSFINANCIAL PRODUCTSFINANCIAL RESOURCESFINANCIAL SERVICEFINANCIAL SYSTEMFIXED ASSETSFOREIGN CURRENCYFOREIGN EXCHANGEFORMAL FINANCIAL SERVICESFUNDING SOURCESGOVERNMENT ACCOUNTSGREATER ACCESSGROUP GUARANTEEGROUP GUARANTEESGROUP LENDINGHIGH INTEREST RATESHOUSEHOLDSIMMOVABLE PROPERTYINDIVIDUAL ENTREPRENEURSINFORMATION SHARINGINSTITUTIONAL CAPACITYINTEREST RATEINTEREST RATESINTERNAL FUNDSINVENTORYLARGE BORROWERSLARGE CITIESLAWSLEGAL FRAMEWORKLEGISLATIONLENDERLENDING INTEREST RATESLENDING POLICIESLENDING PORTFOLIOLEVEL PLAYING FIELDLIMITED ACCESSLIMITED ACCESS TO FINANCELINE OF CREDITLIQUID ASSETSLOANLOAN AMOUNTLOAN CONDITIONSLOAN MATURITIESLOAN PORTFOLIOLOAN PORTFOLIOSLOAN PROCESSLOAN RECOVERYLOAN SIZELOAN SIZESLOCAL CURRENCYMARKET CONFIDENCEMARKET VALUEMATURITIESMATURITYMFIMICRO FINANCEMICROCREDITMICROFINANCEMICROFINANCE INSTITUTIONSMIGRANT WORKERSMONEY MANAGEMENTMONEY TRANSFERMONEY TRANSFERSMONEYLENDERSMORTGAGEMORTGAGE LOANSMORTGAGESNATIONAL BANKNEW ENTRANTSNONBANK FINANCIAL INSTITUTIONSNONPERFORMING LOANSOPERATING COSTSOPERATIONAL COSTSOUTREACHOUTSTANDING LOANPAWNPAWN SHOPPAWN SHOPSPAYMENT SERVICESPENETRATION RATESPERSONAL ASSETSPRIVATE BANKSPRIVATE CREDITPRIVATIZATIONPROFIT MARGINPROFITABILITYPRUDENTIAL REQUIREMENTSPUBLIC REGISTRIESPUBLIC REGISTRYREAL ESTATEREGISTRATION PROCESSREGULATORY FRAMEWORKREMITTANCESRETAINED EARNINGSRETURN ON ASSETSRETURN ON EQUITYRISK MANAGEMENTRURAL FINANCERURAL FINANCIAL SERVICESSAVINGSSECURITIESSMALL BUSINESSESSMALL ENTERPRISESSMALL LOANSMALL LOANSSOCIAL FUNDSOURCE OF INCOMESTART-UPSSTATE BANKSTAXATIONTECHNICAL ASSISTANCETIME DEPOSITSTRANSACTION COSTSUNIONUNIVERSAL BANKURBAN AREASVALUE OF COLLATERALVILLAGEWEALTH CREATIONWORKING CAPITALWorld Bank10.1596/12600