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National Bank intends to take control of tariffs, fees for provision of services

The National Bank of Kyrgyzstan is initiating amendments to a number of legislative acts aimed at regulating tariffs and fees for the provision of banking and payment services.

As the bank explained, this is necessary in order to ensure financial inclusion, protect consumer rights and increase the availability of basic financial services for a wide range of the population.

According to the National Bank of the Kyrgyz Republic, to date, commercial banks and non-bank financial and credit organizations independently set interest rates, fees and tariffs for their services. The lack of restrictions in the context of the dominant position of certain market players has led to a number of negative consequences:

  • High fees for basic services, such as transfers, cash withdrawals and account servicing, reaching 5 percent;
  • Limited availability of services for socially vulnerable groups, small businesses and residents of remote regions;
  • Use of complex and non-transparent tariff structures that make it difficult for customers to understand the actual cost of services and choose the most advantageous offer;
  • High interest rates on loans, reaching 33-34 percent, which increases the debt burden on citizens and reduces the availability of borrowed funds.

To solve these problems, the National Bank proposes to secure for itself the authority to establish requirements, restrictions and prohibitions related to tariffs, fees and interest rates. This will allow establishing fair pricing rules and strengthening control over the practices of financial institutions.

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