IBC and the Financial Market Regulator Discuss Financial Market Development in the Kyrgyz Republic

On November 4, members of the International Business Council (IBC) met with Kairat Mamatov, Chairman of the Financial Market Regulation and Supervision Service, and representatives of the agency to discuss current issues in the development and regulation of Kyrgyzstan’s non-bank financial sector, as well as challenges faced by businesses.

Kairat Mamatov, Chairman of the Financial Market Regulation and Supervision Service under the Ministry of Economy and Commerce of the Kyrgyz Republic, and heads of the agency’s relevant departments outlined the Service’s activities and priorities and shared international experience in financial market regulation with business representatives.

According to the Service, 1,155 legal entities and individuals currently operate in the non-bank financial market of the Kyrgyz Republic, holding more than 1,240 licenses, registrations and certificates for various types of activity. Meanwhile, exchange transactions in the primary market, through which financial resources are raised and investment capital is reallocated, amounted to KGS 115,715.7 million (95.36% of total exchange trading volume).

Participants discussed opportunities to develop the insurance market, including the introduction of additional instruments for investing assets, the training of actuaries and the need to ensure a stable regulatory framework for the sector.The discussion also covered digitalization and the development of the securities market, the activities of the Kyrgyz Stock Exchange, and the legal regulation and conduct of promotional lotteries.

Participants concluded that closer cooperation with the Service would enable the business community to work more effectively to improve financial literacy and transition to international financial reporting standards. They also discussed operating conditions and the special status of residents of the Tamchy Special Financial Investment Territory, auditor certification procedures, and prospects for the development of investment and venture capital funds in Kyrgyzstan.

IBC emphasized the need to ensure the regulator’s independence and autonomy, as well as adequate technical, material and organizational resources, including an increase in staffing and the payroll budget.The meeting was held as part of IBC’s efforts to promote public-private dialogue and improve the business environment. This format enables market participants to discuss practical issues concerning the application of legislation directly with the regulator and submit proposals to improve business conditions.

The Financial Market Regulation and Supervision Service under the Ministry of Economy and Commerce of the Kyrgyz Republic is responsible for state regulation, control and supervision of the non-bank financial market, including the securities and virtual asset markets, insurance companies, private pension funds, audit organizations, pawnshops, casinos and other market participants.

The development and regulation of the country’s non-bank financial sector are aimed at diversifying the financial system, protecting the rights of investors and consumers, preventing unlicensed and fraudulent investment schemes and, ultimately, creating conditions for Kyrgyzstan’s sustainable economic growth.