Tajikistan - Banking SystemsTajikistan-Banking-Systems
The banking structure in Tajikistan is two-tiered: the National Bank of Tajikistan performs regulatory central bank functions, while commercial banks represent the second level. The banking system in Tajikistan remains relatively undeveloped. The national currency, the somoni, was introduced in October 2000. There are several major concerns about the banking system, including: government-directed lending, insufficient capital, limited banking services, lingering mistrust as a result of the several economic and financial systemic crises in 1992, 1998 and 2009. Tajikistan banking sector experiences a number of systemic challenges since 2014 when the crisis in Russia hit. There are 17 commercial banks and 66 microfinance organizations operating in Tajikistan. German-based “Access Bank” is the only western bank with a limited presence in Tajikistan. Kazcommercebank is the branch of Kazakh based bank. Tijorat Bank is the branch of Iranian bank. Branch of National Bank of Pakistan present in Tajikistan. First Micro Finance Bank is the financial institution of the Aga Khan Fund for Economic Development. The electronic banking and the checking system is not developed in Tajikistan. Most payments are made by bank transfers; payments between two corporate entities must be made through the banking system. As of March 2018 total assets of the banking system are $2.25 billion. Total balance of loan portfolio is $ 885 million, which has declined by 12.8 per cent since 2017 due to decrease in commercial and SME loans. Due to the continuous devaluations of national currency Somoni against US dollar and Russian Ruble, demand for loans denominated in Somoni is having upward trend. Average weighted rates of loans denominated in Somoni and USD is 30.54 per cent and 16.07 per cent respectively. High interest rates is one of the factors contributing to low financial inclusion level of 11-14 per cent with lack of access to financing and low financial literacy along these lines. Officially, non-performing loans are standing at 33.4 per cent of total loan portfolio, while different analysts forecast it ranges from 70 to 80 per cent.
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Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.