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A brief overview of the banking system's performance in 2024
On February 12, 2025, in accordance with a Decree by the President of the Republic of Tajikistan, and based on the Executive Office of the President's plan for organizing press conferences in ministries and departments following the results of 2024, the National Bank of Tajikistan hosted a press conference with representatives from domestic and foreign media.
During his report, Chairman Tolibzoda Firdavs stated that the National Bank of Tajikistan conducted its activities in 2024 in accordance with sectoral legislation and the objectives outlined in the Address of the President of the Republic of Tajikistan honorable Emomali Rahmon “On the main dimensions of domestic and foreign policy of the Republic,” as well as the projection of monetary policy for the Republic of Tajikistan for 2024 and the medium-term period.
In 2024, the inflation rate was at the lower limit of the target indicator (6±2 basis points) and amounted to 3.6 percent, which is 0.2 percentage points lower than in the previous year.
The National Bank of Tajikistan held 120 auctions for the sale of its securities totaling 12.0 billion somoni to regulate money supply in circulation, manage the liquidity of credit institutions, reduce inflationary pressure, and activate the financial market. Simultaneously, free funds were attracted from credit institutions through overnight deposit operations, which averaged 1.1 billion somoni per day.
It was pointed out that as a key instrument of monetary policy, the refinancing rate was gradually reduced by 1.0 percentage point during 2024 due to the ongoing stability in domestic and global commodity and product prices, a positive outlook for macroeconomic indicators, an assessment of the reduced impact of potential risks on the economy, and inflation remaining below the target rate. The refinancing rate was set at 9.0 percent per annum.
In the reporting year, the official exchange rate of the somoni against the US dollar was stabilized at 0.2 percent. Considering the global economic situation, the official exchange rates of the national currencies of most of the Republic of Tajikistan's main trading partners against the US dollar changed. In particular, the Kyrgyz som stabilized by 2.3 percent, the Turkish lira decreased by 19.7 percent, the Kazakh tenge by 15.2 percent, the Russian ruble - 13.4 percent, the Belarusian ruble - 9.3 percent, the Uzbek som - 4.7 percent, and the Chinese yuan by 1.5 percent against the US dollar.
As of December 31, 2024, there are 65 credit financial institutions operating in the Republic of Tajikistan, including 15 traditional banks, 1 Islamic Bank, 1 non-bank credit organization, 22 microcredit deposit organizations, 3 microcredit organizations and 23 microcredit funds. The number of structural units of credit financial institutions at the end of the reporting year amounted to 1,928 units, which is 31 units more than on the same date of the previous year.
At the end of 2024, assets and liabilities of credit financial institutions amounted to 47.5 billion somoni and 38.5 billion somoni, which is 26.0% (or 9.8 billion somoni) and 27.0% (or 8.2 billion somoni) more, respectively, compared to this date in 2023.
The balance sheet capital of credit financial institutions amounted to 9.0 billion somoni, an increase of 1.6 billion somoni, or 21.8%, compared to the same period last year
As of December 31, 2024, the total balance of deposits amounted to 25.5 billion somoni, which is 31.2% more than on the same date of the previous year. The total amount of deposits balances in national currency was 60.5% and in foreign currency 39.5%. As part of the total deposits balance, the share of legal entities is 11.1 billion somoni or 43.5%, and the share of individuals is 14.4 billion somoni or 56.5%.
In 2024, the volume of loans issued amounted to 24.6 billion somoni, an increase of 5.6 billion somoni, or 29.3%, compared to the previous year. Of the total volume of loans granted, the consumer sector accounts for 47.1%, foreign trade-14.6%, agriculture-12.7%, industry-12.4%, services-6.9%, construction-3.9% and other sectors-2.3%. At the same time, it should be noted that of the total volume of loans issued, 31.1 percent accounted for manufacturing enterprises, which amounted to 7.6 billion somoni.In the reporting year, micro-loans were issued in the amount of 17.8 billion somoni, which is 31.3% more than a year earlier.
The average weighted interest rate on loans in national currency was 22.1% and in foreign currency 11.7%, which decreased by 1.1 percentage points in national currency and 0.1 percentage points in foreign currency compared to 2023.
The balance of the total loan portfolio of credit financial institutions at the end of the reporting year amounted to 21.4 billion somoni and increased by 3.5 billion somoni, or 19.8%, compared to the end of 2023.
The capital adequacy ratio, a key indicator of financial stability in the banking system, was 21.8 percent as of December 31, 2024. This is 9.8 percentage points higher than the established requirement of 12 percent.
It was said that as of December 31, 2024, the total number of bank payment cards amounted to 8.4 million units, an increase of 25.7 percent compared to the same date in the previous year. The total number of electronic wallets also increased by 38.6 percent compared to the same date in the previous year, reaching 12.1 million units.
As of the reporting date, financial credit institutions have installed 11,955 electronic terminals in banking service centers, trade points, and service establishments. Of these, 5,530 POS terminals are specifically used for accepting non-cash payments for state services. Additionally, 19,918 unique QR codes have been installed in trade and service establishments, with 3,161 specifically designed for accepting payments for paid state services.
To enable customers to top up their bank accounts, payment cards, and electronic wallets, financial credit institutions and their payment banking agents have installed over 9,100 automated terminals on city streets and avenues throughout the republic.
In 2024, 92.4 million non-cash transactions worth 30.4 billion somoni were carried out using electronic payment instruments (bank payment cards and electronic wallets). This represents a 61.7% increase in number and a 95.3% increase in volume compared to 2023. The ratio of cash withdrawals to non-cash transactions was 73.8% to 26.2%, indicating an increase of 6.6 percentage points in the share of non-cash payment transactions compared to the previous year.
It was pointed out that at the end of 2024, 16 insurance companies operated in the republic, including one state-owned company and 15 non-state companies with 66 branches. These companies provided insurance services to the republic's population.
The results of a summary of the country's insurance system in 2024 showed that the sector's key indicators were growing. This growth included an increase in the system's assets by 10.5% compared to the previous year, capital by 19.6%, authorized capital by 45.1%, insurance reserves by 2.5%, insurance payments and compensations by 26.6%, investments by 32.7%, deposits in credit financial institutions by 37.0%, and taxes paid by 24.4%.
During the reporting period, insurance system assets represented 1.7 percent of total financial system assets and 0.6 percent of GDP.
Regarding the appeals of individuals and legal entities, it was noted that in the reporting year, 1,568 appeals were received by the National Bank of Tajikistan, including 794 via hotline, 519 via direct reception of citizens, 230 in writing (applications) and 25 via e-mail, which in general were resolved in accordance with the established procedure.
It was also noted that the NBT has established fruitful cooperation with international financial organizations, such as the International Monetary Fund (IMF), the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank, the Islamic Development Bank, the Eurasian Development Bank, the Interstate Bank, the Financial Access Union, international funds, central (national) banks, and banking structures of foreign countries.
In 2024, the country's banking system attracted $4.2 billion in foreign capital (loans, direct investments, and other types of investments), which is 88.7 percent more than the previous year.
During a press conference, journalists received detailed information regarding the Republic of Tajikistan's National Financial Inclusion Strategy (2022-2026), encompassing topics such as international reserves, refinancing rates, inflation, cryptocurrency regulations, Islamic banking practices, initiatives to promote cashless transactions, accessibility of various payment services, loan interest rates offered by credit financial institutions, and other pertinent aspects of the banking system.
At the press conference's conclusion, Firdavs Tolibzoda, Chairman of the National Bank of Tajikistan, expressed his appreciation for the media's constructive engagement and balanced reporting on the banking sector, reaffirming the bank's commitment to continued collaboration.
NBT
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12.02.2025