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Banking around the world · Central Asia & Caucasus

Central Asia & Caucasus

Kaspi's super app, Astana's financial centre and new Islamic windows

This edition covers banking in Central Asia and the Caucasus, led by Kazakhstan, with Uzbekistan, Azerbaijan, Georgia and Kyrgyzstan; Tajikistan, Turkmenistan and Armenia complete the region. Super apps and central-bank payment platforms sit beside fast reform: new banking and Islamic finance laws, open banking in Georgia and the Astana International Financial Centre. Compare it with the Gulf and see what travels both ways.

Compare the regions
AstanaAlmatyTashkentBaku

At a glance

KZT 44.2 trillionPayments made through Kaspi.kz in 2025 (Kaspi.kz, March 2026)
369Entities authorised by AFSA in the Astana International Financial Centre (AFSA, October 2026)
29 June 2026Uzbekistan's Islamic banking law O'RQ-1126 takes effect (Times of Central Asia, July 2026)
6 of 26Kyrgyz banks offering Islamic finance: one Islamic bank and five windows (NBKR, July 2026)
Central Asia & Caucasus

The markets

KZ

Kazakhstan

Kazakhstani tenge (KZT), floating since August 2015, with inflation targeting · Almaty · Astana (AIFC)

Central bank
National Bank of Kazakhstan (NBK): monetary policy, payments and the national digital financial infrastructure, run by its NPCK
Supervisors
Agency for Regulation and Development of the Financial Market (ARDFM) for banks, insurers, securities and microfinance; AFSA in the AIFC
Payment rails
NBK Instant Payment System (24/7, upgraded 2022) for phone-number transfers, interbank QR and a card system (2024), run by NPCK
Open finance
Open API platform of the NBK and ARDFM: pilot from November 2023, launched in 2024
Deposit protection
Kazakhstan Deposit Insurance Fund: up to KZT 20 million for tenge savings, KZT 10 million for other tenge deposits, KZT 5 million in foreign currency
Digital banks
No separate digital licence; Kaspi.kz runs a bank, payments and a marketplace in one super app
Islamic finance
Under 0.5% of bank assets (January 2026); Zaman Bank and ADCB Islamic Bank (formerly Al Hilal); Islamic windows since March 2026
UZ

Uzbekistan

Uzbek som (UZS), market-based since the 2017 currency liberalisation · Tashkent · Samarkand

Central bank
Central Bank of the Republic of Uzbekistan (CBU): monetary policy (14% policy rate from September 2026) and supervision of banks, microfinance and payments
Supervisors
CBU for banks, credit organisations and payments; National Agency of Perspective Projects (NAPP) for capital markets and crypto-assets
Payment rails
Uzcard and Humo national card systems, the CBU interbank payment system and apps such as Payme and Click
Open finance
No open banking rules yet; a National Fintech Strategy for 2026–2030 was approved in September 2026
Deposit protection
Deposit Guarantee Agency: deposits fully guaranteed; a 2024 reform plan caps new deposits at UZS 200 million per bank
Digital banks
No separate digital licence; app-first banks such as TBC Bank Uzbekistan and Anorbank
Islamic finance
Law O'RQ-1126 in force since 29 June 2026: Islamic banks and licensed windows, with an Islamic Finance Council at the CBU
AZ

Azerbaijan

Azerbaijani manat (AZN), held at about 1.70 per US dollar since 2017 · Baku

Central bank
Central Bank of the Republic of Azerbaijan (CBAR): monetary policy, payment systems and integrated financial supervision
Supervisors
CBAR for banks, credit organisations, insurers, securities and payment providers; Financial Monitoring Service for AML
Payment rails
CBAR Instant Payment System (24/7, within 10 seconds) with the AniPay app and AZQR codes; AZIPS for large payments
Open finance
CBAR open banking roadmap, with account-information and payment-initiation services
Deposit protection
Azerbaijan Deposit Insurance Fund: up to AZN 100,000 per depositor (since April 2021), within interest-rate caps
Digital banks
No separate digital licence; mobile-first brands such as Kapital Bank's Birbank, and Leobank
Islamic finance
No Islamic banking law or fully Islamic bank, though most people are Muslim
GE

Georgia

Georgian lari (GEL), floating, with inflation targeting · Tbilisi · Batumi

Central bank
National Bank of Georgia (NBG): monetary policy, payments and integrated supervision of banks, microfinance, payment providers and securities
Supervisors
NBG; Insurance State Supervision Service for insurers; Financial Monitoring Service for AML
Payment rails
Cards and bank apps; a national instant payment system built with the World Bank was due in the second half of 2026
Open finance
PSD2-style: NBG rules make account-information and payment-initiation APIs mandatory
Deposit protection
Deposit Insurance Agency, an IADI member, insures bank deposits up to a set limit
Digital banks
Phased NBG digital-bank licences: Pave Bank Georgia got a restricted licence in December 2023
Islamic finance
No Islamic banking framework or Islamic bank
KG

Kyrgyzstan

Kyrgyz som (KGS), managed float; policy rate 12% (October 2026) · Bishkek · Osh

Central bank
National Bank of the Kyrgyz Republic (NBKR): monetary policy and supervision of banks, microfinance, credit unions and payment firms
Supervisors
NBKR; State Service for Regulation and Supervision of the Financial Market for securities and insurance
Payment rails
Elcard national cards, NBKR real-time gross settlement and bank apps such as Mbank and O!Bank
Open finance
No open banking rules identified yet
Deposit protection
Deposit Protection Agency: compensation of up to KGS 1 million per depositor
Digital banks
No separate digital licence; 26 commercial banks (July 2026), several led by their apps
Islamic finance
EcoIslamicBank is fully Islamic; Mbank, Optima Bank, Eldik Bank, Bakai Bank and ABank run Islamic windows

How banking is organised in Central Asia and the Caucasus

Kazakhstan splits the roles: the National Bank runs monetary policy and payments, the ARDFM supervises financial firms, and AFSA regulates the Astana International Financial Centre, which has its own court based on English common law. Elsewhere one central bank does most of the work.

  • Kazakhstan: Halyk Bank is the largest bank; the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARDFM), set up in 2020, supervises banks, insurers, securities and microfinance.
  • Kazakhstan's new banking law (in force March 2026) creates basic licences for smaller banks (capital from KZT 10 billion, assets up to KZT 500 billion) and universal licences.
  • Uzbekistan: large state-owned banks still lead, but reform since 2017 has opened the market, including the sale of Ipoteka Bank to Hungary's OTP Group.
  • Azerbaijan and Georgia: the CBAR and the NBG are integrated supervisors, including securities; in Georgia two private groups, TBC Bank and Bank of Georgia, lead the market.

Payments and open finance

Kazakhstan has the region's deepest digital payments: central-bank instant payments, interbank QR and an Open API platform, beside Kaspi's super app. Azerbaijan's central bank runs an instant system too, Georgia planned one for late 2026, and Uzbekistan and Kyrgyzstan rely on card systems and apps.

  • Kazakhstan's national digital financial infrastructure handles over 350,000 transactions a day and 2.5 million digital identifications a month (NBK, 2025).
  • Kaspi.kz processed KZT 44.2 trillion of payments in 2025, and its active customers make about 77 transactions a month (Kaspi.kz, 2026).
  • Azerbaijan: the CBAR instant system lets people pay by mobile number, email, personal ID (FIN) or tax number, up to AZN 40,000 a payment.
  • Georgia: the NBG's instant system is designed to support open banking and to be compatible with Europe's SEPA schemes.
  • Open banking: mandatory APIs in Georgia; Kazakhstan's Open API platform since 2024; a CBAR roadmap in Azerbaijan.

Fintech, digital banks and digital assets

Fintech here starts with super apps: Kaspi.kz in Kazakhstan, and Payme and Click in Uzbekistan. Most markets license digital players as ordinary banks or payment firms; Georgia has a digital-bank licence. Kazakhstan and the AIFC are writing rules for digital assets.

  • Kazakhstan: Kaspi.kz combines payments, a marketplace and fintech in one app; it took control of Türkiye's Hepsiburada in 2025 and renamed the Turkish bank it bought Hepsi Bank in 2026.
  • Kazakhstan's 2026 banking law lets banks open digital tenge accounts and, under licence, issue digital financial assets, including stablecoins; a national crypto reserve is planned.
  • AIFC: AFSA runs a FinTech Lab and in September 2026 agreed mutual market access with the National Bank of Georgia.
  • Georgia: Pave Bank Georgia received a restricted digital licence in December 2023 and widens its activity as it meets each condition.
  • Uzbekistan: the CBU approved a National Fintech Strategy for 2026–2030 in September 2026 and is discussing a wholesale CBDC.

Rules a bank must map here

Banks here apply Basel-based capital rules, AML/CFT laws assessed by the Eurasian Group (Central Asia) or MONEYVAL (Azerbaijan, Georgia, Armenia), personal-data laws and consumer-protection rules. None of these markets was on the FATF's increased-monitoring list in June 2026.

  • Kazakhstan: the Law on Banks and Banking Activities (2026) replaces the 1995 law in stages: resolution rules from July 2026, a financial ombudsman and the Data Showcase from January 2027.
  • Kazakhstan also: biometric checks for online loans, no fees for early repayment, the AML law with the Financial Monitoring Agency, the Personal Data Law (2013) and AFSA rules inside the AIFC.
  • Uzbekistan: CBU regulations, the Islamic banking law O'RQ-1126 (2026), the Personal Data Law (2019) and AML reporting to the FIU at the Prosecutor General's Office.
  • Azerbaijan and Georgia: integrated CBAR and NBG rulebooks; Georgia's Personal Data Protection Law (in force March 2024) has been supervised by the State Audit Office since March 2026.
  • Kyrgyzstan: NBKR regulations, with Islamic finance guidance citing AAOIFI and IFSB standards, the personal data law (2008) and the State Financial Intelligence Service.

What operations teams wrestle with

Digital volumes grow fast while cash still matters outside the big cities. Fraud on instant transfers, biometric onboarding, sanctions screening and remittances shape the daily work.

  • Scams on phone-number and QR transfers: Kazakhstan added an Anti-Fraud Center to its payment infrastructure in 2024, and banks add limits and checks for new payees.
  • Biometric onboarding: Kazakhstan now requires biometric checks for a new account or a first loan, so branch and app processes must change together.
  • Sanctions and correspondent banking: trade and payments linked to Russia need careful screening to keep correspondent relationships safe.
  • Remittances from workers abroad are a major inflow for Uzbekistan, Kyrgyzstan and Tajikistan, so cross-border processing and screening are core work.
  • Cross-border groups: Kaspi in Türkiye and TBC in Uzbekistan run operations across borders, so shared services must respect each host's outsourcing and data rules.

How SMEs get financed

Banks lead, supported by state development institutions and guarantee funds. Kazakhstan and Azerbaijan use public guarantee funds, and Kyrgyzstan has a strong microfinance tradition.

  • Kazakhstan: business lending grew by nearly 30% (NBK, August 2026); the Damu Entrepreneurship Development Fund offers loan guarantees and interest subsidies.
  • Kazakhstan's basic bank licence (from 2026) targets micro and small businesses, with lighter liquidity rules and limits on cross-border activity.
  • Uzbekistan: state-owned banks lend to SMEs beside CBU-licensed microfinance, and the 2026 Islamic law opens asset-based options.
  • Azerbaijan's Mortgage and Credit Guarantee Fund backs loans to entrepreneurs; Georgia runs a World Bank-funded MSME recovery project (2021).
  • Kyrgyzstan: banks that grew from microfinance, such as Bai-Tushum Bank, Kompanion Bank and FINCA Bank, serve farmers and small traders.
Islamic finance: an eye opener

Islamic finance: new laws, open room

Most people in Central Asia and Azerbaijan are Muslim, yet Islamic finance is still very small. That is changing: Kazakhstan has allowed Islamic windows in conventional banks since March 2026, Uzbekistan's Islamic banking law took effect in June 2026, and Kyrgyzstan already has an Islamic bank and five windows.

  • Kazakhstan: rules since 2009 and an AIFC framework, yet under 0.5% of bank assets (January 2026); Halyk Bank put an Islamic licence plan to shareholders in September 2026.
  • Uzbekistan: law O'RQ-1126 allows Islamic banks and licensed windows; the CBU's Islamic Finance Council has five members, who must all hold AAOIFI certification from July 2027.
  • Uzbekistan is drafting an Islamic finance roadmap for 2026–2030 with IFSB support.
  • Kyrgyzstan: EcoIslamicBank plus Islamic windows at Mbank, Optima Bank, Eldik Bank, Bakai Bank and ABank (NBKR, July 2026).

What it offers everyone

Customers

Millions who avoid interest gain a formal route to finance a home, a car, livestock or shop stock. The total due is fixed at signing and tied to a real asset, and late charges go to charity.

Banks and financiers

Islamic windows let a bank serve new segments without creating a new legal entity, and asset-backed, trade-linked financing keeps lending close to farms, traders and small factories.

Savers and investors

Profit-sharing accounts and sukuk link returns to real activity and give savers who avoid interest a formal home for their money.

The economy

Credit follows real trade and assets and excessive speculation is excluded, which ties finance to production and widens inclusion.

A concrete opening: Kazakhstan and Uzbekistan now let conventional banks open Islamic windows, and the region's super apps already reach millions. Asset-based financing for small traders and farmers, offered inside those apps, could serve customers who avoid interest.

Working with banking teams here

Working with banking teams in Central Asia and the Caucasus

Hospitality is generous: expect tea, a full table and genuine interest in who you are before the detail. Respect for seniority and elders matters, and decisions usually rest with senior leaders. Russian is widely used in business beside the national languages. These are common norms; individuals differ.

Common norms; individuals differ.

  • Kazakhstan: Kazakh is the state language and Russian is widely used in banking; Almaty is the business hub, Astana the capital. Offer material in Russian or English.
  • Uzbekistan: hospitality is warm and personal; large state banks move through formal approvals, so map sponsors early and allow time.
  • Azerbaijan and Georgia: Azerbaijani and Georgian are the state languages; English is common in Tbilisi's banking teams, and Russian is still useful in both.
  • Kyrgyzstan: Kyrgyz and Russian are both official languages; trust and personal relationships count.
  • Working weeks run Monday to Friday across the region; Nauryz (Novruz) in March is a major holiday, so plan around it and around Eid.
Learning from each other

What the GCC can learn from Central Asia & Caucasus

  • From Kazakhstan: a super app joining payments, shopping and credit, and central-bank infrastructure with instant payments, QR, Open API and anti-fraud.
  • From Georgia: compact integrated supervision, PSD2-style open banking and a digital-bank licence that widens step by step.
  • From Uzbekistan and Azerbaijan: a national Islamic Finance Council set up with the new law, and an instant system that accepts the national ID or tax number as an alias.

What Central Asia & Caucasus can learn from the GCC

  • Islamic finance at scale: Shariah governance, AAOIFI standards, Islamic-window operations and deep sukuk markets.
  • SME credit guarantees and financing-readiness programmes that link small firms to banks with clearer files.
  • Deposit protection designed for Islamic deposits, as in Bahrain and Oman.
The other regions
GCCIslamic finance at scale, national instant rails and regulators that move fastMENAEgypt's scale, Jordan's shared rails and Morocco's bridge to AfricaEuropeWhere global banking rules are written: a banking union, a single rulebook and instant euro payments by lawUK & wider EuropeLondon's rulebook, Swiss and Norwegian rails, Türkiye's scale and Ukraine's resilienceNorth AmericaDeep markets, many banks and payment rails modernising across three economiesLatin America & CaribbeanBrazil's Pix, Colombia's Bre-B and open finance set by ruleSub-Saharan AfricaSouth Africa's instant rails, Kenya's mobile money, West Africa's shared central bankSouth AsiaIndia's public rails, Pakistan's Islamic shift and Bangladesh's mobile moneyEast & Southeast AsiaScale, speed and public rails: five markets setting the pace of digital bankingAustralia & NZTrans-Tasman banking: real-time rails, data rights and firm conduct rulesCompare the regionsAll eleven regions in one table

Further reading

Country register: central banks, supervisors, AML, data protection and deposit insurance, country by country →

Facts checked in October 2026. Banking rules change often, so check the official source before you rely on a detail. Bank and company names show the market; they do not imply any relationship with MTWAFIQ.