After a tough 2015, banks in the Commonwealth of Independent States (CIS) saw a modest recovery in 2016, with overall assets and Tier 1 capital rising in dollar terms. The rise in oil prices in the second half of the year contributed to the sector upturn, given that several of the larger economies in the region are heavily dependent on hydrocarbon earnings.
Another factor was the somewhat more stable exchange rate environment, with most regional currencies posting smaller declines against the US dollar than in the previous year, while the Kazakhstani tengi and Kyrgyz som rose. However, the sector’s asset and Tier 1 capital growth was not strong enough to reverse the sharp declines of 2015.
