BAKU, Azerbaijan, September 9. Lending by Turkmenistan’s credit institutions continued to expand in 2026, with loans accounting for more than 81% of the banking system’s total assets by August 1.
The shift reflects a broader reallocation of bank resources toward credit rather than an expansion of the banking system itself. According to consolidated data published by the Central Bank of Turkmenistan, loans provided by credit institutions to other credit institutions, enterprises, organizations and individuals amounted to 136.2 billion Turkmen manats ($38.9 billion) as of August 1, 2026. Trend's calculations based on the data show the figure increased by 2.2% compared with 133.4 billion Turkmen manats ($38.1 billion) at the beginning of 2026, and by 7% compared with 127.4 billion Turkmen manats ($36.4 billion) a year earlier.
Over the same period, total assets of the country's credit institutions stood at 167.4 billion Turkmen manats ($47.8 billion), essentially flat since January 1 but 5.1% higher than a year earlier. As a result, the share of lending in consolidated assets rose to 81.4% by August 1, compared with 79.4% at the beginning of the year and 80% a year earlier.
Trend's analysis indicates that this rising share reflects a continued shift toward credit allocation as the main use of bank resources, rather than a broad expansion of the banking system's balance sheet. Total assets declined slightly from the beginning of 2026, while outstanding loans increased, pushing their share of assets higher - meaning lending is absorbing a growing proportion of available banking resources rather than being fueled by fresh balance-sheet growth.
The remaining components of the asset structure moved modestly: correspondent and reserve accounts with the Central Bank stood at 16.1 billion Turkmen manats ($4.6 billion), down from 19.4 billion Turkmen manats ($5.6 billion) at the start of the year; cash and cash equivalents were roughly stable at 741.5 million Turkmen manats ($211.9 million); fixed assets and investments totaled 1.6 billion manats ($464.9 million); and other assets stood at 11.7 billion Turkmen manats ($3.3 billion) - all broadly consistent with prior periods.
The development is consistent with Turkmenistan's broader policy of using the banking system to support economic activity and priority sectors. The World Bank has earlier noted that state-directed lending remains a major feature of the country's financial sector, particularly for import substitution, export promotion and other priority areas. At the same time, the IMF has argued that directed lending has weakened monetary-policy transmission and distorted credit allocation, calling for a gradual move toward more market-based lending.
The composition of lending will therefore be more important than its headline growth rate. Recent data indicate that credit to the private sector has also been expanding: outstanding loans to private businesses reached 20.2 billion Turkmen manats ($5.8 billion) by February 2026, up 36.4% year-on-year - still a modest fraction of the 136.2 billion Turkmen manats ($38.9 billion) in total lending, but one of the faster-growing segments of the credit book. This suggests that at least part of the increase in lending is reaching private economic activity rather than being driven solely by state institutions.
Overall, the latest figures point to a banking system that is becoming increasingly credit-oriented. If the growing loan share is accompanied by a sustained increase in financing for private companies, productive investment and non-hydrocarbon sectors, it could support Turkmenistan's economic diversification. The longer-term significance of the trend will therefore depend less on the 81% figure itself than on where the expanding volume of credit is ultimately directed.
