Abstract
<jats:p>The article is devoted to the study of the impact of political risks on the stability and stability of the banking sector of the Kyrgyz Republic in a transformative economy characterized by the increased sensitivity of the financial system to internal and external shocks. The relevance of this work is explained by the key role of the banking sector of Kyrgyzstan in ensuring macroeconomic stability, financing the real sector of the economy and maintaining public confidence in financial institutions, taking into account its vulnerability to changes in the political situation. The study reveals the essence and classification of political risks, as well as the main channels of their influence on the banking system. Aspects such as political instability, changes in public policy and legislation, the impact of electoral processes, administrative pressure and the impact of geopolitical factors are considered. Particular attention is paid to the analysis of the specifics of political risks in Kyrgyzstan associated with periodic changes of power, reform of the institutional environment and a high level of uncertainty of regulatory decisions. The paper analyzes the impact of political risks on key indicators of the stability of the banking sector, including the level of capitalization and liquidity of banks, the quality of the loan portfolio, the dynamics of investment activity, deposits of the population and business, as well as the level of trust in financial institutions. The study notes the relationship between political risks, the growth of systemic and credit risks, increased capital outflow and the reduction of foreign investment inflows. The methodological basis of the work includes the analysis of statistical data of the National Bank of the Kyrgyz Republic, regulatory documents, materials of international financial organizations. Methods of comparative, structural-logical and factor analysis are used. Key political threats with the most significant impact on the banking system and their long-term consequences for the country's financial stability have been identified.</jats:p>