Abstract :This study gives brief characteristic of the banking system after the 2010 political events in Kyrgyzstan. Important parameters that contribute to sustainable development and the functioning of the banking system are identified. Moreover, mechanisms to address current and long-term chal-lenges are suggested. Basically, they are associated with the formation of the Common Economic Space by member countries of the Customs Union. The main motivation for functioning of the Cus-toms Union is development of member countries and further acceleration of integration process through the development of foreign trade activity. Taking into account this fact this paper suggests mechanisms for the improvement and development of legislative, regulatory, technological, indus-trial, innovative and documentation processes. Keywords : banking system, the regular total capital, total liabilities, shareholders\' bank re-sources, credit investments, income, interest income, interest rate, liquidity trap, deposits, deposit insurance, the risk of securities, consumer loans, leasing operations, banking in
