Abstract. The article presents the first in the Russian-language literature systemic research of the activities of foreign based banks in the countries of the Central Asia. A consideration of exogenous and endogenous risks in the banking sector has shown that internationalization of banking regulation and supervision substantially influences the financial status of foreign banks irrespective to their size, country of origin and experience of working at local markets. The revealed risks are systemized according to economic and legal dimensions. This allows to determine the limits of foreign banks’ efficient functioning in the region under consideration.