National Bank of Kazakhstan backs consolidation of banking sector
Baku, Azerbaijan, Dec. 26
By Nigar Guliyeva – Trend:
The National Bank of Kazakhstan supports initiatives to consolidate the banking sector, which will help to increase the capitalization of banks and improve the existing business processes for better customer services, Chairman of the National Bank of Kazakhstan Daniyar Akishev said during a briefing dedicated to the presentation of the bill "On Currency Regulation and Currency Control" in Astana on Dec.26.
"The National Bank is ready to provide the necessary support to the banks for the speedy completion of integration processes aimed at increasing the efficiency of the banking business," Akishev noted.
Speaking about the merger of Halyk Bank of Kazakhstan and Kazkommertsbank, Akishev said that within the framework of support to Kazkommerbank, the problem loan of the BTA Bank was cleared.
"After capitalization of Kazkommerbank by the Halyk Bank of Kazakhstan" and JSC "Holding Group ALMEX ", the bank no longer experiences pressure on capital and liquidity, and is able to fulfill its obligations to clients independently, as well as support growth of credit activity in the economy," Akishev said.
He noted that as a result of consolidation of Halyk Bank of Kazakhstan and Kazkommertsbank, the share of Halyk Bank of Kazakhstan in the total assets of the banking sector will grow from 19.6 percent to 33.6 percent, the share in the loan portfolio - from 17.9 percent to 28.5 percent and in customer deposits - from 20.0 percent to 35.4 percent.
The head of the National Bank in conclusion added that in general, the merge of banks will have a positive synergy, since the bank that is formed can use a wide range of advantages that arise from the merge of banks' resources.
Currently, there are 33 second-tier banks officially functioning in Kazakhstan.
The total assets of second-tier banks of Kazakhstan amounted to 24,088.8 billion tenge as of September 1, 2017, having decreased by 5.7 percent since the beginning of the year.
The total liabilities of the banking sector at the reporting date amounted to 21,252.3 billion tenge, having decreased by 6.4 percent compared with the beginning of this year. The liabilities of the banks to non-residents of Kazakhstan decreased from 7.4 perсent to 5.9 percent, in comparison with early 2017.
The total equity capital of the Kazakh banking sector as of September 1 amounted to 2,836.4 billion tenge, having decreased by 0.1 per cent in the first half of 2017.