Baku, Azerbaijan, Dec. 27
By Nigar Guliyeva – Trend:
Within the framework of the Program for Enhancing the Financial Sustainability of the Banking Sector of Kazakhstan, a state support worth over 500 billion tenge was rendered to five major banks, 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.
He said that the National Bank continues implementation of the Program, which is aimed at ensuring the capitalization of large banks to reduce the level of non-performing loans and create conditions for further growth in lending to the economy. The program is also aimed at strengthening the supervisory mandate of the National Bank through the use of preventive measures to prevent the growth of systemic risks in the banking sector.
"Within the program, measures were taken to revitalize Kazkommertzbank. At the time of the decision making, the situation in the bank was very bad, especially after its merger with BTA Bank. Thanks to government support, deposits of the public, state and private companies were saved. The current situation in Kazkommertsbank is stable, which was also recognized by international rating agencies that revised Kazkommertsbank's credit rating upward," said Akishev.
"Based on the program results, the total capital of the banking sector is expected to increase by the amount of state support, which will strengthen their financial stability and stability before possible new unfavorable external factors. Measures to support the banking sector will lead to a reduction in the non-performing assets of the banking sector in the amount of over 1 trillion tenge, which will have a multiplier effect on the development of the country's economy as a whole by providing capitalization, write-off and other measures to improve the quality of the assets," he said.
He believes that the growth of equity capital and reduction of the number of non-performing loans will lead to revision and optimization of existing strategies and business models of banks, which is expected to increase the activity of banks in lending, expanding and developing new and efficient types of banking services.
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 percent in the first half of 2017.