Baku, Azerbaijan, Apr. 19
By Fakhri Vakilov – Trend:
The volume of retail deposits in Kazakhstan has been falling since the beginning of the year; by spring, their volume amounted to only 8.54 trillion tenge against 8.63 trillion tenge a month earlier and 8.77 trillion tenge - at the beginning of the current year, Trend reports with reference to ranking.kz.
However, population provides banks with the necessary liquidity. Despite the recession, deposits of individuals make up 50.4 percent of all deposits of second-tier banks of Kazakhstan, against 49.3 percent a year earlier and only 26.3 percent in the same period of 2010.
Since October of last year, the National Bank of Kazakhstan has introduced a new system for attracting deposits of individuals in the national currency. Retail deposits are now classified as term, non-term and savings.
A subsidiary of the regulator, the Kazakhstan Deposit Insurance Fund, has set marginal rates for each type of deposit. Today, the marginal rate for deposits with free withdrawals is only 10.5 percent per annum, for term deposits with the possibility of replenishment - 11 percent, for the most “strict” and highly profitable savings deposits - 12 percent.
In addition, there is a profitable housing construction savings system in the country that allows converting savings into real estate. In fact, in this case, the deposit becomes a guaranteed investment in housing.
Moreover, the effective rates on the housing construction savings system exceed the standard rates on rechargeable deposits and are up to 13 percent per annum.
Only 11 banks out of 28 Second-tier banks of Kazakhstan offer saving deposits without the possibility of partial withdrawal, but with the right of replenishment, the rates for which do not exceed 12 percent per annum.
The only bank in the country that implements the housing construction savings system as an alternative model for accumulation is Zhilstroysberbank.
The system of housing savings is aimed at improving the living conditions of the population through attracting depositors' money to housing construction deposits and the subsequent provision of low-interest housing loans to depositors (from 3.5 percent to 5 percent per annum, for preferential categories of citizens - from 2 percent).
The effective interest rate on deposits at the Zhilstroysberbank reaches 13 percent per annum, due to the annual state premium up to 20 percent of the deposit.
The contribution to Zhilstroysberbank is also insured by the Kazakhstan Deposit Insurance Fund, like other banks in Kazakhstan that are part of the deposit guarantee system.
The term of the deposit in Zhilstroysberbank is up to 180 months, the amount of the minimum deposit required to open a deposit is 0 tenge.
The rest of the second tier banks of Kazakhstan have a maximum term in the segment of up to 36 months, the minimum deposit amount is from 1,000 tenge.
The development of the banking sector indicates that regular retail deposits are becoming less and less interesting to the public.
Out of the dozen of the largest second-tier banks, the volume of retail deposits over the month was increased by only 4 banks, and the most noticeable is the housing programs and housing savings system operator, Zhilstroysberbank.
The monthly growth of the absolute leader’s deposit base immediately amounted to 34.4 billion tenge (+5.4 percent), to 674.2 billion tenge in February. Over the year, the volume of retail deposits of the bank increased by 125.5 billion tenge, or 22.9 percent.
Furthermore, among the top ten of leaders are Kaspi Bank (+26.1 billion tenge per month), Bank RBK (+8 billion tenge) and ForteBank (+5.6 billion tenge).
Only 13 banks are in plus out of all 28 second-tier banks of Kazakhstan.
In general, for the month, retail deposits in the top 10 banks decreased by 0.8 percent, in other second-tier banks - by 4.9 percent.
Over the year, the total portfolio of the population deposits in second-tier banks increased by only 5.1 percent.
($1- 8469.19 soums on Apr. 19)
---
Follow author on Twitter:@vakilovfaxri