BAKU, Azerbaijan, Mar.19
By Nargiz Sadikhova - Trend:
The volume of assets of second-tier banks (STB) in Kazakhstan grew by 12 percent in 2020, as according to the consolidated balance sheet, a source in the country’s National Bank told Trend.
According to the source, deposits showed positive dynamics, and the loan portfolio rose by 6 percent. The volume of NPLs (loans overdue for more than 90 days) remained unchanged last year, despite the COVID-19 pandemic. If as of January 1, 2020, NPL amounted to 8.1 percent of all loans from the second-tier banks, then as of December 1, this figure decreased to 7.9 percent.
"At the same time, the pandemic has also become an incentive for the rapid development of online services of second-tier banks due to the increased demand of consumers of financial services," the source said.
According to the National Bank’s data, the main advantages of these banks lie in the development of modern technologies, the introduction of convenient services, and functional mobile applications.
Besides, in order to ensure the stability of the financial system, the government implemented the following measures:
- support for banks' capital, within which the required limit for the values of prudential standards for capital adequacy, risk weighing on loans to SMEs in foreign currency, as well as on guarantees and sureties issued in favor of SMEs to secure their obligations to third parties has been reduced;
- support of banks' liquidity, within the framework of which the requirements for the liquidity coverage ratio have been softened;
- support of banks for provisions in terms of non-recognition of restructuring in connection with the provision of state support as a basis for loan impairment when forming provisions in accordance with IFRS and regulatory provisions;
- other prudential measures in the form of reducing the currency position limit, the concentration of credit risk.