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Loan portfolio of second-tier banks in Kazakhstan grows - NBK

Finance Materials 5 September 2022 17:33 (UTC +04:00)
Loan portfolio of second-tier banks in Kazakhstan grows - NBK
Nargiz Sadikhova
Nargiz Sadikhova
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BAKU, Azerbaijan, September 5. Kazakhstan’s economy continues to be supported by positive lending rates from banks, the Chairman of the National Bank of Kazakhstan Galymzhan Pirmatov said at a briefing, Trend reports via the National Bank.

“From January through July this year, the loan portfolio of second-tier banks (STBs) grew by 10.1 percent, to 20.4 trillion tenge ($43 billion), including enterprises - up to eight trillion tenge ($17 billion),” Pirmatov noted.

“In general, we are seeing a positive trend in lending growth after the reforms in the banking system, improving its stability, which contributed to a growth in the capitalization of banks and a gradual reduction in the share of non-performing loans in the portfolio of second-tier banks from 9.3 percent in 2017 to 3.8 percent in July 2022,” he also said.

At the same time, according to the bank’s head, given the current conditions of increasing uncertainty and adjusting the economy to new external conditions, long-term projects are reviewed, which also affects lending.

“The expectations of borrowers, both in terms of the prospects for the development of the overall macroeconomic situation, and their own debt service capabilities play an important role in the demand for credit products, at the moment and in the future,” Pirmatov explained.

He added that the National Bank in its work pays great attention to creating conditions for long-term and sustainable economic growth, including the availability of sources of financing for the economy.

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