...

Kazakhstan shares annual summary of banking sector

Kazakhstan Materials 1 February 2023 17:45 (UTC +04:00)
Kazakhstan shares annual summary of banking sector
Emin Sevdimaliyev
Emin Sevdimaliyev
Read more

BAKU, Azerbaijan, February 1. Kazakh banks’ total assets increased by 18.4 percent in 2022 and amounted to 44.6 trillion Kazakh tenge (around $97 billion), Trend reports, citing the press service of the Agency of Kazakhstan for Regulation and Development of the Financial Market.

The volume of total assets grew by 3.5 in December 2022.

The annual growth of total assets materialized mostly due to the growth of the loan portfolio by 20.1 percent achieved in 2022.

Highly liquid assets of Kazakh banks reached 13.5 trillion Kazakh tenge ($29.31 billion), an equivalent of 30.3 percent of the total assets, which enables financial institutions to service their obligations fully.

Meanwhile, the liabilities of the country's banking sector increased by 18.9 percent and reached 39.3 trillion Kazakh tenge ($85.34 billion) due to the growth of deposits of the population by 26.0 percent.

New loans worth 24.2 trillion Kazakh tenge ($52.55 billion) were issued by the banks in 2022. This constitutes an increase of 12.8 percent compared to 2021 and loans to individuals increased by 31.8 percent to 14.2 trillion Kazakh tenge ($30.83 billion).

The annual interest rate for Kazakh tenge-denominated loans issued to legal entities equaled 19.2 percent in December. Meanwhile, the interest rate for individual loans reached 17.4 percent.

The agency explains the rise of the interest rate by increasing inflation and the rise of the interest rate of the National Bank.

Earlier today, it was revealed that the inflation in Kazakhstan reached 20.7 percent. The interest rate is currently set at 16.75 percent. The National Bank of Kazakhstan will reveal its decision on the base rate change on 24 February.

The agency for Regulation and Development of the Financial Market determines the approaches and methods of regulating the financial market within the framework of the main directions of state policy in the development of the financial system of Kazakhstan. The Agency also provides assistance to the development of the financial market of Kazakhstan, and financial products, and combats abuse in the financial market.

Tags:
Latest

Latest