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Asset quality review to be carried out in Kazakh banks

Kazakhstan Materials 28 March 2023 16:25 (UTC +04:00)
Asset quality review to be carried out in Kazakh banks
Emin Sevdimaliyev
Emin Sevdimaliyev
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BAKU, Azerbaijan, March 28. Kazakh banks will have to pass an asset quality review (AQR), which is planned to be carried out from March to August, Olzhas Kizatov, Deputy Chairman of the Financial Market Regulation Agency, said, Trend reports, citing Kazakh media.

Kizatov noted that the assets of 11 banks will be stress tested during this time. The results will be published sometime in November.

He also noted that the results obtained during the AQR will be used as one of the indicators to form supervision measures for each bank being reviewed. The other two indicators are the results of the Supervisory Review and Evaluation Process and the supervisory stress test.

The measure is aimed at ensuring the high level of robustness of the banking sector of Kazakhstan, in addition to guaranteeing economic growth.

Kizatov also noted that it is planned to adopt legislative amendments on the mandatory sale of distressed assets by banks and microfinance organizations on a digital platform by the end of the year, to safeguard the banks from accumulating bad assets.

These are parts of the overall strategy to ensure that the banking system of Kazakhstan remains resilient to stress. Earlier, it was reported that banks would not be allowed to issue loans to citizens and residents, who already have other unfulfilled financial obligations.

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