Kazakhstan’s Banking Sector Beefs Up Its Assets

As of July 1, 2021, the total assets of the banking sector were about $82 billion or $1.8 billion (2.3%) more than in June, according to the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market.

The growth of the assets was based on the rising of stocks portfolio by 6% (or $1 billion) and bank balance of cash, precious metals, and corresponding accounts by 6.8% ($610 million). 

«Commercial banks have accumulated a quite big amount of high liquidity assets about 35.9% of all assets. By attracting money on deposits, banks are able to increase available assets and to fully meet their obligations,» the regulator said in a statement.

As the agency noted, in June the total banking assets grew by 2,2% or $1.5 billion and reached $72 billion in total thanks to a surge in client deposits (by 2.9% or $1.5 billion). As of July 1, Kazakhstan’s banking sector already had a sufficient capital cushion.

«In the first half of 2021 banks gained a net profit of $1.5 billion, which is higher than during the same period last year by 76.6% or $879 million,» the regulator’s press service reported.  

Currently, there are 23 commercial banks in Kazakhstan including 11 foreign-owned banks and three banks where foreign companies own a share. 

In the fourth quarter of this year, the agency is going to conduct stress testing of certain banks. The agency will weigh credit and other risks as well as estimate their impact on banks’ capital sufficiency.