Kazakhstan Central Bank Says Bad Loans Remain Systemic Risk
08 February 2010 - 9:05PM
Dow Jones News
Bad loans remain the main systemic risk for Kazakh banks as
liquidity and currency risks gradually decline, Kazakhstan's
central bank said Monday, citing its survey of the country's
commercial banks.
"A big share of bad loans remains the main systemic risk of
banks, though their (bad loans) quantity has stabilized, according
to banks' estimates," the central bank said in a summary of its
survey.
Liquidity and currency risks for banks are gradually declining,
the central bank said its survey showed. Of the survey's
participants, 17% said liquidity risk was rising, down from 20% in
the third quarter last year, while "only 8%" said currency risk was
increasing, down from 17%, the bank said.
Banks say a pickup in lending will depend on Kazakhstan's
macroeconomic situation, loan portfolio quality and action by
financial regulators.
"The toughening of regulatory norms may contribute to the
containment of credits to the economy," the central bank said.
Kazakhstan's banking sector was hit hard by the global economic
crisis. Two major Kazakh banks defaulted on their foreign
obligations last year after they had been taken over by the state
in an effort to stabilize the country's wobbling banking
sector.
Central bank Web site: www.nationalbank.kz
-By Kadyr Toktogulov, Dow Jones Newswires; +7 701 726 4327,
kadyr.toktogulov@dowjones.com