The size of provisions on unsecured credits, offered by head of AFS will negatively reflect on this type of activities of Kazakhstan banks - head of Alliance bank

/INTERFAX-KAZAKHSTAN, Almaty, April 23, 07/ - The offering by the head of state agency for financial supervision (AFS) of Kazakhstan Arman Dunayev, level of provisions on giving of unsecured credits at 50% will negatively reflect on this type of activities of Kazakhstan banks, considered the chairman of board of Alliance bank Dauren Kereybayev. "The size of provisions on consumer crediting offering by Mr. Dunayev in case of its acceptance will actually finish this type of activity of Kazakhstan banks", - he told in the interview to Interfax-Kazakhstan agency. In particular, by his opinion, the profitability of Kazakhstan banks will sudden decrease, which will negatively reflect on competitiveness of home banking system as a whole. Except this, he continued, "western companies, already working in Kazakhstan, having licenses on crediting the physical entities, and exactly - "Prosto credit", Home credit" will accept the primary right on development of consumer crediting on the local market". "The competitiveness will decrease, and our people will take consumer credits under more high percents, than now", - D.Kereybayev told. Meanwhile, limitation on access to money resources and growth of interest rates will decrease the purchasing activity of people and directly reflect on development of such non-charge sectors of economy, as sphere of services, trade, production of consumer goods, and middle and small business as a whole, he considers. Except this, by opinion of head of Alliance bank, the villagers will lost the ability to take the unsecured credits, "because the pledges they have - private habitation and private backyard - are absolutely not interesting for banks". "Thus - he resumed - in agriculture still will prevail the large economies, and for development of small should be devised some special state programs - to make a fuss, as it is said". "Consumer's, including, unsecured crediting is developed all over the world, and we in Kazakhstan are only walking by the blazed trail. For today the maximal size of provisions on the given type of crediting is observed in Russia and countries of South-Eastern Asia - 10-15%. And it is without the effective system of control over risks and those instruments of estimation the solvency of potential debtors, which the Kazakhstan banks have due to conducted institutional reforms in our country", - the chairman of board of Alliance bank had stressed. As it was informed, the head of AFS Arman Dunayev recently had announced about intention of state financial supervision to roughen the prudential regulation for banks on giving the unsecured credits. "My private view, is the in relation of unsecured credits actually the volume of reserving must be 50%", - he had noted. The full text of interview with D.Kereybayev is available on the web site of Interfax-Kazakhstan agency at - www.interfax.kz [2007-04-24]