/Kazakhstan today, September 17, 03/ - Kazakhstan banks' entering markets of neighboring countries is the most perspective way for development of the banking sector of the RK. Oleg Kononeko, the Chairman of the Board of Temirbank, drew such a conclusion during the 4th conference of CIS and Baltic banks that started on September 17, in Almaty.

According to Kononenko, due to existing demographic situation in the country with little population and low level of its growth, the market of banks' clients is pretty narrow.

"In fact, banks are concerned with a question whether to merge or acquire, because competitive environment here does not allow banks to develop further. Clients are very few in number and already have been divided by them" - the head of a commercial bank said. At the same time, he added, the mergers and acquisitions do not take place because of political and organizational issues. In particular, the example of expected merger of Narodnyi Bank and Kazakommertsbank that didn't happen was cited.

Due to this fact, O. Kononenko says, the most attractive market for Kazakhstani financial institutions is a Russian one, where such major kazakh banks as TuranAlem and Kazakommerts, Temir and Norodnyi are already present. In his opinion, firstly, the major interest of kazakhstani banks in Russian market is the developed securities market due to observed trend of falling interest rates on loans and mark-up shrinkage. The Kyrzystan market is also of interest to Kazakhstan banks. In future, it is likely that banks of the RK will enter the Ukranian market as well.

"Everyone express their interest in big market of Uzbekistan, but political aspect, which is present between our countries, yet does not allow to consider it as a natural market for the development", - a kazakhstani banker said

[2003-09-17]