AFS characterized the banking sector of Kazakhstan as of April 1, 2009

/IRBIS, Dinara Mukasheva, April 22, 09/ - Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS) in its regulating press-release, dedicated to state of financial market and financial organizations of the republic, had characterized the banking sector of Kazakhstan as of April 1, 2009. As of April 1, 2009, according to AFS, the banking sector of the republic was represented by 37 second tier banks. Changing of main characteristics of condition of Kazakhstan banking sector (in bn. KZT) ------------------------------------------------------------------------ Changing (in %) relative to values ---------------------------- As of since Indicator April 1, 09 for a month 2009 for a year ------------------------------- ----------- ----------- ----- ---------- Joint assets 14,100.9 +5.4 +18.5 +20.2 Joint rated shareholders equity 1,912.4 -1.2 -2.1 +4.7 Loan portfolio 10,254.6 +0.1 +11.0 +15.7 Loans for RK nonresidents 1,906.5 +1.0 +24.0 - Doubtful of 5th category and hopeless 1,274.4 +3.2 +71.2 - Overdue debt more than 90 days 783.9 +19.4 +64.0 - provision volume on loans 1,560.8 +4.1 +52.9 - Total sum of deposits incl.: 8,089.8 -0.6 +17.7 +23.1 Legal entities 3,778.3 -0.5 -29.7 -25.5 subsidiaries 2,696.7 -0.8 -2.5 - individuals 1,614.8 -0.6 +7.6 +7.7 The joint liabilities 12,713.9 +6.0 +21.8 - Before nonresidents 5,239.1 -4.3 +11.8 - The joint sum of revenues 1,843.6 +41.3 -37.2 2.8 times The sum of charges 2,138.6 +1.4 -26.2 3.4 times Undistributed net income* -296.6 +11.8 -* -* ------------------------------------------------------------------------ *As on January 1, 09 - KZT15.4 bn., as on April 1, 09 - KZT27.6 bn. In the structure of loan portfolio of banks as on April 1, 2009, the stake of standard loans made 35.5 %, doubtful loans - 57.9 %, hopeless - 6.6 %. (As of April 1, 2008 the stake of standard loans made 42.9%, doubtful loans - 55.0%, hopeless - 2.1%). Along with this, pawns in economic branch in the following fields made: construction - by 27.7 %, trade - by 27.2 %, non productive sphere - by 20.5 %, industry - by 14.7 %, agriculture - by 3.8 %, transport - by 2.8 %, individual enterprise - by 2.6 %, post and connection - by 0.7 %. Indicators of adequacy of capital as of April 1 of the current year made k1 - 0.10; k2 - 0.13 (as of April 1, 08: k1 - 0.12; k2 -0.15). The stake of liquid assets to joint bank's assets as on April 1, 2009 makes 17.7 %. For violations of banking legislation in March 2009, banks were rendered 3 written notifications, 4 letter-obligations and 4 written directions. There are 5 banks in the process of forced liquidation by the decision of Court (Valut- Transit Bank JSC, Nauryz Bank Kazakhstan JSC, Businessbank OJSC, Kazpochtabank OJSC, Komirbank OJSC). In March 2009 AFS Board adopted the list of regulations on regulating activity of commercial banks and banking conglomerates: - On establishing the Rules of selection Islamic bank and transferring the property, acquired at the expense of cash, borrowed according to investment deposit agreement and liabilities on investment deposits of liquidated Islamic bank; - On including changes and additions into the Resolution # 121 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated April 30, 2007 "On establishing the Rules of issuing license for bank opening, banking transactions, activity at securities market"; - On including changes and additions into the Resolution # 359 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated September 30, 2005 "On establishing the Instruction on requirements to risk management system and internal supervision in second tier bans as well as including changes into the Resolution # 116 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated March 26, 2005 "On including changes into separate legal acts of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations issues"; - On including additions into the Resolution # 145 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated October 2, 2008 "On establishing the list of off-shore zones for banking and insurance activity, activity of parties of security markets and other licensed types of activity, activity of accumulative pension funds and joint stock investment funds"; - On establishing the Instruction on prudential standards for Islamic banks, their normative values and method of calculation; - On statements regarding fulfillment of prudential standards by Islamic banks, its way and date of presentation; - On establishing the Rules of simultaneous transferring of assets and liabilities in full or in part on deposits of legal entities and individuals to other bank (banks); - On admitting the lapse of the Resolution # 28 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated February 26, 2008 "On issuing agreement for acquiring the status of joint major participants of Zaman Bank JSC to Vershina LLP, Gamma LLP, B. Abguzhinov, T. Abguzhinov and A. Abguzhinov and issuing agreement for acquiring the status of joint major participants of Zaman Bank JSC to B. Abguzhinov, T. Abguzhinov and A. Abguzhinov". [2009-04-22]