National Bank of Kazakhstan has characterized the Republic's banking sector as of December 1 of 2002

/IRBIS, January 17, 03/ - National Bank of Kazakhstan, in its press-release, which was devoted to the current market situation, has briefly characterized the Republic's banking sector as of December 1 of 2002. According to the opinion, which has been expressed in the press-release, banking sector was stable. As of December 1 of 2002 there were 38 functioning banks (as of beginning of 2002 - 44) including state-owned - 2 (2), with foreign participation (including daughter banks of banks-non- residents of the Republic of Kazakhstan) - 17 (16). In January-November of 2002 there were the following changes of indicators, which characterize banking sector's condition (excluding Development Bank of Kazakhstan CJSC, Eximbank of Kazakhstan CJSC, Abidbank OJSC). Total banks' shareholders' equity rose by 31.0% or KZT37.9 bn to KZT160.1 bn. Significant growth of banks' capitalization is the evidence of increase of banking system stability as the whole. At that, as of December 1 of 2002 total shareholders' equity of 33-banks was equal or exceeded KZT1 bn. Under conditions of growth of capitalization and resource base of banks due to significant inflow of deposits, increase of banks' assets goes on. Within 11 months of 2002 total banks' assets increased by 31.9% to KZT1,033.9 bn. In the structure of banks' credit portfolio as of December 1 of 2002 the stake of standard credits was 73.3%, doubtful - 25.4%, bad - 1.4%. This is the evidence of improvement of the quality of credits, which are granted by banks, and decrease of risks of their non-paying off. In the opinion of the National Bank the level of banking sector's liquidity remains low - free coefficient of banking sector's current liquidity as of December 1 of 2002 equaled to 0.75 (whereas the norm is no less than 0.3). [2003-01-17]