National Bank of Kazakhstan has characterized the Republic's banking sector as of January 1 of 2003

/IRBIS, February 6, 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 January 1 of 2003. According to the opinion, which has been expressed in the press-release, by the mentioned date 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). According to preliminary data during 2002 there were the following changes of indicators, which characterized banking sector's condition (excluding Development Bank of Kazakhstan CJSC and Eximbank of Kazakhstan OJSC). Total banks' shareholders' equity rose by 33.2% to KZT162.8 bn. Significant growth of banks' capitalization, despite the decrease of number of banks, is the evidence of increase of banking system stability as the whole. Under conditions of growth of capitalization and resource base of banks, increase of banks' assets goes on. During the year total banks' assets increased by 46.2% to KZT1,146 bn or 30.5% relative to GDP (in1996 this indicator was equal to about 10%, in 1999 - 16%, 2001 - 25%). In 2002 there was improvement of the quality of given by banks credits and decrease of risks of their non-paying off. In the structure of banks' credit portfolio as of January 1 of 2003 the stake of standard credits was 71.6%, the stake of doubtful ones - 26.4%, bad - 2%, whereas by the beginning of 2002 these indicators were equal to 69.0%, 28.9% and 2.1% correspondingly. In the opinion of the National Bank the level of banking sector's liquidity remains high - composite coefficient of banking sector's current liquidity as of January 1 of 2003 was equal to 0.78 (whereas the norm is no less than 0.3). [2003-02-06]