AFN Kazakhstan has characterized the republic's banking sector as of March 1

/IRBIS, Andrey Tsalyuk, March 17, 04/ - Kazakhstan agency for regulation and supervision of financial market and financial organizations (AFN) in its scheduled press-release dedicated to the condition of the republic's financial market has characterized the country's banking sector as of March 1 of 2004. According to AFN's data, by the mentioned date 35 second tier banks functioned in Kazakhstan, including 2 state-owned (Eximbank Kazakhstan CJSC and House- building savings bank of Kazakhstanа JSC), 16 - with foreign participation (including 10 daughter banks of banks-non-residents of the Republic of Kazakhstan) and Development Bank of Kazakhstan JSC. 24 second tier banks have branch networks, total number of banks' branches on the country's territory is 355, including number of branches of Halyk Bank of Kazakhstan JSC - 149, Nauryz Bank of Kazakhstan OJSC - 27. 20 banks have cash-settlement offices (CSO) out of bank's position. Total number of CSO of banks reached 1,032 (within the reporting month permissions for opening of 4 CSO were given, permissions for opening of 4 CSO were cancelled), including CSO of Halyk Bank of Kazakhstan JSC - 378, Bank TuranAlem JSC - 193. 20 representatives of foreign banks have been opened in the republic. At the beginning of March 26 auditing organizations and 47 auditors had licenses for auditing banks. According to AFN's data, in February of 2004 total shareholders equity of the banking sector rose by 1.08% to KZT243.4 bn. (as of February 1, 04 - KZT240.8 bn.). Total assets of banks rose in March by 3.54% to KZT1,707.2 bn. (as of February 1 of 2004 assets equaled to KZT1,648.8 bn.). "This, because of active growth rates of assets over shareholders equity of banks, level of banks' capitalization in the past month fell and adequacy indicators equaled to k1 - 0.10; k2 - 0.17 (as of February 1 of 2004. k1 - 0.11, k2 - 0.18)", - AFN's message says. Quality of banks' loan portfolio did not change considerably as of March 1. Stake of standard credits was 62.2%, doubtful - 35.4%, bad - 2.4%. As of February 1 of 2004 stake of standard credits was estimated by AFN at 61.5%, doubtful - 36.4%, bad - 2.1%. Total sum of deposits attracted by banks from juridical and physical persons (excluding banks and international financial organizations) by the beginning of March was KZT984.5 bn. having increased within the month by 2.1% (including deposits of juridical persons - KZT632.2 bn., grew by 1.8%; deposits of physical persons - KZT352.3 bn., grew by 2.8%). Besides, AFN informs that: - on February 9 of 2004 resolution of the Board of AFN #25 "About approval of the list of international financial organizations, in whose bonds second tier banks have the right to make deals" was accepted; - on February 16 of 2004 resolutions of the Board of AFN were accepted: - #36 "About inclusion of changes and additions in the resolution of the Board of the National Bank of Kazakhstan dated June 3 of 2002 ¦213 "About approval of the Rules about prudential norms for second tier banks", which was registered in the Ministry of justice of Kazakhstan under the number ¦1902"; - #37 " About inclusion of changes in the resolution of the Board of the National Bank of Kazakhstan dated December 20 of 2001 #543 "About approval of the form for presenting of information on the deals of second tier banks with persons connected with special relations with them", which was registered in the Ministry of justice of Kazakhstan under the number ¦1745". Besides, in compliance with the resolution of AFN's Board dated February 16 of 2004: - license of one bank (name is not called - note of IRBIS) for conducting of separate types of transactions concerning acceptance of deposits, opening and maintenance of physical persons' bank accounts, has been withdrawn; - permission for opening of one branch has been cancelled; - permission for opening of one branch has been given. Besides, AFN informs that as of March 1, 04, 15 banks in Kazakhstan were in the process of liquidation by the court's decision. [2004-03-17]