Seven commercial banks found the first credit bureau in Kazakhstan

/Interfax-Kazakhstan, August 3, 04/ - The first credit bureau has been founded in Kazakhstan, its founders are seven big commercial banks of the republic. "On July 29 of 2004 in accordance with the law "About credit bureau and formation of credit histories" there has been founded the first in Kazakhstan credit bureau", - says the message of Kazakhstan financiers association. Founders of The first credit bureau LLP are Alliance Bank, ATFBank, Bank TuranAlem, Bank CenterCredit, Kazkommertsbank, Halyk bank of Kazakhstan and Tsesnabank. Primary activity of the bureau, the message says, is formation of credit histories of borrowers and presentation of credit reports to creditors. As the world practice evidences, credit bureaus are important infrastructure institutions of financial market and promote to availability of necessary information concerning borrower, reduction of operational expenses and risks of banks, growth of given retail loans, including loans to small and medium business, says the message. As was informed, major authors of the above-mentioned law, which took effect since July 6 of 2004, were National Bank and Financial supervision agency. The work preceding to acceptance of the law and foundation of the first credit bureau in Kazakhstan, was carried out in cooperation with Pragma corporation (program of USAID for financial sector development) and financiers association. As of July 1 of 2004 a total of 35 second tier banks were functioning in the republic, including 2 state-owned, 15 with foreign participation, including 10 subsidiary banks of banks-non-residents. By the end of May of this year total volume of banks loans to economy was KZT1156.6 bn or $8.4 bn. [2004-08-03]