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

/IRBIS, Assel Omarova, August 13, 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 August 1 of 2004. According to AFN's data, by the mentioned date 35 second tier banks functioned in Kazakhstan, including 1 state-owned (House-building savings bank of Kazakhstan JSC), 15 - with foreign participation (including 10 daughter banks of banks-non-residents of the Republic of Kazakhstan) and Development Bank of Kazakhstan JSC. 25 second tier banks have branch networks, total number of banks' branches on the country's territory is 365 (within the reporting month permissions for opening of 4 branches were given), including branches of Halyk savings bank of Kazakhstan JSC - 148, Kazkommertsbank JSC - 23, BANK CASPIAN JSC - 30, Nauryz Bank Kazakhstan and Bank TuranAlem JSC - 22 each. 22 banks have cash-settlement offices (CSO) out of bank's position. Total number of CSO of banks reached 1,060 (within the reporting month permissions for opening of 10 CSO were given, permissions for opening of 9 CSO were cancelled), including CSO of Halyk savings bank of Kazakhstan JSC - 382, Bank TuranAlem JSC - 191. 18 representatives of foreign banks are functioning in the republic. At the beginning of August, 26 auditing organizations and 50 auditors had licenses for auditing banks. According to AFN's data, by the reporting date total shareholders equity of the banking sector equaled to KZT 278.5 bn. (as of July 1, 04 - KZT 263.1 bn.). Total assets of banks rose in July by 1.6% to KZT 2,054.6 bn. (as of July 1 of 2004 assets equaled to KZT 2,021.7 bn.). Adequacy indicators were k1 - 0.090; k2 - 0.155 (as of July 1 of 2004. k1 - 0.089, k2 - 0.154). Loan portfolio of banks including interbank loans rose by 5.8% within reporting month or by KZT 79.3 bn up to KZT 1,437.7 bn. Stake of standard credits was 59.6%, doubtful - 38.1%, bad - 2.3%. As of July 1 of 2004 stake of standard credits was estimated by AFN at 62.1%, doubtful - 35.7%, bad - 2.2%. Total sum of deposits attracted by banks from legal entities and individuals (excluding banks and international financial organizations) by the beginning of August was KZT 1,240.5 bn. having decreased within the month by 0.1% (including deposits of legal entities - KZT 844.6 bn., loss of 0.9% due to the current and card clients; deposits of individuals - KZT 395.9 bn., grew by 1.6%). Total sum of second tier banks' revenues as of August 1 of 2004 was KZT 169.6 bn. having increased in comparison with similar period of last year by 36.9%. Total expenses were KZT 141.0 bn. having increased in comparison with similar period of last year by 31.4%. Undistributed net income (uncovered loss) of banks was KZT 28.6 bn. having increased within the reporting month by KZT 4.0 bn. In comparison with similar period of last year it grew by 60.5%. Besides, AFN informs that on July 12 of 2004 the Board of AFN approved following legislative acts concerning banking system: - About approval of "Rules for granting of bank opening license; branch offices, cash settlement desks" and Rules for granting, suspense and recall of license for banking and other banking operations" - About amendment of the resolution of the National Bank #60 dated February 25, 2003 "Approval of the off-shore zones' list for banking and insurance activity; operations related to professional participation on securities market and other licensed activity on the securities market; including activity of accumulative pension funds"; - About amendment of the resolution of the National Bank's Board #200 dated July 4, 2003 "On approval of Rules for obligatory collective insurance of deposits and participation of banks in the system" - About amendment of the resolution of the National Bank's Board #201 dated July 4, 2003 "On approval of Rules for obligatory collective insurance of deposits and participation of banks in the system" In addition, AFN informs that as of August 1, 04, 15 banks in Kazakhstan were in the process of liquidation by the court's decision. [2004-08-13]