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

/IRBIS, Assel Omarova, September 17, 04/ - Kazakhstan agency for regulation and supervision of financial market and financial organizations (AFN) issued press-release dedicated to situation on financial market of Kazakhstan. Following is description of the banking system as of September 1, 2004 (all figures are given on the mentioned date unless otherwise indicated). According to AFN's data, there were 35 commercial banks operating in the country including 1 state (Housing Construction Saving Bank of Kazakhstan) 15 banks with foreign participation (including 9 branch banks, non-residents) and Development Bank of Kazakhstan JSC. Twenty five banks had branch networks. Total number of branch offices in the country is 368 (within the period, there were 3 branch office permission licenses granted). The most number of branch offices falls on Halyk Savings Bank of Kazakhstan JSC - 148, BANK CASPIAN JSC - 31, Kazkommertsbank JSC - 23, Nauryz Bank Kazakhstan and Bank TuranAlem JSC - 22 each. A total of 22 banks had cash-settlement offices (CSO). Total number of CSO reached 1,068 (14 CSO opening permissions were given, and 9 were cancelled). The largest amount of CSO falls on Halyk Savings Bank of Kazakhstan JSC - 382 and Bank TuranAlem - 192. There were 18 representative offices of foreign banks operating in the country. In the beginning of September, 26 auditing organizations and 50 auditors had licenses for banking audit. Total equity capital of banking system equaled to KZT 291.6 bn (as of August 1, 04 - KZT 278.7 bn). Total assets of banks rose in August by 6.2% to KZT 2,181.9 bn (as of August 1, 2004 assets equaled to KZT 2,054.6 bn.). Adequacy ratios were following: k1 - 0.087; k2 - 0.153 (as of August 1, 2004: k1 - 0.090, k2 - 0.155). Loan portfolio of banks including interbank loans rose 6.2% within a month or by KZT 89.7 bn up to KZT 1,527.4 bn. Stake of standard credits was 61.1%, doubtful - 36.3%, bad - 2.6%. As of August 1, 2004 stake of standard credits was at 59.6%, doubtful - 38.1%, bad - 2.3%. Total sum of deposits of legal entities and individuals (excluding banks and international financial organizations) by the beginning of September was KZT 1,301.1 bn having increased within the month by 4.9% (including legal entities deposits - KZT 898.0 bn, growth of 6.3%, deposits of individuals - KZT 403.1 bn, growth of 1.9%). Total sum of second tier banks' revenues equaled KZT 196.9 bn having increased in comparison with similar period of last year by 39.0%. Total expenses were KZT 165.4 bn having increased in comparison with similar period of last year by 35.0%. Retained earnings (uncovered loss) of banks equaled KZT 31.5 bn and increased during the month by KZT 2.9 bn. In comparison with similar period of last year it grew by 63.2%. Besides, AFN informs that on August 21, 2004 the Board of AFN approved following regulations covering activity of banking system: - Rules for licensing and inspections of credit bureaus; - Conditions and minimal requirements on information disclosure about borrowers to credit bureaus, registration of borrowers' agreement to disclose information through credit bureaus, terms and conditions of credit report; - Amendments and modifications into resolution of the Board of the National Bank of Kazakhstan "Banking Loan Documentation Rules" #276, dated August 16, 1999 registered in the Ministry of Justice under #904; - Amendments and modifications into resolution of the Board of the National Bank of Kazakhstan "Conservation of Banks" #48, dated February 29, 1996 registered in the Ministry of Justice under #439 number; - Amendments and modifications into resolution of the Board of the National Bank of Kazakhstan "Instruction on requirements and documents set to an entity or individual applying for bankingand insurance companies auditing license" #384, dated October 27, 2003 and registered in the Ministry of Justice under #2579; - Amendments and modifications into resolution of the Board of the National Bank of Kazakhstan "Credit Register Maintenance Rules" #331, dated December 31, 1998, and registered in the Ministry of Justice under #752 number; - Amendments and modifications into resolution of the Board of the National Bank of Kazakhstan "Approval of the list of offshore zones for banking, insurance, and other activity related to financial markets and subjected to licensing including activity of pension funds" #60, dated February 25, 2003; In addition, AFN informed that as of September 1, 04, 15 banks in Kazakhstan were in the process of liquidation by the court's decision. [2004-09-17]