AFN of Kazakhstan characterized the republic's banking sector as of November 1, 2004

/IRBIS, Assel Omarova, November 16, 04/ - Kazakhstan agency for regulation and supervision of financial market and financial organizations (AFN) issued press-release dedicated to preliminary data about situation on financial market of Kazakhstan. Following is description of the banking system as of November 1, 2004. 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 six commercial banks had branch networks. Total number of branch offices in the country is 376 (within the period, there were 5 branch office permission licenses granted). The most number of branch offices falls on Halyk Savings Bank of Kazakhstan JSC - 148, BANK CASPIAN JSC - 33, Kazkommertsbank JSC - 23, Nauryz Bank Kazakhstan and Bank TuranAlem JSC - 22 each. A total of 22 banks have cash-settlement offices (CSO). Total number of CSO reached 1,077 (10 CSO opening permissions were given, and 3 were cancelled). The largest amount of CSO falls on Halyk Savings Bank of Kazakhstan JSC - 382 and Bank TuranAlem - 193. There were 19 representative offices of foreign banks operating in the country. In the beginning of October, 26 auditing organizations and 52 auditors had licenses for banking audit. Total equity capital of banking system equaled to KZT320.0 bn (as of October 1, 04 - KZT311.2 bn). Total assets of banks rose in October by 6.0% to KZT2,387.3 bn (as of October 1, 2004 assets equaled to KZT2,252.6 bn.). Adequacy ratios were following: k1 - 0.085; k2 - 0.156 (as of October 1, 2004: k1 - 0.088, k2 - 0.159). Loan portfolio of banks including interbank loans rose 4.2% within a month or by KZT65.7 bn up to KZT1,644.5 bn. Stake of standard credits was 56.3%, doubtful - 41.2%, bad - 2.5%. As of October 1, 2004 stake of standard credits was at 56.3%, doubtful - 41.1%, bad - 2.6%. Total sum of deposits of legal entities and individuals (excluding banks and international financial organizations) by the beginning of November was KZT1,383.3 bn having increased within the month by 3.6% (including legal entities deposits - KZT968.9 bn, growth of 4.5%, deposits of individuals - KZT414.4 bn, growth of 1.8%). Total sum of second tier banks' revenues equaled KZT254.0 bn having increased in comparison with similar period of last year by 40.9%. Total expenses were KZT216.3 bn having increased in comparison with similar period of last year by 39.8%. Undistributed net profit (uncovered loss) of banks equaled KZT37.6 bn and increased during the month by KZT2.6 bn in comparison with similar period of last year it grew by 47.4%. Besides, AFN informs that on October 2004 the Board of AFN approved following regulations covering activity of banking system: - "About changes and additions in decree of the Board of the National Bank of the Republic of Kazakhstan dated June 2, 2000 #262 "About approval of Instructions about order of placement regarding funds of banks into internal assets", registered in Ministry of Justice of the Republic of Kazakhstan under #1189. - "About approval of Instructions about organization of informational process in activity of participants of credit story formation system and their application, protection of data base of credit stories, about minimal requirements to their informational resources, informational systems, premises, electronic equipment". In addition, AFN informed that as of November 1, 04, 14 banks in Kazakhstan were in the process of liquidation by the court's decision. [2004-11-16]