FSA of Kazakhstan about the republic's banking sector as of December 1 of 2004

/IRBIS, Assel Omarova, December 21, 04/ - Kazakhstan agency for financial market and financial organizations regulation and supervision (FSA) in its scheduled press-release dedicated to the condition of the republic's financial market has characterized the country's banking sector as of December 1 of 2004. According to FSA's data, by the mentioned date 35 second tier banks functioned in Kazakhstan, including 1 bank, which was being liquidated, 15 - with foreign participation (including 9 subsidiary banks of banks-non- residents of the Republic of Kazakhstan) and Development Bank of Kazakhstan JSC. 26 second tier banks have branch networks, total number of banks' branches on the country's territory is 378 (within the reporting month permissions for opening of 3 branches were given), including branches of Halyk savings bank of Kazakhstan JSC - 148, BANK CASPIAN JSC - 33, Kazkommertsbank JSC - 23, 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 1,087 (within the reporting month permissions for opening of 22 CSO were given, permissions for opening of 10 CSO were cancelled), including CSO of Halyk savings bank of Kazakhstan JSC - 374, Bank TuranAlem JSC - 194. 18 representatives of foreign banks are functioning in the republic. At the beginning of December, 26 auditing organizations and 52 auditors had licenses for auditing banks. According to FSA's data, by the reporting date total shareholders equity of the banking sector equaled to KZT324.7 bn. (as of November 1, 04 - KZT320.0 bn.). Total assets of banks rose in November by 6.8% to KZT2,550.5 bn. (as of November 1 of 2004 assets equaled to KZT2,387.3 bn.). Adequacy indicators were k1 - 0.080; k2 - 0.153 (as of November 1 of 2004. k1 - 0.085, k2 - 0.156). Loan portfolio of banks including interbank loans rose by 4.4% within reporting month or by KZT72.7 bn. to KZT1,717.2 bn. Stake of standard credits was 55.0%, doubtful - 42.4%, bad - 2.6%. As of November 1 of 2004 stake of standard credits was estimated by FSA at 56.4%, doubtful - 41.2%, bad - 2.4%. Total sum of deposits attracted by banks from juridical and physical persons (excluding banks and international financial organizations) by the beginning of December was KZT1,527.9 bn. having increased within the month by 10.4% (including deposits of juridical persons - KZT1,107.0 bn., grew by 14.3% due to growth of deposits of subsidiary special purpose vehicles by KZT92 bn. or by 30.7%; total deposits of physical persons - KZT420.9 bn., grew by 1.6%). Total sum of second tier banks' revenues as of December 1 of 2004 was KZT286.4 bn. having increased in comparison with similar period of last year by 42.7%. Total expenses were equal to KZT250.5 bn. having increased in comparison with similar period of last year by 44.5%. Undistributed net income (uncovered loss) of banks was equal to KZT36.0 bn. having decreased within the reporting month by KZT1.6 bn. In comparison with similar period of last year it has grown by 30.7%. Besides, FSA informs that in November of 2004 the Board of FSA made following resolutions about banks' activities in Kazakhstan: - "About setting of norms and methods for calculation of prudential norms for banking groups, and also forms and terms of presenting reports about their fulfillment"; - "About confirmation of the Rules for presenting accounts by second tier banks and organizations, which make separate types of banking operations, for formation of the credit register". In addition, FSA informs that as of December 1 of 2004, 14 banks in Kazakhstan were in the process of forced liquidation by the court's decision. [2004-12-21]