Investor Presentation on Kazakhstan's Economic Reforms
Focus on Strengthening the Banking System
The banks have robust balance sheets with declining dollarization and loan to deposit ratios, with core funding base
consisting of domestic customer deposits.
Strengthening Banking Sector
•
The banking sector's overall resilience to economic shocks has recently improved.
Most banks have ample capacity to absorb losses due to good pre-impairment
profitability and significant capital buffers.
Taking into account Asset Quality Review (AQR) outcomes and all implemented
measures, all banks in the scope of the AQR have sufficient CET1 capital to comply
with regulatory requirements and cover expected credit loss
Kazakhstan has low level of foreign currency denominated debt, mainly tied to
exports, eliminating currency and tenor mismatches
In the coming months, the Agency for Regulation and Development of Financial
Market and NBK will closely monitor the implementation of recovery plans in all
participating banks to ensure appropriate and effective measures are being put in
place to support the development of identified priority risk management aspects
Balance Sheet Structure
(%)
99.7%
89.8%
65.4%
60.7%
2015
2016
81.5%
80.8%
82.0%
56.3%
54.5%
55.0%
Bank Assets
(% of GDP)
61.4%
54.4%
45.5%
42.9%
40.8%
39.6%
2015
2016
2017
2018
2019
Oct-20
Foreign Currency Exposure
(%)
69.3%
53.8%
74.2%
47.6%
46.8%
42.7%
42.3%
41.5%
39.9%
51.2%
27.3%
23.5%
17.0%
15.9%
2017
2018
2019
Oct-20
2015
2016
2017
2018
2019
■Loans to Deposits
■FX Currency Loans (% of Loans)
OKT 20
■FX Currency Deposits (% of Deposits)
■Loans to Assets
Source: The Agency for Regulation and Development of Financial Market
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