ASTANA, Kazakhstan, February 4. To enhance competition, foreign banks from South Korea, Qatar, and the UAE have been brought into Kazakhstan’s banking sector, said Madina Abylkasymova, Chairperson of the Agency for Regulation and Development of the Financial Market of Kazakhstan, during a meeting with the President of Kazakhstan, Trend reports.
Kazakhstan's President Kassym-Jomart Tokayev met with Madina Abylkasymova, Chairperson of the Agency for Regulation and Development of the Financial Market. During the meeting, the President was briefed on the results of the financial market’s development in 2024.
It was reported that the banking sector remains stable. Bank assets grew by 19.7 percent from the beginning of 2024, reaching 61.6 trillion tenge ($117.04 billion). Lending to the economy increased by 20.9 percent to 33.8 trillion tenge ($64.12 billion). The level of non-performing assets in banks remains low, under 3.1 percent.
The agency completed its annual supervisory assessment of 21 banks, asset quality evaluation, and stress testing of 11 banks, covering 85 percent of the banking system's assets. Early repayment of state support amounting to 400 billion tenge ($760 million) was ensured.
Abylkasymova reported that legislative amendments had been adopted to develop the market for distressed assets, and the first digital platform for the sale of distressed assets was launched.
Tokayev was informed about lending to the real sector and businesses. In 2024, business loans increased by 16.3 percent to 13.1 trillion tenge ($24.89 billion), with new loans issued to businesses totaling 18.2 trillion tenge ($34.58 billion).
By the President's order, a law was passed in June 2024 to minimize risks in lending and protect borrowers’ rights in order to reduce household debt. Problematic debts of 614,000 citizens, amounting to 210 billion tenge ($399 million), were restructured, partially or fully forgiven.
The Chairperson of the Agency reported that a new package of legislative amendments had been developed to protect citizens from financial fraud.
President Tokayev was also briefed on the results of digitalization in the insurance market. A model for mandatory insurance of citizens’ residential property against catastrophic risks was developed. Draft laws on credit rating agencies and investment and venture funds were also prepared.
To note, following the meeting, Tokayev set tasks for the agency to ensure financial stability, further expand lending to the real sector, and strengthen the protection of financial services consumers' rights.