BAKU, Azerbaijan, Jan. 12
Trend:
Kazakhstan is expected to introduce new requirements for banks and microfinance organizations to regulate consumer lending, Trend reports citing the government.
The Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market will additionally limit the risks on consumer loans of banks and microfinance organizations.
“The requirements for the adequacy of banks' equity capital will be raised by increasing the risk weighted consumer loans of individuals as part of the prudential regulation of banks,” chairperson of the Kazakh Agency for Regulation and Development of Financial Market Madina Abylkassymova said.
Abylkassymova added that the calculation of the debt burden ratio will be tightened.
“If the borrower's regular income has not been confirmed, the income will be excluded from the calculation,” chairperson of the Kazakh Agency for Regulation and Development of Financial Market said.
Abylkassymova stressed that the introduction of additional restrictions on high-risk consumer loans will also be considered as part of risk-based supervision towards banks and microfinance organizations.
“As a result, the risk appetite of banks will be reduced to restrict the issuance of loans to borrowers who do not have sufficient solvency,” chairperson of the Kazakh Agency for Regulation and Development of Financial Market said.
