Muratova D. D.
the teacher of department of finance and banking of
Kostanay state university named after A.
Baytursynov
The development of the banking system after
the crisis
The banking sector is the largest and
dominating a segment of financial sector of the country. Bank crisis in
Kazakhstan happened in October – November, 2007 against a mortgage meltdown in
the USA.
The
reasons of crisis in the banking sector were: integration of economy of the
Republic of Kazakhstan in world economy, surplus of free money, aggressive
credit policy of banks.
The
main problem is quality of assets of the Kazakhstan banks. The reason of decrease in quality of assets
of commercial banks is in many respects covered in the credit boom taking place
in Kazakhstan prior to the beginning of world financial crisis.
Consequences of world financial crisis for
banks of Kazakhstan:
Sharp reduction of
growth rates of a banking system, essential deterioration of assets, decrease
in profitability of the Kazakhstan banks.
The measures taken by the Kazakhstan
banks for mitigation of impact of crisis: toughening of credit policy, increase of rates on the credits, refusal of
further loans.
In
the conditions of crisis credit policy of the banking sector underwent
changes. As a whole in the current
situation the Kazakhstan banks reconsidered approach to an assessment of credit
risks, it is connected with deterioration of a loan portfolio. Today "clear" clients –
financially steady companies and natural persons with real opportunity to serve
a loan are financed.
For the purpose of improvement of quality of
the loan portfolios banks carry out mass restructuring of the problem
credits. It demands time and big
efforts as approach has to be individual to each borrower, taking into account
his current income, readiness to pay on the credit, stability and prospects of
business.
On
the security of real estate are the objective reasons of deterioration of mortgage
loans: revaluation of a principal debt and remuneration owing to tenge
devaluation, depreciation of mortgage real estate, reduction of workplaces in
real and financial sector of economy.
World
crisis of liquidity also was reflected and in rates according to again issued
loans. According to growth of cost of attracted resources practically
everything without exception banks raised rates according to the credit
programs.
Now
the credit market develops, but not in quantitative, and in the qualitative direction.
Procedures of selection of potential borrowers and assessment of their solvency
became more conservative that, in turn favorably influences improvement of
quality of a credit portfolio as a whole in medium-term prospect.
On
the security of real estate are the objective reasons of deterioration of
mortgage loans:
•
Revaluation of a principal debt and remuneration owing to tenge devaluation;
•
Depreciation of mortgage real estate;
•
Reduction of workplaces in real and financial sector of economy.
World
crisis of liquidity also was reflected and in rates according to again issued
loans. According to growth of cost of attracted resources practically
everything without exception banks raised rates according to the credit
programs.
Now
the credit market develops, but not in quantitative, and in the qualitative
direction. Procedures of selection of potential borrowers and assessment of
their solvency became more conservative that, in turn favorably influences
improvement of quality of a credit portfolio as a whole in medium-term
prospect.
At
the same time, despite growth of crisis potential in a banking system
Kazakhstan, it is possible to note that the situation in the banking sector is
rather operated and in the majority gives in to correction from regulating
boards of Kazakhstan. As a whole the package of the anti-recessionary measures
realized within implementation of the Joint action plan accepted on November
25, 2008 of the government, National bank of the Republic of Kazakhstan,
financial supervision economy stabilization Agency for 2009 - 2010, allowed to
overcome a number of the most dangerous consequences of crisis.
Now
the following help from the state is given the banking sector:
National
welfare fund "Samruk — Kazyna" occurrence
in
JSC "Bank Turan Alem" capital - 78,1%, JSC "People's Bank of
Kazakhstan" - 21%, JSC "Kazkommertsbank" - 21,2%, JSC
"Alliance Bank" - 67%.
Now
restructuring on the specified banks are complete, however JSC "Bank Turan
Alem" carries out the second restructuring of the obligations.
During
crisis the National Bank gives support to a banking system by granting
short-term liquidity.
For
increase of stability of internal sources when forming base of funding of
banks, ensuring stability of a financial system and protection of interests of
depositors of NBRK in 2011 capitalization of JSC "Kazakhstan Fund of
Guaranteeing Deposits" was increased by 10%, to 133 billion tenge.
Increase
of trust of the population to financial sector will be promoted further by
adoption of law concerning minimization of risks of the financial
organizations. This law provided
preservation of the sum of guaranteed compensation on deposits of natural
persons of 5 million tenges.
Signed
by the president of the Republic of Kazakhstan at the end of 2011 the law
"About Modification and Additions in Some Acts of RK concerning Regulation
of Bank Activity and the Financial Organizations regarding Minimization of
Risks" assumes three mechanisms of improvement of a banking system:
1. The creation of JSC "Fund of the
Problem Credits" opened for 100% at the expense of means of National Bank
of the Republic of Kazakhstan. The
purpose of activity of this fund – repayment of hopeless and doubtful assets by
providing on which the real estate at Banks of the second level on which 100%
or 50% of provisions, respectively are created is not. The fund will attract money, to do an
assessment of problem assets, to redeem it, to operate mortgage property, to
sell it, to gain income, through issue of bonds. The first tranche will be redeemed by the non-state pension
funds, the second – by banks, the third – by the National Bank of the Republic
of Kazakhstan.
2
. Cancellation "tax on write-off", validity period 2012-2018. As a
result the tax deduction on income gained from restoration of provisions at
write-off of hopeless loans will be provided to banks.
3
. Possibility of creation (purchase) and to be engaged in banks of the
companies (special purpose vehicle) which will buy problem assets from banks in
their management and improvement. Besides real estate objects and construction
in progress serving as pledge, the bank can transfer to this company of share
in the capital of the companies, passed to it as a result of credit
non-payment.
Within
implementation of measures for support of economy of the Republic of Kazakhstan
the National Bank defined a number of priorities:
•
Maintenance of course stability of tenge and necessary level of liquidity of
the monetary market; àcceleration of processes of improvement of balances of banks and their
"cleaning" of low-quality assets; development of a package of
measures which will stimulate credit activity of banks at a post-crisis stage
of development; transition to
countercyclical regulation and system improvement – risk – management at
financial institutions; development of the package of measures, economic
imbalances reducing level and system risks.
The
measures taken by Agency on financial supervision:
•
For the credits which have been given out to nonresidents in offshore zones,
risks are weighed of 200%, the increased amount of provision is provided
"in case mortgage providing is the property outside Kazakhstan";
suggests to facilitate burden of debtors and to limit penalty fee and penalties
on the overdue credits to 10% of total amount of a loan. This offer is already
included in the bill of protection of the rights of consumers; the norm
according to which the bank which does not have the holding company or the
major shareholder – the natural person, has no right to work with deposits of
natural persons came into force; introduced in the government the bill assuming
introduction of limit effective rates on the credits.
At
world level of a problem of world economic development, including the banking
sector, rose more than once, there were strategic and tactical offers during
crisis and an exit from it. One of
important such actions is G20 summit as which recommendations act: liquidity injection in a financial system,
granting state guarantees and other types of the state help.
Literature
1.
http://www.zakon.kz/ Report Chairman of the National
Bank of the Republic of Kazakhstan Marchenko G. A. "Modern calls and
prospects of development of financial sector Kazakhstan", 2009.
2.
http://Aef.kz , Ayesheva G.
A. "Financial crisis in Kazakhstan: experience and development
prospects".
3.
http://ipoteka.kz - BTA Mortgage