The Kazakh financial services sector was severely hit by the global economic and financial crisis of 2008-09. The country's commercial banking system, which until August 2007 had experienced a period of rapid expansion, was one of the first in the world to experience the credit crunch, owing to its exposure to international capital markets. Despite ongoing restructuring, the sector is still managing the fallout from this crisis.
Three of the four financial institutions that defaulted on their principal debt repayments completed debt restructuring in 2010. BTA Bank then defaulted on its debt for a second time in January 2012. Although BTA Bank successfully completed a second debt restructuring in December 2012 (the bank lost its licence in June 2015 and has now merged with Kazkommertsbank), there is still uncertainty about the stability of the banking sector, which remains vulnerable to external shocks.
Official data suggest that the banking sector sharply reduced the share of non-performing loans in 2015 to less than 10% of the total (from more than 20% a year earlier), in line with a presidential decree. Despite the write-down of bad debt, however, the ratio of non-performing loans (NPLs) is likely to increase again over the next two years.
Industry List: Asset management, Financial Services, Banking, Financial Services, Financial markets and instruments, Financial Services, Financial regulation, Financial Services, Financial Services, Financial Services, Insurance
Industry Codes (NAIC): 52
Industry Codes (SIC): 60
Financial Services Report Kazakhstan
Financial services report
Financial markets and instruments
Monetary and currency policy: Monetary policy
Monetary and currency policy: Exchange rates
Kazakhstan at a glance