Kazakhstani banks note considerable growth in consumer loan demand

August 2. Interfax-Kazakhstan. Astana

Kazakhstani banks note considerable growth in consumer loan demandThe trend of rising demand for retail loans from physical persons has not changed in the second quarter of this year, while the demand for consumer loans has also grown significantly.

These are the results of the quarterly survey of second-tier banks by the National Bank.

“Rising demand for mortgage loans was noted by 47% of the banks. About 46% said the demand had remained unchanged. 90% of the banks have reported a considerable growth in demand for consumer loans,” the National Bank said in a statement.

According to the statement, in view of the low consumer activity compared to the pre-crisis times second-tier banks “are actively working to attract new clients and keep existing ones by improving loan terms”.

“In the second quarter of 2011 37% of the respondents noted that they had softened consumer loan terms. (…) About 20% said they had improved mortgage loan terms,” the National Bank noted.

Nonetheless, “despite some softening of the loan policy the banks are still cautious about choosing borrowers,” the statement said.

The National Bank predicts that competition in the loan market will increase in the 3rd quarter of this year.

“Banks forecast that supply in the retail loan market will grow due to price-related (interest rate and bank’s margin on loan) and non price-related (repayment period, collateral terms, non-interest commissions) loan factors,” the regulator said.

Meanwhile, according to the National Bank, “in the 3rd quarter banks will continue to work actively on expanding their deposit base, attracting solvent clients, restructuring non-performing loans and collecting debts from bad borrowers.