Public credibility in banks must be raised

April 17. Kazpravda


Public credibility in banks must be raisedKazakhstan’s banking system has passed the tests associated with the SMS- attack and devaluation of the national currency, said Chairman of the National Bank Kairat Kelimbetov at a press conference in Astana yesterday.

The main questions addressed to the chairman during the press conference in the Central Communications Service were how to reduce dependence of domestic economy on the dollar and the amount of non-performing loans granted by the second tier banks, how to increase the confidence of Kazakhstani citizens in the domestic banking system and improve the quality of financial services. The chief banker of the country said that much work has been done in recent years to solve these problems, but in the next 10-15 years, the work will be carried out more systematically.

– By June of this year, the National Bank will finalize the Concept for the development of the financial sector up to 2030, the main goal of which is to ensure the financial security of the domestic economy from external factors, – Kelimbetov promised.

He also noted that the cornerstone problem today is to raise the confidence of the population in the domestic banking system.

– The outflow of means associated with the withdrawal of funds from deposits in the second tier banks after the SMS- attack directed against the Bank CenterCredit, Kaspi bank and Alliance Bank in February this year reached 250 billion tenge, – said the banker.

According to him, about 100 billion tenge or 40% of this sum was returned in the last two months. He expressed hope that the return of the withdrawn funds from the banks will continue further, as in his opinion “it is very unwise of people to keep such big money at home.”

The chairman stressed that the banking system of Kazakhstan has passed the tests associated with the SMS- attack and with devaluation of the national currency. According to him, all this indicates growing confidence of the population in the domestic banks.

– However, we intend to continue the explanatory work among the public about the need to trust in the domestic banking system – he went on.

He added in this regard that the success of the capitals’ amnesty declared by the Head of state for the second half of the current year will depend on it.

He also recalled that the bill on the amnesty of capitals will be submitted to consideration by June 1 of this year. He predicted that “if all conditions are met, this action will be very successful.” The question is billions of dollars that can be returned to the domestic economy. At the same time he added that there is no statistics on how much capital was withdrawn and placed abroad, in what form and where exactly.

Answering the journalists’ questions about the integration of Kazakhstan’s banking system in the frames of the Eurasian Economic Community, Kelimbetov said that harmonization of the legislation in the field of financial markets must be completed by 2025.

– By this time a corresponding supranational authority to regulate financial market of the EAEC should be also established – he said.

However, he stressed that “it will be the very regulator, but not a single central bank.”