In May, credit to the economy remained depressed (+0.7% mom, -0.8% ytd). The quality of the assets in the banking sector is deteriorating, as evidenced by the continued growth in the share of non-performing loans (+3.08 pp mom, +4.36 pp ytd). There have been changes in the negative trend of the deposits growth: the deposit base of the banking sector increased by 0.7% mom (-3.4% ytd) in May. The continuing positive trend is the de-dollarization of deposits: 49.9% in the reporting month versus 50.2% in April (adjusted for the rate). The withdrawal of liquidity by the regulator of the banking system remains at a consistently high level and, by the end of May, the gross withdrawal amounted to T3.9 tln, or 25% of the loan portfolio at the banking sector. At the same time, the NBK has been increasing the volume of liquidity provided to banks since the beginning of the year: an analysis of the Open Positions on the NBK’s operations showed a rapid growth in the article “Loans to banks“ (+33.3% mom, +250% ytd).

  • Monetary policy and FX market;
  • Assets of the banking sector, deposits of the banking sector;
  • Loans of the banking sector and credit to economy;
  • Top 10 banks major changes.

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