The banks' lending in June remained in a depressed state, as evidenced by the volume of credit to economy, which, adjusted for the exchange rate, declined by 0.2% mom (-0.22% ytd). Despite the decline in the share of NPL 90+ in June by 0.4 pp mom to 10.7%, since the beginning of the year we have seen an increase in the share of non-performing loans (+4.1pp ytd), which indicates a deterioration in the quality of the sector's assets. The changes in the negative trend of deposits growth continued: the deposit base of the banking sector in June increased by 0.8% mom (-2.6% ytd). As a result of a decline in deposits denominated in national currency (-4.9% mom) and a rise of corporate deposits in US dollars (+4.8% mom), for the first time since the beginning of the year de-dollarization of deposits reversed: 50.2% in the reporting month against 49.9% in May (adjusted for the exchange rate). Given the excessive demand for the US dollar in June, the NBK, for the first time since September 2016, decided to make interventions on the domestic foreign exchange market in order to limit the increasing volatility of the tenge. The withdrawal of liquidity by the regulator from the banking system remains at a consistently high level and, by the end of June, the gross withdrawal amounted to T4 trln, or 25% of the loan portfolio of 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 observation of the Open Positions on the NBK’s operations showed a rapid growth in the item “Loans to banks“(+13.3% mom, +300% 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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