Credit to economy in July increased slightly by 0.2% (adjusted for the exchange rate), mainly due to retail loans, while corporate lending is still in the negative zone. The quality of assets is deteriorating, as evidenced by the NPL 90+ loans, their share in July rose at once by 2.1pp to 12.8% (since beginning of the year the indicator has doubled). As a consequence, the level of provisioning is growing in the banking system (it took 16.1% of the banking system’s credit portfolio, +5.5 pp ytd). As а result of BTA loan repayment (with state support) the loan portfolio of the banking sector decreased by T2 trillion. The deposit base increased by 0.4% mom (-2.2% ytd) due to the growth of retail deposits, in the corporate sector there has been an outflow since the beginning of the year. A slight increase in deposits in national currency (+0.6% mom) and a more significant decrease in foreign currency deposits (-4.8% mom, adjusted for the exchange rate) helped to reduce dollarization to 49% in July against 50.3% in June. The volume of liquidity withdrawal reached T3.6 trillion at the end of July, which equals 27% of the banking system’s loan portfolio. With unchanged volumes of tenge liquidity withdrawal by notes and repo transactions, the NBK open position on currency swaps at KASE was closed. NBK has also been increasing the volume of liquidity provided to banks since the beginning of the year (the growth of the item "Currency and interest rate swap with banks": +300% mom).

  • 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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