The banks’ lending to economy continued to stagnate in August. There was a slight increase in retail loans, which was offset by a reduction in corporate loans. The deposit base of the sector has not changed and continued to remain in the negative zone (-1.1% ytd). At the same time, an increase in foreign currency deposits (+1% mom, adjusted for the exchange rate) and the reduction of tenge deposits (-3.4% mom) contributed to an increase in dollarization of deposits in the reporting month (50.1% in August against 49% in July). There was observed a growth in the volume of purchased currency by the population in exchange offices relative to the previous month by 57.6%, which, together with the rise in dollarization, we associate with the weakening of the tenge against the background of rising oil prices during the analyzed period. Such illogical behavior of the tenge further strengthened the devaluation expectations that took place in early August. According to our expectations, the tendency of the dollarization level and the increase in the volume of the purchased foreign currency will continue in September.

  • 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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