The growth of credit to economy for the second month in a row amounted to about 1% mom (adjusted for the exchange rate). The loan dynamics reached a positive zone (+0.4%) in August, and by September the growth was at 1.5% ytd. At the same time, the quality of the assets in the banking system has practically not changed during a month. Deposits of the banking sector have grown by 1.4% mom symmetrically (with correction for the exchange rate). However, it should be noted that deposits in depository organizations, which also include deposits of legal entities in the NBRK, jumped by 9.4% mom (adjusted for the FX rate). According to our estimates, the increase in deposits by T800 billion was caused by the funds of a legal entity in the NBRK. Due to this growth, dollarization in September returned to the level of July, reaching 48.2% (against 50% in August), despite the fact that the increase in deposits in the currency continued (without an increase in the NBRK, according to our calculations, dollarization would have remained at the level of August). The volume of liquidity withdrawal by NBRK notes slightly increased to T2.7 trillion, while the weighted average effective yield on notes decreased to 9.97% (-0.15ppt). In these conditions, the indicators of interest margin and the spread of the sector also slightly adjusted downward. The level of liquid assets in the banking sector remains at a high level, which, together with continuing withdrawals by the regulator, indicate that the system has enough liquidity to expand the loan portfolio.

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

Please download the PDF version to access full report with charts and data tables.