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The bank sector of Kazakhstan and the problems of crediting of small and medium business Massakova S.1, Dalke A.2 (Republic of Kazakhstan) Банковский сектор Республики Казахстан и проблемы кредитования
малого и среднего бизнеса Масакова С. С.1, Дальке А. Ю.2 (Республика Казахстан)
'Масакова Салтанат Сейлхановна /Massakova Saltanat — кандидат экономических наук, доцент; 2Дальке Алена Юрьевна /Dalke Alyona — магистр экономических наук, старший преподаватель,
кафедра «Финансы и кредит», Школа «Финансы и учет», Университет «Нархоз», г. ААлматы, Республика Казахстан
Abstract: the article gives the analysis of some trends and processes in the modern bank sector of Kazakhstan. The analysis of the main indicators of credit portfolio and identifies some of the problems of the bank sector. Аннотация: в статье рассмотрены тенденции и процессы в современном банковском секторе Республики Казахстан. Проведен анализ основных показателей кредитного портфеля и выявлены некоторые проблемы банковского сектора экономики.
Keywords: bank sector, credit portfolio, the small and medium business, the problem.
Ключевые слова: банковский сектор, кредитный портфель, малый и средний бизнес, проблема.
The Republic of Kazakhstan has a two-tier banking system. The National Bank of the Republic of Kazakhstan (hereinafter - the National Bank) is the central bank of Kazakhstan and presents the upper (first) tier of the banking system of Kazakhstan. All other banks present lower (second) tier of the banking system, excluding the Development Bank of Kazakhstan that has peculiar legal status.
As of 1 March 2015 the banking sector is presented by 38-second level banks, from which 16 banks with foreign participation, including 14 subsidiary banks.
In 2014, the sector expected to complete the process of consolidation of the sector and by the end of the 2016 year in our estimation the top ten banks (the loan portfolio) would look like this: KKB, Halyk Savings, Tsessna, BCC, Kaspi, ATP, Forte, Eurasian, RBS. Now there are 35 instead of 38 [1].
Table 1. Structure of bank sector in Republic of Kazakhstan for March 2015
Structure of the banking sector March 2015
Number of banks of the second level 38
-banks with 100% state participation in authorized capital 1
-banks with foreign participation 16
-subsidiary banks 14
Number of branches of banks 397
Note - made by author on the basis of a source [2]
As of 1 March 2015 assets of second level bank of Kazakhstan amounted 17 889 billion tenge (at the beginning of 2015 - 18 239 billion tenge), decrease since the beginning of 2015 by 1,9%.The major asset category in the total banking assets is loan portfolio (64.6% of total assets) amounted to 14 231 bln. KZT (at the beginning of 2015 - 14 184 bln KZT). During the period from the beginning of 2015 loan portfolio increased by 0,3%.
Indicator name / data 2012 2013 2014 2015
Loans to banks and institutions performing certain types of banking operations 220,4 98,8 106,1 96,9
Corporate loans 6 909,1 7 771,3 7 152,2 7 116,9
Retail loans, including: 2 473,9 3 256,3 3 681,3 3 689,9
the construction and purchase of accommodation, including: 921,4 981,5 1 011,1 1 011
Residential mortgage loans 818,5 883,6 936,5 939,4
Consumer loans 1 405,7 2 112,3 2 608,6 2 611
Other loans 146,9 162,5 61,5 67,9
Loans to small and medium-sized enterprises (Residents of Kazakhstan) 1 821,7 2 046,6 3 248,3 3 237,8
«Reverse REPO» operation 50,9 87,3 173,5 89,4
Provisions by IFRS 4 041,6 4 598,0 4 104,2 3 580,9
Total 11 476 13 260,4 14 361,4 14 230,9
Note - made by author on the basis of a source [2, 3]
Loans to individuals constituted 3 690 billion tenge with the shares of 25,9% of a loan portfolio (at the beginning of 2015 - 3 708 billion tenge or 26,1% of a loan portfolio), and decrease since the beginning of 2015 - 0,5%.Retail loans accounted 2 611 billion tenge with the shares of 18,3% of a loan portfolio (for the beginning of 2015 - 2 640 billion tenge or 18,6% of a loan portfolio), decrease since the beginning of 2015 - 1,1 %.
As of the 1 March 2015 the total bank loans in Kazakhstan amounted to 12 165 954 mln KZT. And at the table below was considered all bank's loans from 2011 years till beginning of 2015.
9000000
8000000
7000000
a 6000000
= 5000000
= 4000000 25
3000000 2000000 1000000 0
Year
Fig. 1. Dynamic of bank loans in national and foreign currency
Note: Made by author on the basis of a source [2].
At the figure indicated the dynamic of bank loans during from 2011 and 2015 in national and foreign currencies. The loans in national currencies are in twice bigger than the loans in foreign currencies. This tendency can be explained with after crisis period and measure of National Bank of Kazakhstan on devaluation on 25% of national currency. And that why it is more profitable begin to take the loans in national currency.
Decreasing the crediting in foreign currency and the growth of total sum of issued loans to economy naturally causes the growth in national currency from 65% in 2011 (5 681 639 mln tenge) to 71% in 2012 (7 041 296 mln tenge) and etc.
u in national currency J in foreing currency
2011 2012 2013 2014 2015
Increasing the issued loans in tenge is not scarcely profitable to second levels banks. Therefore can be considered on above designated tendencies affected the state support of crediting of small and medium businesses, programs of industrial and innovative development of the state, the program of development of agriculture and so forth affected. Crediting of economy at the expense of the state resources through banks of the second level is made in national currency that is in tenge.
After analysis of bank's loans on national and foreign currencies and term period, let's look through the bank's loans on economy branches. Table 6 indicates the bank's loans on economy branches from 2011 to 2015. On the given statically data it is possible to conclude that number of loans annually increasing. Second level bank of Kazakhstan lended the economy branches like: industry, agriculture, construction, transport, communication, trade and other (non productive sphere).
The greatest branch of economy by crediting is other branch or non-productive sphere of economy during the 5 years. This tendency can be explained that many of small and medium businesses operate in sphere of services or individual activity. And lowest branch of economy by crediting is communications. It can be explained that sphere of commutation in our country has the monolithic tendency.
Fig. 2. Dynamic of bank loans on economy branches Note: Made by author on the basis of a source [2].
Also bank's loans can be classified to objects of crediting. Again as saying the period from 2011 to 2015. And also have tendency of increasing the bank's loans by objects of crediting each year except the purchase of the privatized state objects where can be observed the decreased of crediting by 90% from previous years.
14000000 12000000 10000000 8000000 6000000 4000000 2000000 0
2011
2012
2013 2014 Year
2015
- other purposes
u purchase of securities
consumer purposes of citizens
J construction and puchase of
housing by citizens n new construction and
reconstruction y purchase of the privatized
state objects -1 purchase of fixed assets
Li purchase of current assets
Fig. 3. Dynamic of bank's loans on objects of crediting Note: Made by author on the basis of a source [2].
At the figure above you graphically see the bank's loan on objects of crediting. In bank's loans on objects of crediting to the small and medium businesses and legal entities the biggest share took the loans to purchase of current assets, next is purchase of fixed assets. We can see annually increasing of this loans that means that Kazakhstan companies need in financing. In bank's loans on objects of crediting to the individuals the biggest are other purposes of loans, and next consumer purposes of citizens. On result of the following picture we can conclude that loans of banks in demand among the population of the Kazakhstan because the volume of loans increase year by year.
Corporate loans comprised 7 117 billion tengewith the shares of 50,0% of a loan portfolio (at the beginning of 2015 - 7 016 billion tenge or 49,5% of a loan portfolio), increase since the beginning of 2015 - 1,4%.
Loans with overdue debt from 1 to 30 days constitute 2,2% of a loan portfolio, with overdue debt from 31 to 60 days - 1,4%, from 61 to 90 days - 1,1%.Loans with overdue debt on a reporting date constitute over 90 days 2 446,8 billion tenge or 34,4% of a loan portfolio, having increased since the ending of 2014 by 0,1%.
Table 3. The quality of corporate loans for 2011- 2015, in bln tenge
Indicator name / data 2011 2012 2013 2014 2015
Corporate loans, including: 5 068,1 6 909,1 7 771,3 7 152,2 7 116,9
Loans with no overdue on principal and/or accrued interest 3 830,6 4 152,6 4 497,6 4 204,9 4 329,8
Loans with overdue from 1 to 30 days 37,7 61,1 95,10 147 159,7
Loans with overdue from 31 to 60 days 33,5 45,5 65,5 30 102,1
Loans with overdue from 61 to 90 days 24,6 21,2 36,9 26,3 78,6
Loans with overdue over 90 days 2 945,5 3 179,2 3 076,2 2 744 2 446,8
IFRS provision 3 446,8 3 594,7 3 672,4 3 241,3 2 849
The coverage ratio (provisions to loans overdue over 90 days) 122,0% 120,1% 119.4% 118,1% 116,4%
Note - made by authors on the basis of a source [2]
Nowadays there are changes taking place in the banking sector of the Republic of Kazakhstan and processes. The trends we see in the sector in recent years are following: consolidation, differentiation (segmentation), loss of interest of international players in the national market.
References
1. S&P: V 2016 godu banki Kazakhstana stolknutsya s vysokimi riskami. [Electronic resource]: Delovoy portal Kapital.kz. URL: https://kapital.kz/finance/49388 (date of the application: 12.04.2016).
2. Tekushcheye sostoyaniye bankovskogo sektora Respubliki Kazakhstan. [Electronic resource]: Ofitsialnyy sayt Natsionalnogo bankaRespubliki Kazakhstan. URL:http://www.nationalbank.kz (date of the application: 12.05.2016).
3. «Tekushchiye tendentsii i ozhidayemyye perspektivy razvitiya natsionalnykhbankovskikh sektorov». [Electronic resource]: Assotsiatsiya bankov Kazakhstana.URL: http://www.kba.kz (date of the application: 19.05.2016).
