Presence of foreign banks does not pose systematic risks in middle term

The architecture of the Kazakhstan’s banking sector will not be changed with foreign players entering the market, Grigory Marchenko, Head of the National Bank, said in an on-line conference arranged by Profinance.kz. “Despite the active growth of banks with foreign capital and their strengthened role in the Kazakhstan’s banking sector, their influence in the banking sector in the middle term does not pose systematic risks [normally] related to presence of foreign players, such as a threat of mass outflow of liquidity to parents banks in case of a crisis”, Mr. Marchenko said. However, according to the Concept of the financial sector development in the post-crisis period, in case of growing risks related to presence of foreign players, the Government represented by the National Bank, retains the right to limit presence of foreign players in the financial sector. “Should the decision [on limitation] be taken, the limit could be up to 50% of the combined authorized capital in each segment of the financial sector”, Mr. Marchenko said.

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