Share of Islamic Banks will make up 3-5% in assets volume of banking system of Kazakhstan in 2020 - NB

Date: 07:33, 15-04-2014.

Almaty. April 15. KazTAG - The share of Islamic Banks in Kazakhstan will make up 3-5% in 2020 in the total volume of  assets of banking system of the state, reads the draft concept of financial sector development until 2030.

"The share of Islamic Banks makes 3-5% of the total volume of assets of banking system of Kazakhstan," reads the message.

A number of targets will be achieved by 2020 on the key indexes of financial market development.

"Banks assets will make up at least 80% of the GDP, loan portfolio- at least 60% of GDP which means expansion of their share in the economic financing especially in state programs development. Although the tasks may be considered as ambitious, however, they are considered as the minimum necessary for limitation of scaled expansion of foreign banks in Kazakhstani market, protection of domestic financing system and reduction of losses of domestic banks caused by access liberalization  for foreign financial institutions," reads the message.

However, scaled borrowings by big domestic companies, especially with state share and development institutes at the foreign markets may frustrate targets achievement in the banking sector. As a result the domestic banking system will be demanded only for small and medium enterprises and population.

It is expected the regional financial center Almaty will access the group of top 10 financial centers of Asia.

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