Kazakhstan Diagnostic Review of Consumer Protection in Financial Services : Volume 1. Key Findings and Recommendations
From 2004 to 2007, lending to households in Kazakhstan expanded rapidly at 116 percent average annual growth rate and reached 22 percent of GDP, with loans in foreign currency reaching 7 percent of GDP. The share of real estate lending doubled betw...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/808201493298327449/Key-findings-and-recommendations http://hdl.handle.net/10986/26727 |
| Summary: | From 2004 to 2007, lending to households
in Kazakhstan expanded rapidly at 116 percent average annual
growth rate and reached 22 percent of GDP, with loans in
foreign currency reaching 7 percent of GDP. The share of
real estate lending doubled between 2004 and 2007, amounting
to 30 percent of GDP at end-2007.Following the global
financial crisis and depreciation of the Kazakh tenge, the
ratio of nonperforming loans to total loans in housing and
mortgage increased from 5 percent in 2008 to 30 percent in
2010. This massive disruption highlighted the need for
strong consumer protection and financial capability. Kazakh
banks, which had relied extensively on capital market
funding, attempted to shrink the credit portfolio and
increase domestic deposits with limited success since most
adult Kazakhs still have no access to formal financial
services, due to low trust and low incomes. The government
of Kazakhstan has developed a program to build confidence in
the financial sector among investors and consumers. This
World Bank’s diagnostic review, conducted in support of the
program, is presented in two volumes. Volume I discusses the
importance of financial consumer protection, summarizes the
Kazakh government`s policy, and sets out the key findings
and recommendations of the Review. Volume II provides an
assessment of financial consumer protection in the four key
segments of the Kazakhstan’s financial sector—banking,
securities, insurance, and private pensions. |
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