More deposit accounts than loans
For the sixth consecutive months the total volume of deposits exceeds the total volume of loans in the banking sector of Kazakhstan
In May LDR indicator reached the lowest level since the beginning of the year - 0.95, according to the analytical service Ranking.kz.
The ratio of the total volume of granted loans to the volume of accepted deposits (loan-deposit ratio, LDR) in the banking sector of Kazakhstan is preserved at the minimum values. Another low was reached in May, when the LDR sector amounted to 0.95, which means that for every placed 100 tenge on deposit, banks issue loans in the amount of 95 tenge. Banks use the remaining 5 tenge as a backup source of liquidity or transfer to less risky assets - metals, state securities, deposits with the National Bank.
At the same time, even with the growth of funds attracted from the population and enterprises, banks are trying to restrain the growth of lending to customers: for example, the total volume of deposits as compared to May 2015 increased by almost half (+ 48.5%), while loan volume grew by only 8.4%.
The largest commercial banks in the country have identified the prevailing trend. Out of the top 5 banks (the total LDR which was 1.02 in May, 2016) Kazkommertsbank demonstrated the greatest value of LDR, while Halyk Bank, Bank CenterCredit, Sberbank give loans less than attract depositors' funds. TSB is on the verge of equilibrium between attracted and placed funds (LDR = 1,01).
It is worth noting that even the most risk-averse players have reduced the ratio of loans and deposits. A year ago, the value of LDR was 10, now it does not even reach 5.
Please, join our Telegram channel to stay up to date on the latest news.
Leave comment:
Comments: