Kazakh National Bank raises minimum reserve requirements, could soak up 3.5 trln tenge in excess liquidity
ASTANA. Aug 29 (Interfax) - The National Bank of Kazakhstan's increase in minimum reserve requirements (MRR) for banks, approved in mid-August, could soak up 3.5 trillion tenge in excess liquidity, National Bank Chairman Timur Suleimenov said on Friday.
"Currently, there is 8 trillion [tenge] in excess liquidity. Using the MRR, we plan to gradually withdraw up to 3.5 trillion [tenge]," Suleimenov said at a press conference in Astana.
"The remaining liquidity will suffice for lending, implementing projects and so on. We do not expect an adverse effect on lending activity," he said.
He also said this measure would have a significant anti-inflationary effect.
On August 11, the Board of the National Bank of Kazakhstan passed a resolution to increase minimum reserve requirements for second-tier banks: for tenge liabilities - to 3.5% and 5%, and for foreign currency liabilities - to 10% and 15%.
The increase will be implemented in stages from September within one year to allow the banks time to adapt to the new environment.
The National Bank may adopt additional measures to slow consumer lending growth, Suleimenov said on Friday.
"A number of steps to reduce consumer lending have already been taken, but further measures may be needed. The measures taken have shown results: last year consumer lending surged by a record 39%, while this year growth has slowed to 30%. But that is still too high. We are considering measures to further cool this segment," Suleimenov said.
Deputy Chairman of the National Bank Akylzhan Baimagambetov added that the Financial Stability Council will meet before the end of the year to assess the current situation in consumer lending.
Suleimenov also said Kazakhstan's second-tier banks planned to begin repaying state support received in previous years.
"We have held constructive talks with the banks, and they have started repaying the state aid. A couple of weeks ago, Bank CenterCredit fully settled its obligations to the National Bank, paying 30 billion tenge. In the near future, a number of other banks, which I will not name, will also begin repayments. These will amount to tens of billions of tenge," Suleimenov said.
He said the National Bank's decision to raise minimum reserve requirements for banks starting September 2, 2025, also encouraged lenders to accelerate repayments.
In 2017, the Kazakh government launched a program to strengthen the banking sector's financial stability, allocating around 700 billion tenge.
President Kassym-Jomart Tokayev has previously urged banks to return the state funds they received during the crisis years.
