Summary
There just was, and to an extent still is, a global credit crisis, and financial system in Kazahkstan seems to have weathered it.
Analysis
As has been proven very recently in the U.S. and U.K. (Northern Rock Bank), having a good base of deposits is much more reliable than the securitization market and other sources of funding.
Of the major Kazahk banks, KKB gets only 35% of its deposits from customers, and this number is insufficient to weather a tougher crisis.
JSC Halyk Bank, however, gets 69% of its funding base from customer deposits and should be able to weather most credit market storms.
Joe Garrett consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
