Increase in minimum reserve requirements will boost lending — Head of Kazakhstan’s National BankThe National Bank of Kazakhstan aims to channel banks’ excess liquidity of 8 trillion tenge into lending by raising minimum reserve requirements (MRT), Timur Suleimenov, Chairman of the National Bank siad.“Increasing MRT will incentivize banks, in pursuit of profit, to shift focus to other revenue-generating tools. For banks, this primarily means lending,” said the head of Kazakhstan’s central bank in response to a journalist’s question.He stressed, however, that the decision remains under review and is expected to be finalized by mid-2024.When asked about potential pushback from financial institutions, Suleimenov emphasized that “state interests take precedence.” The remarks followed an April 3 meeting between regulators and banks to discuss overhauling reserve requirements.Deputy Chairman Akylzhan Baimagambetov noted Kazakhstan’s current average MRT rate of 1.5%-2% lags behind regional peers. A recent National Bank analysis found reserve norms in neighboring countries are “significantly higher,” suggesting room for adjustment.Officials did not specify proposed MRT levels but indicated reforms would align with international practices. (ICE ALMATY)

Fonte notizia: INTERFAX