Second – tier banks and regional business
In the experts' view, commercial banks are not lending enough money to regional business. 81.5% of their total corporate loans (6.7 trillion tenge) fall on companies registered in Almaty and Astana.
Bank loans to regional business (14 regions) at the end of December 2013 are only 1.5 trillion tenge (18.5% of the loan portfolio).
Creditors are not interested in the south areas of the country. Thus, the South Kazakhstan region, accounts for only 2% of corporate loans, Zhambyl and Kyzylorda regions together account for just 1% of creditors' loan portfolio. The Kazakh banks are not willing to provide adequate lending terms to large regional projects so far. In terms of ensuring liquidity banks require movable / immovable property, sometimes exceeding the cost of the loan twice.
The Development Bank of Kazakhstan strengthens its role in concentration of credit in the largest cities. Unlike other commercial banks, it focuses on financing the regions. As of December 20, this bank disbursed 99% of its loans (412.9 billion tenge) to the regions. Comparison: the Bank sent more than 10% of loans from its portfolio (43 bn) to the southern regions (SKO and Zhambyl and Kyzylorda regions)
The share of DBK investment loans in Atyrau region is 41% of its loan portfolio (169.4 KZT.bln). The largest project funded by this bank in the region is a polypropylene plant.
From this year on the Bank expands its activities through an indirect participation in projects through STB. It plans to allocate 45 billion tenge. In February this Bank has already allotted 38 billion tenge.
