Kazakhstan: Banks still feeling the pinch

Banks in Kazakhstan continue to be the subject of concern in the wake of the global credit crunch, with Standard & Poor’s the latest organization to turn its spotlight on the sector. In mid-December, the ratings agency revised from stable to negative the outlook on its ratings on eight banks – including the leading quartet of Kazkommertsbank, Bank TuranAlem, Halyk Savings Bank of Kazakhstan and Alliance Bank.

While acknowledging that so far Kazakh banks have coped well with any funding squeeze, S&P expressed its worries over the longer-term impact of reduced access to capital.