S&P notes a decrease in risks within Kazakhstan's banking sector.

Astana. December 13. KAZAKHSTAN TODAY - On December 12, 2024, the international rating agency S&P Global Ratings announced the upgrade of the Republic of Kazakhstan's position in the BICRA (Banking Industry Country Risk Assessment) rating from group "8" to group "7". This indicator reflects a decrease in risks within the country's banking sector and highlights the regulator's efforts to enhance oversight of the financial sector, reported the Agency for Regulation and Development of the Financial Market of Kazakhstan.

According to the S&P report, Kazakhstan demonstrated the resilience of its banking sector to macroeconomic challenges and geopolitical risks. The agency notes that the asset quality and financial indicators of Kazakhstani banks exceeded expectations.

A significant factor in the rating revision was the strengthening of the supervisory activities of the ARRF. Among the key achievements are regular asset quality assessments (AQR), the transition to the SREP supervisory model, limitation of risks in banking activities, and measures to control the growth rates of consumer lending," - said the press service of the agency.

S&P emphasizes that the measures taken by the ARRF have helped avoid crises in the banking system and ensured stable operational activities amid market changes. According to S&P, these measures contributed to improving the financial stability of the country, with the level of non-performing loans in the system decreasing from 18% in 2020 to 7-7.5% in 2024.

The improvement in the BICRA rating has led to upgrades for 7 financial institutions.

Previously, the international rating agency Fitch Ratings confirmed the sovereign credit rating at "BBB" with a "stable" outlook.