The Kazakh economy was one of the world’s top performers in the first half of 2011, expanding by more than 7% as the economy continues to bounce back from its particularly severe financial crisis. But the banking sector appears to be one of the last to benefit.
Assets at the country’s largest banks declined after real estate markets tumbled and Eurobond financing became inaccessible in 2007, and they have yet to stage a meaningful recovery. In July 2011, total bank lending finally returned to the peak originally reached at the start of 2009, just before two of the country’s largest banks, BTA Bank and Alliance Bank, had to be nationalised to prevent their collapse.
