Nowadays, there are 35 banks which serve citizens of Kazakhstan. It is difficult to say is that a lot or a few. But Russia has 20 times more banks, but its population just more 9 times comparing with Kazakhstan.

Galim Husayinov, an expert in the sphere of banking, made a challenge and explained for what kind of data people need to pay attention when will go to bank service. According to his viewpoint, the best way is to get all information about all Banks which serve in our country.

How do Banks work?

It's important to understand the way of the classical Bank's work to define reliability for investors.

Bank is a financial institution between investors and borrowers which gain money by adding the percents.

What is the most important in Banking?

The most important thing is the correct assessment of risks when credits will be given to legal entities and individuals. Better to Bank when risk management works better.

How to find out which Bank is good at risk management?

The risk management is good in that Bank where corporate management works efficiently. It is difficult to avoid procedures and loan money not with right destination, but for certain percent.

Ordinary citizens may not be able to figure out where is the good corporate management because they are not allowed to reach to inside information. Even, it's not enough information to define the financial condition of the particular banking system, people tend to share the other's experience for better considering.

Therefore, for an assessment of Bank, experts would advise paying attention to corporate management and shareholders of Bank.

Corporate management is better where there is a great number of shareholders. Kazakhstan has several banks which unite several shareholders. Out of that, They might have foreign investors who have stake of total share:

- JSC Citibank Kazakhstan

- JSC Sberbank of Russia

- JSC Alfa-Bank

- JSC Tsentrcredit Bank

- JSC VTB Kazakhstan

Three banks from this list are from Russia. Citibank works only with legal entities and it is impossible to name them as the universal banks.

JSC Tsentrcredit Bank Is only Kazakhstan-based bank where some shareholders are foreigners. One of its stakeholders is Kukmin Bank (41,9 percent) from South Korea. Kukmin Bank is the largest Bank in Korea, with assets more than 200 billion US dollars (it's more than a total asset of Kazakh economy).

The bank the has a credit rating of A and it's quoted on the world stock exchanges. This Bank is larger for 10 times than any our largest Bank in Kazakhstan.

The second foreign shareholder is IFC with assets of 10 percent. For being clear, IFC is an affiliated organization of the World Bank, with AAA rating.

As you found out, Tsentrcredit Bank has no dominating shareholder who could make unanimous decisions and to appoints management that allows making correct and objective decisions.

As noted in author's expressions, citizens have to get approvement before putting money to banks. If your education is related to finance, you will able to get asset information from the majority number of Kazakh banks. And you need be advised by the experienced person if you don't understand the financial system of some banking services.

Photo: probanki.kz