Kazakh Banks In The Spot Light

February 2008 | Ratings Update

The latest spike in international interest in Kazakhstan's banking sector comes as little surprise to BMI. With the highly leveraged banking sector remaining exposed to the global credit crunch, there are growing rumours about possible take-over bids for the Central Asian country's weakened banks. Indeed, South Korea's Kookmin Bank has shown a profound interest in Kazakh CentreCredit Bank, rumoured to bid as much as US1bn for a 30% stake in the bank. We believe that interest for strategically positioned Kazakh banking assets will continue to flow in over 2008, as valuations for Kazakh banks remain low. This will likely boost foreign accessibility to Central Asian financial markets in the long term.

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