BNK Finance Kazakhstan, a microfinance organization under the umbrella of South Korea's BNK Financial Group, has received approval to transform into a second-tier bank. This transformation marks a pivotal moment in the country's banking landscape, following regulatory consent granted by the Chairperson of the Agency of Kazakhstan for Regulation and Development of the Financial Market, Madina Abylkassymova.
The official announcement was made during the Kazakh-Korean business forum, held as part of the state visit of President Yoon Suk Yeol of the Republic of Korea to Kazakhstan. The decision to elevate BNK Finance Kazakhstan to a full-fledged bank aligns with directives issued by President Kassym-Jomart Tokayev in his annual address to the nation last year.
BNK Financial Group is recognized as South Korea's largest financial conglomerate, boasting assets totaling $129bn and holding a national AAA rating. The group's extensive portfolio includes two banks with over 300 branches and international credit ratings of "A2".
Initially licensed in 2021 to operate as a microfinance organization (MFO), BNK Finance Kazakhstan quickly ascended in the sector, currently ranking 13th in terms of asset size among MFOs in the country. Since its inception, the organization has seen a remarkable growth trajectory, with assets increasing fivefold to KZT 20.3bn ($44.9mn), and its loan portfolio expanding sixfold to KZT 18.8bn ($41.6mn).
Following a comprehensive evaluation of BNK Finance Kazakhstan's application and supporting documentation, the Agency's Board, by Resolution No. 26 dated June 7, 2024, granted permission for the voluntary reorganization of the microfinance entity into a second-tier bank.
The introduction of BNK Finance Kazakhstan as a fully operational bank is expected to foster greater competition within Kazakhstan's banking sector. Kazakhstani consumers stand to benefit from enhanced access to financial services that adhere to the stringent corporate standards upheld by an international financial group of BNK Financial Group’s stature.
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