Kazakh President Nursultan Nazarbayev called last week for the creation of a "stressed assets fund" as assets provided to banks as collateral for loans lose value, threatening the country's banking sector. The diminishing value of assets put up as collateral ``doesn't allow banks to recoup their expenses,'' Nazarbayev told lawmakers in the capital Astana.
Kazakhstan's 36 banks increased their collective loan portfolio to 8.96 trillion tenge ($74.9 billion), an increase of 0.98 percent from the beginning of the year, the Agency for Financial Supervision said on Aug. 20, adding that the portfolio quality ``deteriorated, as expected,'' as the share of ``bad loans'' increased from 1.5 percent to 2.8 percent.
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