President: financial sector needs reload

ASTANA. KAZINFORM - "The key objective of macroeconomic stability is to recover the stimulating role of monetary policy and attract private equity in financing of economy", stated President Nursultan Nazarbayev.     

"Today the National Bank needs to develop the regime of inflation targeting. In a mid-term it is necessary to gradually decrease the inflation rate to 3-4%.

We need to "reload" the financial sector of the country.

I instruct the National Bank to develop a set of measures of recovery of the banking sector.

It is necessary to speedily make banks' balances clear of "bad credits" and, if required, have the shareholders provide capital top-up. The national bank needs more rights to ensure prompt control over the condition of banks. It should switch from formal approach to risk - oriented method in order to take corrective actions towards banks, without waiting for formal violation from their party.

It is also necessary to strengthen responsibility of audit companies, to provide transparency of shareholders and generally improve corporate management. All this should have legislative framework.

To resolve the problem money shortage in economy and high rates on loans I instruct the National Bank and the Government to develop a set of measures of ensuring available average and long-term funding in tenge.

The National Bank should be responsible not only for inflation, but also, together with the Government, for economic growth "¸ - said the President in the Message to the people of Kazakhstan.