Kazakhstan formally established the 23rd banking institution within its economic landscape.
JSC "KMF Bank," the 23rd second-tier bank in Kazakhstan, has recently entered the banking sector following the issuance of a banking operations license by the Financial Market Regulation and Development Agency of Kazakhstan. The bank was established through the transformation of the microfinance organization KMF, which has been serving the Kazakhstani community since 1997.
With a client base exceeding 275,000 individuals, JSC "KMF Bank" is poised to make a significant impact in the financial landscape of Kazakhstan. The bank is permitted to perform various operations such as accepting deposits from legal entities, account opening and maintenance, cash and transfer operations, lending, currency exchange, and issuing bank guarantees.
One of the key focuses of JSC "KMF Bank" is on small and medium-sized businesses, including those in the agricultural sector. Over 90% of the bank's funds are directed towards financing these enterprises, demonstrating a commitment to supporting growth and development within the Kazakhstani economy.
The exact requirements for organizations to obtain the new type of banking license in Kazakhstan are not publicly available in detail. However, based on regional and financial sector practices, it is likely that the process involves the submission of a detailed business plan and financial projections, proof of capital adequacy and financial health, compliance with AML, KYC, and risk management regulations, the appointment of qualified management and compliance personnel, ownership transparency, and regulatory approval of shareholders.
JSC "KMF Bank" joins the ranks of other financial institutions in Kazakhstan, such as BNK Commercial Bank, which received a banking operations license in 2022. The first new bank to receive a license in 2022 was JSC "Commercial Bank Binke" on June 25, 2022.
As of August 1, 2022, JSC "KMF Bank" had total assets of 395 billion tenge and a credit portfolio of 315 billion tenge. The bank is currently in the process of joining the deposit guarantee system, which will allow it to serve physical persons.
In conclusion, JSC "KMF Bank" brings a fresh perspective to Kazakhstan's financial market, with a focus on supporting small and medium-sized businesses. As the bank continues to grow and develop, it will be interesting to see how it contributes to the overall economic growth of Kazakhstan.
JSC "KMF Bank" manages a substantial sum in finances, with a credit portfolio of 315 billion tenge as of August 1, 2022. The bank's strategic focus on small and medium-sized businesses, including those in the agricultural sector, is expected to be financed with over 90% of its funds.
