Non-performing loans less provisions reached 290 KZT bil in fourth quarter of 2016 in Kazakhstan, according to the National Central Bank. This is 26.4 % less than in the previous quarter.
Historically, non-performing loans less provisions in Kazakhstan reached an all time high of 1,160 KZT bil in third quarter of 2012 and an all time low of 70.7 KZT bil in first quarter of 2008. When compared to Kazakhstan's main peers, non-performing loans less provisions in China amounted to -1,155 CNY bil, 3.56 KGS bil in Kyrgyzstan, 1,626 RUB bil in Russia and 83.4 UZS bil in Uzbekistan in fourth quarter of 2016.
Kazakhstan has been ranked 10th within the group of 72 countries we follow in terms of non-performing loans less provisions.
Loan loss provisions (also known as "valuation allowance" and "valuation reserve") are an expense creditors budget as an allowance for bad loans.
Loan loss provisions (also known as "valuation allowance" and "valuation reserve") are an expense creditors budget as an allowance for bad loans. Provisions are created for non-performing loans, which are loans that are in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms or a banking regulator. The amount of provisions needed depends very much on the likelihood of the loan not being repaid, the quality of the loan collateral (such as real estate for a mortgage loan, which could be sold when the loan defaults), or bank regulations, for example.