The National Bank of Kazakhstan and the Financial Supervision Committee of South Korea have ratified a memorandum for cooperation in the supervision of financial organisations and its trans-regional subsidiaries, exchange of information about the state of affairs in the financial market and the main norms and requirements in the area of financial supervision between the two countries. Chairman of the National Bank of Kazakhstan Grigory Marchenko said that the ratification of this document was very important. He said that as of January 2013 investments from South Korea to Kazakhstan equaled almost 1.6 billion US dollars and investments from Kazakhstan to Korea amounted to 2.6 billion US dollars. The Chairman of South Korea’s Financial Services Commission Kim Seok Dong has said that during 21 years after the establishment of diplomatic relations between the two countries, South Korea and Kazakhstan achieved considerable results in the financial sector and the economy. He said that the ratification of the memorandum brings mutual relations to a completely new level. During the meeting attendees have also discussed further measures in the strengthening of bilateral relations in the area of financial control and supervision.
In recent years the National Bank of Kazakhstan has focused on increasing the rate of trust towards the stock market which requires further involving of new stakeholders in this market. And first of all these should be the organisations interested in cheap mid- and-long term liquidity. And the first to emerge are the banks of Kazakhstan. Deputy Chairman of the National Bank of Kazakhstan Daniyar Akishev has said that after the crisis the banks faced a shortage of long-term funding resources and access to external funds was closed. Consequently, he added, the banks relied on the funds of their depositors and enterprise funds in the form of accounts that exist in these banks. The National Bank has already taken measures to accomplish the Concept of long-term funding of bonds of second-tier banks by institutional investors, first of all, saving pension funds, due to which the second tier banks will be able to disburse loans at the rate lower than the existing rates and lower than 12%. The Deputy Chairman of the National Bank of Kazakhstan Daniyar Akishev has said that the banks cannot extend credits to the economy disposing such funding base. He added that the National Bank decided that it was necessary to make more active use of Pension Funds which currently have a limited list of investing instruments. The National Bank of Kazakhstan hopes that in the second six months of 2013 the banks will be provided with long-term funding to some extent. Consequently, the borrowers will also feel that long term funding is available.
An efficient compensation system in minor accidents will give grounds for the insurance companies to provide an appropriate loss rate, market stakeholders believe. Experts note that despite the fact that the total volume of the market of compulsory automobile liability insurance increased in 2012 to 21 billion tenge, approximately 30% of this market is still in the shadow. If these losses in small car crashes are regulated efficiently, this shadow part will shift to the legal domain. The Kazakhstan institute of insurance ombudsman is currently involved in development of the loss rate management project. Kazakh Insurance Ombudsman Vitaly Veriyovkin has said that the insurance ombudsman institute is developing in the right direction and fulfils the function imposed on it which is mediation and pre-court dispute resolution. He said that this would be good support for the courts as well to unload them from the cases related to insurance. The institute of insurance ombudsman started up the loss rate management project. It provides the client and the insurance company the possibility to choose instruments which they can use to settle the insurance case. The insurance ombudsman noted that in 2013 the main focus will be law-making activity. As is known, the traffic police committee proposed the draft law on road traffic to the lower house the Majilis, for consideration. According to the protector of human rights, the document directly concerns the interests of the insurers and the car owners, since it stipulates for the resolution of issues related to applying the European Protocol which provides documentation of road accidents without traffic police involvement.
Kazakhstan insurers support the idea of comprehensive and voluntary growth of the insurance market. However, last year’s trends do not change. As always, any growth of insurance premiums is related to an increase in payments. In late 2012 it reached the record amount of 159 billion tenge. However, the amount of insurance premiums increased and exceeded the recession period rate. In 2012 this figure added up to 211 billion tenge. A great many people support implementing new kinds of voluntary insurance which will undoubtedly increase the profit of the company to 300 billion.
The number of tourists travelling abroad increased by 4,1% in the developing countries and by 3,6% in the developed countries. The leading rate of growth is observed in the Asian-Pacific region where the number of tourists increased by 7%. In 2012 the expenses of Chinese and Russian tourists spent abroad increased by 42 and 31% respectively. Among the 10 leading tourist destinations, profits substantially increased in Hong Kong, the USA, the United Kingdom and Germany. The World Tourism Organisation reports that international tourism will be further developed in 2013 despite the complicated situation in the world economy. Firstly, this is encouraged by significant growth of tourists from China and Brazil going abroad. Secondly, large travel companies have developed adaptation programmes for any emergency situations. These two factors served as the reasons to reaching positive dynamics in the number of international tourists last year.