Kazakhstan May Consider Merging Central Bank, Regulator - Paper
July 31 2009 - 7:07AM
Dow Jones News
Kazakhstan might merge its financial supervision agency and the
central bank as part of planned post-crisis reforms of its
financial sector, the chairman of the state wealth fund, Kairat
Kelimbetov, told a Kazakh weekly.
Kelimbetov told Panorama in an interview published on its Web
site Friday that the current governor of Kazakhstan's National
Bank, Grigoriy Marchenko, could be a suitable person to lead the
merged agency.
"The National Bank has retained its cadres and professionalism
and can boost the quality of regulation," Kelimbetov was quoted as
saying.
A spokeswoman for the fund has confirmed Kelimbetov's
comments.
Kelimbetov said the merged agency should be led by "a
charismatic person" who can ward off pressure exerted on him.
"[Marchenko] is able to say no, defend his point of view on the
highest level even if he has to resign," he said.
Kazakh banks have been hit hard by a global financial crisis and
a sharp economic slowdown. Many of them borrowed extensively from
foreign markets to fund their rapid growth.
Newspaper Web site: www.panorama.kz
-By Kadyr Toktogulov, Dow Jones Newswires; +7 701 726 4327;
kadyr.toktogulov@dowjones.com