UPDATE 1-Kazakhstan may limit foreign ownership of banks

* Considers large foreign presence in banking risky

* May introduce legal limitations in future

(Adds details)

ASTANA, Nov 10 (Reuters) - Kazakhstan may limit foreign ownership of banks and other financial companies to reduce risks of a credit crunch, central bank chairman Grigory Marchenko said on Tuesday.

"We... think that, if it becomes necessary, we should look into restoring a legal limit on foreign ownership in the financial sector at 50 percent of aggregate capital in each segment," Marchenko told a government meeting.

Speaking to reporters after the meeting, Marchenko said the measure was not needed at the moment but could become necessary if foreign ownership grows.

"We think that the optimal share of foreign banks is between 30 and 40 percent," he said, adding that a higher figure would create risk of a credit crunch during the next crisis if foreign banks decide to stop lending.

Kazakh banks have been hit hard by the global crisis after years of aggressive growth fuelled by foreign borrowing. Three local lenders went into default this year.

Several global banks including Citigroup (C.N) and UniCredit (CRDI.MI) operate subsidiaries in Kazakhstan.

(Reporting by Raushan Nurshayeva; Writing by Olzhas Auyezov; Editing by Neil Fullick)

((olzhas.auyezov@reuters.com; +7 7272 508500; Reuters Messaging: olzhas.auyezov.reuters.com@reuters.net)) Keywords: KAZAKHSTAN FINANCIAL/

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