December 30, 2019 / 10:36 AM / 22 days ago

UPDATE 2-Kazakh central bank says AQR revealed $1.2 bln in extra capital needs

* Asset quality review shows additional capital requirements

* On consolidated basis, banks already have those covered

* It remains unclear whether there are individual gaps

* Regulator to publish bank-by-bank data on Feb.28 (Writes through with details)

ALMATY, Dec 30 (Reuters) - The first stage of a review of the asset quality of the 14 largest Kazakh banks has led to a 450 billion tenge ($1.2 billion) increase in their capital requirements, Kazakhstan’s central bank said on Monday.

“...Additional capital requirements needed to cover risks are estimated at 3% of assets, or 450 billion tenge for the 14 banks that participated (in the review),” Oleg Smolyakov, deputy head of the financial supervision agency, told a briefing.

Taken all together, banks already have that capital as well as substantial reserves in excess of it, Smolyakov said. He declined to say whether any individual banks needed extra capital.

The central bank said it would publish individual bank data on Feb. 28 after discussing it with lenders and agreeing action plans with them.

Sources told Reuters this month the Kazakh authorities planned to provide more than $1 billion in aid to at least four local banks after the asset quality review revealed holes in their balance sheets that require capital injections.

The oil-producing Central Asian nation has already spent more than $13 billion on bank bailouts but its banking sector remains riddled with bad loans after a property price crash and a series of currency devaluations. (Reporting by Olzhas Auyezov; Writing by Andrey Ostroukh; Editing by Giles Elgood)

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