Kazakhstan May Consider Merging Central Bank, Regulator - Paper

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; [phone]; [e-mail]