Improving Asset Quality
The Korea Asset Management Corporation (KAMCO) held a policy advisory meeting on June 16 and 17 at the central bank of Kazakhstan. A part of the Knowledge Sharing Program led by the Ministry of Strategy & Finance of Korea, the conference was to improve Kazakhstani banks’ asset quality and strengthen the financial market of Kazakhstan by means of non-performing loan disposal.
KAMCO had signed an MOU with the central bank to that end in January this year and conducted related research for six months. At the conference, the outcome of the research on how to deal with distressed debts was shared with the central bank and its arm serving the purpose, the Fund of Problem Loans (FPL).
Specifically, KAMCO mentioned the restructuring of insolvent financial institutions, expansion of the scope of debt undertaking by the FPL, establishment of a bad debt evaluation system using statistical data on court auctions, real estate prices, and the enactment of laws for financial market restructuring.
“By taking the opportunity, we could share our know-how and experience regarding the disposal of non-performing loans in Kazakhstan that have increased rapidly since the financial crisis of 2008,” said KAMCO director Lee Jong-jin.