The reprivatisation of restructured banks rescued by the sovereign holding company Samruk-Kazyna in 2009 promises to precipitate a much-needed banking consolidation in Kazakhstan. The country has 38 banks, but this number could be reduced by as much as 10% if mergers go through.
The catalysts in the process of banking consolidation are local magnate Bulat Utemuratov, who is currently seeking to push together Alliance and Temir banks, and Kazkommertsbank (KKB), with its new partner Kenges Rakishev, which is seeking to acquire BTA Bank. Both deals are currently under negotiation with Samruk-Kazyna, which took over BTA and Alliance, and spun Temir out of BTA, during the financial crisis.