Bureau of National statistics
Agency for Strategic planning and reforms of the Republic of Kazakhstan
Financial sector
Analytical accounts of the depository organizations
Revision date: June 2021

Analytical accounts of the Depository Organizations
Kazakhstan: SDDS Metadata

Contact person

Mr. Almat Abdrakhmanov
Chief of Monetary Statistics Division
Department of Financial Market Statistics
National Bank of Kazakhstan
Nur-Sultan, 57А, Mangilik Yel Avenue, Z05T8F6

Phone:

8 (7172) 77-55-58

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

The given data includes the analytical accounts of the Depository Organizations, in millions of Tenge. Data cover the consolidated balance sheet of the commercial banks operating in Kazakhstan, balance sheet of the NBK, including the National Fund’s assets managed by NBK. For the period from December 2003 till December, 2005 accounts of credit companies were included. Since January 2006 accounts of credit organizations are excluded from analytical accounts of deposit organizations and from monetary aggregates due to the amendments to the legislation of Republic of Kazakhstan on licensing and consolidated supervision according to which powers of the state body responsible for regulation and supervision of financial market and financial organizations are not extended on credit organizations. The accounts of the banks, which are being in the process of liquidation, are not covered by the Depository Organizations analytical accounts.
The following data are provided:
· (1) Monetary aggregates (the position at the end of the month) are (a) currency in circulation M0, (b) narrow money M1, (c) broad money M2, and (d) money supply M3.
· M0 is defined as currency outside Depository Organizations (notes and coins in the national currency in circulation minus cash holdings in NBK, commercial banks and credit companies);
· M1 is defined as M0 plus transferable deposits of nonbank legal entities and households in national currency;
· broad money M2 equals M1 plus other deposits in national currency and transferable deposits in foreign currency of nonbank legal entities and households.
· Money supply M3 includes M2 plus other (nontransferable) deposits in foreign currency of nonbank legal entities and households. Deposits of local governments have been included in the monetary aggregates since December 2001.
· Net claims to the Central government (until December 2001 data included General Government data only).
· Domestic credit to the rest of the economy, including claims on financial sector (other than banks and credit companies), private and public nonfinancial enterprises, region and local government (since December 2001), noncommercial organizations serving households and population.
· Net foreign assets of the Depository Organizations with details on assets and liabilities. A foreign position differs from domestic positions on the basis of residency.
· Other net domestic assets - with breakdown by other financial assets, nonfinancial assets, other liabilities and capital accounts.
· The National Bank financial assets measured at fair value, except for investments held to maturity and loans and receivables not held for trading and financial assets that do not have quoted market prices in an active market whose fair value cannot be determined with sufficient reliability.
The valuation of financial instruments of the external market is made daily according to the quotations established at the time of closing of trades in the financial market for the previous working day on the basis of information from the sources used in the priority order specified in the regulatory legal act of the National Bank regulating implementation of monetary activity in National Bank.
To account for foreign currency, the weighted average exchange rate of tenge to foreign currencies is applied, which was formed as of 15-30 Astana time following the results of two sessions of the Kazakhstan stock exchange, morning (main) and day (additional).
The valuation of foreign currencies, which are not traded on the Kazakhstan stock exchange, is calculated based on the cross-rates prevailing as of 16-00 Astana time on the valuation day, in accordance with the quotes received through the channels of news agency REUTERS and Bloomberg .
Revaluation is carried out at each change in the weighted average exchange rate of tenge to foreign currencies and on the last day of the month.

Periodicity

Monthly

Timeliness

To the 25th day following the reporting month

Access by the Public

Advance dissemination of release calendar

NBK disseminates calendar of statistic data issue in advance at the National Bank’s web-site in Internet.

Simultaneous release to all interested parties.

Monetary statistics is available at the NBK's web-site in Internet for all interested parties and published in the “Statistical Bulletin”.

Integrity

Provision terms and conditions under which official statistics are produced, including data confidentiality of individual responses

Work on the compilation of monetary statistics is carried out in accordance with Articles 7 and 8 of the Law of the Republic of Kazakhstan "On the National Bank" and Article 54 of the Law of the Republic of Kazakhstan "On banks and banking activities in the Republic of Kazakhstan", which provides that "banks are obliged to provide at the request of the authorized body any information about their funds, including those outside the Republic of Kazakhstan, the amount of deposits and loans granted, made and produced banking operations and other information, including information on the, components of Bank secrecy".
According to Article 8 of the Law of the Republic of Kazakhstan "On the National Bank", one of the functions of the National Bank is the formation and dissemination of statistical information on the review of the financial market, monetary and banking statistics. Confidentiality of information on respondents is established by Article 54 of the Law "On banks and banking activities in the Republic of Kazakhstan": "Employees of the authorized body for disclosure or transfer to third parties of information obtained in the course of the rights established by paragraphs 2 and 3 of this article shall be liable in accordance with the laws of the Republic of Kazakhstan".
In addition, article 501 of the Code of the Republic of Kazakhstan "On administrative offences" provides for "penalties for "illegal disclosure of primary statistical data, statistical information and (or) databases that identify the Respondent, an official of the state statistics, the subordinated organization of the authorized body in the field of state statistics, except in cases provided for in article 8 of the Law of the Republic of Kazakhstan "On state statistics», if these actions do not contain signs of a criminal act."

Identification of internal government access to data before release

Users outside the NBK do not have access to the statistical data prior their official publication

Identification of ministerial commentary on the occasion of statistical releases

No comments by state bodies are applied.

Provision of information on data revision and notification of major changes in methodology

The banks do not provide revised historical data in case of reclassification of the accounts determined in the current period. The monetary statistics published by the National Bank are final, except for data on external assets, which are updated and published at the end of the reporting month, as well as data at the end of December, based on preliminary data. Major changes to the methodology are provided well in advance of the changes.

Quality

Dissemination of documentation on methodology and sources used in preparing of statistics

Short description on Monetary Survey methodology is published in the Statistical Bulletin, which is available both in Russian and Kazakh and disseminated at the NBK 's web-site in Internet.

Dissemination of documentation on methodology and sources, supporting cross-checks and assurance of reasonableness of statistics

Monetary statistics data are posted at the NBK's web-site and published in the monthly Statistical Bulletin in the following way: the annual data is showed for the last five years; and the monthly data – for the current year.
The data breakdown is following:
· disaggregated data on the balance sheets of the National Bank and commercial banks;
· customers’ deposits;
· loans to the customers;
· interest rates on deposits and loans.

Dissemination format page:

Information published twice a month: the monetary review of the banking system is initially published on the basis of preliminary data and at the end of the reporting period - on updated data (on external assets), in the state, Russian and English languages.

Monthly:

Statistical Bulletin of NBK in Kazakh, Russian and English.

Electronic:

www.nationalbank.kz

Methodological framework, concepts, definitions and classifications

Methodological framework:

The Monetary Survey is compiled monthly based on the balance sheet data of the National Bank, commercial banks (referred to as second tier banks under the laws of the Republic of Kazakhstan). For the period from December 2003 to December 2005, the Monetary Survey included accounts of credit unions in accordance with the analytical structure of the IMF Monetary and Financial Statistics Manual (MMFS). From January 2006 the accounts of credit partnerships are excluded from the monetary survey due to changes in the legislation of the Republic of Kazakhstan on licensing and consolidated supervision, as a result of which credit partnerships are not subject to the powers of the state body that regulates and supervises the financial market and financial organizations.

The following main aggregates are used:

Monetary aggregates consisting of cash in circulation M0, narrow money supply M1, broad money supply M2, and money supply M3.
Domestic credit, disaggregated by sector, i.e: net claims on the central Government, claims on local and regional governments (until December 2001, data on the general Government were reported), claims on non-banking financial institutions, claims on state and non-state non-financial institutions (until December 2001, data were provided for non-financial institutions as a whole), claims on nonprofit institutions serving households, claims on households. Net claims on the central government are shown on a gross basis, i.e. gross claims on the central government (broken down by instrument: loans, securities and other accounts receivable) and gross liabilities to the government (broken down by instrument: deposits, loans and other accounts payable). Claims on other sectors of the economy are also itemized by instrument.
Net foreign assets of deposit-taking corporations are broken down by gross claims on non-residents in freely convertible currencies (itemized by instruments), gross liabilities to non-residents in freely convertible currencies (itemized by instruments), and other net foreign assets in non-convertible currencies (broken down by gross claims and liabilities).
Other net domestic assets - broken down by other financial assets, non-financial assets, other liabilities and equity accounts.

Classification system:

In accordance with the requirements of the Monetary and Financial Statistics Manual (MFSM), monetary statistics in Kazakhstan distinguish between claims and liabilities of banks with regard to residents and non-residents. The definition of "resident-non-resident" in effect in Kazakhstan does not correspond to the definition published in the Balance of Payments Manual (5th edition 1993). The main difference concerns the center of economic interest. The Balance of Payments Manual considers that in most cases an institutional unit has a center of economic interest in a country if it already carries out or intends to carry out economic activities and economic transactions in that country on a large scale (individuals for at least one year).
According to the Law of RK of December 24, 1996 "On currency regulation" residents are individuals with a permanent residence in the Republic of Kazakhstan, including those temporarily located abroad or in the public service of the Republic of Kazakhstan abroad, as well as all legal entities established in accordance with the laws of the Republic of Kazakhstan, with a location in Kazakhstan, as well as their branches and representative offices located in Kazakhstan and abroad. In addition, residents are diplomatic, trade and other official representative offices of the Republic of Kazakhstan located outside the Republic of Kazakhstan.
Non-residents are all legal entities, their representative offices and branches, as well as individuals who are not specified in the concept of "residents".
Transactions with other sectors of the economy are grouped as claims and liabilities of commercial banks (second-tier banks) to residents (domestic economic entities) by mutually balancing sectors according to the RCFS: central (national) bank, non-bank financial institutions, state non-financial institutions, non-state non-financial institutions, central government, regional and local governments, non-profit institutions serving households, households. One minor exception is that the NB survey does not fully classify some claims by sector (in the Statistical Bulletin, these claims are reported under "claims on other sectors of the economy"). In addition, liabilities of the NFRC (National Fund of the Republic of Kazakhstan) are not classified by any sector of the economy.

Definition of Monetary Aggregates

M0 is defined as cash outside depository corporations (banknotes and coins in national currency in circulation minus cash held by the NB and banks); M1 is defined as M0 plus transferable deposits in national currency of non-bank legal persons and households; broad money M2 includes M1 plus other deposits in national currency and transferable deposits in foreign currency of non-bank legal persons and households. Money supply M3 includes M2 plus other foreign currency deposits of non-banking legal entities and households.

Data coverage

Institutional coverage.

Monetary survey data is based on the balance sheets of the NB and commercial banks. The balance sheets of the NB and commercial banks include acacounts of head offices and branches located in Kazakhstan. In addition, in accordance with the statutory definition of residency under the Law of the Republic of Kazakhstan "On Currency Regulation", accounts of branches located outside Kazakhstan are also included in the balance sheets of commercial banks. This inconsistency in reflecting the economic attribute of residency under the MFSM and the fifth edition of the Balance of Payments Manual (BPM5) currently results in transactions of a foreign branch of a commercial bank being erroneously included in monetary accounts. The central bank review covers the consolidated accounts of the NB's head office in Nur-Sultan and its 17 branches; the remaining 11 subsidiaries are included in the NB's consolidated balance sheet.
The accounts of banks in the process of liquidation are not included in the analytical accounts of depository institutions.

Accounting principles

Accounting practices

At the National Bank, financial assets are measured at fair value, i.e. at actual cost. Securities are recorded at fair value and revalued at least once a month on the date of sale/maturity. The securities are revalued according to the quotations (prices) established at the time of closing of trading on the financial market, on the penultimate working day of the calendar month and/or the day preceding the day of sale of the securities. From the moment the securities accounting is automated, revaluation of the securities is made on a daily basis. From the moment the Kazakhstan Stock Exchange establishes official quotations (prices) for the securities in national currency issued for circulation in Kazakhstan, revaluation of these securities is carried out at the quotations (prices) established at the moment of closing of trading at the domestic stock exchange on the last business day of the calendar month or the last day of trading these securities and the day of sale of these securities.
Securities acquired for the purpose of making capital investments shall be accounted for at their purchase price. Throughout the holding period, the value of this category of securities shall not be revalued, except for the organizations having negative equity capital.
With regard to the formation and use of special and general provisions (provisions). At the end of a financial year or in the period of final turnovers special provisions (provisions) are formed at the expense of the National Bank on the basis of the decision of the standing inventory commission of the National Bank on the results of the annual inventory of banking and non-banking assets against doubtful banking and non-banking assets and possible losses of the National Bank, and general provisions (provisions) are formed at the expense of the National Bank at the expense of retained net income of the National Bank for the reporting period.

Securities in commercial banks and credit partnerships are accounted for in three categories:
· securities held for trading;
· available-for-sale securities;
· held-to-maturity securities.

The first two categories of securities are recorded at fair value. These securities in national and foreign currency shall be accounted at fair (market) value by means of their reassessment according to the quotations (prices) established at the external or internal financial market depending on the accounting policy of the bank (daily, weekly, monthly and/or at the moment of sale/maturity).

The third category of securities both in national and foreign currency shall be accounted at depreciated costs, using the effective interest rate. There is no revaluation of these securities.

Investments in the capital of associated companies shall be accounted depending on the method of accounting of investments chosen by the bank: Equity accounting, under which investments are initially recognized at cost and then adjusted for post-acquisition changes in the investor's share of net assets of an investee; Cost accounting, under which investments are initially recognized at cost. Income from investments is recognized in the income statement only to the extent that the investor receives dividends from accumulated net income of the investee arising after the acquisition date.

Investments in the capital of subsidiaries are also accounted for depending on the method chosen by the bank:
at actual cost;
according to the participation method;
or as financial assets available for sale as it has been described above.
The items expressed in foreign currency shall be converted into the national currency using the market exchange rate of tenge.

Main sources of information

Data sources for the central bank and Data sources for other depository institutions.

The basis for the NB's and second-tier banks' (STB) monetary review is their monthly balance sheets. Commercial banks submit monthly balance sheets and statistical reporting forms to the NB. The balance sheet accounts of the NB and STBs are grouped on the basis of residence into external and internal assets/liabilities. Domestic assets/liabilities are grouped by sector of the economy.

Securities owned by the NFRK are not included in the balance sheet of the NB, but to ensure transparency of the balance sheet in the NB review are included as a separate line in the net foreign asset with a balancing entry in the liabilities in the net domestic asset item.

Practical features of data development

Valuation/Sampling.

Banks submit their itemized balance sheet reports electronically, which are then entered into the NB Automated Information System "Statistics" (AIS "Statistics").
The data of the detailed balance sheet reports submitted by banks are subject to automated cross-checking with additional information on loans and deposits. The "Statistics" system automatically outputs the report on error with indication of any discrepancies between the data submitted by banks.
The detailed balance sheet data are subject to reconciliation with the second-tier banks' balance sheet data. The National Bank receives data on itemized balance sheets and groups accounts to compile a monetary survey of depository institutions and calculate monetary aggregates.
Year-end data are reported twice. Final year-end data for December (including final turnovers) are compiled later due to established rules for auditing year-end data. Preliminary end-of-December data are used to compile an overview of depository institutions until final end-of-December data are available. The basis for compiling the monetary survey of the NB and the STBs is their monthly itemized balance sheets.

Analytical accounts of the Central Bank
Revision date: June 2021

Kazakhstan:
SDDS Metadata
SDDS Data Category: Analytical accounts of the Central Bank

Contact person:

Almat Abdrakhmanov
Chief of Monetary Statistics Division
Department of Financial Market Statistics
National Bank of Kazakhstan
Nur-Sultan, 57А, Mangilik El Avenue, Z05T8F6

Phone:

8 (7172) 77-55-58

Coverage, Periodicity, and Timeliness

Coverage characteristics

The data are disseminated in millions of tenge on analytical accounts of the National Bank of Kazakhstan (NBK), which are compiled based on the NBK balance sheet accounts. National Fund's assets, managed by the NBK, are also included in the analytical accounts of the central bank.
The following data are disseminated:
· The monetary base (comprising cash outside the NBK, deposits of commercial banks, and transferable deposits of nonbank financial corporations, current accounts in the national currency of public and private nonfinancial corporations);
· Net claims on Central Government;
· Domestic credit to the rest of the economy (including claims on banks, nonbank financial corporations and households);
· Foreign assets and foreign liabilities of the NBK (including the foreign assets of the National Fund of the Republic of Kazakhstan managed by the NBK);
· Other net domestic assets by other financial assets, non-financial assets, other liabilities and capital accounts.

Periodicity

Monthly

Timeliness

The 6th business day after the reference month.

Access by the Public

Advance dissemination of release calendar.

An advance release calendar that gives one-year-ahead notice of the precise release dates is disseminated at the internet-resources of the NBK and the National coordinator (Statistics Committee).

Simultaneous release to all interested parties

Analytical accounts of the NBK are released simultaneously for all interested parties. These accounts are published on the NBK Internet-resource in section “Monetary and banking statistics” and in the NBK official edition “Statistical Bulletin”.

Integrity

Provision terms and conditions under which official statistics are produced, including data confidentiality of individual responses

The compilation and dissemination of the monetary statistics are governed by the terms and conditions of the Law of the Republic of Kazakhstan “On the National Bank”, Articles 7, 8 and the Law “On Banks and Banking Activity”, Article 54, which provides the following: “the banks must provide the National Bank with any requested information about their funds, including those outside the Republic of Kazakhstan, the amount of deposits attracted and loans granted, banking operations and other information including the data, relating to banking secrecy".
Under the Law of the Republic of Kazakhstan “On the National Bank”, Article 8, the compilation and dissemination of statistical information for financial market review, monetary and banking statistics is one of the key functions of NBK.
Confidentiality of information about respondents is established by Article 54 of the Law "On Banks and Banking activities in the Republic of Kazakhstan": "Employees of the authorized body shall be liable in accordance with the Laws of the Republic of Kazakhstan for disclosure or transfer to third parties information obtained under the implementation of the rights established by paragraphs 2 and 3 of this article”.
Further, article 501 of the Code of the Republic of Kazakhstan "On administrative offences" provides for penalties for "unlawful disclosure of primary statistical data, statistical information and (or) databases allowing to identify the respondent by an official of the state statistics bodies, except in cases provided for by article 8 of the Law of the Republic of Kazakhstan "On State statistics”, if these actions do not contain signs of a criminal act".

Identification of internal government access to data before release

Users outside the NBK do not have access to the data before their official publication

Identification of ministerial commentary on the occasion of statistical releases

No comments by state bodies are applied.

Provision of information on data revision and notification of major changes in methodology

The data of the NBK Monetary Survey, published by the National Bank, are final, with the exception of information for the International Reserves and the National Oil fund’s foreign assets, which are published at the beginning of the reporting month on base the preliminary reports and at the end of it – on base the final ones. Any major changes in the methodology are provided for in the methodological comments and/or in an explanatory notes to the data tables.

Quality

Dissemination of documentation on methodology and sources used in preparing of statistics

Short description of methodology, which is used under the Monetary Statistics compilation, is published in the Statistical Bulletin, in Russian and Kazakh versions, and also disseminated at the NBK internet-resource in the “Methodology” subsection of the “Monetary and Banking Statistics” section.

Dissemination of documentation on methodology and sources, supporting cross-checks and assurance of reasonableness of statistics

The NBK Monetary Survey is compiled in accordance with the IMF methodology (Monetary and Financial Statistics Manual and Compilation Guide).
Dissemination of the Monetary Survey is implemented by monthly publishing on the NBK Internet- resource, in the official edition "Statistical Bulletin of NBK", in the NBK press- release and quarterly - in the NBK official edition “The Balance of Payments and External Debt of the Republic of Kazakhstan”.
Data on gross International reserves which are published in the “Monetary and Banking Statistics” section are reconciled with data on International reserves and foreign currency liquidity published in the “External Sector Statistics” section.

Dissemination format page:

Information published twice in month: the NBK monetary survey and data on International reserves and assets of the National Fund are published at the beginning of the reporting month – on base of preliminary data and at the end of the reporting month – on base the final data (on external assets), in the Kazakh, Russian and English languages.

Monthly:

Statistical Bulletin of NBK in Kazakh, Russian and English.

Electronic:

www.nationalbank.kz

Methodological framework, concepts, definitions and classifications

Methodological framework:

The Analytical Accounts of the NB are based on the NB's Accounting Accounts. National Fund assets managed by the NB are included in the analytical accounts of the NB.

The NB monetary survey data include:
· monetary base, which is formed from cash outside the NB, commercial bank deposits, transferable deposits from non-bank financial institutions, and current accounts in national currency of public and non-public non-financial institutions;
· net claims on the central government (until December 2001 the data were presented as a whole for the government, without a breakdown);
· domestic credit to the rest of the economy, including claims on banks, non-bank financial institutions and households;
· foreign assets and foreign liabilities of the National Bank (including foreign assets of the National Fund of the Republic of Kazakhstan managed by the National Bank);
· other net domestic assets (including other financial assets, non-financial assets, other liabilities and equity accounts).

Classification system:

In accordance with the requirements of the Monetary and Financial Statistics Manual (MFSM), monetary statistics in Kazakhstan distinguish between claims and liabilities of banks with regard to residents and non-residents. The definition of "resident-non-resident" in effect in Kazakhstan does not correspond to the definition published in the Balance of Payments Manual (5th edition 1993). The main difference concerns the center of economic interest. The Balance of Payments Manual considers that in most cases an institutional unit has a center of economic interest in a country if it already carries out or intends to carry out economic activities and economic transactions in that country on a large scale (individuals for at least one year).
According to the Law of RK of December 24, 1996 "On currency regulation" residents are individuals with a permanent residence in the Republic of Kazakhstan, including those temporarily located abroad or in the public service of the Republic of Kazakhstan abroad, as well as all legal entities established in accordance with the laws of the Republic of Kazakhstan, with a location in Kazakhstan, as well as their branches and representative offices located in Kazakhstan and abroad. In addition, residents are diplomatic, trade and other official representative offices of the Republic of Kazakhstan located outside the Republic of Kazakhstan.
Non-residents are all legal entities, their representative offices and branches, as well as individuals who are not specified in the concept of "residents".
Transactions with other sectors of the economy are grouped as claims and liabilities of the NB to residents (domestic economic entities) by mutually balancing sectors according to the MFSM: banks (second level banks), non-bank financial institutions, state non-financial institutions, non-state non-financial institutions, central government, households. One minor exception is that the NB survey does not fully classify some claims by sector (in the Statistical Bulletin, these claims are reported under "claims on other sectors of the economy"). In addition, liabilities of the NFRK (National Fund of the Republic of Kazakhstan) are not classified by any sector of the economy.

Data coverage

Institutional coverage.

The central bank review covers the consolidated accounts of the NB's head office in Nur-Sultan and its 17 branches; the remaining 11 subsidiaries are included in the NB's consolidated balance sheet.
Assets belonging to the National Fund of the Republic of Kazakhstan are not included in the NB's balance sheet, but are included as a separate line item in the NB's Monetary Survey with a balancing entry in the Net Foreign Assets line item for liabilities under Net Domestic Assets to ensure balance sheet transparency.
The balance sheets of the NB and commercial banks include accounts of head offices and branches located in Kazakhstan. In addition, in accordance with the statutory definition of residency under the Law of the Republic of Kazakhstan "On Currency Regulation", accounts of branches located outside Kazakhstan are also included in the balance sheets of commercial banks. This inconsistency in reflecting the economic attribute of residency under the MFSM and the fifth edition of the Balance of Payments Manual (BPM5) currently results in transactions of a foreign branch of a commercial bank being erroneously included in monetary accounts.
The NB is aware of the deviations of the national monetary statistics rules in the field of institutional coverage from the good international practice. The NB is considering amending the relevant instructions on reporting rules in order to use for statistical purposes a definition of residency that would be consistent with the recommendations of the BPM5. In addition, the NB has expanded institutional coverage (beginning with data for December 2003) to include accounts of credit partnerships in the survey of depository institutions (money supply survey).

Accounting principles

Accounting practices

At the National Bank, financial assets are measured at fair value, i.e. at actual cost. Securities are recorded at fair value and revalued at least once a month on the date of sale/maturity. The securities are revalued according to the quotations (prices) established at the time of closing of trading on the financial market, on the penultimate working day of the calendar month and/or the day preceding the day of sale of the securities. From the moment the securities accounting is automated, revaluation of the securities is made on a daily basis. From the moment the Kazakhstan Stock Exchange establishes official quotations (prices) for the securities in national currency issued for circulation in Kazakhstan, revaluation of these securities is carried out at the quotations (prices) established at the moment of closing of trading at the domestic stock exchange on the last business day of the calendar month or the last day of trading these securities and the day of sale of these securities.

Securities acquired for the purpose of making capital investments are accounted for at their acquisition price. Throughout the holding period, the value of this category of securities shall not be reevaluated, except for organizations having negative equity capital.

With regard to the formation and use of special and general provisions (provisions). At the end of a financial year or in the period of final turnovers special provisions (provisions) are formed at the expense of the National Bank on the basis of the decision of the standing inventory commission of the National Bank on the results of the annual inventory of banking and non-banking assets against doubtful banking and non-banking assets and possible losses of the National Bank, and general provisions (provisions) are formed at the expense of the National Bank at the expense of retained net income of the National Bank for the reporting period.

Valuation of instruments denominated in foreign currencies.

Items denominated in foreign currency are converted on a daily basis into national currency using market exchange rate of tenge - weighted average exchange rate of tenge to foreign currencies, formed at the morning (main) session of the Kazakhstan Stock Exchange as of 11.00 a.m. Almaty time of the previous business day. The valuation of foreign currencies not traded on the Kazakhstan Stock Exchange is calculated on the basis of cross-rates formed as of 3 p.m. Almaty time on the evaluation day, in accordance with the quotations received through the REUTERS information agency channels.

Main sources of information

Data Sources.

The NB's analytical accounts are based on the National Bank's balance sheet. Assets of the National Fund of the Republic of Kazakhstan managed by the NB are recorded on a separate balance sheet, but are included in the NB review as a separate line item in net foreign assets and a balancing entry in the liabilities section of net domestic assets.

Practical features of data development

Year-end data are presented twice. The final end-of-December data for the NB (including final turnovers) are compiled later due to the established rules for auditing year-end data. Preliminary end-of-December data are used to compile the NB review until the final end-of-December data are available. The basis for compiling the NB's monetary review is its monthly balance sheet.