Halyk Savings Bank of Kazakhstan

The Bank has celebrated its 85's anniversary date in 2008. The history of "Halyk Bank of Kazakhstan" is a history of establishment and development of saving system in Kazakhstan. Joint-stock Company “Halyk Bank of Kazakhstan” was established on the basis of reorganized Savings Bank of the Republic of Kazakhstan. After revolution, in the time of new economic relations, in 1923 in Aktyubinsk was opened first savings (post office) bank and later, in the time of collectivization and super-industrialization, in 1936 in Almaty was opened a branch of USSR Savings Bank. In fact, since 1923 has been started the new phase of development and promotion of savings system into great masses of population. There were opened 335 savings (post office) banks in the republic pending next 4 years after first savings (post office) bank opening in Aktyubinsk. In 1929 was created Republic-wide Savings (Post office) Bank which monitored the activity of all savings (post office) bank in Kazakhstan. In the ensuing years quantity of the banks rose rapidly. Great care was devoted to opening of savings banks directly in factories and mills, collective farms and state farm, post offices, other plants and organizations in order to involve lots of workers, employees and collective farmers in. The nature of socio-economic and financial relations in socialistic community encouraged each soviet citizen could be the depositor of Savings Bank. The global system of mass service of population contributed to experience accumulation of savings system and improvement of established practice of banking in Kazakhstan. Savings (post office) banks were permitted lending of term loan on security of public bonds and other securities. Savings (post office) banks could carry out stock exchange and other financial operations and banking activities. Formation and slow development of net borrowing of nation characterized this time of thrift industry. During that time was issued eight state loans, including three in kind and two in terms of gold. Loans in kind (two grain and sugar) and loans in terms of gold were launched before reforms. By the end of 1960s the number of depositors of savings (post office) banks achieved 1770 thousand people, total deposits equaled to 322,7 mln. Rubles, and average deposit increased to 182 Rubles. Number of savings (post office) banks had been increased by 1,8 times since 1950 to 1960 and at the end of the last made 2805 banks. The development of thrift industry and expansion of savings (post office) banks network in Kazakhstan was achieved mainly due to development of agriculture sector, considerable increase of workers welfare resulted from developing of virgin and derelict lands. Only in 1955 to the share of savings (post office) banks in virgin lands regions: Kokchetav, Kustanai, Pavlodar, North Kazakhstan and Tselinograd fell 44,1% of all personal accounts and 44% of balance on deposits in the republic (Irreplaceable services, M.D. Dzholdasbekov and others, Almaty, 1986). At the beginning of the 1960s, savings banks were involved in operations on rents, utilities and other payments acceptance. Great amount of current accounts of factories, mills, local trade union committees, mutual aid funds, and non—profit social organizations were assigned to savings (post office) banks. Remarkably developed transfer by clearing to payroll accounts of workers, employees and collective farmers under principle of voluntariness. Consolidation of currency was on importance for savings system development. But the reform of 1961, primarily intended as a measure to control money supply and impose issuance restrictions, was not further supported by the reform of the entire economic system and resulted in a mere replacement of banknotes and establishment of a new exchange rate for the Ruble. Since 1963, as the State Bank Of the USSR took the operating control over savings (post office) banks being under the control of Ministry of Finance, the private savings deposit funds had been used to replenish the SB’s credit resources. There was boom of thrift industry at the end of 1960s, which ensured large-size assets made up from private savings to be channeled to crediting of national economy. Banking reform of 1988 scheduled transition into two-tier banking system: the central bank – the specialized banks. The state labor savings bank was reorganized to Savings Bank of the USSR as the state specialized bank for public and legal entities servicing. State independence and gain of sovereignty of the Republic of Kazakhstan marked the beginning of the third, reorganization milestone – transformation and reorientation of functions, structure of banking, and beginning of the Halyk Bank of Kazakhstan development chronology. In December 1990, upon gain of sovereignty, Kazakhstan fell on creation of own banking system that satisfied the requirements of market economy. Already in January 1991 had been enacted the law “On banks and banking activities in Kazakh SSR”, that marked the beginning of banking reform in independent Kazakhstan. In 1992, a year later after official declaration of independence, was established the Savings Bank of the Republic of Kazakhstan, an official and legal successor of which is Halyk Bank of Kazakhstan. In 1993 the Savings Bank was reorganized to an independent legal structure “Halyk Bank of Kazakhstan” owned by the Government of the Republic of Kazakhstan. In addition, in 1995 it was reformed into the Closed Joint-stock Company. The process of reorganization was accompanied by profound change of management of the bank and work style. New management assumed a principal of universalism as a basis of banking activity that were maintained and realized by consistent expansion of bank services and use in banking of the latest information and communication technologies. Towards the end of 1995 "Halyk Bank of Kazakstan" becoming the largest operating bank in the republic and since that time has been successfully keeping achieved positions on the financial market. In July 1998 the Bank was reorganized from Closed joint-stock company with 100% of Government staking to Opened joint-stock company “Halyk Savings Bank of Kazakhstan” by the resolution of the Shareholders’ general meeting. At the same year, there was an increase of share capital in the bank, pursuant to Decrees of the Government of the Republic of Kazakhstan, including the Decree of the Government # 644 dated July 6, 1998 "On principal directions of stepwise privatization of the Joint Stock Company Halyk Savings Bank of Kazakhstan for the years 1998-2001”. In November 2001 the Government of Kazakhstan sold its controlling stake at that time amounting to 33,33% plus one share by auction. Currently Halyk Bank of Kazakhstan is the largest universal second-tier bank of Kazakhstan that has been successfully working for the welfare of its clients for 85 years already, and one of the most reliable and diversified financial organization of Kazakhstan. The modern history of Halyk Bank is not only its privatization process and structural reorganization. It is also process of consistent implementation of the latest banking technologies; expansion of banking; global strategy, directed to complete reservation and modernization of savings deposits system at present-day conditions; creation of “vertically integrated” banking structure with advanced branch infrastructure. It is orientation subject to the latest information communicative technologies, Halyk Bank’s problem solving, such as pension payments, wages payments, acceptance of tax, utilities and other payments, cash settlement services to small and medium-sized enterprises and state bodies.

Address: 97, Rozybakiyev Street, Almaty, 050046, Republic of Kazakhstan

Phone: +7 7272 590 777
FAX: +7 7272 590 271