The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published its banking sector update showing that assets across 23 second-tier banks rose 1.9% in July to KZT 75.6 trillion as of Aug. 1, 2026, largely because of growth in liquid assets. Highly liquid assets represented 30.7% of total assets. The loan portfolio increased 0.4% to KZT 42.1 trillion, driven by a 1.2% rise in household lending to KZT 26.1 trillion, while business lending declined 0.7% to KZT 16 trillion following large early repayments and foreign currency loan revaluation. New lending totaled KZT 3.8 trillion, up 10.7% from July 2025, including a 23.6% increase in new business loans. Loans more than 90 days past due remained at 4.1% of the portfolio, or KZT 1.9 trillion, with provision coverage of 60.4%. Resident deposits increased 1.5% to KZT 50.9 trillion, while deposit dollarization fell to 19.1% as tenge deposits grew and the currency strengthened against the U.S. dollar. Capital rose 1.9% to KZT 11.4 trillion, with core and total capital adequacy ratios of 19.9% and 20.7%, respectively. Banks recorded KZT 1.396 trillion in net profit from the start of 2026, down 14.9% from the corresponding period of 2025, while return on assets and return on equity eased to 3.5% and 23.2%.