Halyk Bank CEO explains why banks stop lending to businesses
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Halyk Bank CEO Umut Shayakhmetova said high interest rates make loans unaffordable for companies, pushing businesses toward deposits instead of borrowing. The state's growing role in the economy is crowding out private capital, she added. Banks face a structural shift as corporate lending slows.
High Rates and State Crowding
Shayakhmetova cited the National Bank's base rate at 13.5% as a key factor deterring corporate borrowing. Businesses find loan servicing too expensive, leading many to park funds in deposits yielding 14-15% annually. The state's expansion into sectors like energy and infrastructure further reduces opportunities for private lenders.
Deposit Preference Shift
Entrepreneurs increasingly prefer deposits over loans, reversing the traditional bank business model. According to Halyk Bank data, corporate deposits grew 18% year-on-year in Q1 2026, while lending rose only 4%. This trend pressures bank margins and forces lenders to seek alternative revenue sources.
What's Next
The National Bank is set to review its base rate on June 20, with analysts split on whether a cut is likely. It remains unclear if lower rates alone can revive corporate lending amid structural shifts in the economy.
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Halyk Bank CEO explains why banks stop lending to businesses
