The National Bank of the Republic of Kazakhstan launched an asset quality review that will cover the country's 14 largest banks holding around 87% of the Kazakh banking sector's assets.

Starting Aug. 1, the asset quality review will be carried out in line with the European Central Bank's methodology and will be conducted together with an international consultant and independent audit companies to ensure transparency, the Kazakh regulator said.

After the review is completed in December, participating lenders may receive requests from the central bank to prepare action plans with a view to implementing corrective measures in the medium term.

The central bank hopes the review will improve existing business processes in local banks, activate lending to the real economy and improve the quality of banking services, while also increasing transparency of the financial sector for potential investors and improving the investment climate in Kazakhstan as a whole.