This report does not constitute a rating action. Overview Key strengths Key risks Low net government debt enables the government to support the banking sector in case of need. Kazakhstan's economy remains exposed to commodity cycles and geopolitical event risks. Customer deposits largely fund Kazakh banks'structurally liquid balance sheets, reducing reliance on external debt. Banking sector regulation and supervision is weaker than in developed countries, although actively improving. Household debt levels are rising but still relatively moderate in a global context. Capital markets are less developed and narrower than in larger emerging economies. S&P Global Ratings thinks Kazakhstan's banking sector could benefit from gradually improving monetary conditions as the inflation pace slows. As inflation decelerated to 10.2% by July
