OREANDA-NEWS. On November 26, 2007 Alliance Bank JSC (Almaty), shares and bonds of which are traded in Kazakhstan stock exchange's (KASE) category "A" official list had provided KASE with the press-release saying, reported the press-centre of KASE:

In order to match the model of personal consumer lending with the international standards, Alliance bank accepted decision about abolition of insurance of personal consumer loans, given again, since November 1 of 2007.

Before that moment all personal consumer loans of the Bank had gone through the procedure of mandatory insurance in the insurance company JV Alliance Polys JSC that is a strategic partner of the Bank. A unified insurance tariff in the size of 7% of the loan's sum was applied to the Bank's portfolio of personal consumer loans that were formed before the mentioned decision.

"Insurance of re-granted consumer loans was indispensable at the beginning stage of development of this kind of crediting; due to innovational character of the product for Kazakhstani financial market Alliance Bank had not have sufficient statistical database for precise calculation of losses", - the executive director of risks in Alliance Bank JSC Anuar Erjanov comments the innovation. - "Now, when the Bank accumulated the sufficient statistical database of losses and elaborated statistical models and software together with Experian-Scorex company, the need for the mandatory insurance of personal consumer loans fell away".

Since November 1, 2007 instead of buying insurance policy on new consumer loans Alliance Bank will form additional provisions (reserves) for coverage of risks, related to this kind of crediting. According to the bank's calculations, the volume of provisions of the portfolio of personal consumer loans totals 5,9% by the end of 2007 (5,3% as of October 1 of 2007). At the same time, JV Alliance Polys JSC insurance company will continue servicing the portfolio of consumer credits, insured by it, till their full repayment.