MOSCOW, Dec. 22 - The performance of the largest banks in Kazakhstan, Russia, and Ukraine strengthened in the first half of 2006, benefited from a favorable macroeconomic environment, evidenced by good economic growth in 2006, Standard & Poor's reported.

This is likely to continue in 2007, said Standard & Poor's credit analyst Annette Ess.

"Key trends that have supported the strengthened performance of the major banks, and resulting positive rating actions, are: The development of the banks' franchises; Differentiation strategies with a focus on certain market and/or geographic segments; The diversification of revenues and funding; The reduction in concentration levels; and Better ownership and information transparency, and strengthening risk management," according to the report.