caerCentral Asian Economic ReviewCentral Asian Economic Review2789-43982789-4401Университет Нархозcaer-252Research ArticleБИЗНЕС И КОРПОРАТИВНОЕ УПРАВЛЕНИЕBUSINESS AND CORPORATE MANAGEMENTMANAGING CREDIT RISKS AND IT’S ANALYSIS IN THE SECOND TIER FINANCIAL INSTITUTIONS IN KAZAKHSTAN (ON THE EXAMPLE OF ATF BANK)MANAGING CREDIT RISKS AND IT’S ANALYSIS IN THE SECOND TIER FINANCIAL INSTITUTIONS IN KAZAKHSTAN (ON THE EXAMPLE OF ATF BANK)AkhmetovT. B.AkhmetovT. B.

PhD, Associate professor

Almaty

UssenbayevN. B.UssenbayevN. B.

Associate professor

Almaty

MustapayevaN. M.MustapayevaN. M.

Risk management professional, master

Almaty

University NarxozKazakhstan201828062018037180Copyright © Akhmetov T.B., Ussenbayev N.B., Mustapayeva N.M., 20182018Akhmetov T.B., Ussenbayev N.B., Mustapayeva N.M.Akhmetov T.B., Ussenbayev N.B., Mustapayeva N.M.Данная работа распространяется под лицензией Creative Commons Attribution 4.0.This work is licensed under a Creative Commons Attribution 4.0 License.https://caer.narxoz.kz/jour/article/view/252

Научная статья посвящена центральной концепции риска и развитию риск-менеджмента в банковском секторе Республики Казахстан на основе тематического исследования АО «АТФ Банк» (casestudy). В ходе исследования выявлено, что в процессе перехода от централизованного планирования к рыночной экономике, характеризующийся постепенной либерализацией и быстрой финансовой экспансией, казахстанские банки были мотивированы рассматривать риск вторичным по отношению к росту. В результате банковский сектор, как правило, занимался подпаритетными операциями по управлению рисками, что могло бы привести к неудачной схеме концентрации риска в течение 2000-х годов.

Purpose – The purpose of this article is to provide an overview of risk management development in the banking sector of Kazakhstan and an insight into the practical application of a risk measuring tool. As later research shows, until recent time the risk management in the banks of Kazakhstan has had no decisive significance. Planning was done only at the general level and the legislation did not support open information, that would allow determining profitability of certain entity and the capital availability.Methodology – The paper accumulates a sizeable set of secondary information, data and analysis, while maintaining the case study approach, as some proportion of the information is based on a semi-guided interview with one of the key officials of ATF Bank of Kazakhstan. These forms of primary and secondary data collection methods are chosen to make a critical assessment of the credit risk management practices of the commercial banking sector in Kazakhstan.Originality/value – Credit risk management is very crucial to banks as it is an integral part of the loan process. As conventionally adopted, the credit risk management in commercial banks is a base for the growth and survival of the banks. The health of the financial system has an important role in any country as its failure can disrupt economic development of this country. According to the financial system stability assessment of the International Monetary Fund, the Kazakh financial system is highly vulnerable. The current situation is the direct result of the overheated expansion of the years between 2000 and 2008, when the booming construction sector relied extensively on credit.Findings – Firstly, through the research it was found out that the banks had very weak risk management because the regulation was very rigid, and, as consequence, the prevalence of risk was strong and risks had second-rate importance. Secondly, the banks started addressing to the new circumstances by strengthening their internal risk management protocols in accordance with western standards (Basel Accords). Also, one of important results of this paper was development of an auto regressive model, which could be applied to forecast credit risk in commercial banks in the presence of the established low level of information.

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The authors declare that there are no conflicts of interest present.