KAZAKHSTANI BANKING INDUSTRY PERFORMANCE OVERVIEW IN THE POST FINANCIAL CRISIS DECADE
Abstract
The following paper mainly examines the core factors affecting the business of the banking industry of the transitional economy of Kazakhstan in the period of the post-financial crisis decade with respect to the risk concern. As the pinpoint of the evaluation of the industry performance, the accounting measures of the performance of the banks are taken as the factors of the return that can help estimate the overall industry work. The growth variables and the risk measures are presupposed to be the central values evaluating the banking industry performance as it is outlined in many previous studies of the field. One of the specific points in regards to the transitional economies is that banks are playing the main roles in the capital markets. As a result, political reforms and governmental support decisions are in many cases directed to help the industry prosper, as the other players of the capital market are mostly weaker than the banks. The preliminary study results of the work are covering Kazakhstani banking industry in the range of ten years after the crisis of 2008 with the quarterly given values. The financial stability taken as the risk and return measures are mostly taken as the accounting values specific to the banking industry. The measure of risk needs to be taken in the aspect of a period of observation. The average is around 10 points suggesting the positive stream. As for the profitability measures, they suggest 16 to 17 percent positive effect on the overall performance of the industry.
The macroeconomic variables as the GDP growth and inflation for the examination period have the values similar to the true economic measures and equal to around 3,8 and 8 percent on average, respectively. What is interesting, the non-traditional to the bank way of profit generation has more than 50 percent generation through commissions and fees. Following the preliminary empirical estimations, we expect that the improvement of the overall banking industry performance is highly dependent on the supervision and regulation, specifically for the Kazakhstan.
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Review
For citations:
Kaliyev K. KAZAKHSTANI BANKING INDUSTRY PERFORMANCE OVERVIEW IN THE POST FINANCIAL CRISIS DECADE. Central Asian Economic Review. 2019;(4):40-49. (In Russ.)
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