ACTIVITY OF THE BANKING SECTOR AND ITS INFLUENCE ON THE STOCK MARKET OF KAZAKHSTAN

Abstract

Purpose – The economic growth of Kazakhstan requires that a wide range of business entities has available funding sources. The main sources of business financing are the banking sector and the stock market. The aim of the work is to identify predictors of the existing problems of the banking sector of the Republic of Kazakhstan as the main professional participant of the stock market and on this basis to identify some possible ways to enhance the development of the national stock market.
Methodology – In the process of research, general methods of scientific knowledge were used, such as analysis, synthesis, induction and deduction, econometric research methods, including correlation analysis.
Originality / value – Based on the study of the characteristics of the current state of the Kazakhstan banking sector (professional stock market participant), its analysis was conducted. Based on the analysis, internal factors, that multiply the impact of negative phenomena in the banking sector on the financial and real sectors of the economy, are identified.
Findings – The authors found that: the banking sector is ineffective in the redistribution of capital flows between sectors of the economy; there is a close feedback between the level of depth of financial relations and non-performing loans; imbalances in lending to the economy of Kazakhstan increased the imbalance of the economy, as well as strengthened inflationary processes; a correlation analysis showed that inflation in Kazakhstan is non-monetary in nature; in modern conditions it is possible to further enhance the development of the domestic stock market, etc.