THE BANKING SECTOR OF KAZAKHSTAN: PROBLEMS AND PROSPECTS
Abstract
Purpose – the study has two main objectives. The first goal is to assess the current status of the banking sector through analysis the activities of commercial banks in Kazakhstan, the second is to consider the problems of the functioning of commercial banks that is the reason of the bankruptcy of commercial banks.
Also, to determine the prospects for the development of the banking sector in Kazakhstan.
Methodology – this study was conducted in program R. The quantitative approach includes a cluster analysis of the concentration of banks. The research is based on key data from regulatory financial statements of banks and disclosed information, obtained mainly from sources such as the National Bank of the Republic of Kazakhstan (NBRK) and Kazakhstan Stock Exchange (KASE). The survey covers 35 banks in 2013 from 32 banks through 2017, accounting for 99% of the banking system assets of the country.
Originality/value – the last five years for the financial market of Kazakhstan, especially for the banking sector have been heavy and accompanied by a deterioration in the activities of leading banks, as well as the merger and acquisition of systemically important banks. Despite GDP growth and rising oil prices, Kazakhstani banks are still vulnerable. The problems of the activities of commercial banks have become nationally significant aspects for the government, which is evidence of the infusion of the regulator into the banking sector. In this study, we attempted to review and analyze the activities of commercial banks through clustering and grouping of banks depending on the activity and key financial indicators.
Findings – According to the survey and analysis of the banking sector, the authors found a trend in the deterioration of the activity of commercial banks despite state support and programs for improving the banking sector. The main source of decline in profitability and the emergence of default from banks is the level of non–performing loans in the loan portfolio.
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Review
For citations:
Doldina A.N. THE BANKING SECTOR OF KAZAKHSTAN: PROBLEMS AND PROSPECTS. Central Asian Economic Review. 2018;(5-6):108-115. (In Russ.)
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