Economic sciences/2.Маnagement

MA Undergraduate Zhunisbekova V.S.

Suleyman Demirel University, Kazakhstan

Foreign experience of functioning of the banking services market and the possibility of its adaptation to the conditions of Kazakhstan.

Commercial banks of most Western countries now acting various operations to meet the financial needs of all clients from small contributor to a large company. Large banks provide to their customers according to some estimates up to 300 types of operations and services. Because of this, commercial banks constantly and is inextricably linked almost all links in the production process. Changes in banking today are so substantial that many economists call the set of the latest trends of the «banking revolution», which can make the banks of the XXI century is completely different from the present.

For sale banking services are used increasingly well as a telephone, the Internet, mobile banking. New dynamically extending the phenomenon of the Internet-banking - personal Internet consulting. World network gave the banks the opportunity to go to the forms of relations with clients, in which the speed of communications is combined with an attractive personal consultations. The services of a personal Internet - consulting is provided not only banks, but also competing with them independent online financial firms Internet - consulting. Information and communication technologies demanded a drastic restructuring of not only the flows of information, but also of banking processes, services, products, re-engineering of all business processes. The information and communication revolution of financial engineering have created a virtually unlimited ability to bypass the various prohibitions and restrictions on the types of banking activities and specific operations of banks. Banks have acquired the right to offer our clients the operating deposits, and also various variants of consumer and commercial loan, i.e. the services that are typical of the major competitors of banks type of loan savings associations. The Supervisory bodies have recognized the need for cooperation with the leadership of the banks in the implementation of effective corporate governance, including setting corporate purposes, creation of an efficient internal structure, a clear distribution of powers and responsibilities between the members of the Board of Directors and managers of the banks, the formation of a clear system of accountability, using all the advantages of modern information networks. Another trend is the consolidation of the institutions of supervision and control over the activity of banks and other financial institutions (Sweden, Finland, Kazakhstan).
The banking sector in all the developed countries is one of the most highly concentrated in the modern economy. 25 largest banks of the world have 37% of the total assets of the first thousand banks.
The globalization of the financial sector has aggravated the competition in the area of banking services. Banks offering loans to private persons and enterprises, the management plans of savings and provision of old age or illness, as well as counselling on financial matters, face competition not only of other banks, and credit unions, brokerage and financial companies, insurance and consulting agencies. Competition, in turn, leads to the necessity of a new extension of the list of offered services and reduce their cost.
The creation of such corporate governance structures led banks to a new level of development, has transformed them from institutions serving cash capital of the company into independent commercial enterprises, providing certain services to other participants of the market, motivated by the objective of obtaining profits, competing with each other and are interested in the expansion of its share in the market. Unprecedented wave of Bank mergers and acquisitions swept the world at the end of the last century (from 1996 till 2001 was committed 4781 banking merger valued at 1.5 trillion USD). Increasing the size of banks based on mergers and acquisitions, as well as their cooperation with other financial institutions were designed to strengthen the competitive position on the national level and the conquest of new spheres of influence - at the international level. At the present time, in the opinion of the analysts, to hold the leadership in the international banking business the Bank shall dispose of the capital, more than 20 billion USD. At the same time the statistics testifies to the fact that the share of expenses in income is at the lowest level - 55% of the banks with assets from 20 to 50 billion USD; from banks with assets of less than 5 billion USD and more than 50 billion USD it leaves more than 60%. Competition forces the banks not only to introduce the newest information technologies, streamline business processes, improve internal control systems and control costs, but also to develop new banking products and services. To this they initiate and clients, who in the search for a more profitable use of available capital to refuse from the traditional Bank deposits and turn to more profitable and liquid securities, presenting the banks of the demand for services in financial consulting and portfolio management. Corporations and firms, requiring external financing, prefer to receive it by issuing its own securities, but not at the expense of banking credits. Clearly a tendency towards an increase in consulting banking services, where the Bank acts as an intermediary between the borrower and the lender, without attracting resources and not giving out loans. Such off-balance sheet banking services include warranty letters of credit and other financial guarantees, securitization, sale of bonds, guaranteed loans. In the end, the banks lose their traditional income from direct lending; but at the same time expand the volume and range of services on support of the release of its customers on the open market instruments of external financing (bonds, notes, bonds, short-term commercial paper, etc.) Thus, in the banking business the reduction in the share of traditional banking operations in favor of the increase in new, responsible qualitatively changed the request of clients. New services are heavily on the market, including under the influence of literacy of clients, their desire to use modern achievements. Among the latest services offered by some of the banks, brokerage services in purchase-sale of insurance policies, participation in the activities of the insurance company, offers of investing in mutual funds, brokerage services in the institutions with securities, financial planning, consulting in the field of taxation, management of pension programs, financial advising senior staff of enterprises - clients, offer loans of regional programs of development, brokerage services in operations with the real estate. This trend reduces the share of interest expenses of banks and increasing non-interest income through the provision of off-balance sheet consulting services in the field of financial design, mergers and acquisitions, the search for a strategic investor, tax planning, privatization and bankruptcy.

The new nature of relations of the Bank with corporate customers to the greatest extent consistent with investment banking. Under the investment banking understand the range of services related to the primary placement of customer's securities and operations on the secondary market of securities at the order. The initial task of investment banking - organization of the issue and the primary placement of the securities of clients. Investment banking distinguishes the expansion of demand for it on the part of small and medium-sized enterprises - a new line of work, including, for large banks. Investment banking also includes the trading operations with securities on the secondary market and the related Depositary, consulting services and services on management of portfolios of securities of clients. With the development of the securities market is growing the demand for the services of placement of free funds of the enterprises in profitable assets and of the management of their investment portfolios. These services provide banks receive income while preserving liquidity. The direction of investment banking from year to year becomes more complicated in connection with the development of derivative financial instruments and the introduction of financial engineering. Investment banking includes the organization of transactions on mergers and acquisitions. In such transactions, the banks involved as consultants and intermediaries, which not only help to conclude and execute the transaction, but also are engaged in an active search of the sellers and the buyers of the enterprise, its individual parts and other assets. In the concept of «mergers and acquisitions» now also include transactions related to the acquisition of shares of the managers of enterprises, purchase of control package, including at the expense of credit. Investment banking provides banks higher in comparison with the traditional banking profits, which are formed by constant implementation of innovations in this sphere of activity.
Net income per employed at investment banks is equal to (th. USD): in small (up to 100 employees) - 295 (USA) and 353 (EU), medium (from 100 to 1,000 employees) - 171 (USA) and 91 (EU) is the current cost per employee (thousand. USD): the small banks -33,6 (USA) and 561 (EU); the average 314 (USA) and 210 (EU). Deep restructuring touched retail service of private persons. Worldwide retail crediting of the population - one of the basic operations of banks. At the same time, the period of rapid growth of issue of loans to private individuals in developed countries has already passed. This segment of the market is close to saturation, and find it free niches becomes more difficult, and the competition between banks is growing, and that encouraged banks to a radical change in the organization of retail banking. The meaning of the changes taking place in deeper orientation services to the needs of specific groups of customers, their standardization and automation and the achievement on this basis, the overall profitability of the areas of banking activity.
Expediency and efficiency of systems of branches and offices is a paramount problem of the modern transnational banks. On the one hand, such banks as «Chase Manhattan Bank», «City Bank», «ABN AMRO Bank», «Deutsche Bank», due to its highly developed branch and correspondent network (about 2 thousand branches and 4 thousand of banks-correspondents), provide comprehensive portfolios of the banking services regardless of the geographical location of the customer. On the other hand, one of the problems of the leading banks is the restructuring of the branch network, as the modern system of management of multi-branch banks lead to rise in price of cost of banking services and additional costs. Thus, the sales channels of banking services should, on the one hand, provide the optimal level of sales, and on the other, - reduction of costs. Modern banks to solve this problem with the use of the newest information technologies with the use of the Internet. In the translation of banking services in a mode «online» is reduced significantly the number of visitors branches and, accordingly, the volume of distribution operations from 44 % to 28 %. As a result of the reduction in expenses of banks will be from 8 % to 20 %.
Increases the need for current revision of channels of sales of banking services in General, and not only the system of the branches. Such factors affecting the efficiency of the service network, as the development of information technologies, standardization of banking services and improvement of their quality, strengthening of integration processes in the financial sphere, lead to the new principles of segmentation of clients and the emergence of new forms of service.
In General, the prospects of development of banking services in the coming years are based on the following three factors of the structural changes in the banking sector:
- entry to the industry;
-diversification of the Bank's activities through the provision of off-balance-sheet of the services;
-development of the services on the market of loan capital
The notion of «entry to the industry» involves the creation of transnational corporations «domestic Bank». Examples of such banks are «Volvo-Bank», «British petroleum», «Reno», which fully serve the financial needs of its founders.
Diversification of banking activities through the provision of off-balance-sheet of the services is conditioned by the increase of the role of consulting and information services. Significantly increased Advisory services in the field of financial Advisory services, mergers and acquisitions, the search for a strategic investor, international tax planning, privatization and bankruptcy. An important place in the development of banking services occupy services on the market of loan capital, as the Bank of their provision leads to an increase in the share of interest income and liquidity. In the conditions of IFS significantly increased the share of new Bank credit services for multinational corporations. So the large banks with an extensive international network provide their customers the right to choose the country, currency and interest rate of the loan. This type of lending has received the name of the multicurrency credit line. Are becoming increasingly popular, multioptional credit line is a combination of a normal credit lines with the right of the borrower to choose a different instruments of the financial market, which allows the client to choose from a wide range of banking services of the cheapest sources of financing.

Tendencies of development of the entire world financial system, such as globalization, internationalization, institutionalization, increased international competition, integration, convergence, Informatization and computerization, the concentration of world markets and other trends, in turn, contributed to the increase in international banking services.
So, it can be concluded that the trends of development of the world economy and IFS testify to the fact that current trends are expressed an international character. This is reflected in the intensification of international economic and trade relations, both at the level of the individual, and at the state level, which became technically possible thanks to the activities of the banks and they provide international banking services. Thus, one of the main trends of development of the banking business is the increase of the role of international banking services.
At the present time there is a proliferation of international money transfers by SWIFT system. Today SWIFT covers more than 3700 financial institutions from 92 countries: the banks, brokerage firms, insurance firms, insurance companies, etc. Along with the system of SWIFT there are other systems. International settlements in the EU is carried out by one of the following payment systems: TRANS-European automated Express gross settlement system in the real-time mode TARGET, European clearing system (CEN) of the European banking Association (ЕBА), the national payment systems, inter-Bank payments through correspondent relations and clearing, organized by large European banks. On a par with the existing payment systems banks of the countries-members of EU have traditional services in the implementation of payments through the system of correspondent relations. This type of payment services is focused on medium-sized and small banks. TNB provide the correspondent banks payment services based on the use of own local networks of branches, subsidiary banks and correspondent accounts, loro. They provide speed of the calculations and the minimum Commission fee in the result of inter-Bank wire on the inside of the banking correspondent loro accounts. The greatest advantage in the EU have Bank services that meet the following criteria:
-the size of assets and equity, providing a sufficient supply of liquid funds to the settlement;
-direct access to all major systems of settlement in the EU and other countries;
-availability of a developed branch and correspondent networks;
-competitive rates and high quality service.
To the greatest degree the above criteria correspond to the «Deutsche Bank» (Germany), ABN AMRO Bank (the Netherlands), «Societe Generale» (France) and «City Bank» (USA). The strategy of the development of the payment of the services of these banks is aimed at attracting new clients and banks-correspondents through low tariffs, high quality services, a well-developed branch infrastructure, adaptation of the timing of the payments to the conditions of the execution of payments in the largest European payment systems (TARGET, ESA). Customer service is made within 24 hours 7days a week. These banks provide such services as the clearing of cross-border settlements and quick conversion of dollar-denominated accounts in Euro; the opening of a single account in Euro in any region of the world; replenishment of foreign currency accounts at the expense of balances on current accounts by immediate conversion in the required currency; investing of current accounts balances in short-term instruments the global financial markets; carrying out settlements on foreign trade contracts of the client.
The main competitors of Transnational Bank in Western Europe on the market of settlement services are American banks.
In the USA there are two large payment systems - FEDWIRE and CHIPS, which provide more than 80 % of all remittances from the total volume of outgoing client payments in U.S. dollars. Approximately 40 % of payments in the system of FEDWIRE - interbank operations, 10 % - all transactions with Eurodollars, 10 % - commercial payments.
International syndicated loans provide commercial banks the possibility of diversification of risks due to the placement of assets in different markets and in different currencies. Banking services under the syndicated lending to customers include the following:
- the organization of the club of creditors;
- preparation for funding;
-distribution between the participants of such roles, as documentation, execution of functions of the paying agent, the preparation for the signing ceremony, interaction with mass media, the coordination of the strategy of lending to the borrower;
- formation of the management group of the syndicate;
- preparation of a credit agreement;
-preparation of the information Memorandum and distribution of its
potential participants of the syndicate;
-distribution of responsibilities between the participants of the syndicate in accordance with the text of the loan agreement;
-accumulation and transfer of funds, calculation of interest, distribution of commissions and interest among the participants of the syndicate and other administrative functions under the loan agreement.
An important area of activity of the leading foreign banks were services in the area of corporate Finance. International banking services in this field are directed on satisfaction of needs of transnational corporations in financial advising on a number of directions of activity of the modern multinational corporations. International banking services in the areas of corporate Finance include: financial consulting, organization of mergers, acquisitions, privatization, issue of shares, debt restructuring, the search for a strategic partner, the creation of joint ventures. The largest supplier of services for the management of financial assets are «chase Manhattan Bank» (USA), «Bank of new York» (USA), ABN AMRO Bank (the Netherlands), «Barclays Bank» (great Britain), Midland Bank» (great Britain), «SBS-Warburg» (Switzerland).
Having accumulated certain experience of work on the global financial markets, the Kazakh banks were able to expand considerably the list of international banking services provided to the customers. Analysis of web-sites of the leading Russian banks allowed to define the following list of international banking services, the Bank can provide its customers.
Analysis of international banking services shows that domestic banks do not provide the full range of international services to its customers and, accordingly, economic relations with the participants of the world financial system is sufficiently developed to be able to speak of a high degree of integration of banks in the global financial system.More complex international banking services, suggesting a close economic relationship with the participants of the IFS, are not presented on the web-sites of the Kazakhstan banks. This banking services on the organization of the issue of shares, bonds and other securities and their placement on international financial markets. Domestic banks do not provide services on securitization of client assets.
It is unlikely that domestic banks are able to undertake large-scale projects on the organization of Eurobond loan and syndicated loans to its customers as the lead-managers. It is expedient to use the world experience in organization of international correspondent relations. The leading foreign banks are now backing away from a large number of correspondent nostro accounts in the banks of other countries, as it leads to an increase in operating expenses and the spraying of international cash flows. For example, such a Bank, as ABN AMRO Bank (the Netherlands), part of the ten largest banks in the world, has a total of 8 foreign correspondent accounts. This will allow the banks to render a full range of services for international settlements at a higher qualitative level by strengthening relationships with specific foreign banks. Perspective is to provide international banking services on the development of international trade operations of clients, which includes the study of foreign markets and search of business partners for the Bank's clients. In the Western banking practices such units are called «Trade Promotion Department», the activity of which is conditioned by the need of clients in the expansion of foreign economic business, reduction of operating costs and increase profits. Banks could provide banking services in the search for the counterparty to the transaction of Bank's clients with the subsequent organization of transactions through a Bank; a study of the demand and supply of the products of interest to the client; the creation and maintenance of databases on industry, range of goods and services the Bank's customers and counterparties; carrying out of marketing research on the needs of clients.
The use of foreign experience in the provision of international investment banking services is one of the key factors in the development of the process of integration of banks in the IFS. Promising is the introduction of services on securitization of foreign currency receipts. In modern conditions of services on securitization be appropriate to large export-oriented companies of the oil, gas, metallurgical, wood processing industries.
The practical interest is the use of world experience for the placement of bonds and shares of the Bank clients in the global financial markets. Development of these services will allow domestic banks, on the one hand, to establish economic relations with the participants of the event, and on the other hand, best meet the needs of the client's investments. The provision of the above-mentioned international banking services will allow to satisfy the increasing needs of dynamically developing business. Solution of the complex issues associated with the possible under condition of development of economic relations of domestic banks with the participants of the IFS. How successfully and quickly this process will occur depends on who will provide international banking services Kazakhstan business, domestic or foreign banks, and therefore, the one who will take the leading position in the domestic market of banking services.
Today a lot is being said about the global financial crisis, which began in 2007 and the beginning of 2009, almost has affected all countries. History confirms the facts, that to the middle of the last century financial and banking crises recur with the periodicity once in 10-20 years. However, after the end of the second world war, the major global crises has not happened with the exception of local. As a rule, under a purely financial crisis understand collapse in stock markets. Today we cannot speak about the fact that today's crisis is primarily a financial crisis, as the total collapse of stock markets does not happen, is the fall in the price of securities, which ultimately leads to the reduction of capital gains, impairment of collateral for loans, i.e. to a liquidity crisis. Since the causes of the current crisis are of diverse nature, we will attempt to examine the issues of regulation of banking activities from the position of the education crisis environment around banks. Modern development of the financial markets is characterized by the following trends like globalization, deregulation, consolidation, which undoubtedly changing the global financial architecture. Since the decline of the conditions that restrict the movement of capital, lifting many of the other factors that impede the development of the financial market, introduction of modern information and telecommunication technologies has allowed local financial markets become an integral part of the increasingly integrating the world market of financial and banking services, in which banks and other financial institutions can meet in direct competition. In this connection increases the interest of the state and of the banking regulation and supervision of the financial indicators of the banks ' activities. As a rule, the state does not directly interfere in the activity of the banks is not responsible under the law for the obligations of the banks, but, defending the interests of clients and investors regulates them indirectly, through prudential (mandatory) economic standards and the authorized bodies.
The construction of a new mechanism of functioning of the banking system is possible only through the restoration of the lost sound principles of functioning of the credit institutions, accepted in the civilized world, drawing on the centuries-old financial market structures. Why it is so important the study of international practice, methods and forms of accumulation of money resources, crediting, settlements, which are the product of a long historical selection in the conditions of tough competition and which demonstrated its high efficiency and adaptability to different conditions of economic development. Of course, all methods of work, institutions and strategies of economic behavior may not be copied and transferred to another form on the Kazakh soil. New forms should be offered after a thorough examination of how the needs of the clients of the Bank, their ability to absorb financial innovation, so the profitability of the new technologies of new types of services for the banks themselves, the training of their personnel.
Having studied the foreign experience of development of the market of banking services and the possibility of its transformation in the conditions of the Kazakhstan you can make the following conclusions:
-modern trends of the development of the global economy, the main of which is globalization, have a great influence on the banking services. Under the influence of globalization has intensified the process of integration of banks in the global financial system in order to provide banking services to customers;
-analysis of the main tendencies of development of banking services, such as the growing importance of telecommunications in the process of provision of banking services, cardinal change of the sales channels of banking services in the direction of their realization with the help of electronic communication systems, standardization and segmentation of services, increase the value of a consulting, investment banking services, services in support of foreign economic activities of the client, services on the market of loan capital, allows to make a conclusion that the banking activity acquires a large-scale international character and to the forefront of international banking services;
-the analysis of international banking services of Kazakhstani banks showed that they do not provide the full range of international banking services to its customers and, accordingly, economic relations with the participants of the IFS not yet been fully developed. International banking services, typical for higher levels of integration in the IFS (issue of shares, bonds and other securities and their placement on international financial markets, securitization of client assets, organization of Eurobond loan and syndicated loans to its customers as the Lead - managers), Kazakh banks provide is not enough. The lack of these services in a range of banks of Kazakhstan and the greater their importance to the domestic banking determines the prospects of development of the international banking services of domestic banks: using the experience of leading foreign banks in the organization of the international correspondent relations; the provision of international banking services on the development of international trade operations of clients; development of the international investment banking services; use of world experience for the placement of bonds and shares of the customers of the Kazakhstan banks in the global financial markets.

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