Еconomic sciences/2. Macroeconomics

Ph.D. in economics, Mauina G.A.

Kazakh University of Economy, Finance and International Trade, Kazakhstan

Problems and development strategy of the financial system in Kazakhstan

Since the late 1990s to early 2009 due to positive external economic environment and good governance of public management by the economy of Kazakhstan has demonstrated phenomenal success in the socio-economic development. Long-term Development Strategy of Kazakhstan's economy is conceptually framed in policy documents such as "Strategy 2030" (1997), the only document of its kind in post-Soviet space, and the "Strategy of industrial-innovative development until 2015." (2003), suggesting a gradual diversification economy and move away from the raw material orientation.

However, the sharp deterioration in global financial markets during the second half of 2007 and the subsequent global economic crisis caused a recession in the economy of Kazakhstan. The growth of the financial system of Kazakhstan is largely based on external borrowing (the issue of Eurobonds, syndicated and bilateral lending, trade finance, opinion and complex OTC options). Since the second half of 2007, this funding of the banking sector has become impossible, which causing a default of the largest banks in Kazakhstan ("BTA Bank" and "Alliance Bank"). The current situation in the banking system is characterized as highly complex (referred to banks and other financial institutions through a process of restructuring the internal and external debts).

Earlier, Kazakhstan's economy has been recognized by international intergovernmental organizations and developed countries as the most dynamic in the FSU. Kazakhstan was the first among the CIS countries has received the status of market economy of the United States and the European Union. President of Kazakhstan was given the ambitious task of entering the country in a group of 50 most competitive countries in the world by the World Economic Forum (Davos) and increase GDP by 3.5 times in 2015. According to official estimates doubling the gross domestic product (GDP) compared to 2000 occurred in 2008. However, the medium-term socio-economic and financial development of Kazakhstan promises to be complex and requires ambiguous actions and decisions taken by the Government of the RK, the National Bank of Kazakhstan and the business community of the country.

Much attention, at least in European countries is given to guarantee private deposits insurance. Another indirect tool has permission to mergers and acquisitions of banking and other financial institutions, whereas earlier, this measure is strictly controlled by the states.

In general, we can expect that the banking sector leading developed countries during 2011 to carry out the mission of lending to national economies, additional injections, as allocated funds so far should be enough just to reduce the effects of the credit crisis in 2010 is particularly this is true due to the fact that leading government recognized that the economic situation, and the rate of decline in economic indicators are more serious than previously thought. Guarantees, insurance, maintenance - the basic mechanisms used to combat the financial crisis abroad. In the UK, USA, Germany and Japan became the main instrument of government guarantees for the funds allocated by the state contractors. In addition, the EU, U.S., Russia used the recapitalization, or otherwise, direct financing banks.

If the reason for the creation of the state – is the human desire for the division of labor, it becomes clear that the main task of the state that for which it was originally created: it should provide the most efficient division of labor. It should create a system that provides convenient and effective division of labor with a low share of the costs of implementing trade. The share of the costs of implementing commodity costs is treatment. In distribution costs can include all unearned income arising from the production of the goods before it was consumed.

the financial system is the most famous and effective way to implement a system that ensures the division of labor and a system of barter with money.

In recent years considerable number of publications devoted the issue of creating a sound financial system and financial policy of the state. However, the unity of the theoretical aspects of this issue is not reached.
Underdevelopment of the financial system, resulting in a relatively low level of monetization of the economy and the high proportion of cash flow.
Due to the volume of raw material orientation of the economy of export currency proceeds strongly depends on the situation in world commodity prices and extremely unstable, and this directly affects the balance of payments situation and the stability of the national currency.
Saving a fairly high level of dollarization of the economy reduces the effectiveness of monetary policy, increases the vulnerability of the banking system and the real economy, reducing government revenues.

Despite the steady development of the banking sector, lending is still far from meeting the needs of the real economy in the credits, especially for technical re-equipment.

One of the components of monetary policy is to define an acceptable level of inflation, not hindering economic growth. Excessively rigid anti-inflationary policy in a transition economy with many structural barriers that make imperfect competition, causes unnecessary tension in the country, leads to an increase in defaults, falling production. Thus, there is every reason to believe that containment of inflation at around 10% would be consistent with stated objectives, namely to achieve the 2009 level of GDP in 1990 and another 7% growth in GDP.

In this regard, the main objective of monetary policy will be to maintain the annual inflation rate in the range of 5 to 10%, which would contribute to the economy's maximum growth rate. Growth rate of annual inflation exceeding the specified limits, as international experience shows that lower rates of real economic growth.

Higher inflation could have a negative impact on the pace of the actual level of production by reducing the effectiveness of the national currency of the functions of the scale of prices and money savings. Lower inflation rates have a depressing effect on economic activity by reducing the excess cash in the economy of the resources needed for a painless restructuring of the economy.

Achieving average annual inflation rate in the range of 5 to 10% will be provided by regulating the level of the monetary base, using all available tools from the National Bank monetary policy. But while the economic policy of the Government should also focus on such levels of inflation.
Kazakhstan's foreign exchange policy should be to protect the monetary system of the state and the economy from the adverse effects of sharp fluctuations in the exchange rate of tenge. Objectively defined the exchange rate is fundamental to ensuring macroeconomic stability in the state.
In this regard, the main priority of the state in the sphere of currency regulation should be the choice of exchange rate policy does not permit the revaluation of the national currency and have no negative effect on the competitiveness of domestic production in a constantly changing world situation.

With increasing globalization and integration of world economy, the role of banks as financial centers of the new world order. In many countries there is a trend of consolidation of banks. The main purpose of consolidation - the concentration of capital and the desire to create an integrated organization able to compete in the global capital market. The enlargement can occur both through merger and consolidation of financial institutions, and because of their natural growth.

Despite the gradual consolidation of banking institutions, the task associated with the creation of an extensive banking network, the state should be a priority. Therefore, as the financial system on the market is expected appearance of new specialized credit institutions with special problems (mortgage, Development and Housing) and the further development of existing non-bank financial institutions.

To provide quality financial services to the population in the regions will be established postal savings system. It also will expand the provision of financial services to the population, especially in rural areas, and create favorable conditions for the flow of new savings in the financial sector. It is therefore important to improve the legal and regulatory framework for the development sector organizations engaged in certain types of banking operations, including the system of postal savings institutions, promote the creation of new financial instruments.

Thus, financial market Kazakhstan will be represented not only the banks involved in servicing larger customers, but also non-bank financial institutions, whose activities will be closely associated with medium and small clients. In this regard, is expected to improve the quality and range to the population and businesses of banking services, including the introduction of new banking technologies. Expected to strengthen the bank's branch network in areas that will ensure the widespread availability of banking services.
Creation of a fund to guarantee the liabilities of banks on interbank loans will also contribute to the stability of the banks.

Provides for the accelerated development of the insurance market in the country. The creation of modern national insurance industry requires the development and phased implementation of measures to raise the insurance market to a new level. In this regard, the main aspects and directions of development of Kazakhstan's insurance industry more detail in the State Program of development of insurance in the Republic of Kazakhstan for 2000-2002. As implementation of this program will be new challenges and activities that will enhance the functions of insurance companies and strengthen the role of the insurance market in the development of the financial system.

Sustainability of the country's banking system, improving the protection of deposits in banks will lead to a gradual increase in banks' resource base and strengthen their lending capacity. In the same direction will act and created mortgage company that would expand the resource base of banks at the expense of raising funds of institutional investors (pension and insurance funds), as well as a fund interbank deposit insurance.

Under these conditions, the effective use of financial resources is the most important, therefore, necessary to implement the following conditions that stimulate the flow of financial resources into the real economy:

- effective operation of a specialized Development Bank to focus public resources on priority development areas of the country's economy;

- the development and improvement of various mechanisms lending to the real sector of the economy, taking into account the optimal division of risk of default of money;

- Continued work to improve monitoring of the real economy and strengthening the orientation of monetary policy to the needs of the real economy;

- improvement and development of the country's mortgage lending and construction savings;

- the active development of financial leasing in the region;

- expansion of nonbank financial institutions, including credit unions, in the regions;

- creating equal conditions for the activities of domestic and foreign investors;

- creating an enabling environment for investment in priority sectors of the economy, ie granting of privileges and preferences;

- further development of the stock market, etc.

Тhe list of references

1. Message from the President of the Republic of Kazakhstan Nursultan Nazarbaev of Kazakhstan: A New Decade - New Economic Growth - New Opportunities in Kazakhstan (Astana, January 29, 2010).
2. Zeynelgabdin AB "The financial system of Kazakhstan: the emergence and development" - Astana, 2008. - 224s.
3. Kovalev, AA "Finance and credit" .Moscow: Finances and Statistics, 2003.
4. Drobozina LA "Finance. Circulation of money. Credit ". - Moscow: Finances, 1997.
5. Aubakirov YN. Economic Problems of Strategy in Kazakhstan .- Almaty, 1997.
6. Report on budget execution. - Ministry of Finance of the Republic of Kazakhstan, May 2010.
7. Report on budget execution. - Ministry of Finance of the Republic of Kazakhstan, December 2008.