Author: Kasymkhan A

Author: Kasymkhan A.B.,

Student of al-Farabi Kazakh National university

Scientific leader: Smagulova D.S.

Senior lecturer at chair of Customs, Finance and Environmental Law

al-Farabi Kazakh National university

Banking system of the Republic of Kazakhstan

Summary: The assessment of a condition of a banking system of the Republic of Kazakhstan during the post-crisis period is given. The analysis of measures for stabilization of a banking system of the country is carried out, results of restructuring of banks are considered. The main problems of development of a banking system of the Republic of Kazakhstan are revealed.

Keywords: condition of a banking system, problem of development of a banking system of RK, national bank, dollars, money supply.

The current state of the Kazakhstan economy is characterized by further reduction in production and economic activity in a number of branches of a national economy, decrease in volumes of long-term investments into real sector of economy, all the becoming aggravated problem of debts and payments. Republic positions in raw sector are weakened by falling of volumes of agricultural and industrial production, – more and more goods on the Kazakhstan market to be delivered from abroad. Besides, it is possible to note a high share of "shadow economy", imperfect tax system and high degree of unpredictability of behavior of the power in the country. As of the beginning of November of last year the total amount of arrears according to obligations exceeded 1400 billion and increased in comparison with the beginning of April of the same year by 1,4 times. Crisis of non-payments is generally caused by violation of natural communication between dynamics of the prices and changes of money supply. Regulation of necessary money supply in Kazakhstan comes in a separation from formation of the new prices, and new surge in increase in demand for dollars in general is caused by expectations of new devaluation of tenge, weak state regulation, slow expansion of a market turn of durable goods, disbelief of the population of Kazakhstan in efficiency of policy of the state. Strong blow for economy is flight of Kazakhstan citizens from the national currency. Kazakhstan citizens not especially trust in tenge, preferring to have cash US dollars. Monetary resources are dispersed on extensive economic space of the country, on numerous holders of small means. By estimates of experts, on hands at the population now to be some billion cash US dollars that exceed gold and foreign exchange reserves of National Bank of Kazakhstan. Not the first year there is a problem: as these resources to concentrate and aim at the development of the production sphere. "Dollarization" of the country in turn means crediting of richer countries by Kazakhstan and complicates carrying out the state budgetary and monetary policy as the element of money supply increases uncontrollable to the Government. As a result in Kazakhstan the steady unfortunate trend of the balance of payments of the country is observed.

The current maneuvers of the Government and National Bank consisting in further compression of money supply (reduction in 11 months of last year made 17,4%, and quantities of cash in the address – 30%), gradual devaluation of tenge, increase of a rate of refinancing, despite the seeming their logicality, are only palliative as don't solve fundamental issues of the Kazakhstan economy. The authorities don't consider that the currency segment, as well as the financial market in general, are in the extremely unstable situation, and the country stays in deep social and economic crisis. It is natural that such situation in economy couldn't but be reflected in a state of affairs in the bank sphere.

As result of it, in recent years the development the Kazakhstan banks appeared in the center of a set of very difficult inconsistent and difficult predicted processes in policy, economy and the social sphere.

The bank structure is the most important part of the general economic system of the state. It is obvious that and the banking system has to bring an essential positive contribution which can in economic development of the country, first of all depends not only on personal qualities of bankers managers though these qualities can't be neglected. The effective public administration, structural characteristics, laws regulating activity of a banking system economic and political environments, and also traditions and customs of the country define nature of development and functioning of banks, than specific persons of their heads much more[1].

Strict following to the principle of equal opportunities for all subjects of the market has to be one of the fundamental initial principles of objective development of a banking system.

However doesn't make a big secret that one of the main factors of reliability of bank in the conditions of Kazakhstan though which is widely not declared is existence of the special relations with the power. Practically not in one other sector of economy, throughout short history of sovereign Kazakhstan, government intervention wasn't so great, as to the sphere of bank activity. Some Kazakhstan banks became visible commercial structures for rather short period. They, as a rule, didn't pass a long evolutionary way of development from small banks, gradually increasing thus in the conditions of competitive fight efficiency of the activity, and quickly increased the weight at the expense of the special conditions created by it the interested elite structures. Though process of formation of the main elite in Kazakhstan can be considered actually complete, however, final distribution between them of the power, influence and property for the present didn't happen. And this hidden opposition of elite proceeds. It is natural that at each next round of an aggravation of competitive fight between elite for the power and property competing the parties will seek to create, first of all, problems for financial credit institutions of a warring party.

And in such conditions any possible, even temporary, weakening of the position of elite, the patronizing certain bank, at once to be reflected in position of this bank. So while there are prerequisites of such fight, also the probability of crash even large domestic banks remains.

Despite the seeming accounting of a role of external factors and other objective reasons of destabilization of a situation in the financial markets in economy of Kazakhstan, operational activity of the Government and National Bank was reduced generally only to treatment of obvious consequences of "illness", only to short-term improvement of market condition until recently, and not to cardinal elimination of the main sources of weakness of a financial system in general [2].

So, for example, by transfer of many enterprises of the republic to management to foreign firms and companies by the Government of the Republic interests of domestic banks were completely ignored: the debt of the enterprises was extinguished only according to their obligations to the state, and were long on the credits obtained at the expense of means of banks are frozen.

Besides, as a result of the tough monetaristic policy pursued by the Government, the financial condition of many enterprises continued to worsen that also affected deterioration of credit portfolios of banks and their financial state. As a result of this called, and also some other the reasons even the former such large banks of the republic as, for example, Turanbank, Alembank and Kredsotsbank appeared in a serious financial condition. Therefore links in the official documents of the government and National bank which proved in due time merger of Turanbank and Alembank with their negative capital which arose allegedly because of bad management and nonparticipation of shareholders of these banks in their management were not absolutely correct.

It is also necessary to note inability of the government to balance the income with expenses, and in this regard artificially maintained high profitability of the state securities, distracting thus credit resources of commercial banks from real sector of economy that can become the reason of crisis in Kazakhstan, similarly Russian.

At the situation which developed now the banking system actually works only as the intermediary between the clients and the state: money of clients is spent almost only for purchase of the state securities or for currency transactions, thus about investment of the production spheres anybody and doesn't trade. Except money of clients, commercial banks, attracting money of nonresidents, in other words, the foreign credits, also direct them, generally on purchase of the state securities or on operations with currency. The share of requirements of banks for securities to the government made about 40% of net assets of a banking system of the country that exceeds a similar indicator of the majority of other countries almost by 2,5 times. For example, in Germany this indicator makes 15%, in France – 14%. Besides, compensation of deficiency of the state budget, by mass issue of the state securities, leads to even bigger outflow of money from the production sphere, to further deepening of crisis of non-payments and decrease in tax revenues. Thus, there is a tightening of time and further preservation of a crisis situation. As a result of such policy the economic space of the country actually broke up to two almost isolated and closed spheres: commercial banks – the market of the state securities – the state budget and the real economy choking with deficiency of investments. That is, there is a loss of a role of full-fledged subjects of economic life of the country by banks.

Instead of expanding the participation in process of creation of a value added due to concentration of financial streams and their redistribution towards the most perspective production projects and the competitive enterprises, banks are more and more involved in speculative operations in the currency market and securities market [3].

List of used literature:

1. The code of the Republic of Kazakhstan about taxes and other obligatory payments in the budget (The tax code) (with changes and additions as of 18.02.2011)

2. Alykpashev Zh.T. Bulletin of KazNU magazine. Series economic. No. 3(31).2003y.

3. Money, credit, banks [Text]: textbook / edition: G. S. Seytkasimov. - 3rd prod., ch. and additional - Almaty: Karzy-Karazhat, 2006. - 416 pages - ISBN 9965-665-13-3.