Muratova D. D.

the teacher of chair of finance and banking

of  Kostanay  state university to them A. Baytursynov

 

ROLE OF BANKS OF THE SECOND LEVEL IN THE REPUBLIC OF KAZAKHSTAN

 

The economic reform carried out in the country opened a new stage in banking development. Special relevance in the conditions of transition to the market is gained by questions of prospects of development of banks and other credit institutes in our country, its practical realization. The solution of an objective possibly only on the basis of studying of practical judgment of functioning Kazakhstan, and also foreign banks and introduction of the most progressive, rational forms and work methods in practice. In recent years there is a rough process of formation of the financial markets – the monetary market and the market of the capitals. Investments – investments of capital for the purpose of obtaining the income. Forms of investment of savings can be various: direct investment of capital in production and indirect when between owners of savings and their final "consumption" these or those financial intermediaries act. It is important that, eventually, invested funds acted as the factor promoting development of production and improvement of economy [1, page 14]. Performance of bank operations with wide clients – important feature of modern bank activity worldwide,  having the developed credit system.

It is known that leading commercial banks of Kazakhstan seek to carry out a wide range of operations and services for the clients to expand the profitable base, to increase profitability and competitiveness. It is thus important to mean that development of bank activity assumes granting banking services with the minimum expenses for clients and the bank, use of the acceptable service prices, necessary for clients. The effective flexible system of bank operations with wide clients can and has to promote mobilization of domestic savings. The flexible bank service, capable to react to being formed requirements of changing economy is of particular importance in this regard. The competition in the market of banking services also influences quantitative and qualitative characteristics of bank service [1, page 15]. On a row with performance of traditional banking services to the population – attraction of financial resources in deposits, providing loans and implementation of settlement and cash service of the population – modern bank institutes in our country start carrying out also electronic services, market researches by request of clients, currency transactions, other services, including trust, directory consulting, share and others. Value of activization of a role of the banks serving the population, consists in that at the smallest expenses to assist the maximum effect, the fullest requirements satisfaction of clients in bank service, to improvement of quality of bank service of individuals, expansion of a range of banking services and decrease in their prime cost.

All banks functioning in Kazakhstan, except the RK National bank, represent the second level of a banking system and therefore received the name "banks of the second level" [2]. Legal basis of activity of banks of the second Law "About Banks and Bank Activity in the Republic of Kazakhstan" level of August 31, 1995 No. 2443 [3].

According to the Law the bank of the second level in Kazakhstan is the legal entity who is carrying out irrespective of property, commercial activity, a main which objective of functioning – receiving profit. The subsidiary banks, branches and representations both in the territory of Kazakhstan, and beyond its limits have the right to open jars of the second level. Activity of banks is regulated by the Constitution and the Legislation of the Republic of Kazakhstan, and also RK National bank regulations.

The essence of activity of banks is shown in performance of certain functions by them which distinguish them from other bodies. The banking service can be characterized as performance by bank of certain actions in interests of clients. At the heart of any banking product need of satisfaction of any requirement lies. Attraction of deposits and providing loans still belong to the main traditional services now. From a difference as a percentage on these services banks also receive the greatest mass of profit. However even only within these two services the set of the most various forms of banking products can be developed. Today universal banks offer the wide number of products covering practically all aspects of bank activity and financial services. At the same time other banks for a gain and strong deduction of competitive advantage seek to specialize on rendering strictly certain types of service [4, page 27]. The network of commercial banks promotes formation of the monetary market which economic basis is existence of temporarily available funds at the legal entity and individual, and also the states and their use on their satisfaction on satisfaction of short-term requirements of economy and the population. Commercial banks practically are engaged in all types of the credit, settlement and financial operations connected with service of economic activity of the clients. Other important function of commercial banks is mediation in the credit. The direct credit relations between owners of free money and borrowers are interfered not by a sovladeniye of volume of the capital offered in the loan, with need for it, and also the term of release of the capital with the term for which it is necessary to the borrower. Direct credit connections between owners of the capital and borrowers are complicated also by risk of insolvency of the last. The owner of the capital can not have information on a financial position of the borrower. Commercial banks, acting as financial intermediaries, eliminate these difficulties. The bank credits go to various sectors of economy, provide production expansion. The stable economy cannot exist without the organized and debugged system of monetary calculations. From here the role of banks in carrying out calculations and payments is of great importance. The main part of calculations between the enterprises is carried out by a non-cash way. Banks, acting as the intermediary in payments, carry out calculations for an order of clients, accept money for accounts and keep account of all monetary receipts and deliveries. Centralization of payments in banks promotes reduction of distribution costs, and for acceleration of calculations and increase of reliability of payments electronic systems of calculations [4, page 31] take root. Special function of commercial banks is their ability to create or destroy money, that is to increase or reduce monetary weight. Creation of means of payment is directly connected with deposit and credit activity of banks. The deposit can be created by two ways: entering by the client of cash into bank or delivery to the borrower of the credit. Thus specified operations by various image influence the volume of monetary weight in the address. However banks are capable not only to create, but also to destroy money. It is possible at repayment by borrowers of the credits by write-off of money from their deposit accounts. In this case the general monetary weight in economy is reduced. With demand for the credit the modern issue mechanism allows to expand borders of money issue that is confirmed by growth of monetary weight in industrialized countries. But the economy needs optimum, instead of excessive quantity of money in circulation therefore commercial banks work within restrictions (obligatory reserves), established by central banks. In the conditions of market economy all operations made by banks of the second level can conditionally be divided into three primary groups: passive operations (attraction of financial resources); active operations (investment of funds); active and passive operations (intermediary and other services) [5, page 77]. Thus, today, in the conditions of development commodity and formation of the financial market, the structure of a banking system sharply changes.  Appear  new types of the monetary institutions, new credit tools and  methods customer service. There is a search the optimally  of forms of the structure of credit system, effectively  work mechanism in the market of the capitals, new methods of service of commercial structures. Creation of steady, flexible and  effective bank infrastructure - one of the most important problems of economy reform in Kazakhstan. The task becomes complicated that except purely economic difficulties the social are added. Radically all system of the relations in the banking sector, the principles of connection  of banks and their clients has to change, it is necessary to change psychology of the banker, to bring up the new bank worker – well educated, thinking, initiative and ready to take the considered and weighed risk. It takes time. It is necessary, by thoughtful studying of foreign practice, to restore the lost rational principles of functioning of the credit   institution , accepted in the civilized world and leaning on many centuries  experience of market financial structures.

 

THE LIST OF THE USED LITERATURE:

 

1  .  Saniyev M.  C  .  Money, credit, banks:  The textbook / Under the editorship of the professional.  – Alma-Ata:  Almaty commercial institute, 2000.

2 . The law "About National Bank of the Republic of Kazakhstan" of March 30, 1995.

3  .  The law "About Banks and Bank Activity in the Republic of Kazakhstan" of August 31, 1995.

4  .  Seytkasimov G.  C  .  Money, credit, banks:  The textbook / Under the editorship of the professional.    Alma-Ata:  Economy, 1996.

5 . The bank environment in RK//"The businessman and the right". No. 12 (73), May, 2007.