Ministry OF EDUCATION AND SCIENCE OF KAZAKHSTAN
DEPARTMENT OF & # 8220 ; FINANCE & # 8221 ;
COURSE WORK ON & # 8220 ; BANKING & # 8221 ;
Team: & # 8220 ; Foreign Bankss on the fiscal market of Kazakhstan & # 8221 ;
DONE BY:
CHECKED BY:
Alma-ata 2010
Table OF CONTENT
Introduction
3-4
Chapter 1.
History OF BANKING SYSTEM OF KAZAKHSTAN 5-10
Chapter 2.
Analysis OF FOREIGN BANK IN THE FINANCIAL MARKET OF KAZAKHSTAN ( on the illustration of ATF bank ) 11-16
Chapter 3.
PROSPECTS OF THE DEVELOPMENT OF BANKING SYSTEM OF KAZAKHSTAN 17-22
Decision
23-24
Mentions
25
Introduction
The banking system – one of the most of import construction in the market economic system. The Bankss conduct with hard currency minutess, imparting to agriculture, acted as go-between in the redistribution of capital, significantly increase the overall efficiency of production, promotes the growing of productiveness of labour.
Commercial Bankss of Kazakhstan are the individual fastest developing a system. Banks ‘ activities aimed at back uping the commercial involvements of endeavors, to advance the debut of new signifiers of direction. Commercial Bankss – is an of import country of national economic system of any developed or developing state. Its practical function is operates in the province system of payments and colonies, most of their commercial minutess carried out through parts, investing and loaning operations, along with other fiscal mediators to direct the nest eggs Bankss to houses and industrial constructions. Commercial Bankss regulate the motion of hard currency flows, impacting the rate of turnover, emanations, entire weight, including the sum of hard currency in circulation. In modern society, commercial Bankss are engaged in a broad assortment of types of operations. They non merely form hard currency flow and recognition dealingss, which are being financed through the national economic system, insurance operations, purchasing and selling securities, and in some instances, securities firm and belongings direction. Lending establishments act as advisers, take part in treatment of economic plans, maintain statistics, have their ain similar concern.
Banks that are partially or entirely owned by foreign capital. Activities of foreign Bankss in the state are regulated by national statute law, which establishes a particular government for foreign Bankss to restrict or heighten them, depending on the province of the economic system and the way of authorities policy.
Sufficiently outstanding topographic point in Kazakhstan ‘s economic system is played by foreign Bankss. Foreign Bankss are one of the largest banking entities in the state. This is due to abroad enlargement of the companies are major clients of Bankss, with the unfolded procedure of deregulating and liberalisation. The turning figure of foreign Bankss depends on many factors such as: manner entree of foreign Bankss and the ordinance of their operations, the function of foreign trade and foreign direct investing in the economic system, the presence of the state ‘s international fiscal centres, including centres of operations with the euro, which determine the possibility of international enlargement: the degree of development of the national market, including recognition and fiscal chances, and spread out local operations, the degree of revenue enhancement of the quality and efficiency of the technological substructure. The chief foreign spouses and non-resident Bankss are the U.S. , Saudi Arabia, Turkey, China, Netherlands, Liechtenstein, the Kingdom of Luxembourg, the Netherlands, Russia. Kazakhstan is assessed as extremely attractive for foreign investing the state continued the procedure of pulling foreign capital in a bank. The activities of bing foreign Bankss is characterized by stableness and balance. Activities of commercial Bankss contribute to stabilising the fiscal state of affairs in the state, raising production and development of just competition.
Foreign Bankss are oriented chiefly to their corporate clients, although persons are interested in them excessively. For foreign Bankss is non so relevant little sedimentations, they needed affluent clients, but private histories they besides open. Furthermore, foreign Bankss have lower involvement rates than domestic fiscal establishments: this means that at their disbursal to salvage inputs from rising prices citizens of Kazakhstan do non win, but still on the banking crisis it will protect them.
In general, foreign Bankss associated with stableness in the fiscal system. This is non surprising, because even if Kazakhstan one time once more interrupt out the crisis, foreign Bankss have a warrant of support from parent establishments. However, experts recommend that persons do non trust excessively much on the power of foreign Bankss and, despite the perfect service and a batch of alluring offers, ever look into what might be skulking behind them, and how it will impact their personal fiscal well being of each client ‘s foreign fiscal subordinates.
The chief end of class work is to understand influence and of import of foreign Bankss in the fiscal market of Kazakhstan. The chief ends of this class work:
– To analyse history of development of banking system on the district of Kazakhstan ;
– Analyze the activity of ATF Bank, as a foreign bank, the types and profitableness of fiscal services in the bank ;
– Identify the jobs and positions of development of banking system of Kazakhstan ;
Subject of class work is banking system and foreign Bankss on the fiscal market of RK. Object of survey is ATF Bank.
Methodological and practical base for authorship of class work is textbooks, academic economic experts, articles, fiscal studies of ATF Bank.
Chapter 1. History OF DEVELOPMENT OF BANKING SYSTEM OF KAZAKHSTAN
Banking system of Kazakhstan appears after taking of sovereignty of state in December 1991. In January 1993 was done first jurisprudence & # 8220 ; on Bankss and bank activity in Kazakh SSR & # 8221 ; , that was the first measure in banking system of country.As in the Soviet epoch, the national bank continues to rule the fiscal system, including currency direction. Other commercial establishments have been established, but they play little functions in the state ‘s fiscal life.
Since 1993, the Kazakh banking system has been officially arranged into two grades, with the National Bank of Kazakhstan consisting the first grade and all commercial Bankss, both private and state-owned, consisting the 2nd grade.
NBK acts as a regulator of pecuniary and recognition policy. NBK is accountable straight to the President of the Republic of Kazakhstan. The National Bank of Kazakhstan is an independent fiscal establishment. Its major aims include control and prudential ordinance of the banking sector and care of a stable national currency. It is independent within the range of its activity, identified by current statute law. Neither the Government, nor the Parliament or local governments are authorized to interfere with the National Bank ‘s operations. The National Bank coordinates its activities with the Cabinet of Ministers. It acts as a bank, a fiscal advisor, or an agent of the governmental organic structures. The direction organic structures of the National Bank are the Council and the Board of Directors. The Kazakhstan banking system continues to be one of the strongest among the states of the former Soviet Union.
Commercial Bankss concern a particular class of the concern endeavors which have received the name of fiscal mediators. They involve capitals, nest eggs of the population and other free money resources liberated in the class of economic activities, and give them in clip utilizing to other economic agents who need the extra capital. Financial mediators carry out, therefore, of import economic map, supplying a society the mechanism of inter subdivision and inter-regional redistribution of the pecuniary capital. Value of commercial Bankss in modern recognition systems is so great that is necessary to halt particularly on maps of these institutes. It designates “ concern ” character of bank, it oriented on service of all sorts of economic agents irrespective of a kind of their activity. Today the commercial bank is capable to offer the client to 200 sorts of assorted bank merchandises and services. The broad variegation of operations allows Bankss to maintain clients and to stay profitable even at instead inauspicious economic conjuncture. Not casually in all states with market economic system they remain the chief operational nexus of recognition system. There is certain base “ set ” without which the bank ca n’t usually work. Such representing operations of bank concern:
& # 183 ; response of sedimentations ;
& # 183 ; realisation of pecuniary payments and computations ;
& # 183 ; bringing of credits.
During the period of 1991-1993 Kazakhstan, every bit good as other CIS states experienced the banking roar. In 1992, the figure of Bankss grew from 155 to 204. Many of these constructions were created for merely one type of minutess. As specially popular strategy was the attractive force of province loans of several 1000000s dollars with the initial malicious program to travel bankrupt. [ 1 ]
Up to November 1993 Kazakhstan continued to utilize the Soviet ruble as currency. President of Kazakhstan intended to maintain unvarying currency with Russia. However Russia, holding started replacing of the Soviet bills on new Russian, has ceased to supply with them Kazakhstan. In October 1993 president has agreed to set under control of Russia such major economic institutes, as the budget, the imposts responsibilities, revenue enhancements and the investing policy, in exchange for saving of a ruble zone in Kazakhstan. However the Russian authorities has demanded, that Kazakhstan has transferred Russia and state gold militias. Government has refused this offer, and Kazakhstan has entered ain currency – tenge. The national currency, tenge, was introduced in November 1993. The National Bank itself took the helm of the state ‘s pecuniary and recognition systems. Its first action was beef uping demands for the second-tier Bankss. In 1993 the National Bank withdrew first 15 banking licences for non-compliance to these demands. At the same clip economic countenances on possible defaults were introduced, every bit good as the demand for the minimal charter capital. It should be noted that it took some clip for Bankss to acquire accustomed to the new regulations. During 1993 merely 10 % of the entire figure of Bankss met the new demands. During the undermentioned old ages, the figure of second-tier Bankss in Kazakhstan bit by bit decreased. Capitalization and liquidness demands were besides increased. Finally, all these steps had to guarantee both the safety of sedimentations in Kazakhstan Bankss and the dependability of minutess and other banking operations.
In June 1994 Kazakstan instituted a fifteen-month plan of fiscal and economic reform, fastening banking and recognition Torahs, liberalising monetary value policies, and stoping the granting of credits to state-owned establishments. In 1994 the national bank system included a State Export and Import Bank and a State Bank for Development, both of which functioned under full authorities control instead than as market establishments. Four big, state-owned Bankss controlled 80 per centum of fiscal assets. The 200 little commercial bank & # 8217 ; s operations in 1994, were attached to endeavors. About 30 private Bankss were licensed to cover in foreign exchange. [ 2 ]
Another short-run reform was introduced in March 1995, in portion to fasten ordinance of capital demands and to increase the professionalism of the bing bank ‘s operations. A system of partnership with foreign Bankss was introduced, partner offing domestic Bankss with experient foreign spouses. Guidance for this bank reform is being provided by the IMF, every bit good as by international auditing houses such as Ernst and Young and Price Waterhouse. The purpose of the 1995 reform was to make a republic-wide banking system, including 10s to fifteen big Bankss with entire capital of at least US $ 10 million, headquartered in Almaty and with subdivisions throughout Kazakstan. In 1995 the NBK planned to let go of 80 per centum of the recognition financess it granted to an auction market, going from the old policy of rationing recognition by directing it to designated endeavors. No stock exchange or capital markets existed as of 1995. In 1995 National bank of Kazakhstan terminate debut and usage of whole set of instruments of money-credit and exchange ordinance. It determined to move statute law to account the correct utilizing the economic inducements and betterments of the normative ordinance and supports of the checking to recognize the qualitative betterment activity of all commercial Bankss with increasing degree of their capitalisation and determining the group of Bankss, nearing to international criterion by developments and deepening of interbank money, recognition and exchange. Reached the qualitative new degree of the operation named intermediate payment system in a portion of safety, seasonableness and efficiency of the realisation of the payments between pull offing capable and unfold doing the long-run national payment system. In 1995 NBK has provided the wide development a market authorities. Concept of control of gold modesty is approved in April 1995 ruled by NBK. In intent of the addition of gilded modesty NBK conducted such operations, as adjustment of currency in sedimentations and cherished metals, purchasing and sale of currency and cherished metals. The operations were conducted with authorities bonds in the different states. In 1995 continued to consolidate interaction of National bank and Ministry of finance in trade of macroeconomic stabilisation and coordination of money-credit and tax-budget policies in intent of recovery of the economic system of the state.
In 1995 have occurred the indispensable alterations of system of the Bankss 2nd degree. Lasted the procedure of settlement or amalgamation of the Bankss. This promoted the support of the demands on the portion of NBK in capitalisation and liquidness of the 2nd degree of Bankss. As a consequence sum of the Bankss for twelvemonth grew shorter with 191 before 130. Greatly changed and their construction. There was created interstate bank and articulation of the Bankss. [ 3 ]
In 1995 was get downing of development of market of cherished metal. The edict of the President of the Republic Kazakhstan, holding power of the Law “ About authorities ordinances of the dealingss, in conformity with cherished metal and gems ” from July 20 1995 was allowed to free sale of all produced in state cherished metals. Kazakhstan foremost from all democracies former USSR has undertaken the stairss on liberalisation of market of cherished metals. Seven Bankss have got the impermanent licence of undertaking operation. In intent of the project united politicians at edifice of the efficient payment system, answered to the international criterion, establishing on indistinguishable statute law and modern proficient footing.
In 1995 was concluded an understanding “ About cooperation in the field of edifices of the National payment system of the Republic Kazakhstan and doing the National Payment Advice “ . The Main tendencies to activity was engagement in development of the undertaking of the National payment system, answered to multilateral involvement of its participant, development methodical recommendation, directed on stabilisation of the operation of the 2nd degree Bankss and betterment quality of service client, passage on united interstate criterions with end product on international bank systems, determination of the different jobs, in conformity with safety of the system, proficient and package, service and instruction specializer banks-participant of the National payment system.
For increasing of efficiency of the usage in Republic Kazakhstan payment instrument in 1995 were prepared and approved by regulation of the Federal modesty bank following normative paperss: “ Impermanent place about measure system payment in Republic Kazakhstan ” , “ Impermanent place about bank service bureau ” , “ Impermanent order payment in foreign exchange with usage debit and recognition cards on district of the Republic Kazakhstan ” . Besides work was conducted on debut earlier confirmed normative Acts of the Apostless: “ Position about payment by cheques in Republic Kazakhstan ” , “ Position about uncluttering chamber of the Federal modesty bank of the Republic Kazakhstan for set abouting the glade of the cheques ” , “ Position about interbank & # 8217 ; s glade in Republic Kazakhstan ” , “ Position about undertaking operation on issue or return the on-call loans on organized market ” . The Provided Program of the step on legal guaranting the reform and runing the bank system were practically wholly executed. At last issued the jurisprudence “ About Federal modesty Bankss of Republic Kazakhstan ” and jurisprudence “ About Bankss and bank activity in Republic Kazakhstan ” .
The new decree “ On Bankss and banking activities in the Republic of Kazakhstan ” has important differences from the old Law of the Republic of Kazakhstan. It defines that the 2nd tier Bankss are: the province, sedimentation, investing Bankss with foreign engagement and inter-state Bankss, all Bankss, except State, created merely in the signifier of joint stock companies ; allowed to organize brotherhoods of Bankss. Besides quality of work of commercial Bankss provided new types of banking operations – glade, Lombard, issue of payment cards and others, has laid down certain demands for employees keeping leading places in the bank.
In 1998 National bank of RK accepted determinations “ About inquiries of passage of Bankss of the 2nd degree to the international criterions ” harmonizing to which 30 Bankss of the 2nd degree should make the international criterions till the terminal of 2000.
Harmonizing to the Decree of the President of the Republic Kazakhstan, valid The jurisprudence, “ About Bankss and bank activity in Republic Kazakhstan ” on National bank map of licensing of bank audit is assigned. The NBK develops the standard papers on licensing of banking audit in which high demands will be established and duty of bank hearers is defined.
In the beginning of 2000 twelvemonth, 16 Bankss of a steel and participants of system of corporate insurance of fixed sedimentations of physical individuals. Active attractive force of nest eggs of the population in Bankss has led eventually to growing of volumes of active operations spent by Bankss, addition of their fight, lessening in the cost monetary value of bank services and eventually their handiness to republic assorted strata of society.
At the start of 2001, there were 48 Bankss, down from 71 at the terminal of 1998 and from over 200 at the extremum in 1993. The 11 Bankss included in the first group were required to make international criterions by 1998. An audit is being conducted to verify whether these 11 Bankss have complied with these duties. In add-on, 24 Bankss belonging to the 2nd group were expected to carry through the same passage by the terminal of 2000. Further consolidation is expected as many staying Bankss will hold been unable to follow with the increased minimal capital demand of KZT 1 billion.
In 2002 the bank system continues to go stronger: high rates of addition characterize such indexs, as cumulative actives of Bankss, population parts to Bankss. In the conditions of continuing growing of resource base and increase in footings of involved resources for Bankss crediting of existent sector of economic system remains the most priority sort of operations. Positive economic system for development the proceeding inclination of growing of a portion and long-run credits in entire sum of credits to economic system is. High rates the insurance market that well to a step was promoted by realisation of the authorities plan of development of insurance in Republic Kazakhstan for 2000-2002 besides developed. [ 4 ]
In 2004 Kazakhstan the first of the provinces CIS has received investing evaluations from the best evaluation bureaus recognized as the universe community. So, on May, 20th the international evaluation bureau Standard and Poor ‘s has raised a crowned head evaluation of Kazakhstan under bonds in foreign currency with & # 171 ; & # 1042 ; & # 1042 ; + & # 187 ; to “ VVV- ” . In October, 27th the same twelvemonth the international evaluation bureau Fitch Ratings has raised a long-run evaluation in foreign currency of Republic Kazakhstan with & # 171 ; & # 1042 ; & # 1042 ; + & # 187 ; to “ VVV- ” . The short-run evaluation in foreign currency has been raised with “ In ” to & # 171 ; F-3 & # 187 ; , and a long-run evaluation in national currency – with “ VVV- ” to & # 171 ; & # 1042 ; & # 1042 ; & # 1042 ; & # 187 ; . The prognosis of long-run evaluations & # 8211 ; “ Stable ” .
In June, 2006 the 3rd of evaluation bureaus Moody ‘s Invertions Service most known in the universe besides has raised investing recognition evaluations of Kazakhstan. In the subsequent all three taking universe evaluation bureaus have appropriated to Kazakhstan evaluations of an “ investing ” category. As a consequence the democracy has passed from “ bad ” in “ an investing ” category that has provided entree to it and the companies of its occupants to the international market of the finance on more favourable conditions. Increase of recognition position of Kazakhstan is connected and with development of oil and gas sector of the state, the high monetary values for oil. Not last function has played and expected addition in extraction of hydrocarbons, and that the democracy is included into the six of the first states where the addition in oil recovery throughout the following 10 old ages will be observed. Non-residents & # 8217 ; portion in authorised capital of Kazakhstan Bankss increased twice and came to 23 % in twelvemonth 2006-2007. In the same period portion of assets controlled by non- occupants in aggregative assets of banking system increased, coming to about 18 % .
Emerging markets showed a national economic system was sustainable developed. The good state of affairs developed in the internal fiscal market. The Kazakhstan bank sector from the minute of happening by independency republic develops as a whole is frontward and it is advancement. Banks initiated many positive procedures in economic system, growing of graduated table of concern. At undeveloped stock market in the state national Bankss search for entree ways to the capital universe markets. At the disbursal of a addition of foreign loans and active operations growing of Bankss, their actives and recognition portfolios was abroad accelerated. At the same clip handiness of inexpensive money was generated abroad by about uncontrolled demand for them that was negatively reflected in debt dependance of the state. In 2007 the entire external debt of Kazakhstan has made 96,4 bln US dollar. From a entire amount of a entire external debt 2,1 bln dollars are necessary on the debt province and guaranteed by the province, and 94,3 bln on indefensible the province a Considerable fiscal resources from the foreign markets, involved with the most active Kazakhstan Bankss, have made as a consequence half of entire external debt of the state. On the terminal of 2007 the entire external debt of Bankss has made nearby 46 bln dollars. So the fiscal crisis had come. On the one manus the crisis raised attraction of fiscal sectors of states with emerging markets ( including Kazakhstan ) which came to be considered by foreign investors as & # 8220 ; safe celestial spheres & # 8221 ; for some clip. On the other manus, in the affair of crisis big multinational Bankss had to direct resources for salvaging their ain fiscal stableness. This led to restriction of their resources for international operations in the new states and investing in development of international subdivisions.
A new moving ridge of the universe fiscal crisis, which had begun in the 3rd one-fourth of the twelvemonth 2008, rapidly turned & # 8220 ; safe celestial spheres & # 8221 ; from the developing markets. The clime for banking concern in these states got worse dramatically. At the same timelocal bank rating decreased multiplex thereby it became easy for the planetary strategic investors to come in the domestic markets and come to the bow at that place. Under the premise what local markets & # 8217 ; medium-term chances are positive the latter term is even able to raise investing attraction of local Bankss. The exhaustion of liquidness and burdensome debts to the foreign states had shaken stableness and recognition position of the Kazakhstan bank system. In November, 2008 the province has allocated $ 21 billion for support bank. They had been intended to supply liquidness of bank system, to purchase bank actives enduring catastrophe, to supply with credits the shriveling edifice industry, to back up agribusiness, and besides the endeavors of little and mean concern.
In the beginning of February, 2009 the authorities had bought a portion at a rate of 78 % from BTA bank, the largest constitution on bringing of credits, and besides that Samruk-Kazyna had bought 76 % portions of Alliance bank, 4th bank on size.The basic accomplishment of bank system on the consequences of 2009 consists in indispensable decrease of an external debt. [ 5 ]
Chapter 2. Analysis OF FOREIGN BANK IN THE FINANCIAL MARKET OF KAZAKHSTAN ( on illustration of ATF bank )
Foreign Bankss expansionon Kazakhstan market was one of the most discussed subjects in period before August 2008 which regards the development of domestic fiscal sector.
Banks that are partially or entirely owned by foreign capital. Activities of foreign Bankss in the state are regulated by national statute law, which establishes a particular government for foreign Bankss to restrict or heighten them, depending on the province of the economic system and the way of authorities policy.
One may divide out three phases in the history of foreign direct investing to Kazakhstan banking sector for the last five-six old ages:
& # 183 ; before the center of twelvemonth 2006 & # 8211 ; weak addition stimulated by general positive estimation of Kazakhstan economic system and fiscal sector & # 8217 ; s chances ;
& # 183 ; from the terminal of twelvemonth 2006 to the center of twelvemonth 2007 & # 8211 ; rapid growing acceleration, disconnected alteration to trade name new degree. This phase was stimulated by Kazakhstan stock market enlargement which had lead to significant reevaluation of Kazakhstan Bankss & # 8217 ; assets ;
& # 183 ; from the center of the twelvemonth 2007 to the terminal of the twelvemonth 2008 & # 8211 ; foreign direct investing addition slowing, conditioned by influence of the universe fiscal crisis.
Though in the terminal of the 3rd one-fourth of 2008 an addition of foreign direct investing to Kazakhstan banking sector had been go oning, nevertheless, it was doubtless under its ain inactiveness and was caused by decision of old trades.
Influence of the universe fiscal crisis 1 may anticipate that new forth phase in the history of foreign investing to the Kazakhstan banking sector started from the beginning of the twelvemonth 2009. It is characterized by multiple contraction of sum of investings, active re-allocation and consolidation of Kazakhstan Bankss & # 8217 ; portions between narrow group of planetary banking groups, turning function of net income capitalisation in the ain capital edifice beginnings of non-residents & # 8217 ; subordinate companies.
Banks that controlled by foreign owned Bankss were among the first to develop such sectors of our fiscal market, as the issue of lodging loans, cars, consumer durable goodss, other consumer loans. Foreign Bankss have successfully lend to little and average concerns, non to advert their active function in the fiscal services to corporate clients. [ 5 ]
ATF bank is one of the Bankss with foreign engagement in the fiscal market of Kazakhstan. It appears in 1995 as CJSC & # 8220 ; Almaty trade-financing bank & # 8221 ; and carry on operations in tenge and foreign exchange. In 1996 starts serving of payment Visa, EuroCard or MasterCard, Diners Club, JCB, American Express payment cards. National bank of Kazakhstan included & # 8220 ; Almaty trade-financing bank & # 8221 ; into first group of Bankss moving consequently to international criterions in 1997. In September 1999 started to show money transportations by order of persons without gap of bank histories in 170 states of the universe in cooperation with Western Union. In October 2000 issued first voucher bonds in sum 5,000,000. Change in the name of & # 8220 ; Almaty trade-financing bank & # 8221 ; to & # 8220 ; ATF bank & # 8221 ; was done in 2002. Besides in this twelvemonth was signed memoranda of cooperation with Atyrau, Aktubinsk, Mangistau and western Kazakhstan parts. 2002 was successful twelvemonth for bank, because they increased their capital by 31 % , besides they became stockholders of & # 8220 ; National salvaging bank of Kazakhstan & # 8221 ; and started to publish VISA Virtuon cards. In 2003 the ATF bank enter in cooperation with the Kazakhstan Franchising Association, that was the first in Kazakhstan that started to recognize the funding plan for acquisition of wide-known universe companies & # 8217 ; trade names by local entrepreneurs.Since December 11, 2003 & # 8220 ; ATF Bank & # 8221 ; has implemented a new service for Visa Gold, Visa Business, Visa Classic, Visa Electron card holders. The new service allows having information on card history balance via ATM during remaining abroad.In 2004 & # 8220 ; ATF Bank & # 8221 ; declares about execution of a new service & # 8211 ; & # 8220 ; Partner & # 8221 ; plan conducted in cooperation with & # 8220 ; ATF & # 8211 ; POLIS & # 8221 ; insurance company and & # 8220 ; OTAN & # 8221 ; Pension Fund. & # 8220 ; Partner & # 8221 ; plan is dedicated for service quality addition of clients. In few month subsequently they became one of the chief stockholders of & # 8220 ; Otan & # 8221 ; & # 8220 ; Open Pension Savings Fund & # 8221 ; . In conformity with the jurisprudence & # 8220 ; On recognition agency and readying of recognition histories & # 8221 ; the first recognition agency was created in Kazakhstan. & # 8221 ; ATF Bank & # 8221 ; JSC was one of the laminitiss of & # 8220 ; First Credit Bureau & # 8221 ; LLP. Management of & # 8221 ; ATF Bank & # 8221 ; JSC presented new attack to concern conductivity and introduced new trade name manner of the taking fiscal institute of the state: & # 8220 ; ATF Bank & # 8221 ; is the Bank for steady growing! & # 8221 ; . 2005-2006 old ages were old ages of acquiring awards:
1. Leading universe fiscal edition & # 8220 ; EUROMONEY & # 8221 ; admitted & # 8220 ; ATF Bank & # 8221 ; a taking fiscal institute of the Republic of Kazakhstan in corporate direction and the best bank for SME in Kazakhstan.
2. The National League of consumers in Kazakhstan by consequences of its activities in 2005 awarded & # 8220 ; ATF Bank & # 8221 ; & # 8211 ; a member of the Association of Perfect Business in Kazakhstan, with “ Immaculate ” People & # 8217 ; s Quality Mark and Certificate “ For aid in SME development in Kazakhstan ” .
3. & # 8220 ; Euromoney & # 8221 ; taking universe fiscal edition conferred & # 8220 ; ATF Bank & # 8221 ; on the award & # 8220 ; The best bank in corporate direction among developing states of Europe ” .
On June 2007 bank Austria-Creditanstalt AG, who was sub-division of UniCreditGroup for commercial and bank operations in Central and Eastern Europe and private stockholders of & # 8221 ; ATF Bank & # 8221 ; JSC signed the understanding on acquisition of bulk interest of & # 8221 ; ATF Bank & # 8221 ; JSC. It was the beginning of the new manner of development of ATF bank on the district of Kazakhstan and on the district of other states. [ 6 ]
Analysis of fiscal state of affairs of ATF bank shows stairss of development and alteration in it & # 8217 ; s assets, liabilities and capital. It is the most of import portion for any commercial bank, so here we will see alterations in horizontal and perpendicular analysis of balance sheet for 2007, 2008 and 2009 old ages. Analysis of construction of assets shows addition or lessening in the development or reasoning backward in it & # 8217 ; s activity.
Table 1- Assetss of ATF bank, million tenge, [ 7 ]
| 2009 | 2008 | 2007 |
Rate of addition 2009 |
Rate of addition 2008 | |
| Cash and hard currency equivalents | 187 766 665 | 95 590 527 | 57 759 513 |
96,42811 |
65,49746 |
| Obligatory militias | 18 036 119 | 21 654 652 | 60 880 209 |
( 16,7102 ) |
( 64,4307 ) |
| Sums due from recognition establishments | 3 130 290 | 13 556 199 | 4 994 258 |
( 76,9088 ) |
171,4357 |
| Loans to client | 778 889 753 | 799 054 021 | 783 253 258 |
( 2,52352 ) |
2,017325 |
| Current income revenue enhancement assets | – | 3 580 027 | 1 063 011 | – |
236,7817 |
| Deferred income revenue enhancement assets | 8 308 728 | 213 635 | – |
3789,217 |
– |
| Property and equipment | 25 564 877 | 25 321 368 | 25 089 322 |
0,961674 |
0,92488 |
| Other assets | 9 466 360 | 11 363 223 | 4 968 772 |
( 16,693 ) |
128,6928 |
| Entire assets |
1 031162792 |
970 333 652 |
938 008343 |
6,268889 |
3,446164 |
Beginning: Fiscal study of ATF bank 2007,2008, 2009
We can see increasing in the sum of entire assets by 3,4 % in 2008 and increase by 6,26 % in 2009. It means that crediting, investings and other operations with money increased. Increase in hard currency and hard currency equivalents in 2008 was by 65 % , past merely 1 twelvemonth after enter to UniCreditGroup, and we can see high consequences. In 2009 this figure increased by 96 % , so we can reason, that economic policy of ATF bank in period of fiscal crisis is right and will convey better consequences in 2010. Loans to client in 2009 decreased by 2,52 % despite to diminish in involvement rate for bank & # 8217 ; s loans. But there was addition in belongings and equipment that bank purchased by 0,92 % in 2008, and by 0,96 % in 2009. Decrease in sums due from recognition establishments decreased by 77 % , that means that sum of money in recognition portfolio of ATF bank is adequate to their operational work. Besides we can see alterations in other assets of ATF bank. If in 2008 there was addition in this point by 128 % , in 2009 we see decrease in this point by 16 % .
In construction of assets the biggest comparative denseness is in loans to clients. It means that handiness of credits was really high and involvement for this loans were collectible for Kazakhstan & # 8217 ; s citizens. The 2nd topographic point in comparative denseness takes hard currency and hard currency equivalents. It was a favourable consequence for ATF bank, because net income increased, so the chief end of any bank was achieved.
Table 2 & # 8211 ; Liabilitiess of ATF bank, million tenge, [ 7 ]
| 2009 | 2008 | 2007 |
Rate of addition 2009 |
Rate of addition 2008 |
|
| Fiscal instruments at just value through net income or loss | – | 332 190 | – | – | – |
| Deposits and balances from Bankss | 33 960324 | 168 206 178 | 296 755 417 | ( 79,81 ) | ( 42,7394 ) |
| Current histories and sedimentations from clients | 501 639782 | 343 421 095 | 380 605 239 |
46,0713 |
( 9,76974 ) |
| Debt securities issued | – | 204 988009 | 174987265 |
– |
17,14453 |
|
Current revenue enhancement liabilities |
732,251 | – | 595 759 | – | – |
| Other liabilities | 2,966,250 | 2 018 771 | 2 292 648 |
46,9335 |
( 11,9459 ) |
| Entire liabilities | 991,040,481 | 718667272 | 852236328 | 7,29 | ( 15,6728 ) |
Beginning: Beginning: Fiscal study of ATF bank 2007,2008, 2009
Harmonizing to the tabular array we can reason that in 2008 were decrease in sum of liabilities by 15 % . It means that there was lessening in figure of sedimentations opened by ATF to physical faces, sedimentations from analogous histories of other Bankss. There were lessening in sedimentations and balances from Bankss by 43 % , in current histories and sedimentations from clients by 10 % . Other liabilities besides were in subtraction by 12 % . Merely sum of issued securities increased in 2008 by 17 % . The biggest sum in operations of foreign bank belongs to current histories and sedimentations from clients, 2nd topographic point take debt securities issued and at the 3rd topographic point sedimentations and balances from other Bankss.
In 2009 were alterations in all points to the better side. There were lessening in sedimentations and balances from Bankss for 79 % . It means that ATF bank didn & # 8217 ; t utilize money from other commercial Bankss and rested for it & # 8217 ; s ain capital. Current histories and sedimentations from clients increased by 46 % and 10 % addition in other borrowed financess, we can reason, that work of sedimentation and recognition sections was really high. There besides was increase in other liabilities of bank by 46 % . Besides we can see addition of all points of liabilities: sedimentations and balances from Bankss by 3,4 % ; current histories and sedimentations by 50 % ; other borrowed financess by 45 % . Liabilitiess of ATF bank in 2009 increased by 7 % , so we can reason that trust to ATF bank, their credits and sedimentations increased.
Table 3 & # 8211 ; Equity of ATF bank, million tenge, [ 7 ]
| 2009 | 2008 | 2007 |
Rate of addition 2009 |
Rate of addition 2008 | |
| Share capital | 106,878,518 | 89 170 492 | 57 897 607 | 19,86 |
54,01412 |
| Additional & # 8211 ; in paid capital | 242,185 | 242 185 | 242 185 | – | – |
|
General modesty |
15 181 181 | 15 181 181 | 333 799 | – | 4448,001 |
| Minority involvement | – | 434 824 434 824 | 603 000 603 000 |
– |
( 27,8899 ) |
| R/E | ( 61 674 996 ) | ( 6 899 432 ) | 15 823 873 |
793,9141 |
( 56,3986 ) |
| Entire equity | 60 087 712 |
98 129 250 |
74 900 464 |
( 37,0531 ) | 31,01287 |
Beginning: Fiscal study of ATF bank 2007,2008, 2009
When ATF signed a contract with UniCreditGroup sum of their portion capital was 57 897 607 tenge. But in 2008 we can see a shell addition by 54 % . So, we can state that enter to this understanding was favourable for bank. Increase in portion capital influenced to relative denseness in 2008, because of it there was increase the entire equity of commercial bank by 31 % . Besides were decrease in returning net incomes of bank by 56 % and lessening in minority involvement by 28 % .
In 2009 the sum of portion capital increased by 19,86 % . It means that the inputs to this bank increased. It is connect with addition of credits, that bank gives, addition in sum of sedimentations and return of loans by physical and legal entities. There were no alterations in additional-in paid capital and general modesty in 2009. Relative denseness in additional-in paid capital increased by 0,2266 % , and general modesty increased by 14,20 % in 2009. But we can see that there are besides lessening in reappraisal modesty and returning earning by 0,85 % and 57,7 % . Harmonizing to R/E we can reason, that the net income of bank increased harmonizing to the 2008, because of addition of operations of bank. We can see lessening in of import for bank phases for it & # 8217 ; s development and it brings the growing of capital of ATF bank. So we can reason, that in 2009 ATF bank had better fiscal twelvemonth than it was in 2008 and positions of development of this bank addition. [ 7 ]
Rating is the face for every commercial bank with foreign participation.Rating is assigned to an independent recognition bureau and is an look of willingness of the banking establishments to carry through their fiscal duties. Evaluations of Bankss have become a major information resource in the banking sector. The importance evaluations, suggests non merely that clients of Bankss and bankers are listening to these indexs. Rating bureau is still the most of import standard for the dependability of the fiscal establishment or fiscal and recognition system of the whole province. Rating bureaus tend to specify the grade of peril of fiscal minutess in assorted markets, and Bankss are grouped in the rankings on the peril of sedimentations in them. Assorted evaluation bureaus have different factors that determine the place of a bank in the ranking, every bit good as different calculate these or other economic indexs for delegating to the bank topographic points in the ranking. Therefore, an experient investor, loaner or investor will ne’er trust on merely one evaluation, utilizing merely a few. First evaluation of ATF bank done by & # 8220 ; Fitch Ratings & # 8221 ; :
& # 183 ; Long-run issuer default evaluation in foreign currency: confirmed at degree ‘ BBB ‘ ; the forecast is changed from negative to stable.
& # 183 ; Short-run issuer default evaluation in foreign currency: confirmed at degree ‘F3 ‘
& # 183 ; Long-run issuer default evaluation in national currency: confirmed at degree ‘BBB ‘ ; the forecast is changed from negative to stable.
& # 183 ; National long-run evaluation: confirmed at degree & # 8216 ; AAA & # 8217 ; , The forecast is stable
& # 183 ; Support evaluation: confirmed at level’2 ‘
& # 183 ; Individual evaluation: confirmed at degree ‘D / E ‘
& # 183 ; Priority unbarred evaluation of debt duties: confirmed at degree & # 8216 ; BBB & # 8217 ;
& # 183 ; National precedence unbarred evaluation of debt duties: confirmed at degree “ AAA ” .
Moody ‘ s evaluation:
& # 183 ; Rating of fiscal stableness: & # 8221 ; E+ & # 8221 ;
& # 183 ; Deposit evaluation in local currency: & # 8221 ; Ba1 & # 8221 ;
& # 183 ; Rating of precedence unbarred debt in foreign currency: & # 8221 ; B & # 1072 ; 1 & # 8221 ;
& # 183 ; Rating of subordinated debt in foreign currency: was changed from Ba3 to B1.
& # 8220 ; Negative & # 8221 ; forecast was changed to & # 8220 ; stable & # 8221 ; .
We can reason that the presence of foreign subordinate Bankss in Kazakhstan is a positive factor in making the necessary Kazakhstan Bankss to vie in the market. National Bank of Kazakhstan created equal conditions of work for Kazakhstan Bankss and foreign subordinates on the district of state. Kazakhstan Bankss, following the experience of foreign Bankss, must bit by bit go a multinational, first deriving the trust of its chief clients, and so, with their growing beyond the boundary lines of Kazakhstan. [ 8 ]
Chapter 3. PROSPECTS OF THE DEVELOPMENT OF BANKING SYSTEM OF KAZAKHSTAN
There are 31 Bankss with non-resident capital part were registered in the beginning of the twelvemonth 2009.
There are 3 chief types of scheme which determine placement of foreign Bankss on internal market of banking services:
& # 183 ; Universal ( multi-product or multi-clients ) . Bank attempts to spread out its presence in all promising sectors of banking activities. It may non hold any cardinal competitory advantages in any sector but it aims to accomplish them in the hereafter.
& # 183 ; Specialized ( mono-product or mono-clients ) . Bank has cardinal competitory advantage in some client or merchandise niche ( mortgages, car credits, plastic cards etc ) . This market or client niche has promising growing chances which justify bank & # 8217 ; s narrow specialisation. Once bank consolidated its place it is seeking to salvage its competitory advantages in the hereafter and this lets him to acquire maximal benefit from expected extension of the chosen section ;
& # 183 ; Mixed ( either multi-product and mono-clients or mono-product and multi-clients ) . Bank either takes into history its present competitory advantages or focal points on one type of clients giving them broad scope of services or it provides broad scope of clients with one type of service. This pick is explained by the trouble of placing aggressive narrow niches or by ineffectualness of seeking to encompass the unembraceable.
Universal scheme was the chief field for competition among Kazakhstan and foreign Bankss at pre-crisis period. Approximately & # 190 ; of foreign Bankss & # 8217 ; aggregative assets were held by Bankss following this scheme in Kazakhstan. As clip went by more and more foreign Bankss chose the scheme. Among Kazakhstan Bankss this scheme was most popular every bit good. As a consequence presence spread outing of foreign Bankss was accompanied by beef uping of competition with Kazakhstan private Bankss and mild crowd out of the latter including market of basic banking merchandises and services for mass client. During pre-crisis period foreign Bankss chiefly were beginnings of capital influxs to Kazakhstan market. For most of them net investing from abroad became of import beginning of active operation support for internal markets. It made the procedure of their enlargement responsive to instability on foreign fiscal markets.
During the crisis period cosmopolitan scheme oriented on standard merchandises and broad scope of clients may go inefficient. Mass markets are most inclined to contagious disease effects.
Banks with foreign capital which took universal scheme likely will hold to take among following determinations.
& # 183 ; & # 171 ; Freezing & # 187 ; enlargement to internal markets, utilizing financess accumulated on internal markets for net capital escape to external markets ( including support of the parent companies ) .
& # 183 ; Return to specialise and combined schemes, e.g. more active placement as Bankss working with transnational companies making concern in Kazakhstan and with Kazakhstan concern owned by aliens.
New conditions will give Kazakhstan Bankss some respite from battle for borrowers with aliens. At the same clip battle for depositors and corporate clients may acquire tough. [ 5 ]
ATF bank, as a foreign bank made a strong scheme on its development. In the chief waies of the bank ‘s fixed scheme to accomplish general ends, the chief waies of its activity the Bank ‘s loaning scheme has been implemented in the coverage twelvemonth, the two chief lines of loaning: loaning to big concerns, and imparting to little and average concerns, focused on the execution of consumer goods and services.
One of the strategic aims of ATF Bank in 2007 continued to be a farther development of loaning to little and average endeavors of the Republic of Kazakhstan, which was manifested in the facilitation of the reappraisal, blessing and issue of loans to make multi-level decision-making, addition efficiency doing and bettering the quality of loan portfolio direction, recreation of the modified on topics of recognition dealingss, industry sector borrowers, the loan term and type of security provided. This job was solved by careful pre-screening of recognition applications, a comprehensive analysis of borrowers and recognition minutess, uninterrupted monitoring of alterations in fiscal place of borrowers throughout the loan period, to place early marks of job loans, and work on their adulthood, every bit good as by the bing system of hazard control at each phase of the recognition. Expanding the resource base has allowed the Bank is progressively oriented to imparting to the existent economic system. The growing of loaning to the existent sector of the economic system caused by a combination of factors. On the one manus, this addition in demand from endeavors for loans to finance productive activity for the acquisition of fixed assets and working capital. On the other manus, this addition in recognition supply due to the competitory environment in the banking market, spread outing the range and urgency of increasing the resource base of the Bank, cut downing the systemic hazard of loaning to existent sector endeavors in the comparatively stable macroeconomic state of affairs.
In 2007, the largest proportion of loans accounted for domains: building, sweeping trade, existent estate and nutrient industries, because of long-run recognition policies in footings of portfolio variegation across different sectors of the economic system. The basic rule of interaction with the Bank ‘s corporate clients is to make long-run reciprocally good relationship and full satisfaction of banking services at the highest degree.
ATF is positioned on the fiscal market, retail concern, as the largest cosmopolitan bank offering the widest scope of fiscal merchandises and services throughout the Republic of Kazakhstan. Among them – the traditional sedimentation histories, consumer, mortgage and auto loans, serving recognition cards and more. This corresponds to the scheme of the Bank ‘s activities in the development of retail concern, a cardinal component of which is the creative activity in all parts of the state ‘s web of retail centres in which to present a individual criterion of service that offers its clients a broad scope of high quality fiscal services. At present, in all subdivisions of the Bank ‘s standardised nutrient bank and introduced a figure of common competitory rates. Harmonizing to the consequences of alterations in the composing of the laminitiss in 2007, ATF Bank has been able to offer its clients the highest quality of service degree and is invariably working on bettering bing merchandises and services for conformity with European criterions of quality. [ 9 ]
In 2007, the Bank improved the plan of loaning to persons. The Bank presently provides loans to persons:
& # 183 ; To buy existent estate ;
& # 183 ; For consumer intents, including: the purchase of autos, consumer durable goodss, instruction, intervention, jubilations, vacations, fixs and other intents.
It should be noted that in order to do loans more accessible to the populace, the Bank is carry oning a proactive policy of take downing involvement rates and widen recognition on loans to the population as a whole was carried out on the market of consumer loans. During 2007 a figure of activities to implement the plan of loaning to persons: the debut of new merchandises, execution of joint plans with the building companies. We can see some positive and negative factors of work and development of ATF bank.
Positive factors:
& # 8226 ; good concern chances in the domestic market ;
& # 8226 ; more dynamic and competent than the other Kazakh Bankss, the direction squad ;
& # 8226 ; well-developed system of hazard direction.
Negative factors:
& # 8226 ; rapid growing in outstanding loans against the background of high external hazards ;
& # 8226 ; increased concentration of the resource base and loan portfolio ;
& # 8226 ; worsening profitableness ;
& # 8226 ; minimally adequate degree of capitalisation.
The evaluations of Kazakhstan ‘s ATF Bank is determined by the rapid growing of recognition portfolio of the bank against the background of high external hazards, increased concentration of its resource base and loan portfolio, worsening profitableness and minimally sufficient degree of capitalisation. The negative consequence of these factors partly neutralized good commercial place of the ATF in Kazakhstan, every bit good as the handiness of a dynamic and competent direction squad and good developed hazard direction systems.
The fact that in the past three old ages, the volume of loans issued by AMB, has increased by an norm of 92 % per twelvemonth, the bank is exposed to hazards associated with a possible recession. However, in the medium term, this diminution is non expected. ATF bank operates chiefly with corporate clients and slower than other domestic Bankss, developing retail activities, the concern has high concentration on the single contractors. Standard & A ; Poor ‘s believes that the addition in concern volumes will lend to bettering the profitableness of ATF in the average term. Regular parts to the stockholders, every bit good as the capitalisation of maintained net incomes can back up the capital at a degree guaranting concern growing rates.
ATF scheme involves non lone saving of a strong place in the section of banking services to corporate clients and the enlargement of fiscal consultative entities, but besides the development of services for clients. It is non excluded that the ATF will purchase new assets, but in the Kazakh market, he plans to turn chiefly by organic growing. Harmonizing to the scheme of bank after five old ages the proportion of assets located in other CIS states, should make 15-20 % of the entire value of its assets.
Harmonizing to Standard & A ; Poor ‘s, the bank is good positioned to implement its enlargement scheme in the medium term, as he has the necessary substructure, professional and experient direction squad and staff, and a well-developed methods and processs for hazard direction. Although ATF is able to increase its market portion at the disbursal of herding out smaller participants, it will be hard to bridge the spread between himself and the three taking Bankss. To accomplish medium-term strategic end – to go one of the largest Bankss in Kazakhstan and spread out operations in other CIS states – it requires a important extract of capital, extra professional experience and advanced engineerings.
Weak point of ATF is really outstanding in its profile of hazards is recognition hazard. The grounds for this hazard prevarication in the distinctive features of the Kazakh economic system, every bit good as a weak recognition civilization and people. Concern is the high concentration of ATF in the loan portfolio of single borrowers and sectors, every bit good as a important per centum of foreign currency loans. On the other manus, plus quality supported by factors such as sustained economic growing and the tendency towards facilitation of recognition protection and better the refund of loans issued.
For all the daring of its strategic aims of the bank adheres to a conservative loaning policy and the pick of borrowers. All loans are granted to corporate clients at the caput office. Approval procedure for loans to persons and SMEs, carried out chiefly in the subdivisions, standardized and occurs with the engagement of staff of hazard direction and collateral inspectors from the relevant subdivisions
The system for pull offing market and operational hazard direction is good developed – in this regard ATF stands out against other Kazakh fiscal moderate-sized organisations. Bank reduces involvement rate hazard by restricting the places at hazard and the ciphering loaning bounds with engineering Value-at-Risk ( VAR ) , every bit good as hedges its operations through non-speculative nature. Most loans and sedimentations are at fixed involvement rates, and a little part of retail loans with drifting rate financed utilizing subordinated debt, indexed to rising prices. However, as the mean adulthood of loans issued increased degree of involvement rate hazard. The Bank implements the methodological analysis of computation of continuance for all categories of assets and liabilities.
Harmonizing to the whole banking system of Kazakhstan we can state that evaluation bureau Moody `s Investors Service has left the prognosis of the banking system of Kazakhstan at the degree of “ negative “ . The bureau believes that banking system is still has many serious jobs with this position and agree to Kazakhstani experts.
Harmonizing to the bureau, the determination was taken due to a hapless degree of modesty financess and low capitalisation of domestic Bankss, every bit good as the complexness of entree to sweeping capital markets. This is despite the fact that the economic system is demoing marks of betterment, the bureau predicts GDP growing in Kazakhstan at the degree of 2,8 % this twelvemonth, compared to 1,2 % in 2009, Kazakhstan ‘s banking system remains vulnerable. [ 10 ]
Evaluations bureaus are based on the fact that, in it & # 8217 ; s sentiment, the current degree of job loans is 40 % of entire loans, every bit good as on outlooks that the bulk of job loans concluding loss reached 60 % of the unpaid balance. Overall, this appraisal can hold: Kazakhstan ‘s banking system is truly sing now is non the best clip.
The deputy manager general KzRating Denis Rybalkin says that Kazakhstan ‘s banking system is truly sing and it is non the best clip to it. This happens because of disparity of development and the impact of the planetary economic crisis. The job of low capitalisation and hapless the degree of redundancy in the present truly exists. He non dramatise the inquiry of deficiency of foreign support and Kazakh Bankss are non sing a liquidness deficit. Denis Rybalkin think that the demand for bank loans is non low, the economic system is still in demand of recognition resources. The first reaction of Bankss to deteriorating loan portfolio has stricter demands for borrowers. It is a barbarous circle: the companies in demand for development financess, can non acquire money in Bankss, Bankss besides can non happen good clients. The state of affairs in banking system of Kazakhstan is still far from normal, nevertheless, positive tendencies I have mentioned, in the average term can do a difference for the better.
Trader of & # 8220 ; Central Securities & # 8221 ; Denis Kim think that now deteriorating quality of loan portfolio, commissariats are still charged. Besides there are jobs with capitalisation, it is a little job, but it exists. A immense job is a deficiency of long-run support, puting bonds in recent old ages was non, while merely paying for them. There is a sedimentation base, but increase it well does non go on. Now there is extra liquidness, but it is deficient to to the full deploy the new loaning plan, the fact that it is suited merely for runing on short-run instruments.
Sabit Hakimzhanov, manager of research of & # 8220 ; Halyk Finance & # 8221 ; believes that this estimation reflects the province of development chances of the banking system in the following 2-3 old ages. He said that demand for bank loans now is down, but he added that there besides exists, and unmet demand. That it transformed into a high-quality demand, it is necessary that the debt to the Bankss of the population has declined by 10-15 % , and that there are new companies capable of doing these conditions.
The Agency believes that the 2nd tier Bankss will be limited to doing net incomes. In the short term, the ability of Bankss to increase their loan portfolios will be hindered low demand and deficiency of good borrowers. The bureau besides added that the liquidness of some large Bankss remain vulnerable due to heavy trust on short-run support from a little figure of public or quasi-state companies.
Thabit Hakimzhanov told that after the losingss in 2008 and 2009, big Bankss are either unwilling or unable to impart. Expectations of growing in loaning in the first half did non happen. Gross loaning in the economic system fell by 3 % . Net loans decreased in about all major Bankss, for than Bank Center Credit. He admitted that some second-tier Bankss in the first half of 2010 increased its loan portfolio by 10-20 % , but they all have much better portfolio quality and greater stock of capital and a more dependable support than the norm for the system. Their loan portfolio by the terminal of the twelvemonth may still turn, but at the sector and the economic system, this growing will non hold much impact. On the whole sector, he does non anticipate important growing in loaning due to a deficiency of borrowers with good recognition hazard due to miss of capital, without which it is impossible to turn liquid assets in loans, and partially because of deficiency of Bankss ‘ long-cheap money.
Presently, the company is more positive about the chances of the banking system than a twelvemonth ago. The grounds for cautiousness is the figure of positive factors, such as: cut downing the rate of impairment in the loan portfolio, the province steps to back up banking and existent sectors, important advancement in restructuring troubled Bankss.
So we can sum up that there is no cardinal betterments in the banking system, 2nd tier Bankss should to go on to develop, and it needs to better the quality of the portfolio, the hunt for alternate support, with a strong dependance on the international tendencies. [ 11 ]
Decision
Commercial Bankss are an built-in portion of the whole banking system, designed at the macro degree to turn to the macroeconomic aims of pecuniary circulation, supplying full motion of money by bank-specific methods to advance the development of national economic system. With a important size of capital, potentially can go major investors, is most straight influence the development of national economic system in general, to step in in the restructuring and even specify the term in many sectors of the economic system. Buying in a reasonably big graduated table art
