• Ешқандай Нәтиже Табылған Жоқ

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МРНТИ 06.73.55 УДК 336.7

THE DEVELOPMENT OF THE BANKING SYSTEM IN THE REPUBLIC OF KAZAKHSTAN Sh.G.Jumadilova*1, B.Zh. Atabay2

1International IT University, Almaty, Kazakhstan

2Almaty University of Power Engineering and Communication, Almaty, Kazakhstan e-mail: sh.jumadilova@iitu.kz

Abstract. The paper analyzes development of Kazakhstani banking sector, including the overall amount of volume of banking system, the amount of loan portfolio, and deposit portfolio. The paper considers National Bank and all commercial banks. Statistical tools are used for the analysis of the banking system. The net income of banks and their profitability are observed.

Analysis shows progress in the development of the banking sector since 2009 to 2017.

Undoubtedly, the global crisis, also internal, in some measure affected the overall state of the country, and this also means the financial sphere. But in general, there is a fairly good trend line in the total amount of assets of the banking system.

Key words: banking sector, banks, bank assets, bank profitability, largest banks, smallest banks.

Introduction. The banking system is a key link in the economy, affecting both public and private interests, affecting the state of society as a whole and the welfare of every citizen. The banking system is one of the most substantial factors, which generally describes the financial condition of the Republic of Kazakhstan in the banking sector. Moreover, it describes the large fragment of a certain financial state of the country, and makes significant influences on economy of the whole state. Actually, the banking system is a set of commercial and national banking institutions of all kinds, which in their work adhere to a single monetary mechanism.

The paper analyzes development of Kazakhstani banking sector, including the overall amount of volume of banking system, the amount of loan portfolio, and deposit portfolio. The paper considers National Bank and all commercial banks.

Analysis shows progress in the development of the banking sector since 2009 to 2017.

Undoubtedly, the global crisis, also internal, in some measure affected the overall state of the country, and this also means the financial sphere. But in general, there is a fairly good trend line in the total amount of assets of the banking system.

Methodology and data. Data on banking sector measurements are retrieved from the bulletins and publications of the National Bank of the Republic of Kazakhstan and from the financial reports of the banks. Data are taken for the period since 2009 to 2017.

Research methods used are structural analysis, comparative analysis, and description statistics.

Statistical tools are used for the analysis of the banking system. The net income of banks and their profitability are observed.

Results and discussions. The modern banking system includes the Central bank (National), which acts as its main regulator, commercial banks and other credit and settlement institutions.

The central bank of every country implements currency and state issuing policy and this is the main core of the entire reserve system of the state. Commercial banks are engaged in servicing individuals and legal entities, providing their clients with a full range of banking services[1].

Kazakhstan uses the own national banking system to solve the most important problems. First of all, to ensure economic growth, second one in order to regulate of the level of inflation in the country, and also to balance of payments adjustments.

In fact, all banks are the main financial intermediaries in a market economy of Kazakhstan. In the course of bank’s activities they create new requirements and obligations that become commodities in the money market. Therefore, the analysis of the development of the banking system is one of the most considerable areas of research into the financial situation of the state.

The banking system of Kazakhstan has changed since the existence of the state, even earlier, and faced certain problems, but it should be noted that these problems led to the growth and development of the overall banking sector in the country.

The goals and objectives of the banking system of Kazakhstan are basically identical to the goals and objectives of managing the economy as a whole. However, banks as subsystems of management fulfill their specific, private tasks ensuring the achievement of the overall goal of economic management.

The role of banks as an economic management body is revealed in the process of fulfilling their functions and observing the general principles of the organization of banking. In fact, in the banking system all the funds of society are concentrated: state funds, means of economic links, savings of the population and others. Consequently, all banks of Kazakhstan actively participate in the formation of these funds, monitor their use, regulate the money turnover and thus influence the course of the reproductive process.

Actually, the banking system of the Republic of Kazakhstan is characterized by a number of features. This can be explained by the fact that, in Kazakhstan when a two-tier banking system was formed and began to operate, it is contributed to the improvement of the bank's financial position.

Absolutely, now it is impossible to imagine a harmoniously developed state without an extensive network of banks.

Indeed, banks play the role of numerous hearts in the modern economy, with the help of which it is possible to develop and develop the economic and political might of the state. To date, banks are an economic tool in the hands of government.

Although Kazakhstan's banking system remains stable, it has experienced hard times for past years. The share of non-performing loans started to decline during the last two years from 31.2% in January, 2014 to 7.32% in February, 2017. The National Bank conducted a policy in 2016 aimed at de- dollarization and curbing inflation. As result, the share of retail dollar-denominated deposits dropped to 53.8 % in February 2017 from 80.3 % in February 2016. The loan portfolio has displayed a lax 9.6 percent growth for the last year due to decelerated economic growth. The Government is supporting the banking sector injecting money from the National Oil Fund and the Single Pension Fund for implementation of various government programs.

The National Bank has also begun a policy on consolidation of the banking sector. Two large banks (Tsesna and CenterCredit) announced their merger early in 2017. Halyk bank, the banking industry leader, signed a Memorandum of Understanding with QazKom to study the acquisition of QazKom.

The entire size of banking sector is defined according to some basic factors like:

1. Number of banks 2. Loan portfolio 3. Deposit portfolio 4. The number of branches

Table 1 shows the total size of banking sector as and the basic factors which affect on for the years since 2009 to 2017.They are: the number of banks, Loan portfolio, Deposit portfolio, and last one is the total number of branches for each year.

Table 1

The total size of banking sector Year The total size, in mln

tenge Loan portfolio, in mln tenge

Deposit portfolio, in mln tenge

The Number of branches

The number of banks

2009 11 889,60 9 244,50 4 588,60 379 37,00

2010 11 557,30 9 638,90 6 003,80 374 38,00

2011 12 031,50 9 065,90 6 825,30 365 39,00

2012 12 821,80 10 442,90 2 552,50 378 38,00

2013 14 788,40 11291,50 3945,50 383 38,00

2014 18 239,00 12106,00 11694,00 367 38,00

2015 23 781,80 14 491,80 6782,52 345 35,00

2016 25 560,00 15,050,00 17,030,00 368 35,00

2017 24 220,50 255,400,00 23,041,00 370 32,00

Average: 16 333,68 10 897,36 6 056,03 369,89 36,67

Note: Developed by authors based on [2]

As you can see, the total size has slightly decreased from 2009 to 2010, but increased from 2010 till 2016, in 2017 there was slight decrease.

The number of banks during 2009-2014 was around 38; however since 2015 it decreased to 32 in 2017.

The loan portfolio has increased, while the amount of Deposit portfolio fluctuated over the time, as the Number of branches [2].

Currently, in 2018 there are seven largest commercial banks in Kazakhstan. Table 2 represents the largest banks by their assets and equity size.

Table 2

Assets and equity of the National bank and top 7 largest commercial banks (in 2018) Number The name of the bank Total Assets,

in mln tenge Total Equity, in mln tenge

1 The National bank 4647695,0 810,0

2 QazKom 3280,0 252,0

3 TsesnaBank 2069,0 187,0

4 SberBank 1679,0 144,0

5 Kaspi Bank 1434,0 163,0

6 Forte Bank 405,0 181,0

7 ATF Bank 1341,0 97,0

8 Center Credit Bank 1337,0 113,0

Note: Developed by authors based on [3]

For comparison purposes and illustration of the gap between the largest and the smallest banks, assets of the smallest banks are also provided (Table 3).

Table 3

Assets of eight smallest commercial banks (in 2018)

Number The name of the bank Total Assets,

in mln tenge

1 Eksim Bank 84,0

2 Capital Bank Kazahstan 72,0

3 KZI Bank 62,0

4 Shinhan Bank Kazakhstan 32,0

5 Al-Hilal Islamic Bank 22,0

6 First Hearland Bank 18,0

7 Zaman Bank 15,0

8 The National Bank of Pakistan 5,0

Note: Developed by authors based on [3]

As seen from Tables 2 and 3 total assets of the largest bank is more than 50 times larger than the ones of the smallest bank. However, in accordance with Kazakhstan legislation, the National Bank cannot require private banks to increase capitalization, carry out regulatory deductions, create regulatory provisions, and so on [4].

The next analysis identifies percentage shares of the above listed large banks out of the total assets. This was done with aim to identify how much is the total volume of large banks in percentages, and small ones.

Table 4

Share of top-7 banks in the banking sector

Sum of Assets of Top-7 banks, in mln tenge Sum of Assets of the rest of banks, in mln tenge

11545,0 6289,0

Share of Total assets of Top-7 banks, in % Share of Total assets of the rest of banks, in %

64,74 35,26

Note: Developed by authors based on [3]

Next, we compare profitability of some large and medium banks such as Astana Bank, ALFA Bank, FORTE Bank, Center Credit Bank. For this purposes return on assets (ROA) and return on equity (ROE) measurements were calculated.

Table 5

Profitability of some large and medium banks, for the year ended in December 31, 2017

Banks ROA ROE

ASTANA bank 0,44% 3,09%

ALFA BANK 1,71% 11,05%

FORTE bank 1,37% 10,17%

CENTER CREDIT

BANK 2,17% 22,40%

Note: Developed by authors based on [3]

The lowest ROA in the table above is 0.44%, which is almost five times less than the highest one. As for ROE the lowest one is 3.09%, which is seven times less than the highest ROE in this list.

Therefore, profitability of different banks varies significantly. It is difficult to take some mean value as a typical profitability for the entire banking sector.

As [5] states that before the emergence of crisis situations in Kazinvestbank, DeltaBank and Bank RBK, the prevailing conviction was that the current problems of the banking sector are more a crisis of credit and the lack of good borrowers in the non-primary sectors of the economy that the

Kazakhstan banking system historically lends than a crisis of banking supervision. However, neither the reasons of low profitability nor bank crises are not the subject of the paper.

The next comparison is dedicated to the Rating by customer of banks in Kazakhstan, in order to see which banks are most popular among citizens and better from the customer satisfaction point of view.

Table 6

Rating by customer of banks

N The name of the bank Positive reviews Negative

reviews Evaluation vote numbers

1 Center Credit Bank 33 12 80

2 Kaspi bank 36 33 125

3 QazKom 52 30 158

4 Fortebank 9 6 23

5 TsesnaBank 12 10 42

6 ATF bank 10 21 52

7 Sberbank 16 16 56

Note: Developed by authors based on [6]

The table enables to conclude that Center Credit Bank, Kaspi bank, and QazKom are the most popular banks. As for the customer satisfaction Center Credit Bank and QazKom are leaders.

Conclusion. The paper illustrates some key data on banking sector of Kazakhstan. These obtained data enables to make some conclusions, main of them are as follows:

1. Banking sector of Kazakhstan increased in last 10 years (2009-2017) in the size of total assets. However, the number of banks decreased.

2. There is a significant gap between the largest banks and the smallest ones.

3. Profitability of different banks varies significantly. It is difficult to take some mean value as a typical profitability for the entire banking sector.

References:

1 Закон Республики Казахстан от 31 августа 1995 года № 2444 О банках и банковской деятельности в Республике Казахстан (с изменениями и дополнениями по состоянию на 24.05.2018 г.)

2 National Bank of the Republic of Kazakhstan// www.nationalbank.kz 3 Financial reports of banks. Kazakhstan Stock Exchange// www.kase.kz

4 Д.Е. Алишева «Перезагрузка» финансового сектора Казахстана: новые риски и возможности банковского бизнеса// Статистика, учет и аудит. – №1(68). – 2018. – с. 191-196

5 К.Ж. Бертаева, Г.А. Жолмурзаева. Повышение эффективности банковского надзора в Казахстане // Статистика, учет и аудит. – №1(68). – 2018. – с. 165-170

6 Клиентский рейтинг, Отзывы о Банках Казахстана //

http://forum.banker.kz/forum/156-klientskii-reiting/ (latest access on 11.06.2018)

РАЗВИТИЕ БАНКОВСКОЙ СИСТЕМЫ В РЕСПУБЛИКЕ КАЗАХСТАН Ш.Г.Джумадилова*1, Б.Ж.Атабай 2

1Международный университет информационных технологий, г. Алматы, Казахстан

2 Алматинский университет энергетики и связи, г. Алматы, Казахстан e-mail: sh.jumadilova@iitu.kz

Резюме: В статье анализируется развитие казахстанского банковского сектора, включая общий объем банковской системы, объем кредитного портфеля и депозитного портфеля. В статье рассматриваются Национальный банк и все коммерческие банки.

Анализ показывает прогресс в развитии банковского сектора с 2009 по 2017 год.

Несомненно, глобальный кризис, также внутренний, в какой-то мере повлиял на общее

состояние страны, а это также означает финансовую сферу. Но в целом существует довольно хорошая линия тренда в общей сумме активов банковской системы.

Данные об измерениях банковского сектора извлекаются из бюллетеней и публикаций Национального банка Республики Казахстан и из финансовых отчетов банков. Данные взяты за период с 2009 по 2017 год.

Используемые методы исследования - структурный анализ, сравнительный анализ и описательная статистика. Статистические инструменты используются для анализа банковской системы. Анализируется чистый доход банков и их прибыльность.

Ключевые слова. Банковский сектор, банки, активы банка, прибыльность банка, крупнейшие банки, малые банки.

ҚАЗАҚСТАН РЕСПУБЛИКАСЫНДАҒЫ БАНКТІК ЖҮЙЕНІҢ ДАМУЫ Ш.Г.Джумадилова*1, Б.Ж.Атабай 2

1Халықаралық ақпараттық технологиялар университеті, Алматы қ., Қазақстан

2 Алматы энергетика және байланыс университеті, Алматы қ., Қазақстан e-mail: sh.jumadilova@iitu.kz

Түйін: Баяндамада қазақстандық банк секторының, оның ішінде банк жүйесінің жалпы көлемінің, несие портфелінің көлемі мен депозиттік портфельдің дамуын талдайды.

Баяндамада Ұлттық Банк пен барлық коммерциялық банктер қарастырылған.

Талдау 2009 жылдан 2017 жылға дейінгі кезеңде банк секторының дамуындағы ілгерілеушіліктерді көрсетеді. Әлемдік дағдарыс, оның ішінде ішкі, бір жағынан елдің жалпы жағдайына әсер етті және бұл қаржы саласын да білдіреді. Бірақ тұтастай алғанда, банк жүйесінің активтерінің жалпы көлемінде өте жақсы тренд сызығы бар.

Банк секторының өлшемдері туралы деректер Қазақстан Республикасы Ұлттық Банкінің бюллетендері мен басылымдарынан және банктердің қаржылық есептерінен алынады. Деректер 2009 жылдан 2017 жылға дейін қабылданады.

Зерттеу әдістері құрылымдық талдау, салыстырмалы талдау және сипаттама статистикасы болып табылады. Банк жүйесін талдау үшін статистикалық құралдар қолданылады. Банктердің таза кірісі және олардың тиімділігі қарастырылады.

Түйінді сөздер: банк секторы, банктер, банк активтері, банк тиімділігі, ірі банктер, шағын банктер.

ҒТАХР 06.73.21