Articles and Proceedings of the scientific conference among University students "Development and future of the science in Kazakhstan in the opinion of youth"
Browsing Articles and Proceedings of the scientific conference among University students "Development and future of the science in Kazakhstan in the opinion of youth" by Author "Kurdaeva V"
(Suleyman Demirel University, 2007) Kurdaeva V; Sihimbaev D
This paper explores the structure, functions, and key principles of the modern banking system, with particular attention to Kazakhstan’s financial sector. The banking system plays a vital role in the economy by channeling funds from savers to borrowers, ensuring the efficient flow of capital, and supporting economic growth. Based on Frederic S. Mishkin’s model, the study highlights that loans constitute the major portion of external funding worldwide, with banks serving as the primary financial intermediaries. The paper discusses the composition of commercial bank balance sheets, detailing their assets and liabilities, and explaining how banks generate profit through asset transformation and interest rate differentials. Furthermore, it outlines the four core principles of bank management — liquidity management, asset management, liability management, and capital adequacy management — emphasizing how these ensure stability and profitability. The Kazakhstani banking system, while still developing, reflects global patterns but faces challenges of liquidity, credit risk, and diversification. The paper concludes that strengthening regulation, improving transparency, and fostering innovation are key to enhancing the efficiency and resilience of Kazakhstan’s banking sector.