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 Subject "banking system"
(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.
The mortgage market in Kazakhstan has been developing dynamically since the late 1990s, reflecting both growing public demand for housing and the banking sector’s increasing focus on retail lending. This paper analyzes the evolution of the Kazakhstani mortgage market, examining the structure of interest rates, regional distribution of mortgage loans, and challenges related to inflation and credit risks. Despite declining interest rates compared to earlier years, mortgage loans in Kazakhstan remain significantly more expensive than in European countries, primarily due to inflationary pressures and lower living standards that increase lending risks. The study also explores the role of the Kazakhstan Mortgage Company (KMC) in refinancing housing loans and stabilizing the market. Although the sector faces issues such as overdue loans and high insurance costs, government measures aimed at improving the financial system and controlling inflation provide an optimistic outlook for the sustainable development of the mortgage market in Kazakhstan.