Foreign banks.

Rather appreciable place in economy of Kazakhstan is played by foreign banks. Today foreign banks make one of large bank divisions in the republic. It is connected with foreign expansion of the companies of the banks which were major customers, with the developed processes of deregulation and liberalization. Growth of number of foreign banks, and from today 6, depends on many factors such as: mode of the admission of foreign banks and regulation of their operations; the Role of foreign trade and direct foreign investments in national economy; existence in the country of the international financial centers, in particular the centers of operations from euro currency defining possibilities of the international expansion: level of development of the national market, including credit and financial and prospects of expansion of local operations; taxation level quality and efficiency of technological infrastructure. According to the Law «about banks and bank activity» opening of affiliated banks by banks - not residents of RK can be authorized to only those banks which have a certain rating one of the main rating agencies. The main foreign founders of banks not residents are the USA, Saudi Arabia, Turkey, China, the Netherlands, Liechtenstein, Kingdom Luxembourg, Holland, Russia, Uzbekistan, Kyrgyzstan.

As Kazakhstan is estimated as country highly attractive to external investment, in the republic process of attraction of the foreign capital in the form of the bank proceeds. Activity of existing foreign banks is characterized by stability and steadiness. From the moment of education by foreign banks sharp default of economic standards of National bank that grows out of finding of a certain share of the financial market of the republic wasn't assumed. Banks with foreign participation prefer to work at domestic market carefully as it is impossible to call the Kazakhstan financial market steady.

One of positive tendencies which are observed today in a banking system of Kazakhstan is positivity of interest rates on deposits. Banks achieved positivity of interest rates on deposits, having managed to involve in itself new clients thereby. Potential investors also felt "weightiness" of offered bank interest rates, and it together with sufficient reliability of an investment of means in a banking system promoted obvious increases in inflow of means in the form of the deposit.

Nevertheless not the secret that the bank sphere of the republic has not the best time against an all-economic crisis. Absence before recent time of an accurate legislative basis, neediness of banks corresponding methodical base the confusions connected with establishment of the sizes of authorized capitals of small and big banks, with sanitation mechanisms, bankruptcy... All this generated many problems and interfered with normal functioning of the banking sector.

So, today the main bottleneck of a monetary policy of the RK National bank is overwhelming prevalence of highly monopolized state ownership which in turn distorts a credit role in economy and does unreal achievement of ultimate goals current credit policy - control of inflation and tenge strengthening, without speaking about prevention of falling of production and investments.

Perspective of today, in my opinion, is also that circumstance that commercial banks don't aspire to use the possibilities for granting the credits to production. The considerable share of assets is stored by them in the form of means on correspondent accounts in National bank. Probably, it speaks market nature of their activity directed on receiving profit. However features of a modern transition period, in particular, instability of macroeconomic indicators, do financing of intermediary activity by the most favorable in the short-term period. As to financing questions, the enterprises don't aspire to obtain the credits in banks because of high interest rates. The Kazakhstan banks appeared more interested in the maximum increase in own fast profits, than in ensuring long-term transformations in the country. In the conditions of shortage of money and a high rate of inflation during the early period during the early period of transformations banks tried to keep higher liquidity of maneuver and consequently aspire to invest only short-term programs. They prefer to finance, for example, commercial projects with the short period of a refund and initially with high rates of a turn, than producers with their big debts, high costs of reconstruction and uncertain prospects. One of burning issues which disturbs today banks of Kazakhstan is the problem of debts and non-payments. Only for the first half of the year 1996 the accounts payable made 390 billion tenge: arrears grew more than three times, and debit almost three times and rose to 290 billion tenge, i.e. total amount long reached nearly 11 billion US dollars. Within the next quarter growth rates of debts didn't decrease, and its scales became menacing. The solution of this problem to become over actual demands mobilization of all forces.

It is important to consider and the general destabilization of economic conditions provoking speculative aspirations accompanying a transition period, use of unfair ways «to wrap up the capital». When systematic failures in calculations develop into payment crisis there is a destruction of all credit system. So, in one cases «means in calculations "are frozen" for purely technical reasons, increasing load of reserves of a banking system and demanding additional credit issue; in other cases transfer of payments to addressees meaningfully is late, and "temporarily expropriated" resources are put into circulation and make profit. When the rigid financial payment discipline isn't provided, incentives to reorganization of inefficient production at the enterprises and threat of their bankruptcies, in fact disappear, wastefulness of all economic system is preserved a resource. Even more dangerous consequence of payment crisis - inflation untwisting (to avoid additional credit issue, as a rule, it is not possible), or return to straight lines goods exchange barter) to operations.

What tasks stand before a banking system?

In the reformed look the banking sector should answer in the maximum degree to problems of creation of bases of market economy. Differently, interests of banks should promote and, in any case not interfere with the solution of a national problem of restructuring of economy and movement to the market.

The banking system is urged to provide economically justifiable (in briefly - and the long-term plan) distribution of financial resources to stimulate, instead of to suppress the competitive relations, privatization, reorganization pricing and price proportions.

The banking sector should hold in rather stable condition a monetary and credit system, in particular, an obstacle to uncontrolled accumulation of deficiency of the state budget and untwisting of hyper inflationary processes. One of necessary conditions for this purpose - independence of National bank in relationship with the government.

Banks should create conditions for economy "opening", providing service of the international movement of the goods, direct and portfolio investments, labor, promoting transition to convertibility of national currency. Banking, after definition, should not only provide financial discipline, but also force clientele learns to count money, and finally - to develop economic thinking, enterprise of participants of economic life.

On the modern banking sector in Kazakhstan how many meets these requirements?

Two levels structure of the banking sector of the Kazakhstan economy actually reflects attempt will construct it by analogy from bank structure of the developed countries with the developed market relations. Thus, it is created for conditions when as the main category the capital acts. Providing formal similarity to bank structures of the developed countries and focusing activity of commercial banks exclusively on profit, architects of a two-level banking system in essence blocked or, in any case considerably limited participation of credit resources in real investment process as the last is interfaced to considerable decrease in an turnover of means and additional credit risks.

However as a result of the undertaken transformations the banking system of RK functioning today was created. And, as it was already noted earlier given system not absolutely corresponds to requirements of effective market economy. Before the Kazakhstan banks there is a number of important problems which demand the immediate decision.

Obviously, more dynamic and operated course of reforms in the banking sector would allow all economy to overcome a transition period less painfully. Inflationary consequences of deficiency of the state budget, the dependant relation of the state enterprises to credit resources could be less dramatic if before liberalization of the prices transition of relationship between National bank and the government on qualitatively new basis (registration of the credits to the government securities, carrying out an accurate side between structural and monetary policy took place).

On a row with it as practice of the expired years during which, the framework of a new banking system of Kazakhstan was in essence constructed showed, were noted first of all by dynamic growth of its "bottom" floor. Small banks at the normal organization of the activity could serve effectively arising small business, locally to work with a narrow circle of clientele. A problem in other: the majority small and even average Kazakhstan banking institutions yet in a condition is high-grade to carry out functions of commercial bank. Above the stated reasonings allow to draw a conclusion that the policy of National bank directed on increase in authorized capitals of commercial banks has the positive results. Due to above-mentioned sees that the strategic course of development of a banking system in Kazakhstan is formation of the large universal commercial banks, differing a deep diversification of activity. In a certain measure it will be promoted by privatization of banks of the second level carried out in the republic.

In spite of the fact that market formation in our country it is substantially connected with development of small business and medium-sized enterprises, after all structure of the modern market define and will define further large associations - concerns and corporations. Only they in a condition to support stability and proportionality of development of a national economy, to transform national economy and to provide its equality in the international division of labor. To guarantee uninterrupted operation of financial security of activity of the large enterprises, concerns, firms only large commercial banks can.

Moreover, the credit system and in particular commercial banks in transition to the market the activity can really assist transformation of the large production structures which have developed still in domination of totalitarian economy, in high-grade subjects of the market. Already now commercial banks become a formation basis in large production and technological complexes of the financial structures providing their organic inclusion in the market relations as high-grade subjects. Commercial banks began to represent itself as financial centers of large industrial complexes, or financial and industrial groups. With reference to our economic reality there is a question: whether in a condition the Kazakhstan banks still obviously preferring to finance trade and intermediary operations, it will be switched to long-term investments into the industry? Certain shifts, it appears, are outlined in this direction, in any case with reference to a part of large commercial banks. The becoming aggravated competition, possibility narrowing for pure speculation, decrease in interest rates in the credit market and its instability - all this compels the most far-sighted bankers to think of reliable investments, about reorientation of the capitals to the industry. As though on the threshold of it a number of bankers of a new wave gets recently solid information and analytical divisions, managements of strategic planning, etc. At the same time, an important role in improvement of activity of banks adjustment plays them analytical works. The regular publication of extensive materials and balance sheets of activity of banks practises in the developed countries. It gives the chance to each bank to analyze better own activity and to compare its results with results of works of other credit institutions. Unfortunately this practice for the present didn't receive a wide circulation in Kazakhstan. Today only some large banks let out information releases about results of the activity, but also those are inaccessible for laymen. Also in my opinion, the publication of data or a peculiar directory which would give a total characteristic of a rating of banks of the Republic is obviously important. [http://yqyq.net/79097-Kreditnaya_sistema_RK.html]