Structure and Stability of the Kazakhstan Banking System

Delice G.

Karamanoğlu Mehmetbey Üniversitesi Sosyal ve Ekonomik Araştırmalar Dergisi, cilt.24, sa.42, ss.387-414, 2022 (Hakemli Dergi)

Özet

One of the most important prerequisites for ensuring economic stability is the existence of effective and stable financial markets, financial institutions and payment systems. In this context, today, central banks have placed financial stability among their main policy priorities as well as price stability. In this study, the banking system, which is one of the most important institutional structures of the financial system, was evaluated in terms of historical, institutional perspective and stability in the Republic of Kazakhstan, and the stability/soundness levels of the banks operating in the country were analyzed with 4 different financial distress forecasting methods for the post-2008 period. According to the results of the analysis, the Kazakhstan banking sector was significantly affected by the 2008 crisis, the soundness indicators of the sector had their lowest values in 2009, it started to recover in the next year, after this date, although there were small-scale deteriorations for some years, it showed a moderately healthy image until 2017. In addition, no serious instability could be detected due to the destruction caused by the Covid-19 pandemic on a global scale in the sector, which started to recover after the decline in 2017. It is seen that nonperforming loans came to the forefront as one of the most important financial problems of the sector during the period under consideration.