Financial Sector Assessment : Republic of Kazakhstan

The Kazakhstan financial sector remains dominated by domestic commercial banks. The banking sector is largely domestically owned, private, and relatively concentrated, with the largest five banks accounting for 78 percent of total banking assets. The share of foreign banks has increased to about 15 percent of total banking assets after some recent acquisitions. The stress testing included single factor sensibility and scenario analysis and focused on the potential impacts of the two main risks being faced by the banking system, liquidity and credit risks. The exercise looked into the potential impact of: (i) the ongoing liquidity crunch and worsening external funding conditions; and (ii) asset and collateral quality deterioration, particularly for construction, real estate, and consumer lending. Some progress has been achieved in strengthening the prudential framework and improving bank governance. However, there is a need to move towards risk-based supervision with more attention to banks' use of risk management systems and internal controls, strengthen the capacity to implement effective consolidated and cross-border supervision, build up stress testing capacity, improve the approach to asset classification and valuation, and develop liquidity risk monitoring capacity. The financial sector assessment (FSA) has taken a more proactive approach in dealing with banks under stress but staff turnover and capacity building issues hinder efforts. The 2004 mission recommendation to increase focus on liquidity risk of individual institutions has not been implemented effectively and, as a result, reliance on wholesale funding continues to pose risks.

Bibliographic Details

Main Author:	World Bank
Format:	Financial Sector Assessment Program (FSAP) biblioteca
Language:	English
Published:	Washington, DC 2009-06
Subjects:	ACCOUNTABILITY, ACCOUNTING, AFFILIATED COMPANIES, AFFILIATES, ASSET CLASSIFICATION, ASSET MANAGEMENT, ASSET QUALITY, AUTONOMY, BALANCE SHEET, BANK ACCOUNTS, BANK ASSETS, BANK BORROWINGS, BANK CREDIT, BANK DEPOSITS, BANK INTEREST RATES, BANK LIQUIDATION, BANK LIQUIDITY, BANK PROFITABILITY, BANK SUPERVISION, BANKING ASSETS, BANKING CRISIS, BANKING DISTRESS, BANKING LAW, BANKING SECTOR, BANKING SYSTEM, BANKRUPTCY, BENCHMARK YIELD, BENCHMARK YIELD CURVE, BORROWER, BUDGET SURPLUS, CAPACITY BUILDING, CAPITAL ADEQUACY, CAPITAL ADEQUACY RATIOS, CAPITAL MARKET, CAPITAL MARKET DEVELOPMENT, CAPITAL MARKETS, CAPITAL REQUIREMENTS, CDS, CENTRAL BANK, CENTRAL BANK NOTES, CLASSIFIED LOANS, COLLATERAL, COMMERCIAL BANKS, COMMERCIAL LOANS, COMMODITY PRICES, CONNECTED LENDING, CONSOLIDATED SUPERVISION, CONSUMER CREDIT, CONSUMER LOANS, CONTINGENCY PLANNING, CORPORATE BONDS, CORPORATE GOVERNANCE, CREDIT GROWTH, CREDIT LOSSES, CREDIT MARKETS, CREDIT QUALITY, CREDIT RATINGS, CREDIT RISK, CREDIT RISKS, CURRENT ACCOUNT DEFICIT, DEBT BURDEN, DEBT INSTRUMENTS, DEBT MARKETS, DEBT RATIO, DEBT RECOVERY, DEBT REPAYMENTS, DEFAULTS, DEPOSIT, DEPOSIT INSURANCE, DEPOSITOR, DEPOSITORS, DERIVATIVE, DOMESTIC CREDIT, DOMESTIC FINANCIAL MARKET, DOMESTIC LIQUIDITY, DOMESTIC MARKET, ENFORCEMENT SYSTEM, EXCESS LIQUIDITY, EXCHANGE RATE, EXTERNAL BORROWING, EXTERNAL FUNDING, FINANCIAL DEVELOPMENTS, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL RATIOS, FINANCIAL RISKS, FINANCIAL STABILITY, FINANCIAL STATEMENTS, FINANCIAL SYSTEM, FISCAL DISCIPLINE, FOREIGN BANKS, FOREIGN CAPITAL, FOREIGN CURRENCY, FOREIGN CURRENCY LOANS, FOREIGN DEBT, FOREIGN EXCHANGE, FOREIGN EXCHANGE EXPOSURE, FOREIGN EXCHANGE MARKET, FOREIGN FINANCING, FOREIGN MARKETS, FORWARD RATES, FUTURE CREDIT, GOVERNMENT BOND, GOVERNMENT BOND MARKET, GOVERNMENT BOND MARKET DEVELOPMENT, GOVERNMENT DEBT, GOVERNMENT DEBT SECURITIES, GOVERNMENT FUNDING, GOVERNMENT INTERVENTION, GOVERNMENT SECURITIES, GROSS SETTLEMENT SYSTEM, HOLDINGS, HOUSING FINANCE, INDEBTEDNESS, INFLATION, INFRASTRUCTURE BONDS, INSTITUTIONAL INVESTORS, INSURANCE COMPANIES, INSURANCE PREMIUM, INTEREST RATE, INTERNAL CONTROLS, INTERNATIONAL CREDIT, INTERNATIONAL MARKETS, INTERNATIONAL RESERVES, INTERNATIONAL STANDARDS, INVESTMENT FUNDS, INVESTMENT POLICIES, INVESTMENT PROJECTS, INVESTMENT RESTRICTIONS, INVESTMENT VEHICLE, ISSUANCE, LEGAL FRAMEWORK, LENDER, LIQUIDATION, LIQUIDITY, LIQUIDITY CRISIS, LIQUIDITY MANAGEMENT, LIQUIDITY RATIOS, LIQUIDITY RISK, LIQUIDITY RISKS, LOAN, LOAN PORTFOLIO, LOAN PORTFOLIOS, LOAN QUALITY, LONG-TERM CAPITAL, LONG-TERM LOANS, MANDATES, MARKET CONFIDENCE, MARKET DEVELOPMENT, MARKET DEVELOPMENTS, MARKET INFRASTRUCTURE, MARKET LIQUIDITY, MARKET TRADES, MARKET TRANSACTIONS, MATURITIES, MATURITY, MONETARY FUND, MONETARY POLICY, MONEY MARKET, MONEY MARKETS, MONEY SUPPLY, MORAL HAZARD, MORTGAGE, MORTGAGE MARKET, NATIONAL BANK, NATURAL RESOURCES, NET INTEREST MARGIN, NON-PERFORMING LOANS, OIL PRICES, OPERATIONAL INDEPENDENCE, OUTSTANDING DEBT, OUTSTANDING DEBT SECURITIES, OWNERSHIP STRUCTURE, PAYMENT OBLIGATIONS, PENSION, PENSION FUNDS, PLEDGES, PORTFOLIO, PORTFOLIO QUALITY, PORTFOLIOS, PRIVATE PLACEMENTS, PROFITABILITY ANALYSIS, PRUDENTIAL REQUIREMENTS, PUBLIC ASSETS, PUBLIC DEBT, REAL ESTATE LENDING, RECAPITALIZATION, REGULATORY CAPACITY, REGULATORY FRAMEWORK, REPAYMENT, REPAYMENT SCHEDULES, RESERVE, RESERVE REQUIREMENT, RESERVE REQUIREMENTS, RESERVES, RESIDENTIAL MORTGAGES, RISK FACTORS, RISK MANAGEMENT, RISK MANAGEMENT SYSTEMS, SAFETY NET, SECONDARY MARKET, SECONDARY TRADING, SETTLEMENT, SHAREHOLDERS, SOLVENCY, SOVEREIGN RISK, STOCK EXCHANGE, STOCK MARKET, STOCK MARKET CAPITALIZATION, SUBSIDIARIES, SUPERVISORY AUTHORITY, SWAPS, TOTAL DEBT, TURNOVER, VALUATION, VALUATIONS, YIELD CURVE, YIELD SPREADS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20090701024605 http://hdl.handle.net/10986/3058
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