The influence of banks on the economic development of the republic of Kazakhstan

Banking system one of the most important and integral structures of the market economy. development banks and commodity-money relations and historically paralleled closely intertwined. Banks and directly related to the day to day functioning of the economy at all levels. Through them is the satisfaction of economic interests of the participants of the reproductive process. Banks are the main financial intermediaries in the market economy. In the course of their work they are creating new requirements and obligations that are becoming a commodity in the money market. 

One of the most important attributes of a market economy is the banking system, which acts as a sort generator accumulating supplying state and all members of the community funds. Creating a stable, flexible and efficient banking infrastructure one of the most important (and extremely difficult) tasks of economic reform in Kazakhstan.

Bank an organization created to raise funds and placing them on his behalf under the terms of repayment and urgency.

Banking system one of the most important and integral structures of the market economy. development banks and commodity-money relations and historically paralleled closely intertwined. Banks and directly related to the day to day functioning of the economy at all levels. Through them is the satisfaction of economic interests of the participants of the reproductive process. Banks are the main financial intermediaries in the market economy. In the course of their work they are creating new requirements and obligations that are becoming a commodity in the money market [1].

So, taking customer deposits, the bank creates a new obligation deposit and loan issuing new requirements for the borrower.

This process of creating new obligations and requirements form the basis of financial intermediation. Motion, movement, play of funds from the lender to the borrower and the related activities of financial institutions called financial intermediation.

Accumulating money capital from various sources, the banks create a common impersonal "pool" of money, turning them into active capital, and can meet the requirements for a loan for a variety of conditions.

Goals and objectives of the banking system in the main identical with the goals and objectives of economic management in general. However, banks as management subsystem perform their specific, individual tasks that achieve the common goal of economic management. The role of banks as the governing body of the economy is revealed in the performance of their functions and the general principles of organization of the banking industry.

In the process of managing the economy banks are using mainly economic management practices that reflect the economic relations of any given society are manifested primarily as the interests and economic interests are the production, its driving factor. Based on this control through economic methods is exposed to economic interests.

Banks in the performance of its functions are working closely with authorities functional (economic), sectеral (ministries, departments, companies, firms) and territorial (local) government.

Banks have current information is not available to other governments. This applies in particular to information on the main activities of clients. The lack of funds in the account for wages, payments to suppliers and Budget, the return of bank loans is not only objective, but the daily operational signal to trouble the account holder. Bank data give evidence of the many important aspects of the business, not waiting for compiling accounting foresee the results. This allows banks to know exactly about the status of their clients, control them entirely determine their fate and profitability.

Cash turnover characterized by unity. Areas of the movement of money in cash and noncash forms served the same monetary unit and closely related. Banks through the maintenance of accounts of enterprises, organizations and individuals have control over total money in circulation, and through him the course of business processes and the influence these processes.

In the banking system focused all cash funds of society: state funds, funds of business units, household savings, and others. Banks are actively involved in the formation of these funds are monitoring their use, regulate the turnover of money and thus influence the course of the reproduction process.

With the transition to a market economy before the bank opens new horizons. As a result of privatization and denationalization increasingly developed private property, collective and corporate ownership, cooperative movement, created on a basis of mixed ownership. The calculation of the number of farms and their associations, tenants and persons engaged in self-employment.

In these circumstances, the role of large banks in reducing inflation in the economy and its transition to a market economy, especially in the privatization and denationalization. In this case, the most important task is to improve the banking system credit mechanism, methods for regulating the currency, accelerating payments and compliance payment discipline.

The role of banks in the reform of state owned. The quality of assets and liabilities of banks entirely depends on the financial condition clientele served. In this regard, banking reform can not be done in isolation from the privatization of state enterprises. Therefore one of the tasks of banking reform support the privatization of state enterprises and the creation of a private sector.

Banking reform should contribute to the restructuring of privatized enterprises. This will limit access to credit insolvent and unprofitable enterprises will enhance the possibility of financing of viable businesses. Loss-making enterprises should be separated from viable enterprises transferred to the newly created service development bank, thus preventing the development of bad, non-performing loans to other banks [2].

Reform of the banking system will provide access to bank loans to businesses, will help develop the private sector. At the same time it promotes the restructuring of loss-making public enterprises.

After the collapse of the Soviet Union and Kazakhstan gained in 1991, the status of a sovereign state there was a need for further reform of the banking system in the country, the establishment of its legal framework, new legislation regulating banking activities. This circumstance has been dictated by the adoption of April 13, 1993 Law of the Republic of Kazakhstan "On the National Bank of the Republic of Kazakhstan" and April 14, 1993 Law of the Republic of Kazakhstan "On Banks in the Republic of Kazakhstan." Adoption of these regulations fixed the two-tier banking system and the order relations of the National Bank of the Republic of Kazakhstan with the second-tier banks. In addition, this helped to create a large number of Kazakhstan (about two hundred) of banks that responded to the initial stage of economic reform requirements of the development of market relations and the formation of a favorable competitive macroeconomic environment. Further, due to the increasing role of the state in the central executive authority on behalf of the President and the Government, the requirements for the country out of a deep economic crisis and the acquisition of an important attribute of sovereignty the introduction of 15 November 1993. currency Kazakh tenge and effect from March 1, 1995 of the Civil Code of the Republic of Kazakhstan (General Part), the need and adopted a new banking legislation. March 30, 1995 was adopted by the Decree of the President of the Republic of Kazakhstan, having the force of law "On the National Bank of the Republic of Kazakhstan", and August 31, 1995 The President of the Republic of Kazakhstan, having the force of law "On Banks and Banking Activities in the Republic of Kazakhstan".

The main purpose of the adoption of the Decree "On the National Bank of the Republic of Kazakhstan" was a better reflection of the role of the National Bank in the implementation of monetary policy and the adaptation of law to international standards. No Legislative accountability mechanism to the President of the National Bank of Kazakhstan and the highest representative body of the Republic gives rise to problems in law enforcement, in connection with which the decree "On the National Bank of the Republic of Kazakhstan" clear and detailed procedure for cooperation with the National Bank of the President and Parliament. In particular, the accountability of the National Bank of the Republic of Kazakhstan to the President, with the consent and on behalf of which can check the activities of the National Bank.

Decree "On Banks and Banking Activities in the Republic of Kazakhstan" is quite different from the old Law "On Banks in the Republic of Kazakhstan": defines the types of banks state, deposit, investment, banks with foreign participation, interstate banks, all banks except state, are created only in the form of joint stock companies; allowed to form associations (unions) of banks, the first time given the concept of non-banking financial institution that is not a "bank", but based on the license of the National Bank is authorized to carry out certain types of banking operations in more detail and clearly sets out procedures establishment, reorganization and liquidation of banks, introduced a new concept "conservation bank", which is by decision of the National Bank of coercive measures and procedures in respect of the bank to the restoration of its financial position and improve the quality of work, there are new types of banking operations clearing, Lombard, issuance of payment cards and others are subject to certain requirements for employees in senior positions in the bank, a ban on preferential terms to persons related to bank insiders.

As mentioned, the modern banking system of Kazakhstan has developed as a result of various changes given in the banking reform, which is carried out in our country since 1987.

Transition period during which old and new coexist banking industry, was relatively shortlived. As a result, in the Republic has developed a two-tier banking system, which is the first level of the National Bank, and a second or lower level from government, commercial, cooperative and foreign banks.

National Bank is the main bank of Kazakhstan and is in its ownership. On the one hand, it is a legal person exercising certain civil transactions with commercial banks and the state. On the other hand, he was endowed with broad powers to manage the monetary system of the Republic, which are enshrined in the law "On the National Bank of Kazakhstan."

The main purpose of the bank Mediation in the movement of funds from lenders to borrowers and from sellers to buyers. Along with banks moving money markets perform and other financial and financial institutions: investment funds, insurance companies, brokerage, dealer firms, etc. But the banks as agents of the financial market are two important characteristics that distinguish them from all others.

First, for the typical bank loan swap dual: they supply their own liabilities (deposits, savings certificates, etc.), and mobilized funds thus placed in bonds and debt securities issued by others. This distinguishes banks from financial brokers and dealers who do not produce their own debt.

Second, banks are distinguished assumption of unconditional commitment to a fixed amount of debt to corporations and individuals. These banks are different from the various investment funds that the risks associated with changes in the value of its assets and liabilities, and distributes among its shareholders.

As discussed in the Republic of Kazakhstan the establishment and operation of commercial banks based on the Law "On Banks and Banking Activities in the Republic of Kazakhstan." According to this law, Kazakh banks operate as universal credit institution, perform a wide range of transactions in the financial market: the provision of different types and terms of loans, the purchase and sale and custody of securities, foreign currency, raising funds on deposit, payment, issuance of guarantees , guarantees and other obligations, brokerage and trust operations, etc.

Kazakhstan has developed a system of market relations and the bank is if not the, one of the most important structures. If before banking in Kazakhstan is at a fairly low level, both development and attention in schools, but now it is one of the sciences, developing most rapidly.

In one of the best German textbooks "Banking", edited by prof. HE Byushgena noted that the banking system consists of universal and specialized banks, the issuing bank. The Central Bank has played a leading role the role of the bank of banks [3].

In Kazakhstan, a private banking system appeared after receiving sovereignty in December 1990 as early as January 1991. the Law "On Banks and Banking Activities in ¬ Kazakh SSR," which was essentially the beginning of the banking reform. Republican State Bank was transformed into the National Bank of the Republic of Kazakhstan with the regional management and offices. In 1993, the joint-stock commercial banks were transformed into jointstock banks, and renamed the People's Savings Bank of Kazakhstan.

After the Republic of Kazakhstan in accordance with Article 3 of the Decree of the President of the Republic of Kazakhstan "On Banks and Banking Activity" has a two-tier banking system. National Bank is the central bank of the state and is the top level of the banking system. Objectives, principles, legal status and powers of the National Bank shall be determined by the Presidential Decree, which has the force of law "On the National Bank of Kazakhstan." All other banks represent the lower level of the banking system.

Banks are the main financial intermediaries in the market economy. In the course of their work they are creating new requirements and obligations that are becoming a commodity in the money market. So, taking customer deposits, the bank creates a new obligation deposit and loan issuing new requirements for the borrower. This process of creating new obligations and new requirements form the basis of financial intermediation. Motion, movement, play of funds from the lender to the borrower and the related activities of financial institutions called financial intermediation.

In the process of managing the economy banks are using mainly economic management practices that reflect economic relations and economic relations of any given society are manifested primarily as the interests and economic interests are the production, its driving factor. Proceeding from this, control through economic methods is exposed to economic interests. This understanding of the interests, the effects they can have by meeting the needs. Banks through economic methods of control, such as loans, satisfy the needs of different sections of the economy to borrow different loans or through the exercise of non-cash payments meet the needs of the economy in its uninterrupted operation, ensure the uninterrupted movement of the social product.

Since banks are economic management agencies, their responsibilities to their clients is economic. Economic responsibility of banks is primarily concerned with the results of economic and financial activities of business they serve, regardless of ownership, affiliation, its shareholders. Banks are grouped around the company and the company are dependent on them, or are themselves determined activity of certain banks. Past conduct that credit policy which, other things being equal, provides profits step up the most profitable for themselves and their clients.

Banks through the maintenance of accounts of enterprises, organizations and people carries out monitoring of total money in circulation, and through it the course of business processes and the influence these processes. In the banking system focused all cash funds of society: state funds, funds of business units, household savings and other banks are actively involved in the formation of these funds are monitoring their use, regulate the turnover of money and thus influence the course of the reproduction process [4].

With the development of market relations in the economy and society, the increasing economic role of banks. In their work in the first place instead of on command nominated economic methods. Increases the value of value instruments of banking on the economy.

Over 11 years of sovereign existence in Kazakhstan is very much done to the republic held as an independent and self sufficient state as an equal partner of the international community. Kazakhstan is recognized as a market economy as the European Union and the United States. These political and economic success much of the credit belongs to the country's banking sector. And, as rightly observed by President Nursultan Nazarbayev in his address to the nation, "Kazakhstan-2030": "The Kazakh proverb reads:" To the fast-paced dust free. "So time will judge us, and the road by walking" [5].

 

References

  1. Law of the Republic of Kazakhstan // On Banks and Banking Activities in the Republic of Kazakhstan. – 1995. №
  2. Lavrushina O.I. Money, credit, and banks. Second edition. Moscow,
  3. Paramonov V. The development of credit and banking system of Kazakhstan // Navigator. -2012. July
  4. Cooper T. What is happening in the banking system of Kazakhstan (Kazakhstan's banking system were no crises) // Finance. – 2012. №
  5. The banking system of the Republic of Kazakhstan for 10 years of independence: Report of the National Bank of Kazakhstan. – Алматы,
Year: 2013
City: Almaty
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