Abstract | Keywords | Export | Availability | Bookmark

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This Financial System Stability Assessment highlights that the global financial crisis exposed serious bank vulnerabilities in Kazakhstan. The authorities successfully contained the ensuing systemic crisis, however, left unaddressed important weaknesses that continue to linger. The government has nationalized three of the largest banks and restructured their external obligations, thus preventing a collapse of the banking system. The banks’ solvency situation is adequate but somewhat fragile as a result of legacy problems. A faster transition to risk-based oversight is needed. The relative vulnerability of banks to shocks warrants increased emphasis on risk. This can be achieved through the adoption of more advanced risk-assessment tools and a more extensive use of stress test results for risk analysis. The financial safety net and resolution framework were upgraded during the crisis but need further adjustments. The government amended the resolution framework in 2009 to incorporate several desirable features such as restructuring, purchase and assumption, and bridge bank. However, during the crisis it bypassed the use of sequential crisis management tools and nationalized banks and restructured their external liabilities. The resolution framework suffers from the absence of special authority and requires the approval of depositors and creditors. Adjustments to the Emergency Liquidity Assistance framework are needed to limit its availability to solvent institutions.

Banks and banking -- Kazakhstan -- Evaluation. --- Finance -- Kazakhstan -- Evaluation. --- Finance -- State supervision -- Kazakhstan. --- International monetary fund -- Kazakhstan. --- Finance --- Business & Economics --- Banking --- Banks and banking --- Funding --- Funds --- Agricultural banks --- Banking industry --- Commercial banks --- Depository institutions --- Economics --- Currency question --- Financial institutions --- Money --- Banks and Banking --- Public Finance --- Industries: Financial Services --- Money and Monetary Policy --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Social Security and Public Pensions --- Financial Institutions and Services: Government Policy and Regulation --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Pensions --- Financial services law & regulation --- Monetary economics --- Nonperforming loans --- Pension spending --- Capital adequacy requirements --- Credit --- Loans --- Financial regulation and supervision --- Expenditure --- Asset requirements --- Kazakhstan, Republic of