Premium
Dilemmas of financial development in Kazakstan
Author(s) -
Kalyuzhnova Yelena,
Tridimas George
Publication year - 1998
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/(sici)1099-1328(199807/08)10:5<681::aid-jid510>3.0.co;2-s
Subject(s) - currency , financial system , investment (military) , business , economics , investment banking , control (management) , finance , financial market , accounting , monetary economics , political science , management , politics , law
The study reviews the experience of Kazakstan with financial reform. After establishing a two‐tier banking system with the National Bank of Kazakstan as the central monetary authority, banks were separated between deposit taking institutions and investment banks. The priorities of the monetary authority have been the introduction of the tenge as the new national currency, the design of the appropriate techniques of monetary control and the pursuit of price stabilization. The problems facing the reform of commercial banks relate to their specialization by sector of economic activity, high concentration, lack of expertise in risk assessment, the incidence of bad loans, the establishment of a clear legal, accounting and regulatory framework, and the development of fully functioning securities markets. © 1998 John Wiley & Sons, Ltd.