For all the boldness of its strategic objectives of the bank adheres to a conservative lending policy and the choice of borrowers. All loans are granted to corporate clients at the head office. Approval process for loans to individuals and SMEs, carried out mainly in the branches, standardized and occurs with the participation of staff of risk management and collateral inspectors from the relevant branches
The system for managing market and operational risk management is well developed - in this respect ATF stands out against other Kazakh financial medium-sized organizations. Bank reduces interest rate risk by limiting the positions at risk and the calculating lending limits with technology Value-at-Risk (VAR), as well as hedges its operations through non-speculative nature. Most loans and deposits are at fixed interest rates, and a small portion of retail loans with floating rate financed using subordinated debt, indexed to inflation. However, as the average maturity of loans issued increased level of interest rate risk. The Bank implements the methodology of calculation of duration for all classes of assets and liabilities.
According to the whole banking system of Kazakhstan we can say that rating agency Moody `s Investors Service has left the forecast of the banking system of Kazakhstan at the level of " negative ". The agency believes that banking system is still has many serious problems with this view and agree to Kazakhstani experts.
According to the agency, the decision was taken due to a poor level of reserve funds and low capitalization of domestic banks, as well as the complexity of access to wholesale capital markets. This is despite the fact that the economy is showing signs of improvement, the agency predicts GDP growth in Kazakhstan at the level of 2,8% this year, compared to 1,2% in 2009, Kazakhstan's banking system remains vulnerable. [10]
Ratings agencies are based on the fact that, in it’s opinion, the current level of problem loans is 40% of total loans, as well as on expectations that the majority of problem loans final loss reached 60% of the unpaid balance. Overall, this assessment can agree: Kazakhstan's banking system is really experiencing now is not the best time.
The deputy director general KzRating Denis Rybalkin says that Kazakhstan's banking system is really experiencing and it is not the best time to it. This happens because of disparity of development and the impact of the global economic crisis. The problem of low capitalization and poor the level of redundancy in the present really exists. He not dramatize the question of lack of foreign funding and Kazakh banks are not experiencing a liquidity shortage. Denis Rybalkin think that the demand for bank loans is not low, the economy is still in need of credit resources. The first reaction of banks to deteriorating loan portfolio has stricter requirements for borrowers. It is a vicious circle: the companies in need for development funds, can not get money in banks, banks also can not find good clients. The situation in banking system of Kazakhstan is still far from normal, however, positive trends I have mentioned, in the medium term can make a difference for the better.
Trader of “Central Securities” Denis Kim think that now deteriorating quality of loan portfolio, provisions are still charged. Also there are problems with capitalization, it is a small problem, but it exists. A huge problem is a lack of long-term funding, placing bonds in recent years was not, while only paying for them. There is a deposit base, but increase it substantially does not happen. Now there is excess liquidity, but it is insufficient to fully deploy the new lending program, the fact that it is suitable only for operating on short-term instruments.
Sabit Hakimzhanov, director of research of “ Halyk Finance” believes that this estimate reflects the state of development prospects of the banking system in the next 2-3 years. He said that demand for bank loans now is down, but he added that there also exists, and unmet need. That it transformed into a high-quality demand, it is necessary that the debt to the banks of the population has declined by 10-15%, and that there are new companies capable of making these conditions.
The Agency believes that the second tier banks will be limited to making profits. In the short term, the ability of banks to increase their loan portfolios will be hindered low demand and lack of good borrowers. The agency also added that the liquidity of some big banks remain vulnerable due to heavy reliance on short-term funding from a small number of public or quasi-state companies.
Thabit Hakimzhanov told that after the losses in 2008 and 2009, large banks are either unwilling or unable to lend. Expectations of growth in lending in the first half did not materialize. Gross lending in the economy fell by 3%. Net loans decreased in almost all major banks, for than Bank Center Credit. He admitted that some second-tier banks in the first half of 2010 increased its loan portfolio by 10-20%, but they all have much better portfolio quality and greater stock of capital and a more reliable funding than the average for the system. Their loan portfolio by the end of the year may still grow, but at the sector and the economy, this growth will not have much impact. On the whole sector, he does not expect significant growth in lending due to a lack of borrowers with good credit risk due to lack of capital, without which it is impossible to turn liquid assets in loans, and partly because of lack of banks' long-cheap money.
Currently, the company is more positive about the prospects of the banking system than a year ago. The reasons for caution is the number of positive factors, such as: reducing the rate of deterioration in the loan portfolio, the state measures to support banking and real sectors, significant progress in restructuring troubled banks.
So we can sum up that there is no fundamental improvements in the banking system, second tier banks should to continue to develop, and it needs to improve the quality of the portfolio, the search for alternative funding, with a strong dependence on the international trends. [11]
CONCLUSION
Commercial banks are an integral part of the whole banking system, designed at the macro level to address the macroeconomic objectives of monetary circulation, providing full movement of money by bank-specific methods to promote the development of national economy. With a significant size of capital, potentially can become major investors, is most directly influence the development of national economy in general, to intervene in the restructuring and even define the term in many sectors of the economy. Buying in a fairly large scale joint stock status and legal form of government property and capital formation, commercial banks may become powerful financiers and significantly diversify its activities through the creation of numerous holdings of subsidiaries and businesses, as well as the development of different forms of participation. At the moment, the banking system is an important part of the domestic economy. It is due to the large accumulation of cash, banks may have a significant impact on the currency and the inflow of money into the coffers of the operations with government securities. In the ongoing debt crisis banking system is designed to keep the money supply in ensuring the functioning of the economy.
In the beginning of the year 2009 there were registered 31 banks with non-resident capital contribution in Kazakhstan. According to the foreign banks we can say, that there must not be more that 50% of foreign banks in the market. Because money to repay the loans will eventually be withdrawn abroad , so if the country has 80-90% of the banks owned by foreign entities, and all these banks have taken the decision to close limits, the future of the national financial system is easy to predict. This argument has some logic, and perhaps in some cases, foreign banks may even act to the detriment of the local economy due to political or other considerations. A number of foreign bank loans and refinances people and enterprises at their own expense, banks as HSBC and ATF. Strengthening their presence in Kazakhstan is likely to have a positive effect on competition in the banking sector and consequently on the cost and quality of financial services for consumers.Danger of complete absorption of the domestic banking sector by foreign investors, because there is a foreign equity participation of banks is low, and while the ratings of banks will be low indiscriminate entry of foreign investors should not expect.
According to the ATF bank policy we can say that they considered the foundation of its strategy move toward client's needs and interests. On the current position of the bank in the market, the benefits of its products and strategic plans for the near future.
Today we see an adequate margin of Kazakh banks to cope with the current period of tension with no particularly profound shocks to the economy. We hope that all market participants will draw from this phase of the right lessons that will contribute to the strengthening and prosperity of the banking system and economy of Kazakhstan. With all the tenderness of current changes in the long run they should help improve the financial sector, developing a more sustainable and viable business strategies, development of domestic sources of funding and a more conservative financial policy banks. Under current conditions, the greatest difficulties experienced relatively weak lenders. With regard to stronger banks, then they will have the opportunity to strengthen their market positions. Kazakhstan's banking system has become a victim of its own success, which allowed her in recent years to attract greater amounts of financing from the world market. Regulators and the banks themselves for a long time did not dare to tackle the growing structural problems associated with the seemingly unstoppable growth of the business. But now they have a unique opportunity to restore balance to ensure long-term stability and improve the development prospects of the banking system.Certainly, the development of Kazakhstan's banking sector can not be separated from the still ongoing turbulence in global financial markets. It is important to recognize that the world has changed. And what is especially worrying, change the world financial and economic realities have not yet fully completed.
Regarding the situation in the future, we think that the extent of foreign participation in Kazakhstan banking system, including through mergers and acquisitions, in the short term has improved markedly. Indeed, in recent years, the growth rate of investments of nonresidents in the authorized capital of credit institutions outpaced the growth rate of total registered capital of credit institutions.
So, we can say that Kazakhstan's banking market is open to all banks irrespective of their nationality. There are no restrictions of normative legal for foreign banks to enter the Kazakh market does not exist.
According to this course work, we can conclude, that the main goals and tasks were achieved, and we think that in future financing market of Kazakhstan will be strong and foreign banks will help us to achieve the best results in development of banking sector of Kazakhstan.
REFERENCES
1. Сейткасымов С. Г. «Деньги, кредит, банки», 1999 г. Алматы
2. Лаврушин О.И. Банковское дело.- М.: Ф.и С., 1999.
3. www.emgmkts.com
4. Назарбаев Н.А. Казахстанский путь. Глава VI.
5. Mamonov; Solntsev, www.econorus.org
6. History, ATF bank, www.atfbank.kz
7. Financial report, ATF bank, www.atfbnak.kz
8. Rating report, ATF bank, www.atfbank.kz
9. Kazakhstan today, www.kt.kz
10. Банки Казахстана – новая реальность,www.mediasystem.kz , 2010
11. Банки Казахстана стали жертвой успеха, 2010, www.neonomad.kz