The main stages in the development of the deposit market in the Republic of Kazakhstan.
stage 1 stage of formation 1994-1995
stage 2 stage of development 1996-1998
Stage 3 Stage of growth 1999-2001
Stage of intensive growth 2002-Present
Consider each of the stages of development of the deposit market as a major segment of the banking system.
Stage 1(1994- 1995). The first stage is characterized by the formation of the deposit market. This period marked increase in the number of banks and the growing trend to increased competition between them. The beginning of the 90s was characterized by the rapid increase in the number of different financial institutions: commercial banks and institutions performing certain types of banking operations. In particular, if only the commercial banks were more than 200, many of which later proved to be financially insolvent. For example, in 1994 there were 184 in 1995 - 130 and v2003, the - 32 commercial banks registered in the territory of the republic. That is, at the initial stage of the banks to establish contacts with customers, investors in order to increase confidence and strengthen the image. The initial stage of reforms in the banking system has revealed in the banking legislation of a number of shortcomings that prevent normal functioning of the deposit market, which determined the need to improve it. Since 1994, the National Bank began to pay a regulatory and legal framework of the banking system of considerable attention. In 1994 he was introduced regulatory framework of prudential regulation establishes minimum reserve requirements for banks, prudential regulations. Regulations were adopted on the deployment of funds of banks with foreign participation in domestic assets and the classification of banks' loan portfolios. The first program of reforming the banking system was approved February 15, 1995, its main task was to minimize the centralized redistribution of financial resources and approximation of functions of the National Bank to the classical functions of central banks. The result of the Program is substantial changes in the mechanism of refinancing of banks. Thus, at this stage of development of the deposit market banks began to provide lending to the economy at the expense of their own attracted to this savings, available funds of economic entities and foreign loans, and the National Bank switched to direct the implementation of a central bank - the conduct of monetary policy and regulation the banking system. This period can be called the period of formation of the deposit market. At this time, banks are starting to take deposits: term and demand deposits, deposits of enterprises and organizations and citizens' deposits, deposits in tenge and foreign currencies. Time deposits include the 3-month, 6-month, 9-month-old, 1-3 years, 3-5 years and more than 10 years. However, confidence in the banking system was quite dramatically undermined by dubious activities of financial institutions that have entered into the competition for attracting cash deposits. In the deposit market has increased competition not only banks but also other commercial organizations that have deployed in the media "aggressive" advertising campaign aimed at attracting and foreign currency assets of businesses and individuals. As "bait," called very high interest rates or other very favorable terms of investment. It was a rogue agency, posing as reliable financial institutions. In the modern history of the banking system of Kazakhstan is the first stage in the development of the deposit market of 1994-1995. You can call the stage of formation and origin of the segment. Due to lack of experience and knowledge of some mistakes were made related to the mechanism for attracting deposits, effective management of the bank's deposit portfolio.
Stage 2 (1996- 1998): At this stage - the stage of development of the deposit market - increasing the volume of attracted deposits in banks. In order to further strengthen the banking system in December 1996 was implemented the transition program of banks to the international standards activities. Under this program, all existing banks in Kazakhstan have been the end of 2000 to reach international standards of capital adequacy, liquidity, asset quality, management level, accounting, administration and communication. The number of banks during the years of the Program (1996-2000) significantly reduced - at the expense of those whose financial situation was precarious. For example, in 1996 the number of banks registered on the territory of the republic amounted to 101 in 1997 - 82, and in 1998 - 71. That is weak and insolvent banks were closed, giving way to more efficient and reliable. Thus, the overall reform of the banking system was reflected in the development of the deposit market. Positive changes in terms of improving the banking, accounting, supervision influenced the policies of deposit of banks. The negative result of the reforms was the strengthening of the U.S. dollar in the domestic banking system. At this stage of the deposit market economy of the republic was faced with the phenomenon of dollarization of the economy. Thus, the share of deposits in foreign currency (the average size is 900 dollars), which suggests that people are still sees the dollar as the most liquid savings vehicle. The yield on the tenge deposits is almost the same as the currency (inflation). This makes it the preferred foreign currency deposits - because there is no risk of adverse exchange rate. In general, we can say that 1995 was the year of formation of the deposit market - thanks to the higher reliability of banks over other financial institutions and competitive interest rates compared to other investments / 30. C.19-20 /. In 1996, all deposits with maturity of more than six months were in the banking system with only 55% of time deposits, indicating a lack of confidence in the banking system and a high risk of long-term investments. The average interest rate on term deposits is 2-3 times higher than rates on demand deposits, and account for about 40%. The most popular time deposits of up to 3 months - their number reaches 40% of total time deposits, or, on average, 16% of all deposits.Deposits of the population is almost 60% of all deposits, indicating a favorable trend of growth of deposits in local banks. Increase in time deposits of individuals in tenge and foreign currencies amounted to 151.8%, to demand - 86.7%. The volume of retail deposits in the banking system during 1997-1998. Increased from 21 300 to 32 135 million tenge KZT million, while corporate deposits declined the contrary - from 54 566 to 48 599 million tenge KZT (Diagrama 2.1). Thus it may be noted that the level of public confidence in the banking system was not undermined, even by external factors, which is not the deposits of legal entities.