Table 2.1. Deposits of the population between 1998 and 2012.
Deposits of the population on the begining of the period, in mln. KZT
1 034 157
1 447 850
1 500 005
1 936 312
2 249 814
2 758 601
1 275 657
1 100 826
2 764 275
1 291 230
1 117 431
* Source Journal of the National Bank of the Republic of Kazakhstan.
Analyzing data of the Table 2.1, we can note the following points: the proportion of term deposits in January 2002 accounted for 52% of total deposits, while in 2000 these figures were equal to 13%, while in 1998 only 5%. It can be concluded that package of measures to protect citizens' deposits in banks has led to increased confidence in the banking system.
This is especially noticeable during the World Economic Crisis, in the end of 2009, the volumeof demand deposits in foreign currency increased almost in four-times, and volume of term deposits in foreign currency increased in 2 times. However, as the stabilization of the economy, public confidence to the national currency has slightly improved, which led to an increase in short-term deposits in national currency, but during the next 3 years volume of term deposits in foreign currency exceeded the volume ofdeposits in national.
It is also clear that each year the amount of deposits in the banking system increases, which means that all measures undertaken by the State for economic recovery and strengthening of the banking system have yielded positive results. However, the trend of no confidence in the national currency is taking place.
In 2003, amendments were made to banking laws relating to insurance claims for deposits in U.S. dollars or Euros. Refunds for term deposits will be in one of three currencies: the tenge, the following amounts: a contribution of up to 400 thousand tenge refunded in full, for deposits in U.S. dollars and euros - 90%. By increasing the size of the contribution of the share of compensation is reduced in proportion to the contribution .The maximum amount of compensation to one depositor (the depositor) participating bank is 1 million tenge, deposits (deposits) per depositor (the depositor) are summed and treated as a contribution (deposit). And from January 1, 2004, only banks are members of the system of compulsory collective guaranteeing (insurance) contributions (deposits) of individuals will be able to attract deposits (deposit) money and assets of individual pension savings funds. Thus, we examined the main stages in the development of the deposit market in the Republic of Kazakhstan with a functioning market economy. Analysis of the phases of the development shows that the formation of the deposit market has been gradual, taking into account various factors. Now banks have a fairly stable financial resources and their development strategy themselves are built on the principles of stability, reliability and stability. Domestic banks, forming a deposit policy, based primarily on attracting deposits from individuals. Thus, most of the time deposits in the banking system make deposits of natural persons is almost twice the amount of deposits of non-bank entities (That is a major potential investor - this population, as in the opinion of experts, the population is a potential investor, and many agreed with the opinion that people have savings and should make all efforts for their involvement. In general, the analysis of stages in the development of the deposit market indicates substantial progress in the overall deposit market terms. Savings of the population is actively involved in financial turnover - thanks to the development of marketing programs, commercial banks and policy banks active deposit. Deposit banks' policies formed taking into account many factors. Providing favorable conditions for placement of deposits in terms of an effective fund-raising, the bank should seek to make them more attractive for customers. Variations, accordingly, an important element in the formation of a deposit policy is to assess the situation on the market data services and the definition of acceptable levels of interest on deposits against the backdrop of other banks. For the population of the possibility of placing foreign currency deposits is one of the few means of protecting their savings against inflation impairment. It is more accessible, technologically simple and less risky than the stock market. In this case the client's interests are focused on the evaluation of the optimal combination of several key points: the reliability of the bank deposit maturity, the interest rate on deposits. To implement such a choice, of course, requires fairly representative information.
2.2 The strategy of formation of the commercial bank depositary policy on the example of JSC “BTA Bank”
The strategy of formation the commercial bank deposit policy includes several blocks. Consider the application of this strategy on the example of "BTA Bank", which is one of the largest banks in republic of Kazakhstan specializing in serving individuals and legal entities. In this regard, analysis of the formation of the deposit policy BTA Bank was chosen as an example of this particular bank.
In order to fully consider the implementation of the policy of the BTA Bank, I suggest to following points:
1. The role of the Bank's market deposit services 2. The main objectives of the Bank to attract deposits 3. The main problems existing in the Bank 4. Analyzing the potential to attract new customers to the bank 5. The formation of the deposit portfolio 6. Analysis of financial results.
1. The role of the Bank's market deposit services.
The main and most important challenge is to identify the role of the bank in the banking market. By determining what is a niche bank in the banking system depends on the realization of further tasks. The bank at this stage, work out, first of all, the concept of work and should make them known. Competitors, investors and the bank's own employees are directly involved in this process. That is their eyes; the opinion must be guided to determine future goals.
JSC "BTA Bank" is one of the largest in size of the authorized share capital and total assets of the bank in the country, which is a strong competitor in the Kazakhstani banking market mainly due to the extensive network of branches. So according to the National Bank of the Republic of Kazakhstan, at the beginning of 2012 the total branch network consisted of 22 branches and 222 cash settlement offices among the cities of Kazakhstan, as well as the 705 ATMs in 22 cities of Kazakhstan. The total number of retail customers of the Bank amounts to about 1.2 million people, customers, small and medium-sized businesses more than 132 thousand corporate clients. In 2010, the BTA Bank celebrated its 85th anniversary. Today BTA Bank has international offices in Russia, United Arab Emirates, United Kingdom and China. BTA’s banking network extends to Russia, Ukraine, Belarus, Kyrgyzstan, Armenia, Georgia, Kazakhstan and Turkey.
BTA - Kazakhstan's core bank, a key shareholder is the Government of the Republic of Kazakhstan on behalf of the National Welfare Fund "Samruk Kazyna" Service to 81.48%.
After NWF "Samruk Kazyna", joined the share capital of BTA Bank, the financial and investment strategy of the bank has changed
BTA refocused its business on the domestic market instead of lending to projects abroad, focusing on quality service for corporate and retail clients and secure profitable investment projects in Kazakhstan. In addition, BTA Bank is an active participant in government programs to support the economy. In 2009, BTA Bank participated in financing small and medium business entities financing the agro-industrial complex, the refinancing of mortgage loans and financing for the completion of housing.
The high reputation of the bank among the population is due to the wide presence in all regions of the country's long history, the presence of established standards and experience with multi-million dollar category of the population, a distinct social orientation of the bank and the traditional support of social programs of the Government of the Republic of Kazakhstan.
2. The main objectives of the Bank to attract deposits.
In the BTA Bank balance sheet liabilities are recognized sources of funds of the bank, while in the asset balance sheet shows how to use (placed) the funds. Deposits are a liability is significant bank balance. In the deposit policy, "BTA Bank" is one of the leading banks in the retail financial services. In the period from 2009 to 2011, a total deposit amount of BTA Bank has dropped significantly.
Thus, at the end of 2009, total deposits stood at 1,537,679,944 thousand tenge. However, at the end of 2010, total deposits decreased by 7% to $ 1,432,191,045 thousand tenge. In 2011, total deposits decreased significantly and amounted to 667,210,536 thousand tenge. The volume of deposits as compared to 2010 decreased by 54%, as compared to 2009 decreased by57%. However, at the end of the first quarter of 2012, the amount of deposits increased by 12.2% to $ 749,091,790 thousand tenge, which indicates the gradual stabilization of the financial and economic condition of the bank and the gradual return of confidence on the part of the population.
Deposit of the population and enterprises.
In this regard, the BTA Bank carries out intense work to expand the customer base, increase in retail and corporate network clients, conducts a flexible tariff policy, expanding the range of deposit products, increases the level of marketing services, focusing on the analysis of demand deposit services of the bank and deposit services, accumulation of ideas that promote growth and profitability of operations.
Deposits in BTA are taken as the name of the contributor, and in the name of another person. The amount of down payment is not limited and received additional contributions and partial delivery of the deposit taken in the national and foreign currency.
Deposits of BTA bank are accepted for a certain period of 7 days and more. The minimum size of deposit is 3000 tenge, 25 USD or 25 Euro. The investor has the right to receive interest, numbered among the remnant of the contribution amounts, which were kept in the account during the period specified in the inputs. In the case of contributions before the due date interest income is paid at the rate of demand deposit.
BTA Bank Deposits - are one of the most reliable deposits in Kazakhstan. BTA Bank is the first member of the system of compulsory collective guaranteeing (insurance) contributions (deposits) of individuals with evidence of the Republic of Kazakhstan ¹ 001 participants. All deposits of BTA Bank insured by the Deposit Guarantee Fund of Kazakhstan, regardless of the amount of the deposit and interest rates. This means that in the case of forced liquidation of the bank, it is possible to always get the amount of bank customer’s contribution, in accordance with the Law "On obligatory guaranteeing deposits placed in banks of Kazakhstan." Since the discovery of a deposit in BTA Bank for bank customers secured the right to receive any information bank customers need about the current state of bank customer’s contribution. BTA Bank has the widest network of branches in the Republic of Kazakhstan, both of which It is possible to place a deposit. Thus, there is no need to travel far from home to place a deposit. Another feature of the branch network of BTA is the fact that open a deposit, as well as to close it, It is possible to at any of the office (without reference to a specific branch), which is located near bank customers. Also for the convenience of our customers open new service - the completion of the deposit over the Internet in real time. Large selection of placement of funds, allows bank customers to plan cash flow for a specific period selected.
For all contracts of bank deposit (which includes partial exemptions) establishes the requirement for mandatory placement of monies received into a savings account by bank transfer within 30 days. If bank customers are not subject to this requirement and withdrawal in cash on saving account of money received by means of transfer, and laid in a savings account less than 30 days from the date of receipt, the Bank shall hold the commission for cashing out:
- 1.0% of the amount of money issued in tenge; - 1.1% of the amount of money issued in foreign currency.
The emphasis on the involvement of the bank makes short-term deposits for a period of 3 and 6 months, as these terms are well corresponded with the terms of lending customers. Another factor is the priority of these deposits, that in this case is easier to build a short-term forecasts of profitability of banking operations, and therefore easier to respond to the rapidly changing situation on the financial market by varying the rates of remuneration. Deposit services to individuals by means of Retail bank system (Novosibirsk), as well as systems Biscuit (Banking Integrated System (Moscow)). Subsystem contributions to the latter system are very flexible and can adjust to any type of deposits. Bank creates new types of deposits, in order to increase customers' interest in keeping foreign exchange Bank is working to increase the profitability of foreign currency deposits of citizens with the differentiation of interest rates. Increased revenues from these types of deposits are secured their popularity among the population. Leadership of "BTA Bank" in the banking market, strong financial condition was the key to the growth of deposit base, which allowed diversifying risks for liabilities. "BTA Bank" has a stable funding base in the Republic of Kazakhstan. The Bank offers several types of deposits which are accepted in both national and foreign currency:
VIP Contribution «Platinum» could be opened in the national currency and in foreign currency. The term of deposit is from 3 to 24 months.
This type of contribution does provide various benefits for customers, with the possibility of a partial withdrawal within the minimum amount of 1 500 000 tenge, 10 000 USD or Euro. Capitalization is made on a monthly basis and the deposit could be held simultaneously in three currencies according to the discretion of the client. As additional bonus, BTA provides:
1. Issue of Visa Gold/MasterCard Gold payment cards completely free of charge during the whole term of deposit.
2. Possibility of obtaining the credit at preferential interest rates;