User:Madinochka

The financial system of The Republic ok Kazakhstan

The financial system of The Republic of Kazakhstan consists of 5 parts:

1.	Ministry of finance

2.	KASE (Kazakhstan stock Exchange). Now, the Kazakhstan Stock Exchange is a universal financial market, which can be conditionally divided into five major sectors: the foreign currency market, the government securities market, including supranational securities of Kazakhstan, the repo market, the markets of shares and corporate bonds, the derivatives market.

3.	Agency for financial regulation

4. The Republic of Kazakhstan has a two-tier banking system that includes NBRK. The National bank is the central bank of Kazakhstan and represents the upper tier of the banking system of Kazakhstan, all other banks (commercial banks) present lower tier (2nd) of the banking system, excluding The Kazakhstan Development bank (state-owned, non-commercial bank), that has a particular legal status. Objectives, principles of activities, legal status and authorities of the National Bank are determined by the law of the Republic of Kazakhstan “On the National Bank of the Republic of Kazakhstan”. The National Bank performs the regulation and supervision over the certain questions of the banking activities within the limits of its authority and contributes to formation of common conditions for functioning of banks and organizations, performing certain banking operations. The National Bank of The Kazakhstan. The National Bank should not be guided by the aim of gaining profit in performing its tasks. The National Bank of Kazakhstan is accountable to the President of the Republic of Kazakhstan, but within the limits of authority granted by the legislation, is independent in its activity. The National Bank of Kazakhstan coordinates its activity with the Government of the Republic of Kazakhstan, in its activity takes into consideration the economic policy of the Government and facilitates its implementation, if doing so is not in conflict with the realization of its main functions and implementation of monetary policy. Regulatory and supervisory functions of the National Bank towards the banks and organizations performing certain banking operations are aimed at the maintenance of the stability of monetary system of the Republic of Kazakhstan, protection of interests of banks' creditors, their investors and clients. Commercial banks (more than 50 percent of commercial banks of Kazakhstan are located in the financial district of our country - Almaty):

	33 local banks

	14 foreign banks

	2 interstate banks

	1 state-owned non-commercial bank (does not belong to tier 2)

5.	Other financial institutions such as 37 insurance companies, 14 pension funds, 10 asset management Co., Security firms, Mutual funds and etc. Financial system of Kazakhstan is divided into state finance (centralized finance ) that includes state budget, state credit, special off budget funds and finance for commercial entities (decentralized finance) that includes material production, non-productive sphere and householders [3]. The detailed financial system of Kazakhstan and Kazakhstan’s economic system you can see on the table 1, table 2 (see the appendix). The financial system of the country is an essential part of economic system. So let’s have a look on some economic characteristics (GDP, tax rates, inflation rates and etc.). According to Economist Intelligence Unit (www.economist.com) Kazakhstan scores highly in fiscal freedom, freedom from government, and labor freedom (see application, diagram 1). The top income and corporate tax rates are a moderate 20 percent and 30 percent, respectively. The government also imposes additional taxes, however, and overall tax revenue is somewhat high as a percentage of GDP. Government expenditure is also somewhat high, although the government has gradually been privatizing businesses. The Republic of Kazakhstan has a highly flexible labor system.

Kazakhstan's economy has significant shortcomings. Investment freedom, property rights, and freedom from corruption are weak. Foreign investment in virtually all sectors is restricted by exclusive barriers and bureaucratic incompetence. Government policy actively favors domestic businesses, and the weak rule of law allows for significant corruption and insecure property rights.

Let’s have a look on some statistics. In 2004 the Republic Kazakhstan was on the 58th place (GDP ranking), now we have fallen down to the 71st place. Inflation rate in the country was about 6.9% in 2004, now it is approximately 8%. But in fact we are facing the bigger percentage of inflation in our country. It caused some unexpected changes in the economy of Kazakhstan (rising prices for bread, electricity and etc.).

Madinochka (talk) 15:17, 1 April 2008 (UTC)