Kazakhstan Follows Pragmatic Path in Restructuring Its Banking System
IMF Survey - Nbr. 27-22, November 1998
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Early Steps - Operational Restructuring, 1995-97 - Impact of Restructuring - Lessons Learned
Kazakhstan Follows Pragmatic Path in Restructuring Its Banking System
In pursuit of a stable, independent, and more market-oriented banking sector, Kazakhstan undertook a major restructuring of its banking system in 1992. Its first priorities were to reorganize the large state banks and tighten entry requirements for new banks. Having achieved a measure of stability by 1995, Kazakhstan turned its attention to broad regulatory and accounting changes and steps to enhance prudential and supervisory capabilities. How was this wide-ranging reform structured and what lessons does it yield? David S. Hoelscher, the IMF's Resident Representative in Kazakhstan between 1996 and 1998, reviews the authorities' efforts in IMF Working Paper No. 96, Banking System Restructuring in Kazakh...
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