Asset management of the bank

Managed funds that are marketed with the objective of maintaining a stable value such as money market mutual funds or other types of stable value collective investment funds etc.

National supervisors can specify the RSF factors based on their national circumstances.

Note: source from the site of Bank of International Settlements

According to the Board of JSC Kazkommertsbank, according to the consolidated financial statements for 2012, the bank increased its profit before deductions for reserves and taxes by 28% (to 125 billion tenge).

But in the end the bank's net loss reached 130.9 billion tenge (against a net profit of 23.5 billion tenge a year earlier). Net interest margin increased to 3.9%, while corporate lending is partly offset by the growth of retail.

In the board was told that the net loss associated with the formation of a one-time additional specific provisions for IFRS (International Financial Reporting Standards). Of the bank's capital reserve was created in 196 billion tenge loan portfolio. This was done in order to reduce the potential negative consequences for the bank in respect of regulatory capital, the volume of foreign exchange exposure and the amount of liquid assets. Thus, the amount of reserves under IFRS equal to the volume of reserves on regulatory requirements and capital adequacy was well above the regulatory requirements.

Regulatory requirements for banks to part of the capital increase in connection with the transition to the third "Basel", and are expressed in the revision of methods of calculation of provisions. Some banks reserves under IFRS higher, and others - less. And in fact, the same loan portfolio during the transition to IFRS in "KKB" appeared more risky assets, which also puts pressure on capital.

Also plays an important foreign currency position of the bank (the equivalent of loans and deposits attracted in the same currency). Recently, the rating agency Fitch, said in a special press release that it considers the impact of this factor is neutral on the creditworthiness of the bank. Many analysts agree with this opinion, and even reported an increase in profitability of the bank.

According to kursiv.kz, VTB-Capital analysts noted the bank's annual results as positive, with the increase in the interest margin from 3.3% to 3.9%. And a one-time allocation to provisions - a positive step in the bank.

Operating profit at all exceeded analysts' expectations CityBank due to high interest income - by 9.7% (to 124.3 billion tenge), and good cost control business. In the segment of the volume of net lending to the corporate sector loans reached 1.7 trillion tenge (compared with 1.87 trillion at the end of 2011). The total share of loans to the corporate sector in the total amount of loans to customers (net) amounted to 88.9% (at the end of 2011 - 90%).

The retail sector bank, on the contrary, compared with the previous year, increased by almost 11% (65.3 billion tenge) and reached 659.4 billion tenge. Since the beginning of 2012 the share of retail customer funds in the total rose to 42.4% (at the end of 2011 - only 40.6%).

The total retail sector loans grew by 2.1% - to 213.2 billion tenge mainly due to growth in total consumer loans. The share of net loans to the retail sector in the total amount of loans to customers increased to 11.1% (at the end of 2011 - 10.0%). Overall, the bank's retail sector is growing rapidly. Therefore, some analysts (Standard & Poor's) are afraid of a "credit bubble" in the retail segment.

Managing Director of "KKB" AndreyTimchenko, confirmed that the appearance of the "credit bubble" can be avoided by not issuing loans in which the monthly payment is more than 50-60% of the salary man.

Basel III has emerged as a response to the global financial crisis in 2008. Analyzing the reasons for the experts as one of the main reasons for the failures were isolated prudential regulation of financial intermediaries. In response to the deepening financial globalization, national standards organization, operation and regulation of financial intermediaries are no longer meet modern requirements.

In order to save the backbone of financial institutions («too big to fail» - Northern Rock, Merrill Lynch, Lehman Brothers), have been adopted and implemented program of entering the state in their capital. Therefore, the governments of developed countries are concerned that in the future these investments have brought adequate benefits./25/

The emergence of standards, Basel III began with the introduction of additional capital requirements of banks (equity capital, tier 1 capital, tier 2 capital, capital buffers, the total capital). The agreement represented by two documents published December 15, 2010 on the official website of the Bank for International Settlements. The international system of assessment of liquidity risks, standards and monitoring global regulatory system, enhances the stability of banks and banking systems.

The new agreement tightens the requirements for the composition of tier 1 capital due to the exclusion of the deferred tax assets and securitized. In addition, Basel III recommends an increase in the proportion of tier 1 capital and the proportion of the share capital.

Basel III establishes the need for a credit organizations from net profit optional backup buffer. Capital buffers will allow banks in the event of a systemic crisis and to reduce the capital adequacy ratio below the minimum to obtain additional liquidity without the approval of the regulator. However, after the crisis, lenders are required to restore this capital.

Simultaneously, Basel III introduces regulations aimed at limiting the financial leverage (leverage ratio - the ratio of debt and equity), which is valid for financial intermediaries. In particular, it would be a revision of the standards current and long-term liquidity.

New current liquidity will enter in 2015, and an updated long-term liquidity - three years later. The first suggests that short-term bank liabilities for a period of 30 days should be covered by liquid assets by 100%.

The second standard regulates the risk of loss of bank liquidity as a result of placing funds in long-term assets, which should be covered by liability also stable for at least 100%. There is a concept not only to back bank capital, but capital, which may introduce additional control for counter-cyclical regulation.

If the regulator believes that the country is experiencing a credit boom or overheating of the economy, it can raise the capital adequacy requirements, according to which banks in times of a potential credit "bubbles" will be required to form a special "counter-cyclical" reserve. Basel III provides that in the event of non-compliance lenders do not have to pay dividends to shareholders, as well as bonuses and other bonuses to their executives. The gradual transition to the new standards will begin in 2013 and will continue for the next six years (until 1 January 2019).

Table 23. Basel III phase-in arrangements (All dates are as of 1 January)

The effective implementation of the requirements of Basel III will demonstrate to regulators, customers and shareholders that the bank steadily recovering from the global banking crisis of 2008, the operational implementation of Basel III will also help increase the competitiveness of the bank, as it will give management a more complete vision of the business, and this, in turn, will enterprise to leverage future opportunities. Although many organizations implementing Basel III will be just the next step on the path of development, we should not underestimate the impact of the standard for many banks and banking. In fact, Basel III will cause significant problems, which need to be sorted out and to be solved. For each bank is extremely important task will be to develop the most cost-push model of Basel III.

Basel III is changing the approach of banks to risk management, and financial management. The new regime requires a higher degree of integration of the functions of financial management and risk management. This is likely to lead to the interpenetration of the duties of financial officer and chief risk-manager on the way to achieving the strategic goals of the business. However, the transition to a more rigorous regulatory requirements may be complicated by the dependence of a large number of disparate data stores and the division of powers between those responsible for finance, and those who manage risk. Particular emphasis placed on risk management in Basel III, require the introduction or re-designing an approach to risk management is just as full as the existing infrastructure of the financial management. Basel III is the regulatory regime, as well as in many aspects of giving a framework approach to risk management of the enterprise. Such wide risk management encompasses all business risks.

While banks are not forced to choose - to follow the standards of Basel III or not - the chosen method of implementing regulations may give the bank a significant competitive advantage. Those banks that are implementing Basel III in order to improve their business processes and processes to meet the requirements of regulators, will continue to be rewarded, but not so for those banks that are considering compliance with the rules of Basel III as an end in itself. The presence of a consolidated set of data will help to streamline the process of implementation of regulatory standards. In addition, it also allows managers of the organization - perhaps for the first time - to get a complete, integrated and consolidated view of the business. The ability to see consolidated picture quality and at the same time to go into details let managers make timely and informed decisions based on a more robust analytical picture. In addition, a centralized data model can provide senior management to implement a more complete administrative control over their business. Thus, it may help to introduce a more effective system of limits. In making a decision on the issuance of new loans this will help ensure that the bank will not be exposed to undue risks on one client. In addition, a centralized data model can help the bank to improve the way the management of their assets and liabilities, giving full, not having a distorted picture of assets and liabilities of the bank. This will make wide risk management more efficient and cost-effective for the bank. Re-use in different situations, the data provided by the regulator allows the bank to improve the way business management, helping to improve overall risk management at the enterprise level, as well as the growth and profitability.

Basel III standards are both an opportunity and a challenge for banks. These guidelines can serve as a solid basis for further developments in the banking sector and will ensure that the excesses observed in the past can be avoided. That the bank can consider standards of Basel III as an opportunity to improve their position in the first place, it is necessary to choose the right technical architecture that will be used to support the Framework. In this technical architecture should be taken into account the scale and structure, process and geographical coverage of banks that need to seamlessly fit into the scale and scope of the rules. The solution must be flexible to meet the needs of the bank, and open enough to accommodate changes in the business and regulations. The complexity of regulations and requirements of Basel III, as well as the level of expectations from the commercial sector in the banking sector require flexible solutions for controlling regulations of Basel III. To give a competitive advantage, such a solution must provide the speed, precision and productivity. And banks that have adopted the best solution, not only have the perfect platform to meet the standards of Basel III - they will also have a solid foundation for their future commercial development.

The process of implementation of Basel III standards for any organization creates a unique set of challenges, no matter what stage in each organization begins. This is due to the fact that Basel III - is more a set of principles rather than a detailed set of rules, and there is no ready-made solutions for their implementation. This flexibility gives banks more freedom in choosing the method of adopting the rules. For banks, implementing regulations, opened two basic approaches. Which of these is most appropriate for each organization will depend on the existing environment of the bank and its effectiveness, from the period in which the organization wishes to implement standards, as well as the resources available.

Table 24. Options for implementation of Basel III and the issues that need to be taken into account in the implementation process:

In some cases, the best option would be to upgrade the existing system in accordance with the required standards by adding additional modules to help deal with additional requirements, whether it be managing liquidity and leverage, stress testing, storage and preparation of reports. Expansion and modernization of the existing environment will give the organization the opportunity to adopt rules within the allowable time for it, with the least disruption to its operations. This means that the implementation can be done with less cost to the business, as much easier to build a regulatory system in the business than to form a business around its rules. This approach will allow banks to make optimal use of existing investments, and for some organizations, it may be the most cost-effective approach to achieving compliance, because it is associated with less interruptions in the functioning of the bank. Here, the key point is that the bank must have a very clear idea of how to build its environment. This problem can be much more complex than you imagine it initially, especially if the legal regulation for some time there, and within the organization have been significant changes. Once defined the current environment, gap analysis will help identify where to make major efforts to meet the requirements of the specification.

For other organizations, the most cost-effective option is to replace the existing regulatory model to a new, specially designed solution that makes it possible to use the rules of Basel III «off the shelf" and eliminates the need for large-scale production of the technical requirements of the client. This method is often the most expensive work of the organization and braking solution. However, in some cases, it may be the most economical and because it allows the organization to adjust to the regulations implementing Basel III in their processes. This approach has the potential to reduce the overall cost of the bank for the period of application of standards of Basel III, unless they are part of the corporate image of the bank's actions. The key to the successful deployment of the system is to determine the optimal architecture for managing norm Basel III and then define the strategy of coexistence of media and migration strategy from existing environment. Migration can be carried out in a modular approach, where certain system is transferred to a new environment. This will reduce the risks inherent in this approach.

Another issue to be resolved no matter which of the previously described embodiments, the bank will choose - is the degree to which the new framework will include the use of automated management and control. Many banks are still in some way to manually control how respected regulatory standards. Taking into account the higher workload on the requirements of Basel III, the rationale of higher compared with the automated control of the costs of manual processes will become difficult, if at all possible. Increased overhead for performance standards, as well as larger and more voluminous banking will make unjustified execution of these processes manually, because such a practice would require a lot of time and money. Also, in such processes the probability of errors due to the human factor. Despite the marked complexity, these rules are being introduced, and some banks are keen to keep this issue aggressively. We can say that these banks making process and implementation will not be delayed. They will be able to convince their customers, shareholders and regulators that are taking positive steps to achieve the required amount of capital, improved liquidity position and optimize risk management. Those banks that will be the norm before the others, will be able to use their position to stand out from the competition. Others, mindful of the distant 2019 (estimated) as of the deadline for the full implementation of standards can apply a more restrained approach. With the right model, you need to think about what will happen after the widespread adoption of standards of Basel III. In the best case, the rules of Basel III will require adjustment needed to the course of time this standard was transformed into a Basel IV, V Basel and so on. The reason is that the BIS seeks to solve the problems of the theory of Basel III and its practical application (as happened with the regulations of Basel I and Basel II). Regulators are already thinking about a fundamental revision of the rules on market risk and trading book. They can become the starting point for Basel IV.

Whatever approach is used by the organization, its decision must be fully integrated so that it can fully reflect the structure of the rules themselves. The ideal would be a solution to help consolidate data, perform calculations and testing, and to make statements on the capital of the organization and its liquidity risk on a single platform. Such a solution is effectively integrated with other source systems. It has a robust audit function and an impressive amount of data storage. Rapid tools to simplify the calculations weekly and even daily calculations and give out information for an integrated and comprehensive reporting to the regulator, which is precisely aligned to the requirements of local regulatory authorities. Implementation of all these features help to streamline the process by allowing risk-manager to focus on priority actions for risk management, rather than on time-consuming data extraction, verification of their quality and reporting. In the central data repository housed the most important information about the risks necessary to meet the standards of Basel III. Such a data warehouse must have the capacity to collect data and provide a complete picture of the situation on the regulatory risks at the enterprise level. End users - including a number of heads of businesses and corporate risk managers, finance staff, personnel responsible for regulatory compliance and analysts - also need to make the most of this system. This consolidated approach means that the calculation of the critical indicators of the level of capital adequacy and liquidity ratios and the ratio of equity and debt that are at the basis of the framework approach, Basel III, greatly facilitated, as well as their storage. This also means that the stress test may be carried out using the same cohesive or integrated data sets. The final step is to provide important reports for the business and for the regulator. This task will be much more demanding under Basel III. Reports of the first component, covering the capital adequacy should be provided to the appropriate state regulator in the correct format. Report for the third component, which cover similar, but not identical regions are created for the regulator, as well as a broader range of stakeholders to help adhere to the principles of transparency and building confidence in the market. With this consolidated approach can easily provide the information that the regulator may require any subsequent request for additional information. Management reports should also be provided to business structures, often daily. These reports give an idea of ??how the business is relatively established for the purposes of his business, and also form the fundamental analytical picture of the business. Thus, compliance with Basel III becomes an opportunity, not just a source of overhead. This goal is much more difficult to achieve when using the data stored in disparate systems. This increases the likelihood of errors, and time costs are rising. Consolidated, integrated, but open a data warehouse is the only way to ensure the correct risk management at the enterprise level.

Another aspect of the deployment for Basel III is the choice: to develop the system yourself or buy it from a supplier? With the exception, perhaps, of a deeper analytical view of the business, making independent development does not have much competitive advantage. Regulatory requirements are fundamentally the same for all banks. In addition, the international rules are systematically subject to change. Tracking these changes is an important but daunting task. In software vendors have special units for the analysis of these changes and bring the product into compliance with them. Is not profitable for banks to do this work yourself. Maintenance costs of the routine work associated with the regulations, it is easier to carry the suppliers, especially if the bank does not understand the effect of changes in regulations./26/

Applying the requirements of Basel III to different regions and countries, different problems arise. EU countries have consistently taken the previous rules of the Bank for International Settlements (BIS). So there is hope for an organic transition from the requirements of Basel II to Basel III. The European Union plans to produce a single set of rules for the whole of Europe, not to encourage stricter requirements in individual states and ensure a level playing field by reducing the differences in regulatory arbitrage. U.S. essentially skipped Basel II. Therefore, the country will implement the specification with new energy, building it on the basis of the principles of Basel I, simplified according to the law the Dodd-Frank. The degree of transition to a particular cycle varies considerably from country to country: Japan, Hong Kong, Singapore and Australia have made progress in this area - they are now on a par with the EU. Painting in Russia, Eastern Europe, Middle East, Africa and the Asia-Pacific region is less clear. Some countries may decide to start with a clean slate and implement a complete set of rules. Other - Use of Basel III as a starting point, not covering the whole set of requirements. For example, Russia recently announced the transition from standardized approach to the calculation of credit risk to an approach based on internal ratings (IRB) 2015 Some of the Middle Eastern countries are in the process of transition to IRB-model. In a number of countries could also be another current system of regulation, which in some cases can mean the replacement of the internal standards requirements of Basel III. However, it may be necessary to parallel execution of domestic and international law. Some may decide to move to the requirements of Basel III on its own, tightening regulations if, in the opinion of the authorities, Basel III does not meet the requirements within a particular country. This can lead to the creation of specific requirements and processes that need to be taken into account when implementing the specification. Global differences further complicate the situation, because banks may have to comply with different rules in different jurisdictions. Some banks will have to report in accordance with the requirements of Basel II in the same country and in accordance with the requirements of Basel III to another, depending on their location. The situation is further complicated by the fact that many regulators require banks to continue to submit reports in accordance with Basel I framework approach using a standardized model for calculating credit risk. This will allow the regulator to have a single method for comparison of all the banks, whose activities it regulates, regardless of whether they use the banks themselves - IRB-approach or the standardized model. In Europe, banks using IRB, regulators agreed that the lower limit on the Basel I should be within 80-90% of the index, calculated using the most "costly" standardized approach. In the U.S., this lower limit is 100%. In fact, it may mean that banks will have to comply with the requirements for compliance with the whole set of standards under Basel I, II and III, depending on the location of the activities and the requirements of local regulators. Reports will be required to provide detailed information regarding this matter, so as not to mislead the regulator or the market. Organizations using models based on separate data become extra burden in terms of additional costs and overheads in the cast of the companies that use a more centralized approach to the collection and consolidation of data and filing reports on standards of Basel I, II and III. All this must be taken into account in applying the principles of Basel III and the implementation of new solutions in the framework of a particular bank.

To comply with the requirements of Basel III, all banks are now required to take the necessary measures to provide financial departments and departments of risk management quick and easy access to centralized, verified and accurate data. These data should reflect the credit, market, operational risks, and the risks of concentration, lower credit quality and liquidity risks of the Bank. You will also need to calculate the increased capital, new liquidity ratios and new gearing ratio means that already in 2013 to be able to start reporting to the local supervisory authorities across the set of forms required by various state regulators. The requirements of Basel III to data management are important. To the bank, the regulator and the market could get a clear picture of the situation of the bank, the data must be fresh, accurate, and consistent. This problem cannot be solved efficiently if the data is stored in scattered form in several departments of the bank. Furthermore, they must be carefully structured. Proper data management must ensure receipt invariably true calculations of capital adequacy ratios, the ratio of equity and debt, and a measure of liquidity. This requirement, coupled with significantly increased standards of Basel III - in terms of detail and frequency of reporting - means that the data management in the Basel III standards required to perform more work than ever. Quality, relevance and timeliness of the data is perhaps the most important criteria for determining the success of the implementation of Basel III.

After filing reports the regulator there is a high probability that he will continue to work with the bank to determine the key issues concerning the method of calculating the results and application of standards. This requires rapid determination procedures, testing, approval and submission of data. Information provided in addition, must not contradict the report, including the format. Data preparation should be done as cost-effectively as possible. Also, remember that it should not affect other business operations. Such audit process will be particularly difficult for the banks in which data are stored separately in the storage and a large number of systems because the necessary information on the search will take longer. Banks using a centralized storage model, will be able to respond to inquiries more quickly and efficiently, thereby streamlining the compliance standard rules and reporting processes.

Stress testing, or the ability to understand how significant developments in the market will affect the key performance indicators and ratios, acquired increased importance in the framework of Basel III. Stress testing should be more careful, it will be more frequent, affecting a wider range of data. Ensure that such a stress test will be difficult, if the data in the organization spread across multiple repositories. Testing will take longer, require more effort and give less accurate results with an alignment with the model data storage, in which all the important information is in one central repository. Using a centralized storage will enable the bank to perform a wide range of complex stress tests that will meet the needs of business, giving analytical picture of the organization, as well as meet the requirements of the regulator, that is, to ensure compliance with the standards.

Basel III rules reflect the integrated nature of banks and banking. Administrative decision in accordance with the data should help to fulfill the requirements of integration - otherwise, to carry out its provisions will require a much higher overhead than necessary. In view of the growth occurred banks, they develop new services (and supporting systems), and the combined activity of the transition to a truly integrated system without disturbing the functions of the bank will be challenging. The ideal management solution will consolidate and calculate the capital of the organization's liquidity and financial leverage, and to report on these indicators on a single, centralized platform for reporting. Such a system can be seamlessly integrated with other systems of the original data. It will support data validation function at a high level and will store large amounts of information. This approach would streamline the process and allow risk managers to focus on the priority actions for risk management, instead of engaging in the time-consuming tasks, such as data extraction, quality, and reporting. Rapid tools to facilitate the calculations weekly and even daily calculations and the data will lead to an integrated and comprehensive financial statements prepared in strict accordance with the requirements of local regulators. Also, these tools are more fully disclose the situation to the bank. The pursuit of this ideal for many banks will be a tedious process. If we examine this question in context with other tasks described above, it becomes clear why underestimate the difficulties of implementing Basel III standard so easily. However, when these issues are addressed in the context of the organization of the bank, if you have the right approach and a set of tools you can find a solution that will allow the bank to go to the standards on time and within budget.

On January 1, 2013 in Kazakhstan was planned to start a phased introduction of the new version of the document - Basel III - with the full transition to the new standards in 2015. However, it was postponed indefinitely.

The cause lies in the unpreparedness of a number of countries, and more specifically, their banking systems to new standards of banking regulation. Probably position of the U.S. and the UK was decisive. The experts spoke highly controversial implications of Basel III for both banks and the economy of various countries.

Basel III will influence primarily on the structure and quality of capital - increase the minimum requirements for banks' capital adequacy and Tier I capital, of which also excludes a number of tools. The main task of bank capital will be prevention of potential losses in the normal course of business of a bank, and even in the event of complete termination. Also important new standard requirements for liquidity management of banks have important meaning i.e. they are formulated for the first time and adopted as a uniform international standards. Basel II includes a new approach to diversification of the loan portfolio of banks' risk management in general, and even to the standards of disclosure.

Even without implementation of Basel III, we can see that requirements of minimal size of bank capital are higher than in other countries.

If you look at the requirements for minimum capital of the world, the largest number of countries are in the area from 1 to 5 million euro. Lower limit for regional banks is 5,000,000,000 tenge, for Republican is 10 billion tenge. However, this does not affect the stability of the banking system, but rather reduces competition and promotes the expansion of the various micro-credit organizations.

In comparison with Russia, where only recently the requirement for minimum capital of banks increased to $ 6 million, then of course, our banking system is more "clean" and healthy. If you look at the situation in general, excessive demands of our National Bank is largely due to previous plans to create a regional financial center of Almaty. They planed that market of financial institutions from near and far abroad will come into our market. However, the financial center for objective reasons could not be established, and we live in is not quite a normal situation that impedes the creation of new small banks, which could also contribute to the development of the peripheral areas of the country. For example, in some U.S. states, the bank can be opened with only 70 thousand dollars. This, of course, these banks fully fall within the scope of all regulatory standards. Raising the bar four times higher than the average values, the regulator has seen the future of the country "Eurasian Leopard" with the economy like the "Asian Tigers" - Singapore, Malaysia, Indonesia and Taiwan. By the way, there is minimum capital requirements - $ 100 million. But do not forget that the level of monetization of the "Asian tigers" is several times higher than in Kazakhstan . In Singapore it exceeds 100%, while in Kazakhstan - less than 40%. It is impossible to ensure economic growth and stability of the banking system only by a single parameter - the capital.

At the same time implementation of Basel III has strengths and weaknesses. Advantage of Basel III is the creation of additional capital. Also Basel directed towards the reduction of operational risk and liquidity risk. Weaknesses are that the banks will have to not only reduce the current minimum lending period exceeding one year, but also encourage customers to repay previously issued the medium and long term loans for balancing their assets and liabilities as soon as possible. Obviously, it will have negative impact on the domestic business. The second disadvantage is that it reduces competition and leads to the increase in number of the various micro-credit organizations.

We'd like to say that only time will tell that the introduction of Basel was right decision or not.

3.2 The implementation of certificate of deposit

Nowadays in banking system there is a problem of the shortage long-term liabilities. This problem can be solved by the implementation of certificate of deposit.

97% of deposits in local banks may be withdrawn by depositors without loss of interest rate during the year indicated in the study of the consulting company Ulagat Business Group.

Today retail deposits and deposits of legal entities are key source of funding. They make up two thirds of banks' liabilities. With the second wave of the global financial crisis, it is supposed that the structure will remain so for the next 5-7 years. In the case of crisis in the economy investors can start withdraw deposits. This will have very negative consequences both for the banks and for the state, in this case state will devote significant resources to support liquidity and stability of the banking system. This threatened by the situation faced by foreign banks, for example, Northern Rock - the 5th largest mortgage bank in the UK from which over 3 days about $ 4 billion was withdrawn, equivalent to 8% of the total deposit base of financial Institute. As a result, the state was obliged to provide a full guarantee for all liabilities of the bank, and the cost of its support amounted to $ 27 billion.

The analysis of the anti-crisis measures in the banking crises shows that about 70% of occasions a state is forced to allocate additional resources to support liquidity, and in 30% of occasion - a comprehensive guarantee on deposits and liabilities of banks. This issue is taken into account in the new requirements for the regulation of the banking sector Basel 3. "We plan to introduce Basel , and if it will be entered in full, then the banks will have to not only reduce the current minimum lending period exceeding one year, but also encourage customers to repay previously issued the medium and long term loans for balancing their assets and liabilities as soon as possible. Obviously, it will have negative impact on the domestic business./23/

The solution of this problem requires government program on the increase in the stability of the deposit base of commercial banks of Kazakhstan. The banks themselves can not correct the situation in this case, as competition between banks is very high. On the other hand, the price for the mistakes of banks can be very large, because deposits are now the only source of funding. The strategy directed at the solution to presented problems lies in implementation of deposit of certificate and development.

Certificate of deposit is transferable security, indicating the presence of deposits with fixed interest rates in a bank or other financial institution. There is a number of advantages of using certificate of deposit for banks and for investors. On the one hand, it eliminates the need to withdraw the money in the bank when the investor needs money, because in some cases, instead it will be possible to use certificates of deposit. If you have a certificate of deposit, then you can sell it in the market to the pension fund, insurance or investment company to another investor. Certificate of deposit can be used as collateral for loans or as payment for transactions.

An increase in the amount of marginal rate guarantee on deposits placed with the help of certificate of deposit can encourage the use of such tool. It is proposed to increase the amount of guarantee for deposits from 1 year to 2 years to 7.5 million tenge and increase the maximum rate of interest of KDIF by 1%, and in the case of deposit for a period greater than 2 years of age to provide assurance to increase the amount of 15 million tenge and increase interest rate by 1.5%. These measures are proposed to extend on corporate deposits.

Clearly, this will require additional capitalization of KDIF. Experts suggest that it could be a $ 3.4 billion and for these purposes they offer to use international reserves of the National Bank. "If there will be an outflow of deposits and liquidity problems, the situation could be repeated as in 2007, when in the banking system $ 10 billion was poured. It is better to increase the stability now. And besides, we can provide some kind of framework for the return of funds by banks in 5-7 years - said Marat Kairlenov.

Market participants believe that such innovations have a positive impact on the banking sector. If this project will be implemented, it will help in the development of the banking system and the economy as a whole. The economy today is in need of "long-term" money.

Let's study the foreign experience of using certificate of deposit.

American certificate of deposit is a type of time deposit. Two general deposit categories exist with a $100000 denomination separating the groups.

Time deposits less than $100000 are most often called retail certificates of deposits or small certificates of deposit (CDs). The features of small CDs are not as standardized as large CDs although most bank market standardized instruments so that customers are not confused. Banks and customers negotiate the maturity, interest rate, and dollar magnitude of each deposit. The only stipulation is that small time deposits carry early withdrawal penalties whereby banks reduce the effective interest paid if a depositor withdraws funds prior to the stated maturity date.

Time deposits of $100000 or more are labeled jumbo certificates of deposit and are negotiable (can be bought and sold in the secondary market) with a well-established secondary market. Anyone who buys a jumbo CD or NCDs can easily sell it in the secondary market as long as the issuing bank is not suffering known problems.

Negotiable certificates of deposit (NCDs) are certificates that are issued by large commercial banks and other depository institutions as a short-term source of funds. The minimum denomination is $100000, although a $1 million denomination is more common. Nonfinancial corporations often purchase NCDs. Although NCD denominations are typically too large for individual investors, they are sometimes purchased by money market funds that have pooled individual investors' funds. Thus, money market funds allow individuals to be indirect investors in NCDs, creating a more active NCD market. Maturities on NCDs normally range from two weeks to one year. A secondary market for NCDs exists, providing investors with some liquidity. However, institutions prefer not to have their newly issued NCDs compete with their previously issued NCDs that are being resold in the secondary market. An oversupply of NCDs for sale can force them to sell their newly issued NCDs at a lower price.

Some issuers place their NCDs directly; others use a correspondent institution that specializes in placing NCDs. Another alternative to sell NCDs to securities dealers, who in turn resell them. A portion of unusually large issues is commonly sold to NCD dealers. Normally, however, NCDs can be easily sold to investors directly at a higher price.

NCDs must offer a premium above the T-bill yield to compensate for less liquidity and safety. The premiums are generally higher during recessionary periods. The premiums also reflect the market's perception about the safety of the financial system.

The problem of managing liquidity and interest rate risk management can be solved through the use of certificates such as Callable certificates and certificates the rate of which interest charged is tied to a change in the average market rate, or any market index (Step Up / Down, Variable rate).

A bank may issue a callable CD as a way to protect itself against changing economic conditions. With this product, the bank may offer an initial interest rate that is slightly higher than its fixed rate. However, it retains the right to "call" the CD, meaning it can take it back and issue one with a lower interest rate. The CD contract normally specifies a time frame in which the bank can call the product. Once this window passes, it must keep the CD at the initial interest rate for the duration.

Certificates of deposit such as Step Up / Down and Variable rate comfortable for banks relative size of the interest to be paid will be the same, regardless of the rates in the economy. As a base of indexation average market interest rate, the inflation rate in the economy, government bond yields or market index are chosen. However, in case of Callable, and certificate with indexed interest rate, there is a risk that in the event of premature termination of the issuer or a decrease in accrued interest following the market such certificates will not be sold in the secondary market without significant losses for themselves.

There is also a Brokered certificate of deposit, they are issued by deposit brokers, that this does not prevent this kind of certificates help to solve the general problem of liquidity. The holder of such a certificate is a group of independent investors. At the same time, in view of the high risk in comparison with other certificate of deposit, interest on brokered certificate of deposit is somewhat higher and lower commissions, which makes the tool more attractive to investors.

It is important to note that almost any kind of certificate can be sold in the secondary market. For return on investment it is more profitable to realize a certificate in the market, rather than withdraw money from the bank. Banks remain long-term liabilities at a fixed price, and customers at the same time can quickly regain its contribution with minimal losses, without going to the bank. This possibility makes the client panic less dangerous for banks. As a result, interests of banks and depositors are satisfied.

In contrast to a fixed CD where the interest rate remains the same for the entire term, a bump-up CD provides the opportunity for a "bump-up" to a higher interest rate one time during the term. The potential drawbacks are that bump-up CDs usually start with a lower interest rate than fixed CDs, and there is no guarantee as to when or if interest rates will rise. It is possible that the investor will be stuck with the initially low rate throughout the term.

With most CDs, investors must agree to keep the money in the CD until its maturity date or incur substantial penalties for early withdrawals. With a liquid CD, investors have the option to withdraw money on a penalty-free basis, provided they maintain a specified minimum balance. The investor may be limited as to the number and amount of the withdrawals, and may also receive a lower interest rate than that offered by other types of CD products.

Another interesting type of certificate is Add On. This option suggests the possibility of add funds. It is very comfortable when the certificate is opened for long-term saving of funds. This again is beneficial to both banks and depositors. Customers do not need to now wait for the expiry of the old certificate to increase the amount of the deposit, and you can immediately implement the long-term investment and then simply add funds to the principal. The interest on long-term deposits is higher and money do not lie idle. For banks, such as certificates represent an increased likelihood that funds will not be withdrawn before maturity./5, p. 362/

In addition to facilities for the general population, the U.S. certificates of deposit can be beneficial even to those who wish to invest for the long term. So there are certificates of type Zero Coupon, which are issued for a period of 15-20 years and are sold at a discount. This allows customers, on the one hand, to realize their investment opportunities, and on the other hand, to give maximum flexibility to banks in terms of method of placement of these funds.

Thus, in the United States presents a set of types of certificates of deposit for all tastes, and his version will be selected for both the population willing to invest for a fixed term at a higher interest rate than time deposits, and corporations who have an opportunity to very profitable place their available cash flow. It remains to understand what prevents Kazakhstan from adopting this successful experience.

Obviously, for smooth functioning of the entire system it needs its precise regulation. In the United States, the major regulatory agencies are the Federal Reserve System and the FDIC. They set the same the requirements for all for the implementation of allocations to reserves, maintaining records of all owners, claims under certificates and all the middlemen, the general requirements for maintaining maximum transparency of the whole system and so on. In addition for creating a more comfortable environment to investors, there is CDARs (Certificate of Deposit Account Registry Service). In fact, it is an association of member banks, engaged in allocation of client resources. The association itself does not own. It only distributes. If the client wants to invest (in excess of the maximum limit of coverage) into a tool such as a certificate of deposit, coming to any bank- member of CDARs, enters into a contract with the association. The treaty is given to customer. This treaty is documentary proof of legal relations arising. Further, the bank without the participation of the client divides the entire amount into the required number of parts so that each part with interest covered by the warranty FDIC. The resulting parts are distributed to other member banks CDARs, which issue certificates of deposit, according to part. Accordingly, in case of the issue of each certificate, the issuing bank makes the necessary payments to the FDIC, as if the bank had just issued a certificate for that amount. There is no need for client to go to different banks, opening certificates to decompose a large sum at once on the same terms. In this case, all funds may be disposed of through the mediation of only one bank through which contract originally was concluded with the association. And in order to prevent situation when part of the funds are placed in those banks in which the client already has some investments in the same category of property, the customer must provide complete and accurate information about their deposits in other banks of association, if he has. Accordingly, the commission is taken by the Association for the service itself, because the client does not need to go anywhere and cares about what exactly banks issued certificates under its funds. Customer saves time, nerves and effort, workflow is simplified.