THE RELATIONSHIP BETWEEN THE BANKING SECTOR OF THE REPUBLIC OF KAZAKHSTAN AND THE REAL SECTOR OF THE ECONOMY AND ITS ANALYSIS

Abstract

As part of this study, we intend to conduct a deep and comprehensive analysis of key economic indicators, such as the scale of lending, gross domestic product (GDP), as well as the level of financing and lending to small and medium-sized businesses and individual citizens of Kazakhstan. Special attention will be paid to transactions in national and foreign currencies, which will allow us to more accurately assess the state of our economy.

But despite all efforts, high interest rates on problem loans and a significant part of such loans continue to disrupt the interaction between the banking system and the real economy. These issues should not be ignored. We must look for ways to solve them in order to optimize the country's financial indicators and prevent possible crises. The final stage of our comparative analysis revealed the potential for improvement and it is necessary to realize this potential in the interests of the future of Kazakhstan.

Due to various financial and non-financial barriers that are taking place in the world, the domestic banking system is experiencing significant difficulties.In particular, ensuring the availability of financial resources for business and the population will be the core of credit risk management. All experts are concerned that these issues will slow down the economic growth in the country. That is, on the basis of this scientific study, it shows the need to carry out a number of reforms in the domestic banking sector. It is necessary to support the banking sector in improving the quality of relevant assets, increasing the efficiency (profit), reducing the share of doubtful loans, that is, this is the main task in increasing the banking system and economic growth of Kazakhstan.

Research it involves moving from a theoretical point of view to action. Therefore, we give theoretical and practical recommendations on strengthening the interaction between the banking sector and the real economy sector. Accordingly, with these proposals, we will contribute to the growth of the economy of the Republic of Kazakhstan and increase its competitiveness in the world economy.