STATE AUDIT OF THE FINANCIAL SECTOR: A GLOBAL TREND OR A REQUIREMENT OF THE TIME?

Abstract

The article discusses the current trends in the development of the domestic financial services market. The author analyzes such key segments of the financial market as: banking, pension, insurance, currency and stock markets. As a result, key problems were identified that limit the effectiveness of the development of the financial market from the perspective of its interaction with the real sector of the economy and society as a whole. The results of the analysis showed that the current financial regulation policy in Kazakhstan is still far from perfect in the context of harmonizing the interests of the financial market and other subjects of the national economy. According to the author, a special role in this process belongs to the state, which, represented by the authorized bodies, should act as an external regulator coordinating the interests of all economic entities without exception, primarily in cases when the «invisible hand» of the market does not cope with this important task. Considering that such a trend has been observed in various periods of time (after the global financial crisis of 2008) in almost all countries, the activities of financial regulators began to be included in the perimeter of the state audit conducted by the supreme audit institutions. In conclusion, the author comes to the conclusion that the identified negative trends in the regulation and development of the financial market and its subjects not only limit the effectiveness of the latter,
but also do not provide the expected sustainable social and economic effects, which will require the participation
of the supreme audit institution of Kazakhstan in assessing the effectiveness of financial regulation policy. In this
regard, the author formulated a set of relevant recommendations to strengthen the position of the supreme audit institution of Kazakhstan in assessing the effectiveness of regulatory policy.