The need for risk-based regulation and supervision of the activities of banks second level in the Republic of Kazakhstan
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Keywords:
risk in the Bank’s activities, risk-oriented regulation, and supervision, motivational judgment, Institute of judgment, capital adequacy, liquidity, corporate governance, capital risk, business model, restructuring, risk levelAbstract
Banks in a market economy play a crucial role in the effective distribution of accumulated funds
and investments and ensuring the stability of the financial system as a whole. In performing these functions,
banks are taking the risks and they can be insolvent and to be bankrupt. An important issue is the regulation
and supervision of banks by an authorized organization to protect the interests of depositors and avoid loss of
consumer confidence in the banking sector. Based on this, this article examines the mechanisms of risk-oriented
regulation and supervision in the banking sector of the Republic of Kazakhstan, and notes the importance of
monitoring and evaluating (measuring) risks. It was also noted that on the eve of globalization and technological
development, traditional methods of banking regulation are ineffective and risk-oriented regulation and
supervision can prevent banks from systemic risks.
