Banking System fails Durability Test, and a New Financial System needs to be developed - Nazarbayev
President Nursultan Nazarbayev has admitted Kazakhstan’s banking system has failed to adequately respond to the global financial crisis, and he subsequently has instructed relevant government bodies to develop a new concept for the national financial system.
"My instruction is for the National Bank, the Financial Supervision Agency and the government to develop a new (financial) concept with the use of internal resources as needed to resolve all the objectives I communicated," Nazarbayev said at the 12th Nur Otan Party Congress, led by the president in Astana on Friday.
The banking sector itself has served "as conductor for external shocks into the Kazakhstani economy," he said.
"The banking sector has failed the free market test. As a result of the crisis, the government, as a creditor of last resort has had to compensate expenses: save the banks on the verge of bankruptcy, secure retail deposits, protect individual investors in housing construction, and support small and medium-sized businesses," he summarized, according to CA-News.org.