Bank performance and the financial crisis: evidence from Kazakhstan

Abstract

Among other things, we estimate the e¤ects of two measures of the quality and risk of the loan portfolio on the industry best practice frontiers and bank ine¢ ciencies. We …nd that an increase in the volume of bad loans as a ratio of total lending has a desirable e¤ect on the cost, input-distance and alternative pro…t frontiers, all of which is consistent with the 'skimping'hypothesis.

The Ability of Altman’s Z”-score Model to Detect the Economic Distress of Kazakh Banks

“…The second-tier banks resemble the commercial banks operating in other countries; they perform financial intermediation and supply credit to the real economy. Salina (2017) Like their counterparts in many developed economies, several Kazakh banks were heavily exposed to high levels of credit risk caused by their lending to the domestic real estate and construction sectors and liquidity risk caused by over-reliance on short-term borrowings from the international wholesale funding market (Glass et al, 2013). The bursting of the domestic real estate bubble, which was formed during the economic boom of 2000-2007, resulted in a sharp rise in non-performing loans and a record decline in banks' profits (NBK, 2015).…”

A spatial production analysis of Chinese regional banks: case of urban commercial banks

“…Also, Kazakh's banks increased a huge number of bad loans during the world financial crisis. It has a serious influence on the banks’ cost, input distance and revenue frontiers (Glass et al., ). Tabak et al.…”