Oil price fluctuations, creditworthiness of the financial system, and SME financing in Kazakhstan

Yergali Dosmagambet, Yessengali Oskenbayev, Farhad Taghi Zadeh Hesary, Moldir Mukan

研究成果: Chapter

1 被引用数 (Scopus)

抄録

Kazakhstan remains a resource-dependent country, and the overall economy experiences external commodity price volatility. Oil export revenue exerts a positive effect on the economic development of oil-producing countries; however, depending only on oil revenue will make the economy vulnerable to oil price shocks, especially in the case of an oil price recession. This is forcing the Kazakhstan government to pursue industrial diversification to accomplish sustainable and balanced economic development, particularly concentrating on the diversification and expansion of the small and medium-size enterprise (SME) sector. Second-tier banks remain SMEs’ main source of financing. Due to the higher risks associated with SMEs, they have to borrow money at high interest rates that endanger their growth. Since the global crisis in 2008 and the adoption of the Basel capital requirement, banks have become more reluctant to lend funds to SMEs. The government’s use of a credit guarantee scheme (CGS) relies on the willingness of second-tier banks to lend to SMEs, because they decide which SMEs to lend to and the effective interest rate. Second-tier banks, on the other hand, are dependent on oil price volatility. This chapter examines the status of the CGS in SME financing in Kazakhstan. In addition, it provides an empirical analysis using the structural VAR method that shows that the creditworthiness of the whole financial system in Kazakhstan is dependent on oil prices. Moreover, there is an effect from oil price volatility on currency value change, which also influences the financial situation of SMEs.

本文言語English
ホスト出版物のタイトルUnlocking SME Finance in Asia
ホスト出版物のサブタイトルRoles of Credit Rating and Credit Guarantee Schemes
出版社Taylor and Francis
ページ139-162
ページ数24
ISBN(電子版)9780429684579
ISBN(印刷版)9781138353428
DOI
出版ステータスPublished - 2019 1 1

ASJC Scopus subject areas

  • 経済学、計量経済学および金融学(全般)
  • ビジネス、管理および会計(全般)

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