Drivers for the development of the microfinancial sector of the Republic of Kazakhstan

Abstract

The importance of microcredit in solving social problems of the state is reflected in the strategic objectives and target indicators of the Concept for the Development of the Financial Sector of the Republic of Kazakhstan until 2030. Based on the regulator's public reporting materials, the article analyzes the activities of microfinance organizations providing microcredit to both individuals and small businesses. An assessment of the regulatory framework governing the activities of microcredit market participants was carried out, current changes in the rules for granting microcredits electronically and the borrower's debt burden ratio were considered. An assessment of the strategic directions for the development of microcredit, aimed at implementing systemic reforms in the financial sector is given. The authors studied the world experience of microcredit conditions in different countries of Europe, Africa, Australia and Asia and highlighted the most successful global practices of the functioning of microfinance organizations, innovative products and technologies that will help improve the efficiency of the microloan market in Kazakhstan. Proposals to increase the access of business entities to credit resources and financial services are substantiated. For expanding the range of services provided by microfinance organizations and improving their quality are stated. The possibilities of expanding the sources of funding for microfinance organizations and reducing the cost of credit resources are revealed, which will subsequently serve to increase the share of small businesses in the structure of the gross domestic product, increase real labor productivity and reduce the share of the non-observed economy.