Banking Operations Research Articles

Research on Abnormal Volatility in The Japanese Government Bond Futures Markets– Policy based on yield curve control

Historically, central banks in the United States, the United Kingdom, Australia and Japan have implemented Yield Curve Control (hereinafter referred to as YCC), and Japan is currently the only country in the world that is still pushing ahead with YCC. However, given that the implementation and implementation of the YCC showed more defects than profits, on June 15, 2022, there was an unusual fluctuation in the Japanese government bond futures market, Japan’s 10-year government bond future contracts fell by 2.01 yen, touching the melting point in the plate, the largest single-day drop in 2013. This article introduces the basic framework of the yield rate curve and its way of buying bonds, then elaborates on the operation of the Central Bank of Japan to buy bonds in 2022, analyses the abnormal fluctuations in the Japanese government bond futures market in 2022 and identifies the contradictions and limitations of the government bond market as the root cause of the fluctuation.

Deposit operations of banks in ensuring the financial stability of the banking system of Ukraine in modern conditions

The development and current state of financial resources of banking institutions in Ukraine are studied. The five leading banking institutions of Ukraine in terms of assets were identified and the structure of their resources as of December 1, 2023 was analyzed. Changes in the structure of residents' deposits attracted by deposit corporations, by sectors of the economy, by types of currencies and repayment terms in 2019-01.12.2023 were studied. The dynamics of interest rates of deposit corporations on household deposits in terms of currencies for this period were analyzed. On the basis of the analysis of the existing practice, the problems of forming the deposit policy of banking institutions were identified. The directions for improving the deposit policy to strengthen the resource base of banks have been determined. A set of measures to improve the efficiency of deposit portfolio management, which includes financial and marketing tools, has been determined. On the basis of the conducted analysis, proposals regarding the development of adequate measures for the development and improvement of deposit operations of banking institutions in Ukraine in modern conditions are substantiated.

Bank payment cards as the main form of modern monetary relations and basis of money circulation

Introduction. Today, payment cards are a key tool for remote access of money holders to bank accounts and a means of moving funds through the financial sector, and therefore are the main driver of the organization of payment services. This allows to assert that the development of banking operations with payment cards is of fundamental importance for ensuring the smooth functioning of settlement systems, improving the mechanisms of monetary regulation and providing the economy with an adequate amount of means of payment, which decisively depends on the effective organization of money circulation in general. Due to the fact that payment cards are one of the most powerful tools that affect the structure of the country's entire payment circulation, the study of card payment systems and the market of payment instruments at the macro level is becoming increasingly important and relevant. Goal. The purpose of the article is to evaluate the modern role of bank payment cards as the main form of monetary relations, in connection with which there is a need to clarify the main trends in the development of the market of payment instruments. Methodology. General scientific techniques and tools, methods of analysis and synthesis, comparison, consolidation and grouping, scientific abstraction are used. Results. The current trends in the development of the payment system in the context of digitalization of the economy and virtualization of monetary relations, in which payment cards are a key tool for access to bank accounts and a means of moving funds, are analyzed. The role of payment cards as the basis of the modern settlement mechanism, which affects the structure of payment circulation, is considered, and the advantages of payment cards for all participants in settlement transactions are determined. The current trends in the development of the payment card market in Ukraine in terms of the number, volume and structure of card transactions are studied and systematized. The negative trends and problems accompanying transactions with payment cards are analyzed, and the directions of optimization of the settlement mechanism are determined.

АКТУАЛЬНІ ПИТАННЯ ФІНАНСОВОГО МЕНЕДЖМЕНТУ БАНКІВСЬКИХ УСТАНОВ В УМОВАХ ВОЄННОГО СТАНУ

It is shown that financial management ensures the effective functioning of a banking institution on the market and contributes to its long-term stability. The elements of the financial management system are systematized, the effective interaction of which allows to minimize risks and achieve the set goals, contributing to the stability of banking institutions and their ability to adapt to changes in the financial markets. The objects of financial management of the banking institution, which play a key role in ensuring its effective functioning, have been systematized. It was determined that the financial management of a banking institution covers the traditional functions of financial management and more complex tasks related to the management of banking operations. It has been proven that the management of banking operations directly affects the overall financial stability and success of a banking institution. The financial management process of a banking institution is aimed at ensuring financial stability and its ability to achieve long-term financial goals. It is shown that the mechanism of financial management as an independent system includes a complex of tasks, goals, functions and methods aimed at implementing strategic decisions and achieving set goals. The key functions of financial management of a banking institution are summarized (strategic planning, operational planning, coordination, control, information support, financial reporting, ensuring business activity), which together form an integral financial management system of a banking institution, which allows it to effectively achieve its goals and maintain competitiveness on financial market. It is proven that strategic financial planning should contribute to the creation of a clear vision of the bank’s future development, ensuring its ability to adapt to changes in the external environment and maintain a stable financial position. The processes of current and operational financial planning involve the assessment and management of the bank’s financial resources in the short term, which will help banks adapt to changing conditions and support the effective implementation of their financial strategy.

Оцінювання кредитних ризиків у системі ризик-менеджменту банківських структур

The effective lending activity of the bank depends on the qualitative assessment of the creditworthiness of borrowers. This process determines not only the success of an individual banking operation, but also the entire credit policy of the bank. Modern banks use different approaches to creditworthiness analysis, because each loan agreement has its own specifics. The article summarizes and forms the main elements of the bank’s risk management system, substantiates the significant impact of such factors as the use of the latest technologies, stress management, and the culture of risk management. It is determined that the main and additional elements of the risk management system should take into account the features of the organizational and financial structure of each bank. In order to improve the methodologies for assessing the risks of banking activities on the basis of modeling methods and machine learning, the article proposes a conceptual model for assessing the credit risk of a commercial bank, which allows to implement the following stages: to form an information space for such an assessment and to carry out a scoring assessment of the creditworthiness of borrowers. As a result of the implementation of the first stage of the study, a set of observation objects is formed, assessed using a set of indicators; a binary characteristic of the client’s creditworthiness has been determined, which in turn determines the sign of the client’s attractiveness for lending. On the basis of the aggregate of selected factors, a comprehensive scoring model for assessing the borrower’s creditworthiness has been implemented, which allows to determine the rules for categorizing variables. A logistic regression has been constructed by the method of step-by-step exclusion and its significance has been assessed. Each client is assigned a score using a scoring card, on the basis of which a credit rating forecast for new borrowers is also calculated. The results of the research can be used by banks to improve the risk management system, as well as help banks to increase their efficiency and competitiveness.

Integrated reporting, corporate governance, and financial sustainability in Islamic banking

This research delves into the intricate nexus between integrated reporting, corporate governance, and financial sustainability in Islamic banking. The study scrutinized a collection of research spanning diverse geographies and periods, emphasizing factors like board dynamics, audit committee proficiency, sustainability disclosures, and the implementation of value-centric strategies. The distillation of insights from an initial pool of 173 studies, which was meticulously narrowed down to 30 through rigorous criteria, indicates a prevalent positive association between these determinants and the financial robustness of Islamic banks. Such findings accentuate the pivotal role of syncing banking operations with the intrinsically sustainable tenets of Islamic finance. This harmony can notably spur sustainable development, potentially drawing more investors and boosting the stature of the Islamic banking domain. Furthermore, this study sheds light on potential avenues for upcoming research, including the analysis of managerial competencies' influence on varying Corporate Social Responsibility (CSR) classifications and the examination of the ramifications of sustainability benchmarks, cultural variances, legal structures, and Islamic statutes in diverse nations. This investigation provides critical insights for professionals and decision-makers in Islamic banking, facilitating a deeper understanding of practices that strengthen financial sustainability.

Implementing AI-based Chatbot: Benefits and Challenges

The purpose of this paper is to develop a better understanding about the benefits that can be realized after implementing voice-based chatbot technologies in banks. Furthermore, this paper aims to investigate the challenges faced by organizations when implementing such technologies. This study followed a qualitative approach where semi-structured interviews were conducted with experts from mid to senior managerial levels working in a leading bank operating in Jordan and had implemented the voice-based chatbot technology. Implementing voice-based chatbot technology for the first time in a Jordanian bank has positively impacted the growth of the bank, increased customers satisfaction, and added a competitive advantage value to the bank. On the other side, different challenges faced the bank when it implemented this technology like issues related to security, compliance, integration, and infrastructure limitations. This paper can be considered in the foremost research conducted to investigate the implementation of AI-based chatbot in Jordanian banks. It demonstrated the benefits and challenges resulting from performing digital innovations introduced as innovative services in the banking sector that can inform the experience to other banks interested to implement such technologies.

The Impact of Artificial Intelligence Implementation of Accounting Information Systems in Commercial Banks Operating in the Tabuk Region

The Impact of Artificial Intelligence Implementation of Accounting Information Systems in Commercial Banks Operating in the Tabuk Region

DIGITAL BANKING IN THE FINANCIAL SERVICES MARKET OF UKRAINE

In the modern realities of digital transformation, the banking sector faces significant challenges that lead to changes in the methods of traditional banking operations and changes in the way banks interact with clients based on the use of digital technologies. One of the key trends in this area is the development of digital banking as a promising way of banking services. The study aims to study the theoretical and practical aspects of the development of digital banking in Ukraine's financial services market under conditions of digital transformation. The results of the analysis indicated an increase in the amount of attention paid by domestic and foreign scientists to the digital banking development issue. The article examines the theoretical foundations of the implementation of digital technologies in the banking sphere. The concept of digital banking is described. The SWOT analysis determined the main advantages, opportunities, disadvantages, and possible threats associated with using digital banking. The study distinguishes between the concepts of a purely digital bank and a traditional bank that uses digital technologies in its activities. The peculiarities of the activity of digital banks of Ukraine are characterized. The number of digital banking users in the world as a whole and separately in Ukraine was analyzed. The level of development of domestic digital banking was assessed, and the number of cashless transactions using payment cards from 2019 to 2023 was analyzed. The forecast of the number of bank branches and the volume of non-cash payments using payment cards made it possible to determine that in the future the number of bank branches will decrease, and the volume of non-cash transactions will increase. The digital banks of Ukraine are characterized, and the main innovative products of the leading traditional banks are highlighted. Based on the research of the company InMind, it was concluded that the share of digital banking users is growing and the most popular transactions in digital banking among Ukrainians were singled out. An analysis of the ease of use of mobile applications of domestic digital banks was also conducted, among which the most convenient and functional applications were found to be Monobank, Sense Bank, A-Bank, and the least - Raiffeisen Bank and Oschadbank.

The Impact of Internal Marketing Procedures on Banking Service Quality A Study of a Sample of Banks Operating in Biskra

This study delved into analyzing the impact of internal marketing procedures on the quality of banking services, using a sample of banks operating in Biskra. A random sample of 33 individuals from the employees of the following banks (Bank of Salam, Bank of Agriculture and Rural Development, Algerian Popular Credit Bank) was selected. To achieve the study’s objectives, a questionnaire was designed as a data collection tool, and appropriate statistical tests and tools within (SPSS.V 20) were used. The study distributed and retrieved 33 valid questionnaires for analysis. The study reached several results, including the significant impact of internal marketing procedures on the quality of banking services with its dimensions (tangibility, reliability, responsiveness, security, and empathy) specific to the banks (Bank of Salam, Bank of Agriculture and Rural Development, Algerian Popular Credit Bank) operating in Biskra.This positive impact enables banks to achieve key success factors within their competitive environment. The study recommends the necessity of focusing on all internal marketing procedures (embedding a service culture, applying the marketing approach in human resources management, disseminating marketing information to all employees, and motivating and rewarding employees) by the studied banks on one hand. On the other hand, equal attention should be given to the quality of banking services with its dimensions (tangibility, reliability, responsiveness, security, and empathy) to achieve desired success and excellence. Banks also have to embed a service culture and employees motivation, which offer actionable insights for banks to enhance their service quality in the way that achieve customer satisfaction and loyalty.

РЕФОРМИ БАНКІВСЬКОГО СЕКТОРУ В СИСТЕМІ МОНЕТАРНОЇ ПОЛІТИКИ

In the article the efficiency of implementation of reforms in the banking sector in the conditions of crisis is analysed. An analytical study of the implemented measures of reforming the banking sector as a significant component of the country's monetary policy system has been carried out. It is indicated that the banking sector, as the main regulator of the country's monetary policy, keeps the most important blocks of the financial system of the state under absolute control. But at present, the country's economic sector and its banking sector in particular is facing serious threats that require concrete proposals to resolve them. It is specified that the issues of determining the factors and factors that support the country's economy and the search for effective reforms of the banking sector in the monetary policy system are becoming particularly relevant. It is stated that banking crises are an indicator of instability and devaluation of the economy. To avoid their recurrence or mitigate their negative impact, government regulators should develop a mechanism that would strengthen prudential requirements for market participants – financial companies. It is noted that after the reforms of the banking sector of Ukraine in the field of corporate lending in 2016–2017, banks became more willing to provide loans for small amounts, and consequently, the concentration of the loan portfolio decreased. It is noted that the implemented reforms have encouraged banks to pay more attention to the financial condition of debtors, which has allowed to expand access to credit for financially stable clients. It is emphasised that banking sector reform should be the highest priority of the monetary policy system if the country intends to improve and realise its economic growth potential in the coming years. It is concluded that reformation efforts should be aimed at strengthening the supervisory structure, enhancing prudential requirements, increasing transparency of banking operations, management and financial reporting, as well as facilitating the consolidation of fragmented private banks and equalising of the playing field between private and state-owned banks, in particular, given the dominant position of the National Bank and the full guarantee of household deposits in private banks.

Monetary Policy and Inflation Targeting: The Effectiveness of Central Bank Interventions

Central banks throughout the world have adopted inflation targeting as their main policy goal in the last several decades, drastically altering monetary policy—a pillar of economic management. the complex interplay between monetary policy, central bank interventions and measures for controlling inflation, and the success or failure of inflation targeting as a whole. This research aims to shed light on the extent to which central bank operations impact inflation results and the larger economic environment by conducting a thorough review of empirical evidence, case studies, and theoretical frameworks.

The role of re-engineering banking operations in achieving strategic performance

أن نموذج إعادة الهندسة لا يقتصر على المؤسسات ذات المواصفات الخاصة بينما يمكن تطبيقه على كل المؤسسات ومن هنا فإن المؤسسات التي تواجه مشكلات ستتغير بالدرجة التي تجعلها تستعيد قواها أما المؤسسات التي تتوقع مشكلات ستعد نفسها للمواجهة وأخيراً المؤسسات الناجحة سيزداد نجاحها ويتدعم تقدمها.وقد ذكر رمضان وجوده في كتابهما أن النواحي الإدارية في المصارف لم تلق الاهتمام الكافي من الباحثين والدارسين والكتاب المتخصصين في الإدارة فغالبية الدراسات التي تناولت النشاط المصرفي كانت تركز أساساً على اقتصاديات المصارف Money & Banking معتبرة المصرف مجرد (دكان) لتداول الأموال على الرغم من أن الأمر يختلف في جوهره عن ذلك فالمصرف بالدرجة الأولى تنظيم للمجهودات البشرية يهدف إلى تقديم خدمة لأزمة ونافعة للمجتمع الأمر الذي يحتم توافر الأركان الأساسية للعمل الإداري الناجح من تخطيط وتنظيم ومتابعة وتقييم وتلعب العملية الإدارية في المصرف شأن أية منظمة أخرى دور العامل الحاسم في تحديد كفاءة العمل وتقييم الانجازات (رمضان وجودة، 2003).

Innovations in Marketing Management of Islamic Banks Facing Global Market Challenges in Jayapura

As we know, Sharia Banking in Jayapura faces various challenges in an ever-changing global market such as awareness and understanding, regulations, competition, product and service development, and human resources. However, with the right product innovation, Sharia banking can remain competitive and even lead in the banking industry. By focusing on product diversification, Sharia-based technology, financial inclusivity and education, Sharia banking can continue to respond to global market challenges and serve society better. Product innovation is key to achieving goals and ensuring sustainable growth of Sharia banking in the future. The Sharia banking market is facing increasingly tight competition with conventional banks. Conventional banks are increasingly adopting Sharia banking principles in their products, thereby increasing competition in the market. Changes in sharia banking regulations continue to develop in Jayapura, and these changes can affect Sharia banking operations and products.

The goal of financial inclusion in Zambia’s 8th national development plan

Zambia has not trailed behind other nations in promoting financial inclusion, one of its deliverables in its 2022-2026 Eighth National Development Plan. The analysis focused on the likelihood of reaching this goal and the implications for bank operating stability. A mixed research (quantitative and qualitative) approach was used and drew respondents from several remote areas in Zambia. A hypothesis test on the observed against the hypothesised mean (p-value = 1.93e-38 and <0.005) rejected the null to accept the alternative presupposition that banks have a relevant role in achieving financial inclusion, but they are not a necessary ingredient. The correlation test also aligned at both 95 and 99% confidence levels, that supported the null hypothesis to conclude that there is no correlation between the preferred channels of financial services and the adequacy of financial inclusion. Respondents felt that the financial inclusion services would still be offered at basic satisfactory levels regardless of the available form of financial service provider. The Kruskal-Wallis test supplemented the findings with p = 3.09667e-20(<0.05) that rejected null to conclude that any form of financial services is statistically significant in delivering basic financial inclusion in Zambia. The implications for banks are the risks for continuous survival because of the popular user-friendly alternative channels. It is recommended that the Bank of Zambia should sustain the relative relevance of formal banks by balancing their contributions with other innovative financial service channels. Banks should integrate with new market entrants, or the future will have a banking system without banks. Regulators must support banks’ survival traits such as the light set of criteria in their Know Your Customer (KYC) package.

THE EFFECT OF EDUCATION ON THE TRANSITION FROM TRADITIONAL TO MODERN BANKING UNDER THE INFLUENCE OF MARKET RISKS PREGLEDNI RADOVI

The process of globalization, the development of new technologies, artificial intelligence, increased competition and concentration, bring many novelties to banking. Advances in information technology and education inevitably lead to the development of the profession and bring changes in the entire business philosophy of traditional banking. The new business philosophy in banks pervades all banking operations, from retail to international banking, personnel training and managerial approach, and is an inevitable factor in further banking development.

Sustainable banking in Africa: A review of Environmental, Social, and Governance (ESG) integration

Sustainable banking, guided by Environmental, Social, and Governance (ESG) criteria, is gaining prominence as a vital strategy for fostering sustainable development in Africa. This review explores the integration of ESG factors within the African banking sector, highlighting its significance, challenges, and potential benefits. ESG integration in banking involves incorporating environmental considerations such as climate change and resource management, social factors including community development and employee welfare, and governance aspects like ethical practices and transparency into banking operations and decision-making processes. The review begins by examining the current state of the African banking sector, noting the unique economic and regulatory landscapes across the continent. It identifies key challenges in financial inclusion, economic development, and regulatory compliance that underscore the need for sustainable banking practices. The review then delves into the specifics of ESG integration, outlining strategies for environmental sustainability, such as green financing and reducing carbon footprints, social initiatives like corporate social responsibility (CSR) programs and financial literacy initiatives, and governance improvements through robust ethical frameworks and enhanced transparency. Case studies of leading African banks demonstrate successful ESG integration, illustrating the positive impacts on financial performance, reputation, and stakeholder trust. However, the review also acknowledges significant barriers to ESG adoption, including lack of awareness, high implementation costs, and regulatory hurdles. To address these challenges, the review recommends policy support, capacity building, and collaboration with international organizations. This review underscores the critical role of sustainable banking in Africa's development, advocating for a more integrated approach to ESG factors. By aligning banking practices with sustainability goals, African banks can contribute to long-term economic growth, social equity, and environmental protection, ultimately fostering a more resilient and inclusive financial system across the continent. Keywords: Sustainable Banking, Africa, ESG, Review.

Management of cooperative banks in Poland in the context of organizational culture - research report

Objectives The main aim of the article was to determine the impact of organizational culture on the effectiveness of managing cooperative banks. The research conducted by the authors focused mainly on the internal mechanisms functioning in these organizations, such as; leadership style, employee management style, analysis of factors ensuring organizational coherence, defining success criteria and factors motivating employees (often shareholders). Material and methods The methods used in the study included literature analysis and criticism, participant observation, comparisons, case studies, induction and deduction, synthesis. The main research tool was the OCAI (Organizational Culture Assessment Instrument) questionnaire by K.S. Cameron and E. Quinn, based on a competitive value model. The authors also defined the type of organizational culture according to T. E. Deal and A. Kennedy, based on the criteria of the degree of risk and the speed of feedback. 150 entities located in various regions of Poland were deliberately selected for the study. The research sample accounted for 28%. . The research was carried out in 2020 and 2021. Results The obtained results showed that cooperative banks are characterized by an autocratic management style. The autocratic management style does not correspond to the cooperative form. The type of culture indicated by the respondents requires modification consisting in the partial elimination of bureaucracy and autocratic personnel management, downgrading the features of the culture of gamblers and routines. Conclusions From a practical point of view, resolving the dilemma of whether profit is essential the purpose of a cooperative bank's operation has a key influence on the choice of a microeconomic model bank.

Operational Risk Assessment and Its Role in Mitigating Damages in Commercial Banks: An Analytical Study of Expert Opinions in the Kurdistan Region - Iraq.

The aim of this study is to measure and analyze operational risks and identify the most important causes of operational risks in banks in the Kurdistan Region, based on the opinions of experts in this field. Operational risks affect all banking services and operations, such as internal systems, external events and human factors, which can cause significant losses for banks. Therefore, banks need to adopt evolutionary approaches to competition and risk management. To conduct the research, a selection of banks operating in the Kurdistan region was chosen as a case study area to identify the most significant causes of risks in banks.
 In order to achieve the aim of the study, the Analytic Hierarchy Process (AHP) methodology was used, relying on (SPSS.V.22) software as one of the standard economic methods for analyzing information obtained from a questionnaire administered to selected banks operating in the Kurdistan Region - Iraq.
 The study found a significant inverse relationship between operational risk assessment and the reduction of harm in commercial banks. This means that the higher the operational risk standards adopted, the lower the likelihood of injury in banks. Additionally, most banks have a plan for identifying and defining operational risks, and that many of the respondents confirmed the presence of operational risk definition and identified in the bank's approved plan for managing operational risks by the board of directors. This indicates that banks recognize the importance of identifying and managing operational risks as part of overall risk management. Data analytics and results should help increase this awareness and improve business risk management processes and procedures.

КОММЕРЦИЯЛЫҚ БАНКТЕРДІҢ НЕСИЕ ОПЕРАЦИЯЛАРЫН ЕСЕПКЕ АЛУ ЖҮЙЕСІН ЖЕТІЛДІРУ

Мақалада кредиттік операциялардың экономикалық мәні, оларды тиімді ұйымдастырудың теориялық аспектілері және банк қызметінің басты элементі және ұлттық экономиканың дамуы мен өрлеуінің маңызды факторы болып табылатын қазақстандық банктердің кредиттік қызметінің ерекшеліктері анықталды. Бұл мақалада Қазақстанның қаржы нарығының неғұрлым дамыған сегменті ретінде банктік несиелеудің отандық нарығын дамытудың заманауи тенденциялары қарастырылған. Мақалада коммерциялық банктердің қаржылық жағдайының тұрақтылығын нығайтуға және кредиттеу операцияларының тиімділігін арттыруға бағытталған Коммерциялық банктердегі кредиттеу операцияларын ұйымдастыру мен бухгалтерлік есепті жетілдіру жөніндегі теориялық-әдістемелік ережелер мен ұсыныстар талданады. Бұл мақалада ұйымдағы несиелер мен қарыздардың бухгалтерлік есебі қарастырылады. Мақалад ұйымның жеделдігі мен біртұтастығымен сипатталатын банктік қызметтегі бухгалтерлік есеп ерекшеліктері қарастырылады. Сонымен қатар мақалада тізбеге сәйкес кредиттік операциялардың есебін ұйымдастыру атап өтілген (коммерциялық банк шоттарының жұмыс жоспарында). Автор Қазақстанның коммерциялық банктеріндегі кредиттік қатынастарды басқару және бухгалтерлік есеп жүйесін дамытудың теориялық-әдіснамалық аспектілеріне терең талдау жүргізді. Авторлар сондай-ақ нарық талаптарына сәйкес банктердің қызметін реттеудің жаңа тетіктерін көрсетеді; жеке банктің де, жалпы ҚР қаржы нарығының жай-күйінің де қаржылық көрсеткіштерін жақсарту үшін екінші деңгейдегі банктердегі кредиттік операциялардың есебі бойынша ғылыми негізделген қорытындылар ұсынылған. Халықаралық қаржылық есептілік стандарттары бойынша жұмыс жағдайында коммерциялық банктердің кредиттік операциялары ұсынылды. The article reveals the economic essence of credit operations, theoretical aspects of their effective organization and features of credit activity of Kazakhstani banks, which are a key element of banking activity and an important factor in the development and growth of the national economy. This article examines the current trends in the development of the domestic bank lending market as the most developed segment of the financial market of Kazakhstan. This article examines the current trends in the development of the domestic bank lending market as the most developed segment of the financial market of Kazakhstan. The article analyzes theoretical and methodological provisions and recommendations for improving the organization and accounting of credit transactions in commercial banks, aimed at strengthening the stability of the financial position of commercial banks and improving the efficiency of lending operations. This article discusses the accounting of loans and borrowings in an organization. The article discusses the features of accounting in banking, characterized by the efficiency and cohesion of the organization. The article also notes the organization of accounting for credit transactions in accordance with the list (in terms of commercial bank accounts). The author has carried out an in-depth analysis of theoretical and methodological aspects of the development of the accounting system and credit management in commercial banks of Kazakhstan. The authors also point to new mechanisms for regulating the activities of banks in accordance with market requirements; to improve the financial performance of both an individual bank and the state of the financial market of the Republic of Kazakhstan as a whole, scientifically sound conclusions on accounting for credit transactions in second-tier banks are presented. The prospects for the development of credit operations of commercial banks in the conditions of work according to international financial reporting standards are presented.