The Role of Deposits and Securities in Shaping Banking Operations and Mutual Funds in Kazakhstan
https://doi.org/10.47703/ejebs.v68i4.453
Abstract
This study examines the influence of client deposits, securities, and outstanding shares on key banking operations and their role in the development of mutual funds within Kazakhstan's financial system. The research focuses on identifying which financial instruments contribute significantly to resource allocation and the sustainability of mutual funds. Two primary hypotheses were tested: first, that securities and deposits of legal entities significantly impact banking performance and mutual fund growth, and second, that individual deposits and outstanding securities have a measurable influence on these outcomes. To address these questions, a multivariate analysis of covariance (MANCOVA) was conducted, supported by univariate tests and graphical methods such as Q-Q plots and raincloud plots. Data from Kazakhstan’s financial institutions between 2012 and 2023 were analyzed to assess the statistical significance of these factors. Deposits from legal entities demonstrated their dominant role in the financial system, significantly impacting bank liquidity and resource allocation. In contrast, individual deposits and outstanding securities showed no statistical significance, reflecting the low engagement of private investors and their preference for traditional deposits over more complex investment instruments. Securities showed a significant impact on banking operations but were focused on the corporate sector and institutional investments. The results contrast with international markets in a strong dependence of the financial system on the corporate sector. Although securities are widely used to attract capital and manage investments, their market in Kazakhstan likely remains narrowly specialized and insufficiently liquid, a contrast rarely seen in studies of more developed markets.
About the Authors
Lyudmila KanZhanat Malgarayeva
Narxoz University, Almaty, Kazakhstan
Russian Federation
Russian Federation
Cand. Sc. (Econ.), Associate Professor, Email: zhanat.malgaraeva@narxoz.kz
Gulnara Lesbayeva
Astana International University, Astana, Kazakhstan
Kazakhstan
Kazakhstan
Doc. Sc. (Econ.), Professor, Email: 999gulnara_lesbaeva@mail.ru
Anvar Tulaganov
L.N. Gumilyov Eurasian National University. Astana, Kazakhstan
Kazakhstan
Kazakhstan
Doctor of State and Local Profiles, Associate Professor, Email: tulaganov22@mail.ru
Rakhat Arzikulova
Abay Kazakh National Pedagogical University, Almaty, Kazakhstan
Kazakhstan
Kazakhstan
Cand. Sc. (Econ.), Email: rakha0212@mail.ru
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Review
For citations:
Kan L., Malgarayeva Zh., Lesbayeva G., Tulaganov A., Arzikulova R. The Role of Deposits and Securities in Shaping Banking Operations and Mutual Funds in Kazakhstan. Eurasian Journal of Economic and Business Studies. 2024;68(4):89–100. https://doi.org/10.47703/ejebs.v68i4.453
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