Key words: banking system, money circulation, interest rates.
The bank sphere of Turkmenistan, in line with all the branches of the economy, takes respective actions, including financing of creation of new industrial enterprises, to promote diversification of the economy, modernize the material-technological base of this sphere, and digitize the economy on a stage-by-stage basis and provide the remote banking services to the clients.
According to the “Program of development of economic, financial and bank spheres of Turkmenistan in 2019–2025” being part of the “Program of President of Turkmenistan for Socioeconomic Development of the Country 2019–2025”, the proper job is continued to invest sufficient monetary funds to the economy of the country, regulate and control the money supply, maintain stability of the exchange rate of the national currency within framework of the monetary and fiscal policies of the country. At the stage of transition to the market economy relations there will be provided the soundness and competitiveness of the bank sphere where the innovative development is the main vector.
The job will be continued to increase the banks’ capitals, to provide capital adequacy for migration of possible risks, for further increase of the financial stability of the banks. Due to stable growth of the bank sphere of the bank sphere of our country increase of efficiency and quality of activities of the banks in management, in the system of electronic flow of documents and in introduction of innovations the bank services for the clients will become more comfortable.
Within the framework of implementation of the structural reforms in the branches of the national economy it is stipulated in accordance with the decisions taken in the Government of Turkmenistan to change the organizational-legal form of the state commercial banks, to transform them to the joint-stock companies, as well as to issue stocks and sell them. The authorized capital of the banks will increase also by re-capitalization of the net profit. It will create possibility for further increase of the resource base of our country, for attraction of the national and foreign investors and increase of investment activity.
Some methods of remote banking for the bank clients, including further perfection of such services as “Internet Banking” and “Mobile Bank” accessible through the computers, mobile phones, iPads. The electronic payment system, the electronic money will be improved further in line with introduction of new technologies in mobile communication, ATM, Internet, Further steps will be taken to expand the volumes of non-cash payments based on the Altyn Asyr bank card improve the quality of other bank card services. Particularly, it is planned to create the services for loan repayments, municipal services payments, as well as payment of taxes, other charges, insurance payments, etc. In addition, there will be widely used the QR (Quick Response) codes in the retail trading and services sphere. Including the bank sphere, the quality of the bank services, creation of new modern forms of services, creation of new modern forms of services and saving of money and time. In line with perfection of the bank sphere of the country and transition to digital economy, the UNDP Program “Collaboration for international financing accessibility for the benefit of development” stipulates introduction of electronic flow of payment documents of the bank clients through the “Internet Bank” service. It will allow all users operate their own accounts at any time from any place.
A bank is considered to possess sufficient liquidity when the amount of its cash and other liquid assets, as well as its ability to raise funds quickly from other sources, are enough to cover timely its financial obligations due.
In the world practice the bank liquidity is understood as the stock or flow of cash and other assets.
Inventory availability assessment implies assessment of assets that can be converted to cash money. In order to determine the liquid assets sufficiency it will be necessary to compare the available inventory with the needs in liquid funds.
The bank liquidity ratio; the cash ratio, the sort term liabilities coverage ratio, the short term liabilities coverage ratio, and the credit-to-deposit ratio are main indicators of the bank liquidity assessment. The bank liquidity assessment indicators are calculated due to the annual results of activity of a commercial bank. When calculating these indicators for quarter or six months the indicators should be set up to the yearly level.
In this connection, maintenance of bank liquidity is a serious, complicated task. The world practice suggests the liquidity management methods as a part of the bank management. These are the methods of commercial loans management, replacement of assets, income expectations and liabilities management.
In the process of management of lending activity of a bank not only each lending operation, but also the aggregation of all credits issued by the bank with their interdependence and interaction, i.e. the credit portfolio of the bank, serve to be the objects of this management. Management of the credit operations technology presumes first of all defining of functions of the lending units of a bank. They are usually the analytical units dealing with lending and tracing the loans repayment, the units preparing the loan agreements, the borrower’s history, pledge agreements, and monitoring the observance of these documents.
Main purpose of the bank management in the interest policy is to control the interest margin, i. e. the margin between interest income in the assets and interest expenditures in the liabilities. In addition to the margin, the attention is paid to spread, which is the difference between the weighted mean value of interest rate at the asset side and the average weighted interest rate liabilities. Both indicators must be shown in the income report of the bank. When planning, these indicators estimated. Also within the management process the gap is taken into account as the interest rate risk, as it means divergence, imbalance of assets and liabilities with fixed rate for the moment.
The level of interest rate risk influencing the interest margin and spread depends on the jump and its direction, sped and time duration of the interest rate change. In order to use appropriately the possibilities of gap management the banks are striving to:
— Maintain the asset portfolio diversified by interest rates, maturities and economy branches, with preference to liquid credits and securities.
— Work up operational plans of assets and liabilities management with taking into account of the current position and the forecasts of change of the interest rates trends;
— Not to connect each change in the rates movement direction with the beginning of new cycle of the interest rates.
The bank management system is permanently in the process of perfection and rationalization of the material technological base encouraging the banks to increase efficiency of their activity.
References:
- Gurbanguly Berdimuhameov. “Steate Regulation of Socioeconomic Development of Turkmenistan” — study guide for higher education institutions, Part I. Ashgabat, Turkmen State Publishing Service, 2010
- «Program of the President of Turkmenistan and socio-economic development of the country in 2022–2028”. — A., 2022.
- Tayharov B. T., H.Hajigurbanov, Money circulation and banks; — Ashgabat 2009y.
