M&A and Crediting: the Hybrid Growth Strategy Seems to Be the Best for the Banks in Kazakhstan
M&A and Crediting: the Hybrid Growth Strategy Seems to Be the Best for the Banks in Kazakhstan

Summary/Abstract: The development of the banking sector in Kazakhstan after 2015 raises a number of questions regarding the growth strategies that should be applied to overcome the problems with its sustainable development in a business environment, influenced by low prices of crude oil and an underdeveloped real sector. The state policy for bank consolidation and the active support of the National Bank of the Republic of Kazakhstan in solving liquidity problems of particular banks, namely Qazkom and Halyk Bank, has not led to the expected results. This analysis shows that a combination of external factors with organic growth strategy through intensive innovation of the crediting process as well as training of the personnel to minimize the influence of biases in the decision-making process, should be applied as well. Based on our overall analysis it is suggested, that hybrid strategy, which combines the benefits of external and organic growth strategies, would be more suitable under the specific conditions of Kazakhstan, and probably in any other country with similar market environment.

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