Enhancing financial performance and risk management in Kazakhstan’s banking sector
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Author(s)Perizat BuzaubayevaLink to ORCID Index: https://orcid.org/0000-0003-3726-482X
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Aigul OrazbayevaLink to ORCID Index: https://orcid.org/0000-0001-9633-1223
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Gulzhan Alina
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Zamzagul BaimagambetovaLink to ORCID Index: https://orcid.org/0000-0002-7509-0894
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Gulzhihan KengesLink to ORCID Index: https://orcid.org/0000-0001-8529-8923
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DOIhttp://dx.doi.org/10.21511/bbs.19(1).2024.14
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Article InfoVolume 19 2024, Issue #1, pp. 157-169
- 438 Views
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126 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study aims to assess the impact of regulatory compliance on the effectiveness of risk management and the financial performance of Kazakhstan’s banking sector. Applying Structural Equation Modeling (SEM), the study examines data from Kazakhstani banking institutions, revealing the direct and mediated impacts of regulatory compliance on financial performance, with risk management efficacy as a key intermediary. The analysis identifies a significant direct relationship between regulatory compliance and risk management efficacy (coefficient: 0.45, p-value: < 0.001), suggesting that compliance efforts substantially bolster risk management capabilities. The impact of risk management efficacy on financial performance is also notable (coefficient: 0.35, p-value: < 0.001), confirming its crucial role in financial success. Additionally, a direct, though less pronounced, influence of regulatory compliance on financial performance is observed (coefficient: 0.20, p-value: 0.004). The model’s explanatory power is reflected in an R-squared value of 0.248, indicating that it accounts for approximately 24.8% of the variability in financial performance. These findings underline the critical role of regulatory adherence and effective risk management in ensuring financial success, offering strategic insights for banking operations in Kazakhstan.
- Keywords
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JEL Classification (Paper profile tab)G21, G28, C58
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References59
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Tables6
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Figures0
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- Table 1. Descriptive statistics for study variables
- Table 2. Variance Inflation Factor (VIF) to test for multicollinearity
- Table 3. SEM model parameters and estimates
- Table 4. Fit indices
- Table 5. Regression analysis results
- Table 6. Model fit
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Problems and Perspectives in Management Volume 15, 2017 Issue #2 (cont. 2) pp. 386-403 Views: 3390 Downloads: 536 TO CITE АНОТАЦІЯRisk management is one of the prominent issues which are pivotal to the success of a business and may adversely affect profitability if not properly practised. Therefore, the main objective of this paper was to determine risk management practices in manufacturing SMEs in Cape Town. The research conducted was quantitative in nature and constituted the collection of data from 74 SME leaders, all of whom had to adhere to a list of strict delineation criteria. All data collected were thoroughly analyzed through means of descriptive statistics. From the findings made, it is clear that SMEs in the manufacturing sector do in fact understand risk management initiatives applicable to ‘manage’ their respective businesses towards sustainability, but not to a large extent. It was found that respondents are unaware of the elements which make risk management effective, which ultimately aids to the development of problems for SMEs. All employees, managers and owners must coordinate their efforts together to identify and manage organizational risks within their ambit to obtain total risk coverage, as well as provide assurance that these risks are effectively managed from a coordinated approach. Further studies may be carried out to identify measures that can be taken to improve the effectiveness of risk management practices in SMEs.
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Industrial development in Saudi Arabia: disparity in growth and development
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
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Samiul Parvez Ahmed ,
Ikramul Hasan
doi: http://dx.doi.org/10.21511/bbs.13(3).2018.07
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