The theoretical aspects of the financial stability of the banking system

Abstract

Abstract. Financial stability of the banking system is an important issue for macroprudential regulation for the central banks all over the world. Macro-prudential regulation is a policy which aims to reduce the impact of systemic risks. The precarious situation of the banking system in the world had happened recently has led to the destruction of the financial system and to the significant spread of financial problems into the whole economy. Indeed, as noted by scientists, state of the banking system is an important indicator of the economic condition of any country. Author narrates about the history of the formation of the Kazakhstani banking system. In this article author gives her own theoretical interpretations for the terms like “the banking system” and “the stability of the banking system”, noting the Kazakhstani essentials in it. Author also identifies the differences between the concepts of “the stability of the bank” and “ stability of the banking system.”