EXPERIENCE IN IMPROVING BANKING EFFICIENCY IN DEVELOPING COUNTRIES
DOI:
https://doi.org/10.5281/zenodo.23643933Abstract
This article analyses policy measures aimed at improving banking-sector efficiency and stability in Kazakhstan, Türkiye, Malaysia, and China, along with the changes observed during 2016–2025. In Kazakhstan, the non-performing loan ratio declined from 9.3% in 2017 to 2.9% in 2023, while the cost-to-income ratio decreased during 2016–2024, not because of a reduction in costs but because income grew faster than costs. In Chinese commercial banks, the provision coverage ratio increased from 176.4% in 2016 to 205.2% in 2025, while the net interest margin declined from 2.10% in 2020 to 1.42% in 2025. In Uzbekistan, at the end of 2025, the specific provision coverage ratio stood at 52.6%, while the cost-to-income ratio was 52.3% under the Central Bank’s definition and 36.3% under the comparable definition (lower bound). Based on the analysis, recommendations are developed.Keywords
banking sector, efficiency, financial stability, non-performing loans, provision coverage, cost-to-income ratio, digital banks, international experienceReferences
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