Privatisation to become a key event of 1999 . The upcoming privatisation of HSBK is likely to be a key event in 1999. Role of foreign banks is limited . Despite enthusiastic expectations, the arrival of foreign banks did not mark more competition. There is a clear separation between domestic and foreign banks in servicing clientele.
Confidence is still crucial .
As in many emerging economies, confidence in the banking system in general is key in attracting individuals' savings into banks. The banking sector in Kazakhstan is young and dynamic and has proved to be mature enough to weather the storms of last year's financial turmoil in Russia and other emerging markets. The most important document determining the direction of the development of the private banking sector has been the National Bank's Regulation introducing international standards. This Regulation was issued in December 1996. It requires that Kazakhstani second-tier banks meet internationally recognized standards in capital adequacy, asset quality, professionalism of key personnel, accounting systems, and information disclosure principles by the year 2000.