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Household debt service ratio in a developing economy: borrower-based analytical tools and macroprudential policy overview in Kazakhstan

Author

Listed:
  • Zhandos Ybrayev

    (National Bank of Kazakhstan)

  • Andrey Talakin

    (National Bank of Kazakhstan)

  • Yerlan Kairullayev

    (National Bank of Kazakhstan)

  • Talgat Zharkynbay

    (National Bank of Kazakhstan)

Abstract

In this paper, we provide an in-depth overview of key macroprudential policy framework instruments and borrower-based analytical tools in Kazakhstan. We estimate the debt service-to-income ratio (DSTI) for household sector in Kazakhstan for the period between 2013Q2 and 2022Q1. We use the actual remaining maturity and the interest rate for each loan available from the micro-level database (credit registry), and also assume gradual repayment of debt over the time of its remaining maturity. In addition, we specify four types of aggregate income in Kazakhstan. We conjecture, that measuring DSTI with household disposable income approach is likely to provide an upper bound estimate, while calculating debt service-to-income ratio adjusting for the average monthly nominal salary per one employee will likely provide a lower bound assessment.

Suggested Citation

  • Zhandos Ybrayev & Andrey Talakin & Yerlan Kairullayev & Talgat Zharkynbay, 2024. "Household debt service ratio in a developing economy: borrower-based analytical tools and macroprudential policy overview in Kazakhstan," Journal of Banking Regulation, Palgrave Macmillan, vol. 25(1), pages 58-72, March.
    • Handle: RePEc:pal:jbkreg:v:25:y:2024:i:1:d:10.1057_s41261-023-00218-7
    DOI: 10.1057/s41261-023-00218-7
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    More about this item

    Keywords

    Macroprudential policy; Consumer lending; Debt service; Kazakhstan;
    All these keywords.

    JEL classification:

    • G50 - Financial Economics - - Household Finance - - - General
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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