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Article · GATR Journal of Finance and Banking Review · February 26, 2017

Formalizing the investment selection process of the Development Bank of Kazakhstan

Dulat N. Shukayev, Zhanar Lamasheva, Almira Ayapbergenova, Zhanar Bimurat

Zhanar Lamasheva
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Abstract

Objective - This article presents a functional diagram for implementing the investment program of the Development Bank of Kazakhstan and builds an outline of the pre-investment evaluation process. Methodology/Technique - A stepwise algorithm is created to conduct a preliminary appraisal of business proposals, and the criteria for assessing the borrower's condition are identified. Key criteria used in the investment performance analysis are discussed. The article develops a computer simulation approach to analysis and decision-making with respect to investment programs, with consideration of analytically non-formalisable stochastic distributions of parameters and processes. The paper also proposes a new method for optimizing the allocation of funds, given various priorities and risks, taking into account the instability and possible ill-conditioning of the optimization problem. Findings - The article formalizes the main stages of Development Bank's pre-investment activities in support of the government's innovative industrial development policy in the country's economy Novelty - Presented models and algorithms of the functional tasks for implementation of investment activities are sufficiently general to be relevant, not only for implementing the government's strategy in this direction, but also for the business interests of any bank or investment entity. Type of Paper: Review Keywords: Investment Selection Process; Development Bank of Kazakhstan; Investment Activities; Business Proposals; Optimizing.

Capital Investment and Risk AnalysisEconomic and Industrial DevelopmentMulti-Criteria Decision Makingcomputer simulationbank investment activity

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