Benchmarking Comparison of Financial Performance and Risk Resilience in the Digital Transformation of Banking: A Comparative Study of China and Kazakhstan

Abstract

Banking around the world is being digitised, and as a result, both good and bad things have happened; the extent of these changes and the problems they have caused vary from country to country and at different times. A three-dimensional alignment framework will be introduced in this paper to solve the problems of financial efficiency, risk buffer and digital penetration, and then benchmarking comparisons will be made among the banking sectors in China and Kazakhstan. Based on the above research, the net interest margin of China's banking industry has been falling and non-interest income has been rising; therefore, it is considered to have stable risk resistance, and continuous monitoring of credit risk has been intensified. Kazakhstan's banking sector has a relatively high net interest margin, but it is also very volatile; the elasticity of the cost-to-income ratio is low, and due to a small credit database and external financing, it is exposed to external risks. Here is some cross-country comparison data on the effect of digitalisation in developing and emerging economies.