Formalizing the Investment Selection Process of the Development Bank of Kazakhstan

Abstract :

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. 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 in account the instability and possible ill-conditioning of the optimization problem. We formalize the main stages of the Development Bank's pre-investment activities in support of the government's industrial development policy for the country's economy.