Draft new banking law was approved by the Majilis in the first reading
Plenary session of the Majilis of the Parliament studied in the first reading draft laws "Banks and Banking Activities in the Republic of Kazakhstan" and "Changes and Amendments to Certain Legislative Acts of the Republic of Kazakhstan on Regulation and Development of the Financial Market."
Madina Abylkassymova, Chairperson of the Agency for Regulation and Development of the Financial Market, pointed out in her speech that the structure of the new Banking Law has been significantly amended. The existing provisions have been revised and optimized, and new sections on corporate governance in banks, conduct supervision, and resolution of insolvent banks have been included.
The draft laws define the key goal of regulation of the banking activities as ensuring the financial stability of the banking system.
The document is designed to create a legal framework for operation of the banking system, improve regulatory and supervisory mechanisms, protect rights and legal interests of depositors, creditors, and bank clients, as well as develop fair competition and improve financial literacy of the population. Key areas include implementation of proportional regulation of the banking activities, development of the fintech sector and regulation of digital financial assets, development of the Islamic banking, formation of a risk-based behavioral supervision system, creation of a new mechanism for resolution of insolvent banks, and improvement of the banking regulation.
During the meeting, the deputies discussed key provisions and, following the discussion, approved the draft laws in the first reading.
Adoption of the draft laws will contribute to improvement of the financial stability of the banking system, aligning the national legislation with the international standards, promotion of competition, and stimulation of innovation in the financial sector.
External Communications Directorate