Head of the Agency discussed topical issues of financial market development with the IMF management
Chairperson of the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market Madina Abylkassymova and Deputy Managing Director of the International Monetary Fund Bo Li during his visit to Kazakhstan discussed reforms in the development of the financial sector, prospects for further cooperation, including the implementation of technical assistance for the preparation of the draft law “On Banks”, developed on behalf of the Head of State, voiced in the message to the people of Kazakhstan on September 2 this year.
Madina Abylkassymova noted that the new law in accordance with international best practices will be aimed at creating conditions for further development of fintech innovations in the banking sector, liberalization of legal requirements to stimulate lending to the economy, the development of Islamic finance, as well as improving the mechanism for resolving the insolvency of banks.
Head of the financial regulator reported on the progress of implementation of the recommendations of the Financial Sector Assessment Program (FSAP), conducted by the IMF and the World Bank in Kazakhstan in 2023. In order to further harmonize regulation in accordance with the Basel principles introduced supervisory surcharge to the minimum ratios of banks' equity capital adequacy based on the results of SREP, AQR and supervisory stress testing, as well as increased requirements for capital conservation buffer from 2% to 2.5% for non-systemic banks.
Work is underway to strengthen consolidated supervision of banking conglomerates, including the introduction of prudential standards and requirements for risk management systems at the consolidated level, with plans to introduce a new prudential standard - the leverage ratio - by the end of the year, and the introduction of an expanded definition of non-performing loans (NPLs).
Madina Abylkassymova also noted the implementation of the FSAP recommendation in terms of calculation of debt burden ratio (DSTI), limitation of the maximum amount of unsecured consumer loans and introduction of a new macroprudential standard - debt to borrower's income ratio (DTI).
At the end of the meeting, the parties identified the main areas of technical assistance from the IMF to strengthen financial stability and financial market development.
The Agency's External Communications Division
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