About submission of a new draft Law on banks for public discussion
The Agency for Regulation and Development of the Financial Market has developed draft Laws of the Republic of Kazakhstan "Banks and banking activities in the Republic of Kazakhstan" and "Amendments to certain legislative acts of the Republic of Kazakhstan on issues of regulation and development of the financial market".
The draft Laws have been developed in order to implement instruction of the Head of State voiced within the Address to the nation of the Republic of Kazakhstan "Fair Kazakhstan: Law and Order, Economic Growth, Public Optimism" dated September 2, 2024.
The draft Laws are designed to solve urgent challenges of stimulating the economic activity and further dynamic development of the fintech sector.
Key areas of the draft Laws include:
- Introduction of a basic and universal banking license to expand competition in the banking sector and create conditions for growth of lending to small and medium-sized businesses.
- Development of the fintech sector and safe implementation of innovations in the financial market, providing for expanded opportunities for banks to participate in the capital of fintech companies and simplified access to the "regulatory sandbox".
- Improvement of the banking regulation designed to eliminate redundant and outdated regulations, unification of similar horizontal requirements, as well as enhancement of corporate governance requirements, expansion of the scope of application of motivated judgment and optimization of the structure of supervisory instruments.
- Development of the Islamic finance and enabling the traditional banks to provide Islamic financial products under one license that comply with the best international practices.
- Development of behavioral supervision. Enhancement of consumer protection, introduction of a three-tier system for study of inquiries, improvement of transparency and responsibility of financial institutions.
- Reformation of the system of regulation of insolvent banks in order to make the banking system more stable and strengthen consumer protection.
It is offered to tighten conditions for use of the public funds in regulation of insolvent banks which envisages for provision of the state support in exceptional cases in relation to systemically important banks.
The draft laws have been developed in line with Decree of the Government of the Republic of Kazakhstan dated December 29, 2016 No. 907 "Approval of the Rules of legislative work of the Government of the Republic of Kazakhstan".
Full text of the draft laws can be found on the Agency's website.
External Communications Department