Kazakhstan Advances New Banking Law To Shake Up Financial Sector

(MENAFN- Trend News Agency) ASTANA, Kazakhstan, September 15 . The Agency for Regulation and Development of the Financial Market of Kazakhstan held another meeting with the leadership of the country's Association of Financiers and second-tier banks, during which current issues related to the further development of the financial sector were discussed, Trend reports via the press service of the Agency for Regulation and Development of the Financial Market of Kazakhstan.

The main topic of discussion was the draft of the new law "On Banks and Banking Activities," developed by the Agency at the instruction of President Tokayev, as stated in his Address to the People of Kazakhstan on September 2 of last year.

"The draft law was developed in a short time with the active participation of financial market representatives and domestic and international experts. Consultations were held with foreign central banks and regulators. As a result of this large-scale effort, the draft reflects current challenges, incorporates the views of market participants, and integrates advanced international approaches to banking regulation," the statement reads.

Moreover, a key focus in developing the new law was the revision of excessive or outdated banking regulations. The meeting addressed the creation of favorable conditions for the implementation of financial technologies and innovations in the banking sector.

The draft law includes new approaches to bank licensing, the development of Islamic finance, the introduction of behavioral supervision, improvements in corporate governance, and the resolution of distressed banks in line with international standards.

Overall, second-tier bank executives expressed conceptual support for the main innovations and proposed separate discussions on issues such as:

lending to individual entrepreneurs;

the institution of the financial ombudsman;

co-borrower obligations;

expansion of banks' permitted activities;

and requirements for senior management.

Madina Abylkasymova, Chairperson of the Agency for Regulation and Development of the Financial Market, noted that each of these issues will undergo further discussion within the framework of a working group.

Participants also discussed the use of AI in the financial market and the dynamics of mortgage lending, including interest rates and the potential involvement of second-tier banks in the housing savings system.

At the conclusion of the meeting, both sides agreed to continue their joint and constructive work on the draft law to ensure the further dynamic development of the financial market.

To recall, in his Address to the People of Kazakhstan on September 8, 2025, the President instructed that the draft law be thoroughly finalized and adopted by the end of the current year. The new law is expected to stimulate economic processes, promote a transparent and resilient banking system, and support the development of the fintech sector.

The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market has been functioning since 1 January 2020, in accordance with Presidential Decree No. 203 dated 11 November 2019. It is a public authority tasked with safeguarding the rights and legal interests of financial services consumers, promoting financial system stability and market development, and executing state regulation, oversight, and supervision of the financial market and organizations, along with other entities within its jurisdiction.

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