Tokayev signs law on banks

Tengrinews.kz – President of Kazakhstan Kassym-Jomart Tokayev has signed the law on banks, according to Akorda’s press service.

“The Head of State has signed the Law of the Republic of Kazakhstan ‘On Banks and Banking Activities in the Republic of Kazakhstan’,” the statement says.

The President also signed the Law “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Regulation and Development of the Financial Market, Communications and Bankruptcy.”
New law on banks in Kazakhstan
The law provides for a number of large-scale changes:

Liberalization of bank licensing – basic and universal licenses are introduced in order to reduce concentration and promote competition.
Regulation of digital financial assets – their circulation is allowed in Kazakhstan, with three types of such assets planned.
Islamic banking operations – universal banks will be able to conduct them under their existing licenses.
Behavioral supervision – a risk management strategy is introduced, independent units for product assessment are created, full disclosure of information and analysis of consumer feedback are required.
New mechanism for insolvent banks – losses will be covered at the expense of market participants rather than the state budget.
Independent directors – their role is strengthened to ensure the objectivity and independence of decisions.

Digital tenge and new rules for banks
The Law “On Amendments to Legislation on the Financial Market, Communications and Bankruptcy” is aimed at unified regulation of the financial sector and the implementation of the new banking legislation. It regulates bank governance, the reputation of executives and major shareholders, establishes a financial ombudsman, and helps restore the resilience of large banks.
The law also introduces the digital tenge and digital accounts, regulates digital financial assets, and sets rules for microfinance organizations and debt collection companies.
The purpose of the law is to make the financial market more transparent, protect consumer rights, develop innovation and strengthen the stability of the banking system.