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    Kazakhstan advances new banking law to shake up financial sector

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    By Madina Usmanova

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    Kazakhstan advances new banking law to shake up financial sector

    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    of excessive or outdated banking regulations.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

    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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    Agency’s WhatsApp channel

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