Kazakhstan adopts new banking law

Tengrinews.kz — The Mazhilis has adopted the draft law “On Banks and Banking Activities” and accompanying amendments, taking into account the changes introduced by the Senate.

Recall that on 25 December the Senate considered the banking law in the first reading. During the discussion, deputy Amangeldy Nugmanov stated that overly strict rules for banks could make loans less accessible.

“Excessive tightening of regulation may lead to reduced availability of credit resources, a weakening of investment activity, and a decrease in financial flows into the real sector of the economy,” the deputy said earlier.

The senator noted that on important issues experts and government bodies did not give entirely clear answers. Therefore, the law needs to be refined so that stronger supervision of banks does not interfere with their stable operation and with economic development.

Senate Speaker Maulen Ashimbayev had earlier stated that the lead committee proposed not to approve certain articles of the law and to return it to the Mazhilis with a proposal for a new version of those articles. The comparison table contains 16 amendments.

It should be noted that the draft of the new banking law in Kazakhstan simplifies bank licensing.

What the Mazhilis decided

The committee agreed with the Senate’s clarifying amendments, which concern a number of key issues in banking sector regulation. In particular, it is proposed to extend requirements on observing bank secrecy to treasury bodies.

The goals of introducing a data showcase (data mart) and the list of information it must contain are also clarified. It is proposed to postpone the entry into force of the relevant provisions from 1 June 2026 to 1 January 2027.

In addition, the amendments spell out in more detail the requirements for compliance with prudential norms when a bank moves from a basic banking license to a universal one.

Separately, the amendments provide branches of Islamic banks that are non-residents of the Republic of Kazakhstan with the right to carry out certain types of investment activities.

It is noted that the adopted changes and additions are generally aimed at improving the regulation of banking activities, increasing the transparency of the financial system, and developing the country’s financial market.