Kazakhstan’s Agency for Regulation and Development of the Financial Market reported completion of its roadmap to implement recommendations from the 2024 Financial Sector Assessment Program (FSAP) aimed at compliance with the Basel Committee’s Core Principles. Agency Chair Madina Abylkassymova reviewed the reforms with International Monetary Fund (IMF) mission chief for Kazakhstan Amina Lahreche during the fund’s annual mission. The reforms strengthened supervision of banking groups, risk management and capital assessment, while tightening provisioning rules and requirements for transactions with related parties. More than 80 regulatory legal acts have been developed and adopted as the main regulatory framework supporting the new Law on Banks. The framework introduces proportional regulation through basic and universal banking licenses, strengthens corporate governance requirements and establishes conduct supervision. It also expands consumer protection mechanisms and provides a new model for the recovery and resolution of insolvent banks. Capital market and insurance reforms were another focus, continuing themes discussed with the IMF in October. Draft development programs through 2030 and a legislative framework for their implementation have been prepared. The meeting identified priorities for IMF technical assistance, including securities market development, improvements to supervision based on risk and the development of conduct supervision approaches.

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