The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has prepared a draft Board resolution to amend selected regulatory acts governing banking and microfinance activity, aiming to curb the growth of consumer lending and prevent excessive household indebtedness. The draft would introduce bans on granting new loans to borrowers with payments overdue by more than 30 days, a history of “ineffective” restructurings (where the restructured loan later becomes overdue or the debt amount does not decrease), or loans written off in the last 36 months. It would also prohibit unsecured consumer loans with maturities longer than five years, cap the maximum debt burden ratio for unsecured consumer loans with maturities of three to five years at 0.25, add a restriction for borrowers with loans more than 90 days past due in the last 12 months, and apply a 350% risk weight to unsecured consumer loans with maturities over three years.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-04-30
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan proposes tighter underwriting limits and a 350% risk weight for long-term unsecured consumer loans
Kazakhstan's Financial Market Agency drafted a resolution to amend banking and microfinance regulations to curb consumer lending and household debt. Measures include bans on new loans to borrowers with significant overdue payments, restrictions on unsecured consumer loans over five years, and a 350% risk weight for loans over three years. The draft also caps the debt burden ratio for unsecured loans with maturities of three to five years at 0.25.