The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan presented draft legislation to the Mazhilis that would introduce two types of banking licence for second-tier banks, a basic licence and a universal licence. The basic licence would differ from the universal licence in the scope of permitted operations and the level of regulatory requirements. Under the proposal, basic-licence banks would be subject to limits on maximum assets and minimum own capital, with specific thresholds to be set in subordinate regulation; the Agency signalled a plan to cap assets at KZT 500bn and set minimum capital at KZT 10bn. Banks holding a basic licence would be prohibited from lending to non-residents and affiliated persons, and would be subject to reduced prudential norms for certain indicators and simplified supervision, including a lighter annual supervisory review and evaluation process, less frequent inspections and reduced reporting. The wider draft banks law package is intended to reflect technological change and increased competition, and also addresses advancing financial technologies and liberalising the circulation of digital assets.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-09-17
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan proposes basic and universal licences for second-tier banks
Kazakhstan's Financial Market Agency proposed draft legislation for basic and universal banking licences for second-tier banks, differing in operational scope and regulatory requirements. Basic-licence banks would face asset and capital limits, restrictions on lending to non-residents and affiliates, and reduced prudential norms and supervision. The draft law aims to adapt to technological changes, enhance competition, and address financial technologies and digital asset circulation.