The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published comments from the European Bank for Reconstruction and Development’s Managing Director for Central Asia and Mongolia, Huseyin Ozhan, supporting the draft new Law on Banks and Banking Activity. The EBRD frames the proposed law as a step toward strengthening Kazakhstan’s financial architecture and aligning the framework more closely with international practice. The comments highlight the introduction of a modern regime for dealing with insolvent or likely-to-be-insolvent banks, including closer alignment with the Financial Stability Board’s Key Attributes for effective resolution. The EBRD also underscores the draft law’s approach to funding the resolution of a systemically important bank, noting the importance of ensuring losses are covered primarily by the bank’s shareholders and creditors, complemented by a mechanism for monetary contributions to be collected from the banking sector after a bank has been resolved.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-10-22
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan publishes EBRD endorsement of draft banking law and proposed bank resolution reforms
The Agency for Regulation and Development of the Financial Market of Kazakhstan received support from the European Bank for Reconstruction and Development for its draft Law on Banks and Banking Activity. The law aims to strengthen Kazakhstan’s financial architecture by introducing a modern regime for insolvent banks and aligning with the Financial Stability Board’s Key Attributes. It emphasizes that losses should be covered by the bank’s shareholders and creditors, with additional contributions from the banking sector post-resolution.