Majilis Reviews Draft Law Introducing Two Types of Banking Licenses

The Majilis has reviewed the draft law “On Banks and Banking Activities” in its first reading. The proposed legislation introduces two categories of banking licenses — basic and universal, Orda.kz reports.

The initiative was presented by Madina Abylkasymova, Chair of the Agency for Regulation and Development of the Financial Market. She explained that the reform aims to reduce market concentration and increase competition, allowing both large institutions and new entrants to develop.

We are introducing proportional regulation of banking activities. This will create a stable and competitive environment where both large and small banks can operate,
 noted Abylkasymova.

The basic license will differ from the universal one in terms of permitted operations and regulatory requirements. Banks holding a basic license will be limited to assets of up to 500 billion tenge and a minimum capital of at least 10 billion tenge.

Supervision for these banks will also be simplified: regulatory assessments will take place once a year, with reduced reporting obligations and fewer inspections.

In addition, the draft law allows banks to invest in fintech, cybersecurity, artificial intelligence, e-commerce, and telecommunications, as well as to establish subsidiaries abroad.

Original Author: Ilya Astakhov