"Limiting deposit amounts to under 10 million tenge" in Kazakhstan (given) -> "Proposed Cap on Deposits at Less Than 10 Million Tenge" in Kazakhstan (paraphrased)
Peer-to-peek into Kazakhstan's Banking Sector Modernization 🔥
Get a glimpse of the latest changes shaping Kazakhstan's banking scene as Olzhas Kizatov, deputy head of the Agency for Regulation and Development of the Internal Market, spills the beans at a Senate roundtable.
Kizatov announced that the Republic of Kazakhstan is streamlining the process for issuing banking licenses, including for microfinance organizations (MFOs). In a nutshell, they plan to roll out a basic banking license with a minimum capital requirement of 10 billion tenge.
But hold up! There are some restrictions on the cards for these basic banks, targeting risk management:
These banks with modest capital will be forbidden from providing loans and other credit products to foreigners, and from lending to relatives of the bank in a special way.
Additionally, a limit has been set on the total amount of time and savings deposits individuals can hold - no more than 10 million tenge.
Furthermore, activities related to brokerage and dealer operations with complex or high-risk financial instruments will be banned - Kizatov throw it down.
MFOs are a significant target audience for this basic license, as they're hankering to broaden their horizons and collect deposits from both the public and businesses. Good news for 12 MFOs with capital exceeding 10 billion tenge, as "KMF" and "Binkay Finance Kazakhstan" already scored permission to transform into a second-level bank!
Last summer, Kazakhstan imposed maximum loan amounts in banks and MFOs to quell population over-indebtedness. In the midst, ARRFR has establish limits on the validity of payment cards for non-residents of Kazakhstan for a maximum term of 12 months, to rein in the risks associated with illegal activities like drug trafficking and digital assets.
Moreover, the rules governing currency purchases for non-residents have been tightened in Kazakhstan.
If that's not enough, get ready for Islamic banking windows in conventional banks. They'll have to comply with specific regulations like management qualifications, separate financial record-keeping, and adherence to Islamic finance principles.
The National Bank of Kazakhstan maintains a robust regulatory foundation, focusing on maintaining economic stability and controlling operations. The ARRFR stands at the forefront of financial regulatory advancements in the region. 💥🔥💥
- Olzhas Kizatov revealed that the Republic of Kazakhstan is simplifying the process for issuing banking licenses, including for microfinance organizations (MFOs), planning to introduce a basic banking license with a minimum capital requirement of 10 billion tenge.
- To manage risk, banks issuing the basic license will be prohibited from providing loans and other credit products to foreigners, lending to relatives of the bank in a special way, and setting a limit on the total amount of time and savings deposits individuals can hold - no more than 10 million tenge.
- Furthermore, activities related to brokerage and dealer operations with complex or high-risk financial instruments will be banned, and the basic licenses are also aimed at MFOs looking to expand their operations and collect deposits from both the public and businesses.
- Last summer, Kazakhstan imposed maximum loan amounts in banks and MFOs to control population over-indebtedness, while the ARRFR has set limits on the validity of payment cards for non-residents of Kazakhstan for a maximum term of 12 months.
- The rules governing currency purchases for non-residents have also been tightened in Kazakhstan, and Islamic banking windows in conventional banks are anticipated, with specific regulations for management qualifications, separate financial record-keeping, and adherence to Islamic finance principles.
