Kazakhstan Proposes Significant Overhaul in Financial Laws

The National Bank of Kazakhstan (NBK) has announced a large package of financial sector reforms, aimed at enhancing the sector's contribution to the country's economic development and improving citizens' well-being.

Timur Suleimenov, Chairman of the NBK, made the announcement during a government meeting on August 26. The reforms, which are being prepared jointly with the Agency for Financial Regulation, will cover banking operations, payments, the securities market, and other key areas.

One of the main objectives of these reforms is to ensure long-term economic growth and strengthen financial stability. The NBK will focus on ensuring price and financial stability, while also working to channel more funds into corporate lending.

The proposed reforms are aligned with Kazakhstan's broader economic strategy and aim to complement the baseline scenario, which aims for sustainable and balanced economic growth. The reforms are also aligned with the initiatives of President Kassym-Jomart Tokayev.

A significant aspect of the reforms will be the development of the National Digital Financial Infrastructure. This will further advance the payment market and integrate digital payments into the regulatory framework. As part of a pilot project in the Astana International Financial Centre (AIFC), the government is introducing tax incentives to encourage banks to redirect liquidity from NBK instruments into corporate lending.

Moreover, the government plans to improve digital financial asset regulation by allowing payment of regulatory fees with US dollar-pegged stablecoins. This initiative is led by the Astana Financial Services Authority (AFSA) and aims to enhance transaction efficiency, transparency, and cost-effectiveness, particularly for companies holding significant digital assets.

The authorities anticipate that these measures will contribute to the overall quality of life for citizens. Kazakhstan's GDP is projected to grow by 5.4% in 2026, with an average annual growth rate of 5.3% over the coming years.

The National Bank will continue active cooperation with the government to maintain macroeconomic stability and foster sustainable, inclusive growth. The reforms are expected to improve the overall quality of life for citizens and ensure that Kazakhstan's financial sector remains a key driver of the country's economic development.