Kazakh government considers new financial sector development concept until 2030
Astana, Kazakhstan, July 23
By Daniyar Mukhtarov - Trend:
A new concept of the country's financial sector development until 2030 was considered at a meeting of the Kazakh government, head of the National Bank of Kazakhstan Kairat Kelimbetov told media at a press conference on July 22.
"In particular, a new model of the banking sector development focuses on strengthening a group of large important banks and a group of medium-sized banks," he said. "Large Kazakh banks will represent the core of the country's banking sector in the Eurasian Economic Union's financial market, while medium-sized banks will ensure a higher level of competition on the main kinds of banking services for the corporate sector and the public."
"The National Bank intends to gradually increase the requirements for minimum capital of banks from the current 10 billion tenge ($ 1 = 183.5 tenge) to 100 billion tenge to strengthen and consolidate the banking sector," he said.
"The banks that will not meet this requirement will be able to continue operating," he added. "But the maximum amount of drawing the physical entities' deposits will be limited for them."
Kelimbetov stressed that the banks need a high level of capital and additional investments to increase the share of crediting to GDP, to develop new high-tech services, including mobile banking and internet banking services.
"Such issues as improving the population's financial literacy, infrastructure development of payment services, enhancing market discipline of financial institutions, the development of the institute of public-private partnership are also covered as part of a new concept," he said.
"One of the directions of development, which will improve the stability of the financial system in the effective absorption of shocks is the gradual introduction of Basel II and III," Kelimbetov added. "At the same time, the measures envisage providing the banks with the time necessary to adapt to the new requirements."
This concept is one of the elements of long-term planning system as part of the "Kazakhstan-2050" strategy implementation.
The main objectives of a new concept are to create a competitive financial sector and enhance its effectiveness in the reallocation of resources in the economy based on the best international standards, including the standards of the Organization for Economic Cooperation and Development (OECD).