Baku, Azerbaijan, Dec. 18
By Nigar Guliyeva – Trend:
The concept of development of Kazakhstan’s financial sector until 2030 stipulates creation of new institutions for ensuring financial stability.
This is stipulated in the Strategic Plan of the National Bank of Kazakhstan for 2017-2021, approved by the Chairman of the National Bank on Dec. 15.
The document notes that the priority direction for ensuring financial stability will be the development of institutions for resolving insolvent banks with minimal budgetary burden and institutions providing emergency liquidity for affluent banks.
"Both mechanisms directly depend on the availability of reliable information about the quality of bank assets," the document says.
"Activity of the National Bank in this direction will be based on creation of incentives for regulated financial institutions to manage the quality of loans at the stage of borrower selection, loan issuance, monitoring, restructuring and other stages of resolving the insolvency of borrowers. The National Bank also needs to provide opportunities for financial institutions to work effectively with borrowers, establish institutions to monitor the quality of financial information," reads the document.
The development concept also stipulates the implementation of the recommendations of the Basel Committee on Banking Supervision (Basel II/III). In addition, work will be continued to improve the requirements for risk management systems and internal control of banks.