National Bank of Kazakhstan determines strategic initiatives for 2021

Finance Materials 22 January 2021 17:08 (UTC +04:00)
National Bank of Kazakhstan determines strategic initiatives for 2021

BAKU, Azerbaijan, Jan. 22

By Nargiz Sadikhova - Trend:

One of the priorities for the National Bank of Kazakhstan in 2021 will be the completion of the development of the Monetary Policy Strategy until 2030, a source in the National Bank told Trend on Jan. 22.

“This document will reflect all the main medium-term and long-term plans of the National Bank,” the source said. “The strategy will determine the future guidelines and principles of monetary policy and will raise public awareness and understanding of the National Bank's activity.”

Thus, the strategy is aimed at continuing to build the inflation targeting system and envisage the potential for achieving full-fledged inflation targeting regime by 2030. At the same time, the strategy is not limited only to the measures in terms of monetary policy but touches on the main challenges facing the financial market and general macroeconomic policy.

"The strategy has already gone through several stages of development,” the bank said. “It has been finalized and improved both by the divisions of the National Bank and with the assistance of the Kazakh experts and representatives of international financial organizations.”

“Now the work on the document is at the final stage,” the bank said. “The final form of the strategy will be published after the adoption of the Strategic Development Plan of the Republic Kazakhstan until 2025.”

“At the same time, the concept for the development of financial technologies and innovations in the Republic of Kazakhstan until 2025 was adopted on August 17, 2020, upon the decision of the Board of the National Bank of the Republic of Kazakhstan,” the bank said.

"The fundamental strategic agenda of the concept is to ensure the resilience of the financial market to 'disruptive innovation' and healthy competition through appropriate infrastructure and encouragement of open ecosystems,” the bank said. “This approach maximizes benefits for end-users of financial services."

Long-term priorities of the concept focus on three basic directions, namely, "Living environment", "Digital infrastructure of the financial market" and "Digital regulation". The developed document determines an innovative and anti-crisis agenda for all market participants.

The National Bank's strategic plan for 2021 includes the following initiatives:

• launch and beginning of work of collaborative platforms for the interaction of market participants;

• implementation of a comprehensive automated mechanism for handling requests (within the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the National Bank);

• launch of the National Bank's own pilot API services for collecting data and providing information;

• creation and launch of centers of competence;

• building interaction with business incubators and business accelerators to support the development of fintech innovations.