Tuesday, 28 January 2020, 11:03:20
At the Government session chaired by Prime Minister Askar Mamin, Chair of the Agency for Regulation and Development of the Financial Market Madina Abylkassymova reported on measures to implement the instructions of the Head of State given at the extended session on Jan. 24, 2020.
One of the directions of the financial regulator in the framework of these measures is to ensure financial stability, including the improvement of the banking system. According to Abylkassymova, in February 2020, the independent assessment of the quality of the banking system assets, which started in 2019, will be completed.
“The recovery of the banking sector will continue through the creation of an adequate supply of provisions and capital on market conditions without the use of budgetary funds,” she said.
According to her, appropriate approaches will be developed before the end of the first quarter of this year.
Abylkassymova also informed that in order to ensure the stability of the financial sector on a systematic basis, from 2020 a risk-based supervision in the banking and insurance sectors will be introduced on a full-scale basis. The risk-based supervision will be strengthened by macroprudential regulation measures implemented jointly by the Agency and the National Bank within the framework of the Financial Stability Board.
“Improving the banking system will help increase lending to the economy by banks,” Abylkassymova said, adding that at the same time, measures will be proposed to expand the ability of lending to small and medium-sized businesses, including through a lending program for priority sectors of the economy.
Another area of activity of the Agency of the Republic of Kazakhstan on Regulation and Development of the Financial Market is to prevent the rapid growth of unsecured consumer lending.
As Abylkassymova recalled, from Jan. 1, 2020, the legislation to limit risks in consumer lending came into force.
“The agency will continue to monitor the effectiveness of regulatory measures taken to limit the rapid growth of consumer lending,” she said.
According to her, the Agency in the first half of 2020 will take additional regulatory measures to prevent excessive growth of the debt burden of the population.
“In view of the new tasks set by the Head of State for the integrated development of the entire financial sector, the Agency will update and adopt the Concept for the development of the financial sector until 2030 as amended until July 1, 2020,” Abylkassymova emphasized the next area of activity of the financial regulator as part of measures on the implementation of the Head of State’s instructions.
According to the Chairman of the Agency of the Republic of Kazakhstan on Regulation and Development of the Financial Market, together with the financial community, comprehensive measures will be created to develop the financial sector to create additional investment opportunities and attract capital.
“The necessary legislative changes will be prepared on insurance and the securities market in terms of improving regulation and developing new financial instruments. The corresponding bill is planned to be submitted to the Government before the end of 2020,” Abylkassymova summarized.