Kazakhstan simplifies requirements for subsidiary foreign banks and their branches

The Majilis adopted in the second reading a law with amendments and additions on the development of the financial market and the protection of the rights of consumers of financial services. The amendments were developed in order to implement the instructions of the Head of State and are aimed at creating conditions for attracting professional personnel to the financial sector, as well as reducing administrative barriers and optimizing licensing procedures in the financial sector. The norms of the law include the liberalization of requirements for the opening of subsidiary foreign banks and their branches in Kazakhstan,El.kz  reports with reference to the press service of the Majilis of the Republic of Kazakhstan.

For example, the requirement for the minimum amount of total assets of a foreign bank is reduced from $20 billion to $10 billion. The list of documents to be submitted by a non-resident bank to the authorized body is also reduced. And the list of types of banking activities for branches of foreign banks, on the contrary, is expanding. Now they will also be allowed to provide services for attracting deposits from individuals, issuing payment cards, foreign currency exchange operations, syndicated financing and others.

"In addition, some requirements for Kazakh banks are excluded, including the availability of their own premises, the hiring of appropriate personnel within one year from the date of issuance of permission to open a bank, as well as the provision of certain documents as part of licensing procedures in connection with the development of digitalization," the report says.

Subscribe to our Telegram channel and be the first to know the news!