Proposed currency controls could see the imposition of a special currency regime. Its strongest impact would probably be on Kazakh resident exporters, requiring them to remove funds from offshore accounts and hold such funds in non-interest-bearing accounts in Kazakhstan, and to convert hard currency into tenge.
When two of Kazakhstan's systemically important banks defaulted on their debt in April 2009, it exposed a lack of legislation on consensual financial restructurings. A new law provides a procedure for restructuring a bank with the approval of creditors holding at least two-thirds of its obligations. It also introduces a framework for segregating a distressed bank's assets and creating a stabilization bank.
An amendment to the Law on Banks and Banking Activity has significantly increased the regulatory powers of the Financial Markets Supervision Agency. The amendment is intended to stabilize the sector by allowing the agency to suspend the rights and authority of a bank's shareholders and management.
The Financial Markets Supervision Agency has proposed certain amendments to Kazakhstan's capital adequacy regulations in an effort to protect the banking industry, limit its exposure to international investors and prevent the economy from overheating. However, the changes could hit local banks which have sought to tap the international capital markets through securities offerings.
The Kazakhstan Parliament recently passed a number of laws which will be of interest to players in the banking sector. Among them is a law which regulates the legal status, activities, creation, reorganization and liquidation of credit partnerships. New legislation on micro-credit has also been passed in order to assist the development of small businesses.
Including: Licences; Supervisory Functions of the National Bank; Financial and Other Requirements; Foreign Investment; Liquidation and Reorganization of Banks