ASTANA, Kazakhstan, September 2. Kazakhstan needs to introduce new banking legislation to address current economic and fintech challenges, Kazakhstan’s President Kassym-Jomart Tokayev said during a joint parliamentary session with his annual address to the nation, TurkicWorld reports.
Tokayev emphasized the outdated nature of the current banking law, which has been in place for nearly 3 decades.
"We need a new banking law that meets the current needs of stimulating economic activity and the dynamic development of the fintech sector. The existing law was enacted under very different circumstances," Tokayev said.
The president also highlighted the need to address imbalances between monetary and fiscal policies. He noted that lending to the real sector remains insufficient and that small and medium-sized businesses lack adequate funding. This negatively impacts business activity, economic stability, and growth.
"The government and the National Bank need to work together to develop an optimal solution to this issue. Banks must be encouraged to invest more in the economy," Tokayev stressed.
The head of state acknowledged that international experts consider Kazakhstan’s banks among the most profitable in resource-rich countries. He called for fair taxation of the banking sector, ensuring that taxes paid by banks are proportionate to the dividends of their shareholders.
"It is particularly logical given the state support provided to banks. Creating a stable regulatory environment for digital asset transactions and safely implementing banking innovations is also crucial," he added.
Tokayev criticized previous and current governments for failing to fully utilize the republican budget's revenue, warning against systemic issues that could hinder the country's development. He urged the government and the National Bank to take effective measures to ensure efficient use of budget funds and limit and strictly control expenditures.
