Article 3. The banking system of the Republic of Kazakhstan of the Law on Banks and Banking Activities in the Republic of Kazakhstan

Home / RLA / Article 3. The banking system of the Republic of Kazakhstan of the Law on Banks and Banking Activities in the Republic of Kazakhstan

1. The Republic of Kazakhstan has a two-tier banking system.

2. The National Bank of the Republic of Kazakhstan is the central bank of the state and represents the upper (first) level of the banking system.

The tasks, principles of operation, legal status and powers of the National Bank of the Republic of Kazakhstan are determined by the Law of the Republic of Kazakhstan "On the National Bank of the Republic of Kazakhstan" and other laws of the Republic of Kazakhstan.

The National Bank of the Republic of Kazakhstan regulates, as well as, along with its department, controls and supervises certain banking issues within its competence and contributes to the creation of general conditions for the functioning of banks and organizations engaged in certain types of banking operations.

The regulatory, control and supervisory functions of the National Bank of the Republic of Kazakhstan, within the competence of banks and organizations engaged in certain types of banking operations, are aimed at maintaining the stability of the monetary system of the Republic of Kazakhstan, protecting the interests of creditors of banks, their depositors and customers.

3. All other banks represent the lower (second) level of the banking system, with the exception of the Development Bank of Kazakhstan, which has a special legal status determined by a legislative act of the Republic of Kazakhstan.

4. (deleted - No. 162 dated 2.03.01)

5. Bank with foreign participation - a second-tier bank, more than one third of the outstanding shares of which are owned, owned and/or managed:

a) non-residents of the Republic of Kazakhstan;

b) legal entities that are residents of the Republic of Kazakhstan, more than one third of the outstanding shares or equity interests in which are owned, owned and/or managed by non-residents of the Republic of Kazakhstan or similar legal entities that are residents of the Republic of Kazakhstan;

c) residents of the Republic of Kazakhstan who are managers of funds (proxies) of non-residents of the Republic of Kazakhstan or legal entities specified in subparagraph b) of this paragraph.

5-1. An Islamic bank is a second-tier bank that carries out banking activities provided for in Chapter 4-1 of this Law on the basis of a license from an authorized body.

The Islamic Bank is not a participant in the mandatory deposit guarantee system, and deposits in the Islamic bank are not guaranteed by the mandatory deposit guarantee system. Islamic banks have the right to create a non-profit organization in the organizational and legal form of a joint-stock company, which guarantees the return of deposits attracted by Islamic banks.

The specifics of the establishment and operation of an Islamic bank are established by Chapter 4-1 of this Law.

6. Interstate Bank is a bank established and operating on the basis of an international agreement, the founders of which are the Government of the Republic of Kazakhstan (or a state body authorized by it) and the government (governments) of the state (States) that signed this agreement.

7. The establishment of specialized branch banks in the Republic of Kazakhstan with the participation of the state, with the exception of the housing construction savings bank, which has the status of a national development institute, is not allowed.

A housing construction savings bank with the status of a national development institute is a second–tier bank with a special legal status determined by the laws of the Republic of Kazakhstan.

The footnote. Article 3 as amended by the Laws of the Republic of Kazakhstan dated 11.07.1997 N 154; dated 02.03.2001 N 162 (see art. 2); dated 25.04.2001 N 179; dated 10.07.2003 N 483 (effective from 01.01.2004); dated 08.07.2005 N 72 (for the procedure of entry into force, see art. 2); dated 12.02.2009 № 133-IV (for the procedure of entry into force, see art. 2); dated 05.07.2012 No. 30-V (effective after ten calendar days after its first official publication); dated 27.04.2015 No. 311-V (effective after ten calendar days after the date of its first official publication); dated 03.07.2019 No. 262-VI (effective from 01.01.2020).

The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.

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