On approval of the concept of development of the financial sector of the Republic of Kazakhstan until 2030

Decree of the president of the Republic of Kazakhstan dated September 26, 2022 No. 1021.

In accordance with paragraph 1 of Article 40 of the Constitution of the Republic of Kazakhstan, I decree:

     1.approve the attached concept for the development of the financial sector of the Republic of Kazakhstan until 2030 (hereinafter referred to as the concept).

     2. central executive bodies, state bodies directly subordinate and accountable to the president of the Republic of Kazakhstan, as well as interested organizations responsible for the implementation of the concept (by agreement):

     1) take measures to implement the concept;

     2) provide information on the implementation of the concept in accordance with the procedure and terms established by the state planning system approved by the resolution of the Government of the Republic of Kazakhstan dated November 29, 2017 No. 790.

     3.control over the implementation of this decree is entrusted to the administration of the president of the Republic of Kazakhstan.

     4.this decree enters into force from the date of its signing.

President Of The Republic Of Kazakhstan

K. Tokayev

Approved by the decree of the president of the Republic of Kazakhstan dated September 26, 2022 No. 1021

Development of the financial sector of the Republic of Kazakhstan

Until 2030

Concept Astana, 2022

Content:

     Part 1. Passport of the concept

     Part 2. Analysis of the current situation

     Part 3. Review of international experience

     Part 4. Vision for the development of the financial sector

     Part 5. Basic principles and approaches to the development of the financial sector

     Section 6. Target indicators and expected results

     Action plan for the implementation of the concept (appendix)

Part 1. Passport of the concept

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Name

Concept of development of the financial sector of the Republic of Kazakhstan until 2030

Basis for development

Order of the president of the Republic of Kazakhstan dated November 22, 2021 No. 21-4903

State body responsible for development

Agency of the Republic of Kazakhstan for regulation and development of the financial market

State bodies and organizations responsible for implementation

State bodies, central executive bodies, organizations directly subordinate and accountable to the president of the Republic of Kazakhstan

Terms of implementation

2022 - 2030

     Part 2. Analysis of the current situation

     2.1. current state of the financial sector

     The financial system of the Republic of Kazakhstan is characterized by the model on which banks are based. The main share of assets of the financial system is concentrated in the banking sector. About 78% of the assets of the financial system are accounted for by the banking sector, 8%-by the Development Bank of Kazakhstan, and the remaining 14% - by the rest of the financial market sectors.

Structure of assets of financial institutions* , %

(excluding state pension funds)

     There is a dynamic growth in the assets of the financial sector - since 2017, the total assets of the financial system increased by 74.5% to 44.3 trillion Tenge, the assets of banks increased by 56% to 37.6 trillion Tenge, the assets of the remaining financial organizations increased by 190.5% to 6.7 trillion tenge.

     In Kazakhstan, along with financial organizations, business financing is carried out directly by quasi-public sector entities, the role of which is significantly growing. Thus, since 2017, the assets of the Development Bank of Kazakhstan have increased by 48.2%-from 2.5 trillion tenge to 3.7 trillion tenge.

     At the end of 2021, the ratio of assets of financial institutions (taking into account the Development Bank of Kazakhstan) to GDP was 57%, which is much less than the indicators of countries with similar stages of economic development and indicates the presence of potential for further growth.

     Since 2017, there has been an increase in the gross value added of the financial sector in the structure of the country's GDP. In the period from 2017 to 2021, the contribution of the financial sector to the economy increased from 2 trillion tenge to 2.4 trillion tenge. As a result of the advanced pace in other sectors, the share of the gross value added of the financial sector in GDP decreased from 3.7% in 2017 to 2.9% in 2021.

     According to the results of the latest study conducted by the World Economic Forum (WEF) in 2019 as part of the global competitiveness assessment, the level of development of the financial system of Kazakhstan is not high compared to the international point of view. At the time of the assessment, the main restraining factors were the high level of non-performing loans (NPLs), the stability problems of individual banks and the low level of insurance premiums.

     However, after the specified assessment, a number of systemic measures were implemented to improve the sustainability of the banking sector, including an independent assessment of the assets of the banking sector in 2019-2020 and stress testing, based on the results of which supervisory measures were taken and the level of non-performing loans decreased significantly - from 8.1% in 2019 to 3.3% in 2021. International financial organizations and rating agencies gave a positive assessment of measures to strengthen the financial sector. For example, in the results of the mission in 2021, the IMF noted that in 2019, thanks to the quality control and subsequent monitoring of assets, the banking system well overcame the impact of the shock caused by COVID-19, while maintaining high liquidity and capitalization indicators of banks.

     Changes in the global geopolitical situation have been affecting the financial sector since 2022. However, the financial sector continues to function stably, which is confirmed by the estimates of international rating agencies. In June 2022, Fitch Ratings confirmed Kazakhstan's independent rating at the BBB level with a stable outlook, which is also due to the stable presence of the banking sector in the calculation of potential risks associated with sanctions.

     Banking sector

     As of January 1, 2022, there are 22 banks operating in the Republic of Kazakhstan, 14 of which have foreign participation, including 11 second-tier subsidiary banks.

     As a result of the existing consolidation, as well as the revocation of licenses from insolvent banks, participants with significant volumes of problematic assets and inefficient risk management left the market.

     In the period since 2017, the assets of the banking system in relation to GDP increased from 45% to 46% and amounted to 37.6 trillion tenge. At the same time, 5 banks account for about 66% of the assets of the entire sector. At the beginning of 2022, the Herfindal-Hirschmann (NN) index for the banking sector of Kazakhstan was 1407 (normal-consolidated market).

     Since 2017, loans to the economy have grown by 26.5% to 18.5 trillion tenge. There is an increase in the share of retail lending in the structure of loans to the economy. The decrease in the share of corporate sector loans is due to an increase in direct lending to business by development institutions - loans from the Development Bank of Kazakhstan, which are not included in the statistics of lending to the economy, have increased by 27% since 2017 to 1.9 trillion tenge. In addition, the decline in corporate loans was due to measures to clear the banking sector of problematic loans, write-off of debts of insolvent and unscrupulous borrowers, as well as the liquidation of insolvent banks.

     As a result of the implementation of measures to support SMEs at the end of 2021, the portfolio of SME loans increased by 29%, while loans to large businesses decreased by 3%. Since 2017, the share of SMEs in the portfolio of loans to legal entities has increased from 53% to 60%.

     The main driver of the growth of private loans is consumer loans, which have grown by 110% since 2017. Since 2020, there has also been an active growth in mortgage lending, in 2019-2021 its share in loans to individuals increased from 27% to 31%.

     Since 2017, the volume of mortgage lending has increased more than 3 times.

     Since 2018, the main factor in the growth of mortgage lending has been the launch of preferential housing lending programs" 7-20-25"," Baspana hit", as well as the provision of the right to use part of pension savings to improve housing conditions in 2021.

     Measures to normalize the banking sector contributed to a gradual reduction in the share of non-performing loans in the portfolio of banks from 9.3% in 2017 to 3.3% at the end of 2021.

     Customer deposits remain the main base for funding banks.

     Since 2017, the volume of deposits has increased by 54.7% to 27.1 trillion tenge. Since 2017, the share of deposits in the structure of bank liabilities has remained at the level of 79%. Since 2017, deposits of individuals have increased by 63.0% to 13.4 trillion tenge. As a result, since 2017, the share of retail deposits in the total volume of deposits has increased from 43% to 49% at the end of 2021.

     In 2018, the range of deposit products was expanded by law and a new type of deposit was introduced - savings deposits. Significant restrictions on early withdrawals for this type of deposit are offset by a higher rate compared to other types of deposits. Since its launch at the end of 2018, the volume of savings deposits has increased to 1.07 trillion tenge or 7.9% of all deposits as of January 1, 2022.

     The stability of the banking sector is ensured by a sufficient amount of equity capital, which has reached 4.5 trillion tenge. Since 2017, the equity of banks has increased by 51%, as a result of which the value of the equity adequacy ratio k1 has increased according to the system from 17% to 19%, the value of the coefficient K2 has increased from 22% to 23%. The normalization of the banking sector with a focus on reducing non-performing assets were key factors in improving the level of capitalization of banks.

     Insurance sector

As of January 1, 2022, 27 insurance organizations operate in the insurance sector, including 9 life insurance organizations. There are 2 insurance organizations, 9 insurance brokers and 60 actuaries with 100% state participation in the market.

     Since 2017, the assets of insurance organizations have increased by 97% to 1.8 trillion tenge, including 1 trillion tenge-assets of insurance organizations in the general insurance industry, 0.8 trillion tenge - assets of insurance organizations in the life insurance industry. Despite the dynamic growth in the assets of insurance organizations, their ratio to GDP remains low-from 1.7% in 2017 to 2.2% at the end of 2021. At the same time, about 62% of the assets of the entire sector belong to 5 insurance organizations. At the beginning of 2022, the Herfindal-Hirschmann index for the insurance sector of Kazakhstan was 983 (less consolidated market).

     The growth of the assets of insurance organizations was significantly influenced by the introduction of new insurance products for voluntary insurance classes, the development of online insurance, as well as the provision at the legislative level of the opportunity to conclude a pension annuity agreement using pension savings.

     In 2021, the total volume of insurance premiums increased 2 times compared to 2017 and amounted to 699 billion tenge. The ratio of insurance premiums to GDP increased slightly from 0.6% to 0.8%.

     The indicator of the volume of premiums per capita increased by 77% and amounted to 36 thousand tenge.

     Private voluntary insurance is the main driving force behind the growth of premiums. The volume of premiums for individual voluntary insurance classes increased 3 times compared to 2017 and by the end of 2021 amounted to 300 billion tenge. As a result, the share of private voluntary insurance in the premium structure increased from 28% to 43%. In turn, the growth was mainly due to the increase in the availability of pension annuities, the provision of tax incentives for long-term life insurance savings products, and the introduction of new insurance products.

     The share of property insurance in the structure of insurance premiums decreased from 49% in 2017 to 38% at the end of 2021. The share of premiums for compulsory insurance remains at an insignificant level compared to private voluntary and property insurance and is 19%.

     The volume of premiums for reinsurance has decreased by 18% since 2017 and amounted to 107 billion tenge. The share of insurance premiums issued for reinsurance decreased from 37% in 2017 to 15% at the end of 2021. Of these, 92% of premiums for non-residents of the Republic of Kazakhstan were transferred to reinsurance. The reduction in the volume of premiums for reinsurance since 2018 was due to an increase in the ability of insurance organizations to independently curb insurance risks, as well as increased requirements for transparency of reinsurance transactions.

     The total amount of insurance payments made under insurance contracts has increased by 55% since 2017 to 127 billion tenge. The maximum volume of insurance payments in 2019 was 218 billion tenge, which was due to the presence of large losses in the class of property insurance against damage.

     Over the past 5 years, the payment ratio has ranged from 18% to 47%, excluding payments for future periods for accumulative life insurance.

     As of the end of 2021, the volume of insurance reserves since 2017 increased by 94% and amounted to 892 billion tenge, which was due to the increase in insurance premiums for the specified period.

     Stock market

     As of January 1, 2022, the market has 38 brokers, 19 management companies, 51 investment funds, 9 custodian banks, 2 transfer agents, the KASE Stock Exchange, the Central Securities Depository and the trade repository, which perform the functions of a central counterparty. In addition, the AIFC exchange - AIX and the central securities depository of the AIFC exchange - Aix SSD operate under the jurisdiction of the AIFC.

     Since 2017, the country's stock market has been classified by the international services of the MSCI, STSE and S&P indices as "border markets (Rrntiir markets)". Work is underway to improve Kazakhstan's position in the MSCI, STSE and S&P indices.

     The total assets of professional participants in the securities market for five years increased 2.7 times and amounted to 505.1 billion tenge, the assets under management increased 3.1 times and amounted to 1.0 trillion tenge. The growth of assets was facilitated by the increase in the value of financial instruments and the import of investments.

     About 80.2% of the assets of organizations that manage the investment portfolio belong to 5 professional participants. At the beginning of 2022, the Herfindal-Hirschmann index for the Securities Market of Kazakhstan was 1807, which characterizes it as a normal-consolidated market.

     There is a steady increase in exchange rates, which indicates an increase in the role of the stock market in financing the country's economy. At the beginning of 2022, the capitalization of the Kazakhstan Stock Exchange (Kase) increased by 73% since 2017 and amounted to 44.2 trillion tenge, or 52.6% against GDP.

     Sources: regulatory reporting, official website of KASE

     The main factor in maintaining the growth rate of the bond market is an increase in the volume of borrowing by the quasi-public sector and second-tier banks.

     Low activity of retail investors is one of the main reasons hindering the active development of the stock market in Kazakhstan. The number of accounts of individuals in the securities market increased by 107 thousand to 218 thousand accounts for 5 years, which is 2.5% of the employed population. The low interest of retail investors in the stock market is due to the low liquidity of securities entering into trading and the limited supply of securities from quality issuers.

     Since 2017, Kazakhstan has been operating the AIFC - Aix exchange, which is a member of the FEAS Federation of European and Asian stock exchanges. The Aix group includes the Central Securities Depository Aix SSD and the Registrar Aix Registrat, which are responsible for daily cash transactions, securities settlements and depository activities, as well as maintaining and maintaining the central register of shareholders.

     The official list of Aix included 136 issues of securities of 86 issuers. In 2021, the volume of trading on the Aix securities market amounted to 134.3 billion tenge.

     By the end of 2021, 35 Aix trading members will have direct access to the Aix exchange, of which 12 are foreign. On the same day, the number of accounts in the Aix SSD amounted to 160.5 thousand accounts. At the same time, the bulk of these accounts belong to clients of broker-licensees who have a remote membership in the agency's Aix.

     Microfinance market

     Since 2020, all non-bank credit organizations have been included in the agency's regulatory framework, including credit partnerships, pawnshops and online creditors, and since 2021, licensing of microfinance activities has been introduced.

     As of January 1, 2022, 1,066 entities operate in the microfinance market, including 242 microfinance organizations, 605 pawnshops and 219 credit partnerships.

     Since 2015, the total assets of the SSCO have increased by 21 times and amounted to 1.6 trillion tenge. Along with the growth of assets, the liabilities and equity of the microfinance sector also increased. As of the beginning of 2022, the Gerfindal-Hirschmann (NN) index in the microfinance sector was 1033 (normal-concentrated), credit partnerships - 896 (low-concentrated), pawnshops - 550 (low-concentrated).

     The microcredit market plays an important role in financing the economy and the development of private entrepreneurship.

     Due to the expansion of the scope of regulation of the SPFIO, as well as the inclusion of all microfinance entities in lending statistics, the portfolio of microloans increased by 350% to 1.4 trillion tenge. In 2019, the structure of the MFI portfolio covered only the debts of MFIs, and since 2020, the debts of online creditors, credit partnerships and pawnshops have been taken into account.

     In the total portfolio of microloans, the main share of loans is 54% or 743 billion tenge of MFIs. The portfolio of credit partnerships is 498 billion tenge (36%), pawnshops account for 132 billion tenge (10%).

     The share of loans issued to individuals in the structure of borrowers is 51% or 696 billion tenge. The share of loans issued for business purposes is 49% or 677 billion tenge.

     It is represented mainly through a network of branches and divisions at the regional level and has a well-established customer base in rural areas.

     2.2. main achievements in the regulation and development of the financial sector

     In recent years, significant results have been achieved in the development of the financial sector:

     1) Basel III standards of the Basel Committee on Banking Supervision were introduced to improve the risk management system and ensure the stability of the banking sector during periods of stress. In the period from 2015 to 2019, a phased transition of the banking sector to compliance with the Basel III strengthened prudential standards was carried out. For the formation of banks ' capital reserves during the transition period, requirements for three complex buffers (conservation, countercyclical and systematic) were introduced, a new methodology for assessing market risks and a set of regulatory requirements for risk management and internal control of banks were adopted. To ensure liquidity reserves during periods of crises, two liquidity standards have been introduced - the liquidity compensation ratio (LSR) and the net stable funding ratio (NSFR).

This made it possible to strengthen the quality of risk management, capital reserves and liquidity of banks at the system level, which is a key factor in assessing the banking sector conducted by international experts, global investors and credit rating agencies;

     2) introduced a risk-oriented model of supervision and motivated reasoning in the financial market sectors.

     In order to avoid formal consideration in the supervisory process, a system of risk-oriented supervision of banks was introduced in 2019. The risk-oriented approach model was implemented in the form of a comprehensive supervisory process that provides a comprehensive assessment of banking risks on an individual basis and the subsequent implementation of supervisory measures to ensure the sustainable functioning of the bank.

     The central element of risk-oriented supervision is the European Union srer supervision model, which allows you to identify negative changes in the financial condition of banks at the first stages of their occurrence. The main condition for effective risk-oriented supervision is the ability of the regulator to make a motivated decision to promptly respond to the situation.

     The transition to a system of risk - oriented supervision of professional participants in the securities market (hereinafter referred to as WKNF) is being implemented. The principles and tools of risk-oriented supervision are defined at the legislative level, which will allow identifying risks and risks in the activities of the WKNF at an early stage and timely response to them without waiting for a deterioration in the financial condition of the WKNFF.

     An automated system of risk-oriented supervision in relation to insurance organizations has been introduced. Based on the indicators of qualitative and quantitative risk assessment, calculated taking into account the specifics of the company's operations, the nature and scope of its activities, an individual supervisory rating of the insurance organization and a set of regulatory supervisory requirements corresponding to it are determined.

     In addition, in 2020, an independent risk assessment system of insurance organizations was introduced, developed in accordance with the standards of regulatory reporting of the International Information System IRIS (Insurance Regulatory Information System) to improve risk management, capital and reserve adequacy procedures;

     3) a new standard for assessing the value of financial instruments based on the model of IFRS 9" expected costs " has been introduced. In 2018, the banking sector switched from the "incurred costs" model to the "expected costs" (IFRS 9) model when assessing the value of financial instruments. The introduction of IFRS 9 will allow assessing the expected credit losses during the initial recognition of financial assets and on a periodic basis;

     4) an independent assessment of the quality of banks ' assets (AQR) was carried out. AQR is a generally recognized international practice for detailed verification of banks ' assets and capital adequacy. The AQR was conducted by an independent, international consultant with practical experience in AQR, which is a key condition for the objectivity of the assessment to restore trust in the banking system on the part of international investors and creditors.

     Conducted in Kazakhstan in 2019, the AQR made it possible to conduct a full-fledged diagnosis of the state of the main Kazakhstani banks, including assessing the level of non-performing assets and potential losses, the actual level of capital adequacy, as well as substantiate regulatory requirements for the full capitalization and normalization of banks at the expense of shareholders ' own funds;

     5) the process of identifying and regulating problem banks has been improved. The new regulation regime for problem banks, which has been in force since 2019, will allow identifying problem banks and classifying problem banks based on their financial condition. The terms for increasing the capital of such banks are set at the legislative level.

     The regulator was given a full mandate to promptly regulate insolvent banks, minimizing systemic consequences and state losses, including the instruments of regulation of insolvent banks - the transfer of assets and liabilities (P&A) and the forced restructuring of insolvent banks ' liabilities (bail-in;

     6) measures have been taken to limit credit risks in consumer lending. In the segment of Microfinance, the phased regulation of entities issuing loans to citizens has been tightened. Until the end of 2020, all participants in the microcredit market, including classic MFIs, online lending organizations, credit partnerships and pawnshops, were registered as organizations engaged in microfinance activities. In 2021, the licensing of microfinance organizations was completed.

     Since 2020, a set of regulatory measures has been implemented to prevent the issuance of loans to insolvent borrowers, as well as to reduce the debt burden of borrowers. The prohibition imposed at the legislative level on the accrual of interest, forfeits, commissions and other payments after 90 days of the term of fulfillment of obligations on the loan is applied.

     Since 2020, within the framework of regulatory regulation, a restriction has been introduced on the provision of consumer loans to citizens whose income and the level of the borrower's debt burden (hereinafter referred to as the BCC) are below the subsistence level. Since 2022, the business card has the status of a prudential standard, according to which monthly payments on all loans of the borrower should not exceed 50% of his monthly income.

     In addition, measures have been taken to encourage banks to pursue an aggressive policy of unsecured lending to the population. To do this, when calculating the capital adequacy of banks, the differentiation-risk for unsecured consumer loans was increased by 2 times;

     7) a flexible regulatory environment has been created for testing new products and services. To ensure the flexibility of financial market regulation, increase the availability of financial services, and introduce new financial products, it is possible to introduce a special regulatory regime ("regulatory environment"). The regulatory environment will allow financial organizations and non-financial organizations to work in a special legal regime within a certain period, including with the aim of introducing new services and financial instruments, which, in turn, will contribute to reducing the costs of financial intermediaries and consumers, as well as expanding the activities of financial organizations;

     8) liberalization of requirements for regulation of participants in the securities market. Measures have been taken to deregulate brokerage activities in securities transactions, and the investment opportunities of brokers, including in the International and local capital markets, have been expanded. Since 2016, the process of digitalization of brokerage services has been launched, as a result of which the option for brokers to provide customers with electronic services, including conducting trading operations with securities and Financial Instruments, has become available. A number of legislative measures have been implemented aimed at activating collective forms of investment through the liberalization of the regulation of investment and venture funds, which made it possible to ensure the growth of the assets of investment funds.

     The right of citizens to transfer part of their pension savings to the management of private management companies is provided at the legislative level.

     A full-fledged stock market infrastructure has been formed and is functioning. The existing infrastructure of the Securities Market provides participants in the securities market with the necessary tools to carry out a full cycle of trading operations and post-trading operations, as well as fully comply with international standards;

     9) digitalization of financial services and the introduction of remote services continued.

     Since October 2020, a mechanism for remote conclusion of brokerage contracts with biometric identification using mobile applications of brokers has been implemented, as well as the ability of banks to provide a full range of brokerage services. This made it possible to ensure a high growth rate in the number of retail investors.

     In the insurance market, the conclusion of contracts in electronic form has been introduced. Since 2019, the conclusion of insurance contracts for compulsory types of insurance has been copied in electronic form. To date, 100% of auto insurance contracts are concluded in electronic format. The possibility of electronic conclusion of insurance contracts made it possible to simplify and optimize the procedure for concluding insurance contracts, increase the territorial availability of insurance services.

     2.3. the main problems that need to be solved in the medium term

     1.in the banking sector, a high level of stress assets remains on the balance sheets of banks and their subsidiaries, which puts pressure on the capital of banks and inhibits the further expansion of lending to the economy. Due to the high margin with high credit risk, there is a concentration of bank lending in the retail segment.

     The dynamics of bank lending is also pressured by weak diversification of liabilities and the predominance of short-term deposits in the structure of attracted resources that do not meet international standards of urgency and stability. Despite the ongoing measures to de-dollarization of the economy, the level of foreign currency deposits remains quite high.

The limited number of solvent and financially stable business entities is an important system-level factor that hinders lending to the real sector of the economy. For example, according to the NB estimates, over a long period (2008-2019), more than 40% of enterprises in the SME segment had negative capital or a debt burden of more than 80%. For large businesses, 36% of enterprises had negative capital or were not fully capitalized.

     These factors limit the possibility of obtaining new loans for banks due to risks and the need to create additional provisions for expected credit costs. Banks, taking into account the degree of risk to minimize credit risks, create high requirements for borrowers and require them to provide liquid collateral.

     Companies, especially SMEs, do not have rating estimates that confirm their future sustainability and ability to service loans, which reduces their chances of entering the stock market and attracting debt financing.

     The decline in business lending in 2020 was due to a decrease in business activity of entrepreneurs due to the introduction of quarantine restrictions due to the coronavirus pandemic.

     Subsidies and guarantees from the state play a significant role in business lending. As a result of the expansion of direct state financing and the implementation of state programs to support business, the state began to replace banks and market financing of the economy was reduced. Direct state financing at non-market rates, as well as the provision of guarantees on business loans and subsidizing interest rates distort market pricing.

     Moreover, there is a small share of foreign banks and international financial organizations in lending to the real sector of the economy. Loans of non-residents, as well as subjects of the quasi-public sector, are not reflected in the statistics of the credit market, which distorts the assessment of the real state of financing the economy.

     The limited participation of banks in financing large investment projects and borrowers-subsurface users is due to the underdeveloped practice of syndicated lending.

     2.despite the positive dynamics of the indicators of the insurance sector over the past 10 years, the low share of insurance services in the country's economy remains. The ratio of the assets of insurance organizations to the country's GDP was only 2.4% (according to the results of 2021), and the ratio of insurance premiums per capita was 37 thousand tenge (according to the results of 2021), which is much lower than World indicators.

     Insufficient after-sales service of online insurance contracts, limited insurance products and lack of flexibility in insured events reduce the interest of the population and business in insurance. The issues of quality and customer orientation of insurance services remain relevant, regardless of the measures taken by the participants in the insurance market.

     The lack of market incentives and state support in life insurance does not cause the population's interest in using accumulative life insurance products as a means of increasing investment and savings. The development of accumulative insurance products is limited by the fact that confidence in life insurance companies is still being formed by the population, who prefer to use banking products when conducting financial planning.

     3.the development of the stock market is hindered by insufficient institutional demand, low participation of the population in the stock market and low confidence of investors in the instruments of the stock market.

     The presence of significant amounts of financing attracted by economic entities under state programs to support entrepreneurship on non-market conditions, as well as the high share of the state in the economy and the priority role of quasi-public sector companies, are the reason for the decrease in the demand of enterprises to raise capital through stock market instruments.

     4.the development of the microfinance market is hampered by factors such as limited sources of funding and high operating costs to maintain the regional network of divisions, which is complicated by the territorial remoteness of micro - and small businesses.

     Loans from international development institutions and Kazakhstani commercial banks remain the main funding base. High operating costs and the cost of funding by attracting funds from banks and international development institutions significantly increase the final cost of microloans for the population and business. These factors limit the potential of microfinance market entities in financing the economy.

     Part 3. Review of international experience

     The main trends in the development of financial markets in developed countries are improving financial infrastructure, creating conditions for qualitative institutional transformations and bringing regulatory requirements in line with international standards. In support of these global trends, regulators are reviewing approaches to regulation and supervision through the introduction of new international standards. The new regulatory standards are aimed at strengthening macroprudential policies and risk-oriented surveillance tools, and implementing ESG's principles of countercyclical regulation and sustainable development.

     As a result of the analysis of international experience, the following areas are distinguished that are relevant to the financial sector of the Republic of Kazakhstan:

     1) transition to the international standards of the Basel Committee on Banking Supervision (Basel II-III). By 2012, the Basel Committee on Banking Supervision developed methodological recommendations on capital and liquidity of Basel III, which improved the previous Basel II standards. These changes are a direct increase in the minimum requirements provided for in the first component of Basel II.

     Basel III standards are aimed at increasing the requirements for risk assessment and management in the banking sector, ensuring a sufficient level of capital and liquidity, including in the post-crisis period, a special regime is provided for institutions of systemic importance. The principles of the supervision process are included in the second component of the Basel standards (Rillair II) and are aimed at implementing effective supervision based on risk assessment, the need for early intervention and the adoption of timely supervision actions.

     Australia, Hong Kong, India, Canada, China, Mexico, Saudi Arabia, Singapore, Thailand, Switzerland, South Africa and Japan have incorporated Basel III capital requirements into the national banking system. EU countries and the United States have introduced Basel III capital adequacy requirements since 2014. European and American banks began to actively strengthen their equity, both by issuing additional shares and by selling non-core assets and profits from current activities;

     2) transition to risk-oriented supervision based on the SRER methodology. To strengthen financial stability, the European Central Bank uses risk-oriented supervision based on the SRER methodology in relation to 117 financial organizations from 19 European Union countries, which are: Belgium, France, Luxembourg, Spain, Germany, Italy, Ireland, Slovakia, Cyprus, Malta, Portugal, Netherlands, Austria, Greece, Slovenia, Finland, Estonia, Latvia and Lithuania. The full SRER was also implemented in the UK, where the basic principles of the SRER methodology were adapted to national legislation.

     The basic principles of SRER are built around the four fundamental elements: the analysis of the business model, the assessment of corporate governance (including risk management) and the control systems of the entire financial institution, the assessment of capital adequacy to cover risks for capital and these risks, the assessment of liquidity risks and the adequacy of liquid resources to cover these risks.

     In the EU, regulators can use the results of supervisory stress testing to determine the additional buffer of banks ' capital (Rillar 2 Guidance) as part of a comprehensive supervisory assessment (SRER) procedure. When using one of the stress scenarios of the US economy, if the bank does not have enough capital, until the bank reaches a safe capital level, the regulator may prohibit the bank from carrying out any actions that reduce the amount of available capital (for example, the payment of dividends). Based on the results of a follow-up stress test in the UK, the Bank of England determines the required level of capital countercyclical buffer for all banks and, if necessary, individual allowances in addition to the minimum values of sufficient capital;

     3) introduction of elements of International Insurance Supervision Standards Solvencu II. Regulators are introducing components of the European Solvencu II directive in order to ensure the sustainability of insurance companies. The principles of solvencu II are similar to Basel III in terms of requirements for equity adequacy and risk management systems. At the same time, Solvencu II provides for a special approach to determining capital to cover the risks inherent in the activities of insurance organizations. The countries of the EU, USA, Canada, Australia, Japan and Singapore have implemented a complete transition to Solvencu II. At the same time, a number of states, such as China, are implementing the introduction of certain components that are similar in methodological content to Solvencu II and are making adjustments based on the specifics of national insurance markets;

4) introduction of the Institute of motivated reasoning into supervisory practice. The main direction of improving regulation and supervision among regulators remains the introduction of risk-oriented supervision based on the institution of motivated reasoning. The use of reasoned reasoning allows us to move away from the principles of formal supervision and concentrate on the analysis of the most risky issues in order to take preliminary supervisory measures to ensure the sustainability of financial organizations.

     The Institute of reasoned reasoning has been introduced in the UK, USA, Canada, Australia, Russia, Czech Republic and Singapore. In these countries, motivated reasoning is used to assess the sustainability of the business of financial institutions, the proper protection of the interests of consumers of financial services and compliance of companies with the principles and requirements of regulation. In Germany and the Netherlands, motivated reasoning also applies to the possibility of temporarily weakening regulatory restrictions or postponing the application of surveillance response;

     5) development of financial technologies, formation of ecosystems and digital platforms. The main global trend in the field of digital innovation is the massive development of digital service systems in the form of ecosystems and platform solutions that involve the consolidation of cross-sector financial and non-financial services, the active exchange of data and information.

     New financial technologies and digital services systems are transforming the financial services industry, which will strengthen competition between traditional financial organizations with classic business models on the market and companies in the fintesh and Vidtesh industries.

     In this regard, international financial institutions are actively studying the risks of ecosystems and platform solutions, as well as ways to regulate them.

     The focus of international regulators is on minimizing risks and maintaining a favorable competitive environment, promoting innovation and ensuring that the country's population and business benefit from the introduction of platform and ecosystem solutions to the economy is maximized.

     McKinsey&Company defines an ecosystem as a set of interconnected services that users can meet different needs in one integrated interface. Currently, the ecosystems that are emerging around the world are usually grouped around needs such as finance, travel, health, housing, sales or purchases.

     VS2 notes that an open financial ecosystem can benefit all participants in the financial system in several ways. Existing financial institutions can cover a new segment of users by indirectly using sources that have not been traditionally available to assess the ability to provide services to customers (for example, by interacting with data on their activity in e-commerce or platforms that allow them to evaluate the ability of third parties to provide loans to users). Similarly, financial institutions can develop specialized services, offer them to their users through third parties, and effectively use the technologies currently available to provide an improved service.

     The World Economic forum3 identifies digital interdependencies as one of the systemic risks of ecosystems. As the ecosystem of financial services digitally becomes more and more interconnected, any organization that plays a key role in the provision of financial services can create disruptions and consequences arising from each other in the ecosystem. Taking into account the concentration of Key service providers (such as cloud service providers) and complex transmission chains that limit the visibility of network nodes, you can understand how complex the risk is.

     In turn, in the studies of the Financial Stability Council (FSB), the potential risks of violation of consumer rights due to insufficient financial literacy in the context of the provision of digital services and technologies, recognition of financial services that do not correspond to their needs and risk profile, making ineffective financial decisions are additionally noted.

     __________________________

     1 Finansial Esosustets: the next Norizon for U.S. Vapks.

     2 enabling OREP finance through Arls.

     3 Teshnology is driving nev risks in financial services. It will also be chest to titigaon.

     According to the document of the Central Bank of Russia "financial market: new challenges in modern conditions", in order to reduce potential risks, it is planned to continue work in the near future on the introduction of risk-sensitive limits for non-income-generating assets in the regulation of banks, including the introduction of deposits by banks in ecosystems and non-financial businesses. At the same time, the duration of the transition period may be increased, the definition of non-income asset groups and the target values of immobilization coefficients may be revised in such a way as not to exert excessive pressure on the risk of lending to banks during the capital recovery period and not limit the participation of banks in financing economic development.

     International regulators also noted that digital service systems in the financial market are vulnerable to cybersecurity incidents, price discrimination, abuse of market power and non-competitive behavior.

     To minimize these risks, international regulators are developing approaches to the development of NIS technology and cybersecurity tools, the implementation of initiatives to implement secure application programming interfaces OREP Bee and OREP Vapkipd4, and limiting the possible impact of financial innovation risks on the sustainability of financial market participants;

     6) SRMI-implementation of the principles for iosso financial market infrastructures. Regulators are actively working to bring the activities of infrastructure organizations in line with the principles for financial market infrastructures of SRMI-IOSSO in order to establish effective internal procedures for assessing the financial stability, smooth functioning of financial market infrastructure, and support for appropriate risk management. This document was developed in 2012 by the bank for International Settlements (Vapk for Internatioonal settlements) in cooperation with IOSSO. To date, the principles for financial market infrastructures have been implemented by depositories, accounting and clearing centers, stock exchanges of all IOSSO member states;

     7) introduction of innovations in the practice of regulation and supervision to control risks associated with the spread of digital technologies in the financial market. The dynamic development of financial technologies and innovations required a revision of standard approaches to regulation and supervision in order to develop new effective tools for controlling financial risks.

     In this regard, there is an introduction of digital technologies to speed up the processes of digitalization of supervisory tools and ensure compliance of supervisory practices with innovations in the financial sphere.

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     4th century global Stability "vid-Tesh Firms ғ Gipapse ет Etegdipd market and Developing Economies".

     In this direction, foreign regulators are introducing innovative technologies for monitoring financial companies (Sirtesh) and compliance with regulatory requirements and standards (Regtesh) by supervisory entities.

     Sirtesh and Regtesh mechanisms have been implemented in the UK, Singapore, USA, Canada, Australia. The Australian regulator (Arra) has approached the implementation of Regtesch mechanisms in the most comprehensive way possible. Today, monitoring of supervised entities in Australia is carried out in real time due to the digitization of reporting on key business processes in a machine-readable format. Supervisory systems involve automation of consolidated supervision, stress testing and visualization of data, identification of KD/TD risks, manipulation and insider trading, assessment of liquidity risks, credit and macro-financial risks, as well as financial stability risks;

     8) introduction of a special legal regime through the creation of a" regulatory environment". Considering the innovations in the field of regulation of financial markets in the context of digitalization of the financial market, it is worth noting the world experience in creating a special legal regime - the "regulatory environment", which allows to stimulate the development of financial technologies and their introduction by market participants. This is a "simplified regulation" approach that allows financial organizations to test their products and services in a special limited environment without the risk of violating the legislation.

     The first to use this approach was the UK, which is now the recognized global hub of interaction between technology startups and the regulator. The "regulatory environment" exists today in more than 30 countries. At the same time, there was a tendency to specialize in such legal platforms. For example, the regulator of South Korea focused on testing services in the field of automated consulting-robotics, remote opening of a bank account , payment platforms and mobile wallets in Hong Kong, P2P-lending and crowdfunding in Singapore;

     9) ensuring sustainable development and implementing the ESG principles. Based on the Paris agreement on climate and the UN Sustainable Development Goals, the world community sets itself the ambitious task of ensuring the transition to the EU sustainable development principles.

     In order to achieve the goals of decarbonization, public and gender equality, measures are being taken in the world to introduce high environmental standards, high requirements of corporate and social responsibility in companies.

To implement the sustainable development objectives in the EU, corporate sector entities are expanding investment in projects aimed at achieving sustainable and inclusive growth, as well as managing risks associated with climate change and social problems.

     In developed countries, forms of "soft regulation" are used by establishing a voluntary procedure for disclosing information by organizations on compliance with the principles of the ESG. In some countries, it is mandatory to disclose information about the ESG, providing for the phased disclosure of information on compliance with the ESG standards at the company level, and subsequently at the level of owners and customers.

     Part 4. Vision for the development of the financial sector

     Currently, under the influence of new global mega-trends and local challenges, a transformation of the financial system is taking place.

     The digitalization and development of Financial Technologies has become one of the most relevant global trends. The coronavirus pandemic has accelerated the transition to the format of remote provision of financial services to the population and business. Financial organizations are actively creating a system of digital services that have consolidated various online services, including financial and non-financial ones. The development of digital service systems creates great opportunities for banks and their customers by increasing the availability of financial services, the convenience of payments and transfers, and increasing the speed and efficiency of services.

     Along with the development of digital service systems, OREP Bee and OREP Vapkipd technologies are actively being introduced to provide equal competitive opportunities for all participants in the financial market.

     Guided by the global policy of the UN, the volume of domestic investment has increased significantly in recent years. The financial sector plays a key role in the implementation of the ESG (environmental, sosial, Goveirnanse rrınırles) principles, as it provides financing for the "green" economy and encourages the transformation of companies taking into account the risks of ESG to ensure the sustainability of business models. At the international level, financial regulators have begun to actively develop standards and implement ESG principles in the activities of financial organizations.

     Ensuring financial stability and economic growth is an important issue of the agenda for many countries. In the global economy, there is an acceleration of inflation and a slowdown in the rate of economic growth. Under the influence of lockdowns and sanctions, the work of global production, especially logistics chains associated with Export-Import Operations, was disrupted.

     Inflationary processes, sharp changes in the exchange rates of national currencies lead to a reduction in incomes of the population, an increase in prices for raw materials and a tightening of lending conditions.

     One of the most important tasks of financial market regulators is to ensure an adequate level of protection of the interests of consumers of financial services, complete and accessible information for consumers on the activities of financial institutions and financial services provided by them, as well as increasing the level of financial literacy and financial accessibility of the population.

     The concept is aimed at developing a diversified and efficient financial sector, focused on stimulating the growth of the national economy, savings and investment, while simultaneously ensuring the stability of the financial sector through the improvement of macroprudential policies and risk-oriented supervision tools.

     The concept provides for the vision and mission of the financial sector, which contributes to the achievement of the National Development Goals of the Republic of Kazakhstan.

     Vision is an effective, innovative, sustainable and competitive financial market integrated into the International Space, dynamically developing and providing a significant contribution to the sustainable and inclusive growth of the economy of Kazakhstan.

     The mission is the active economic development of the country and an increase in the well-being of the population due to the effective concentration of financial resources and their effective distribution among the subjects of economic relations, including the population and business.

     The concept includes 7 strategic directions of development aimed at implementing systemic reforms of the financial sector.

     Three strategic areas of development are cross-sectoral. Reforms within the framework of these areas are relevant for all segments of the financial market and cover all its participants.

     Four strategic directions of development include specific sectoral tasks and initiatives for the main participants in the financial market - second-tier banks, insurance organizations, participants in the securities market and the microfinance market.

     1. development direction "ensuring financial stability and maintaining trust in the financial sector"

     The agency, together with the National Bank, will contribute to ensuring the stability of the financial market and financial organizations by implementing an effective macroprudential policy and improving risk-oriented supervision.

     Improving the system of combating abuse in the financial market and strengthening cooperation with foreign regulators will contribute to strengthening confidence in the financial sector.

     2. development direction "development of innovations, financial technologies, new business models and competencies in the financial market"

     The development of new business models and innovations will be carried out by stimulating the development of new financial technologies and competencies in the financial market. Measures will be taken to create a regulatory environment for the safe introduction of innovations in the financial market, the formation of fair competition through the introduction of OREP Bee and OREP Vapkipd standards, the implementation of the principles of ESG and "green" financing, as well as the introduction of regulatory and supervisory technologies (Sirtesh and Regtesh).

     3. development direction "ensuring fair behavior, protecting the rights and interests of consumers of financial services"

     To identify unfair practices and protect consumer rights, it is planned to introduce a new comprehensive consumer protection model, which provides for a preliminary monitoring response based on the analysis of business models and strategies of financial organizations.

     In order to ensure honest work with consumers, standards of behavior for financial organizations and financial inclusion standards will be introduced to involve all groups of consumers in the financial system.

     4. development direction "financing of the economy and development of the banking sector"

     The priority task is to increase the role of the banking sector in financing the economy. Tasks will be implemented to stimulate business lending, improve mechanisms for bankruptcy and rehabilitation of borrowers, create a market for non-performing assets, and improve the business processes and procedures of banks. It is planned to take measures to improve the effectiveness of debt repayment mechanisms, attract collateral to the economic turnover, create institutional and legislative incentives for the emergence of private investors and managers in the stressful asset market.

     In addition, measures will be taken to develop alternative forms of financing and expand market funding available to business, and mechanisms of public-private partnership will be improved.

     5. development direction "development of the insurance sector as a means of protecting financial interests"

     Measures for the development of the insurance sector will be focused on the effective development of the insurance market, focused on increasing the well-being of the population and protecting its property interests, as well as increasing the stability of the insurance market. Digitalization of insurance services will continue, a database of Insurance Statistics has been created to ensure fair tariff setting and full underwriting of customers, as well as effective supervision and regulation.

     6. development direction "development of the securities market as one of the most effective tools for financing the economy"

     For the development of the securities market, measures will be implemented to increase institutional and retail demand, conduct IPOs, and improve Kazakhstan's positions in international indices. Large-scale technological modernization of stock market infrastructure organizations will continue to develop the regional accounting and computing hub.

     The development of the capital market will be carried out in close cooperation with the AIFC to increase the synergistic effect from the functioning of the two exchanges.

     7. development direction "development of the non-banking sector and mncrofinance"

     As part of the development of the microfinance market, the range of services provided by market entities will be expanded to more fully meet consumer demand, measures will be implemented to expand and diversify sources of funding for market entities, measures will be taken to improve the quality and transparency of microfinance services, as well as introduce balanced regulation of market entities.

     Part 5. Basic principles and approaches to the development of the financial sector

     To achieve the vision and mission of the financial sector development until 2030, 5 main principles of financial market development have been identified, taking into account international megacities and current challenges.

     1. economic development-ensuring the direct contribution of the financial sector to the economic growth of Kazakhstan.

     2.introduction of innovations - creating conditions for the innovative activities of financial organizations and the introduction of innovative products.

     3.maintaining stability - ensuring the stability and continuity of the activities of financial institutions.

     4.development of competition - equal conditions of activity for the entire organization of the financial sector.

5.ensuring inclusivity - providing equal conditions for all consumers to access financial products and services.

     1. development direction "ensuring financial stability and maintaining confidence in the financial sector"

     Ensuring the stability of the financial sector is one of the main tasks for the country's economic growth. Effective regulation of the financial market is a priority.

     The negative impact of financial crises in recent years has shown the need to have a sufficient level of equity and liquidity to absorb economic shocks and the importance of countercyclical regulation based on the adoption of preventive measures in relation to systemic risk.

     Task 1. Development of macroprudential policy

     The main goal of the macroprudential policy is to ensure the stable functioning of the financial sector.

     Macroprudential policy allows you to create the necessary buffer of capital to cover costs and ensure the ability of financial organizations to continue lending to the economy if stress scenarios are implemented. Preventive measures taken within the framework of macroprudential policy will help mitigate the impact of the financial cycle, as well as reduce the likelihood of the onset of a financial crisis.

     1. development of macroprudential policy mechanisms

     The agency, together with the National Bank, will contribute to ensuring the stability of financial market activities, including through the formation and implementation of macroprudential policy.

     Its goals in the medium term will be: to increase the stability of the financial system to combined shocks by creating and releasing buffers capable of ensuring the effective functioning of the financial system even in adverse conditions and supporting further economic growth (countercyclical regulation); to prevent the occurrence of "financial panic" due to excessive lending, which is unjustified and not confirmed by economic growth; to monitor and reduce systemic risks of the financial system.

     The choice of macroprudential policy mechanisms will depend on potential threats to financial stability.

     The agency, together with the National Bank, will ensure the further development of tools for assessing financial stability risks, developing and implementing macroprudential tools and anti-crisis measures. In this process, the Financial Stability Council of the Republic of Kazakhstan will perform a coordinating role.

     The possibility of introducing a countercyclical buffer for the minimum sufficiency of equity capital within the framework of the CTC will be considered in advance and appropriate recommendations will be formulated. This buffer is designed to curb excessive credit activity of banks during periods of economic growth and stimulate it during periods of recession.

     In addition, the agency, together with the National Bank, will improve the mechanism for issuing loans at the last stage to ensure the smooth operation of solvent banks in the implementation of idiosyncratic liquidity shocks.

     2. expanding the criteria for recognizing financial organizations as systemically important

     Global trends in the development of financial markets show that the services of individual players are becoming more important for consumers and business entities.

     In this regard, the NB, together with the agency, will study the feasibility of introducing additional criteria for the systemic significance of financial organizations, taking into account international experience and the latest trends in the field of regulation. Potential criteria will be studied in terms of their significance and impact on the existing list of criteria.

     The agency considers the feasibility of establishing additional requirements for risk management and internal control systems, information security, ensuring the continuity of activities.

     Task 2. Development of risk-oriented supervision

     As part of improving the practice of supervision and minimizing risks in the activities of banks, since 2019, the transition has been carried out to risk-oriented supervision, which has the right to use motivated reasoning based on the analysis of quantitative and qualitative indicators in certain areas.

     To ensure the stable functioning of the financial sector, it is necessary to continue work on the transition to international risk-oriented supervision standards for all sectors of the financial market at the system level, as well as at the level of individual financial institutions. The introduction of risk-oriented supervision will be ensured taking into account the principle of balanced regulation.

     1. improving the risk-oriented supervision system in the banking sector

     The main principle of the effective supervision process is the further development of a risk-oriented approach in which supervisory reasoning is applied in order to ensure the protection of the rights and interests of depositors and other investors, and the sustainability of the financial sector.

     The main tasks of the risk-oriented approach are to identify and prevent risks and shortcomings in the activities of banks in order to ensure their financial stability and take early response and timely supervision actions to prevent an increase in risks in their activities.

     The agency will continue to integrate regular AQRS into the SRER and stress testing to track the banking sector.

     Regular AQR provides for annual risk-based audits of banks ' assets without the participation of auditors, independent appraisers and consultants, taking into account the practice of conducting a full-fledged AQR. The introduction of AQR instruments into the ongoing supervision process will contribute to obtaining reliable information about the quality of the assets of the banking sector.

     The introduction of supervisory stress testing tools in the supervisory process will allow assessing the capital adequacy of banks on an ongoing basis, taking into account possible negative scenarios for the development of the economy. In accordance with the best international practices, supervisory stress testing is aimed at achieving two priority supervisory goals: timely informing the Supervisory Authority about the possible risks of banks and ensuring the sustainability of the banking sector.

     Key risk analysis using regular AQR tools and tracking stress testing within the SRER allows you to form the risk profile of each bank using appropriate individual tracking response measures.

     In international practice, one of the main supervisory measures based on the results of the annual assessment of SRER is the establishment of a supervisory allowance for bank capital adequacy ratios (Rillair II). The supervisory capital allowance will stimulate banks to promptly eliminate the identified shortcomings and risks in their activities.

     The main approaches to applying the supervisory capital surcharge, including the structure and limit values of the surcharge, will be determined in addition to the current prudential standards. In addition, the agency will develop an internal methodology for calculating capital surcharges based on the assessment of annual inspections according to the SRER methodology, as well as based on the results of tracked stress testing.

     The agency plans to develop a methodology for monitoring internal procedures for assessing capital adequacy (LLAAR) and liquidity (LLAAR), including the procedure for disclosing information and reporting on internal procedures of banks within the framework of ILAAR and ILAAR.

     In order to develop market discipline and increase the transparency of banks ' activities, it is planned to introduce the third component of the Basel II standards "disclosure of information" (Rillair 3), which provides for disclosure of information about the degree of exposure of the bank to risks and the risk management system.

     As part of further improvement of the regime of normalization and regulation of banks, the agency will develop and implement a methodology for assessing the effectiveness of solvency recovery plans (Resovery Rlans).

     2. improving the risk-oriented supervision system in the insurance sector

     The main objectives of the risk-oriented approach are to identify areas of high risk in the insurance sector as a whole and in each individual company, to develop a set of tools for identifying and assessing risks, to approve priority measures and action plans aimed at reducing risks or, if necessary, increasing the capitalization of the company.

     The main components of the supervision process are the risk-oriented supervision subsystem (SRES), the independent risk assessment of the insurance company (Iris) and the assessment of the sufficiency of insurance reserves and fair value of assets (RAQMR). These components, along with Prudential Regulation, an early response system, mechanisms for monitoring compliance with legislation, ensure the implementation and development of continuous control and supervision in the insurance industry.

     As part of improving the sustainability of insurance organizations, it is planned to gradually introduce the principles of Solvensu II, which will allow insurance organizations to effectively use their own capital, increase the volume of insurance premiums, depending on the magnitude and nature of the perceived risks.

     The introduction of elements of solvensu II will be carried out through the development of management with the direct participation of the insurance market, quantitative research, Stress Testing. Since the transition to new standards requires the development of models and new information systems, professional development of specialists, an assessment of the state of technical readiness of the insurance market for the transition to the Solvensu II standards is carried out and the frequency of their implementation is determined.

     Improving the corporate governance system, including the risk management system, will allow to create a qualitative base for the implementation of the quantitative component of insurance organizations and risk management at the level corresponding to the Solvensu II regime.

     3. Improving the risk-oriented surveillance system in the Securities Market

The implementation of the risk-oriented supervision system will be accompanied by the phased introduction of balanced regulatory mechanisms in relation to the WKNF, in particular, the calculation of prudential standards, the procedure for organizing the risk management system and the introduction of requirements for the presentation of regulatory reports taking into account indicators of the systemic importance of WKNFF and the risks they assume.

     Risk assessment is based on the Risk Assessment and Supervision System (Rass) methodology, which provides for the analysis of quantitative and qualitative performance criteria, which allows you to assess the systemic significance and scale of business. Within the framework of the Rass, the main attention is paid to assessing the business development and diversification strategy, the structure of the investment portfolio, asset quality and financial stability, the effectiveness of the risk management and internal control system, as well as business reputation.

     The results of periodic assessments make it possible to differentiate the WNAF depending on the degree of risk and differentiate the supervisory regime by the intensity, frequency, volume and content of supervisory actions.

     The methodology for assessing risks under the Rass system will include tools for tracking stress testing, based on the results of which appropriate early response measures will be applied.

     Further improvement of regulation and regulation of the securities market will be carried out in accordance with the recommendations of the IOSSO in the field of creating a safe investment environment by implementing the principles of SRMI-Iosso for the financial market infrastructure and SSDR (Sentral securities Depositories), as well as by adapting the approaches of the European Union directive "on financial instruments markets" (MiFID) in the legislation on the market of precious metals.

     4. transition to consolidated supervision

     In order to reduce systemic risks, the agency will transfer financial conglomerates to consolidated supervision in order to increase the responsibility of their shareholders. It is planned to expand the list of organizations that are part of the financial conglomerate, including all companies whose financial organization and its shareholders have control or direct economic interests.

     Within the framework of the financial conglomerate, the agency will assess the risks of all participants in the conglomerate and their impact on the activities of the financial organization and the parent company. Based on the Consolidated Statements, the calculation of prudential standards will be introduced at the group level.

     It is planned to strengthen control over intra-group transactions in order to limit dubious transactions and prevent the redistribution of costs to financial organizations.

     When developing requirements for consolidated supervision, the recommendations of the Basel Committee on Banking Supervision and the standards of the International Association of insurance supervision bodies will be taken into account.

     Task 3. Countering abuses in the financial market

     The most important area of the agency's activity is the creation of a trust environment in the financial market through preliminary counteraction to unfair practices and abuses, including in the field of MSW/MSW.

     The legislation on CPF is based on FATF standards and, first of all, is aimed at preventing access to the financial market by persons performing illegal financial transactions.

     Due to the emergence of new tools, the introduction of digital and online technologies, the strengthening of cross-border operations, the scope of tasks to combat unfair practices, illegal activities is expanding, which requires the development of adequate measures to combat illegal activities.

     1. application of risk-oriented supervision in the field of OP/MSW

     In order to ensure compliance of supervisory practices with international standards, FATF will introduce a component of risk assessment of KV/TF into the risk-oriented supervision system of financial organizations.

     The introduction of risk-oriented supervision will ensure enhanced monitoring of doubtful transactions of clients of financial organizations, their activities and business models, as well as an assessment of the effectiveness of CW/MSW measures taken by financial monitoring entities.

     These measures will allow us to focus on customers and operations that are potentially involved in the CL/CL scheme in order to take preventive measures to minimize the risks of CL/CL.

     2. development of typologies, mechanisms and schemes for money laundering and terrorist financing

     Today, in the field of combating money laundering, a formalized approach to identifying suspicious customer transactions prevails.

     The agency, together with interested state bodies, will consider the issue of changing approaches to monitoring operations, including the gradual removal of marginal operations for each of the subjects of financial monitoring, with the transition to an expanded list of signs of suspicious operations.

     Typologies (methods aimed at separating a set of objects and combining them into an ordered Group) and schemes for financing money laundering and terrorism (graphic documents in the form of symbols or images, in which the components of the system and the relationship between them are displayed) will be developed.

     The measures taken will allow financial organizations to concentrate resources on identifying suspicious activities and suspicious transactions in the financial market, so that the services provided by them are not used by other persons in order to promote the legalization (laundering) of proceeds obtained by criminal means and the financing of terrorism.

     3. implementation of a set of measures aimed at identifying financial pyramids and illegal activities in the financial market

     To counter unfair practices, interaction with law enforcement agencies was provided to identify entities with signs of financial fraud and stop their activities.

     To protect the rights of citizens, the agency developed and approved signs of financial pyramids and ensured the publication of a list of persons whose activities include signs of attracting money from citizens and organizations, whose actions the agency received complaints from citizens. The list of these persons will be updated on an ongoing basis.

     As part of countering the activities of financial pyramids, government agencies, together with law enforcement agencies, will take measures to identify organizations with signs of financial pyramids early, to respond quickly, to conduct appropriate monitoring, including through the information space (internet resources, social networks, radio, television, etc.), to strengthen citizens ' awareness of signs of financial pyramids and fraud.

     Also, the functionality of the SACL-center and the mobile application "Fingramota Online" will be expanded.

     In order to take measures to prevent the activities of financial pyramids, the agency, together with interested government agencies, will conduct a large-scale information and explanatory work to improve the financial literacy of the population, to combat fraud and financial pyramids.

     4. take measures aimed at regulating the turnover of digital assets

     The active development of digital assets exacerbates the risks of CL/TF. In this regard, banks limit payments and transfers related to cryptocurrencies.

     Within the framework of the pilot project, work is underway to launch crypto exchanges at the AIFC platform, interacting with Kazakhstani banks, where enhanced measures will be taken for proper verification and monitoring of customers aimed at minimizing the risks associated with the use of cryptocurrencies in transactions with cryptocurrencies.

     International experience in regulating the circulation of cryptocurrencies will be studied in order to minimize the risks of using cryptocurrencies in illegal activities, issuing capital, and CP/TF.

     Based on the results of the pilot project and the study of international experience, proposals for the further development and regulation of crypto exchanges will be developed.

     Task 4. Strengthening international cooperation

     In the context of financial globalization and free movement of capital, there is a need to improve the efficiency of regulation and supervision of cross-border financial organizations, as well as intensify and strengthen international cooperation.

     Bilateral cooperation with foreign regulators of the financial market will be intensified and cooperation with international financial organizations will be strengthened.

     1. strengthening cooperation with international financial organizations and associations of financial market regulators

     In order to prevent the spread of the financial crisis and implement international standards for regulating the financial sector, coordination between national regulators and international communities will be strengthened.

     The development of international standards in financial markets is carried out by international organizations and associations (associations) of authorized bodies for financial market regulation, among which we can highlight the Financial Stability Council, the OECD, the IMF and the BIS.

     Among the sectoral (sectoral) standards, the directives and recommendations of the Basel Committee on Banking Supervision are generally recognized standards at the international level in the field of banking. IOSSO principles are the Leading Principles for regulators in the field of securities market, IAS principles - in the insurance sector, FATF recommendations - in the field of IAS/MSF, iOS principles - in the field of pension fund regulation, IAS principles - in the field of Islamic finance, AFI principles-in the field of improving financial accessibility and literacy.

In modern conditions, non-compliance with international recommendations and standards, in addition to reputation risks, leads to a possible restriction on the cross-border movement of capital and can negatively affect the value of capital for participants in the financial market of countries that do not comply with international standards.

     In this regard, interaction with these organizations will be intensified to implement international regulatory standards and bring the activities of the financial regulator and the regulatory framework in line with the basic principles of these associations.

     2. intensification of bilateral cooperation with financial market regulators of foreign states

     In order to carry out consolidated supervision of transboundary financial organizations, an audit of existing agreements with financial market regulators of foreign states in terms of their relevance and compliance with the requirements necessary for licensing in the Republic of Kazakhstan and the possibility of exchanging supervisory information, including confidential information, will be carried out.

     As a result of the audit, appropriate bilateral agreements on cooperation and information exchange will be concluded, which will adequately meet the needs of regulators.

     2. development direction "development of innovations, financial technologies, new business models and competencies in the financial market"

     The main trend in the international financial market is the development of financial technologies that change the traditional directions of financial services and contribute to the emergence of innovative products and services for end consumers.

     The use of digital technologies implies a radical change in the principles of providing services and business processes of interaction of companies with customers, other participants in the financial market and regulators, as well as an increase in the volume and speed of transactions through the use of new digital tools and platform solutions.

     Task 1. Promoting digitalization

     The main strategic task of the NB and the agency is to create a favorable environment for the introduction of new technologies and support innovation in the financial market. Digitalization contributes to the emergence of new business models, increases financial accessibility, labor productivity in the financial sector, and has a positive impact on the competitive environment.

     The NB and the agency will create a favorable legal environment and environment for the introduction of innovations, the development of digital financial infrastructure, the use of blockchain technology, which will create high-tech digital services for citizens and businesses.

     1. Creating a sustainable regulatory environment for the safe introduction of innovations in the financial market

     In order to stimulate technological development in the financial market and develop competition, the agency will bring the existing regulation in line with the needs for the development of digital technologies. This will allow the financial market to create favorable legal conditions for the introduction and use of new services and technologies, including blockchain technology.

     To improve the efficiency of innovation development, the issue of creating single platforms (commissions) for consideration of proposals by market participants will be considered. This will allow to timely identify global trends, current problems and obstacles for the development of financial technologies and jointly work out with the market. It is expected that the creation of collaborative platforms will reduce the costs of market participants, increase the availability of financial technology competencies and accelerate the release of new products to the market in a safe mode.

     In order to create a favorable environment for the development and implementation of innovations in the financial market, the effectiveness of regulatory environments will be increased. Regulatory environments will be more focused on the business needs of various market participants by providing opportunities for testing new products and services in a controlled environment. For these purposes, a way to create a "single window" of the regulatory environment will be worked out. This, in turn, will improve the" user experience " and create universal procedures for submitting applications, selecting and passing testing procedures.

     The awareness of market participants about the procedure for the functioning of regulatory environments will be increased. It is planned to provide support for startups by simplifying the procedures for entering the regulatory environment, including the processes of selection, consideration and approval of applications.

     The issue of membership in the Global Financial Innovation Network (GFIN), which is a "global regulatory environment" for the development of innovative financial products and services, will be worked out.

     In order to develop blockchain technologies, the agency, together with financial market participants, will analyze international approaches to the use of blockchain technologies both in the development of financial market infrastructure and in the activities of financial organizations.

     2. laying the foundations of the digital financial market through the development of digital infrastructure

     Within the framework of measures to develop the digital infrastructure of the financial market, one of the directions is to stimulate the market to develop the technologies of OREP Ari and OREP Vapkipd. These technologies and formats of interaction between market participants are an important element in creating innovative financial technological products and services to increase publicity in the financial market, stimulate competition and cooperation.

     The main task of the NB and the agency is to formulate standards for the functioning of OREP Ari and determine approaches to the development of OREP Vapkipd. The National Bank will implement a set of measures to develop its own IP services for rapid integration with market participants.

     The development of the mechanisms of OREP Bee and OREP Vapkipd will contribute to the formation of a reliable environment by standardizing the interaction of its participants, ensuring equal access of service providers to Information owned by financial organizations, the need to authorize third-party suppliers and the availability of agreement on the part of the client.

     A separate direction in the development of the digital infrastructure of the financial market will be to stimulate the creation of commercial financial marketplays - aggregator platforms for remote retail distribution of financial products (services) and registration of financial transactions. Marketplays will ensure equal access of users of services to the financial market, contribute to the development of competition and increase the security of providing financial services.

     The development of digital infrastructure also includes the creation of an effective national payment system, which will expand access to financial services and reduce costs for the population by creating an infrastructure for safe, fast and convenient connection and receipt of financial services.

     Infrastructure solutions will include the development of a system of instant payments, the organization of a local infrastructure for processing payment card transactions, the development of a remote customer identification service, and the development of the issue of introducing digital tenge. The measures will be carried out within the framework of the program for the development of the National Payment System of the Republic of Kazakhstan until 2025.

     3. introduction of digital tenge

     In the event of a decision on the introduction of digital tenge, it will contribute to expanding the availability and ensuring the continuity of non-cash payments due to the possibility of payment without access to the internet, creating innovative financial services and stimulating competition due to the programming, as well as efficiency of settlements with state participation due to transparency and targeting.

     According to Vis data (as of July 2022), 72 central banks around the world are studying the issue of introducing the digital currency of the central bank, 29 are conducting pilot tests. In 2021, the NB developed a technological prototype of the digital tenge platform, as well as an initial model for assessing the impact of digital tenge on financial stability and the economy as a whole.

     In 2022, together with market participants, Economic Research and work will be carried out to expand and test the digital tenge technology platform. In order to attract stakeholders, the digital Tenge Hub collaborative platform was launched, which brings together all stakeholders to jointly study the issues of introducing the national digital currency in Kazakhstan.

     In accordance with international practice, a decision-making model for the introduction of digital tenge has been developed in Kazakhstan, which includes a comprehensive analysis of profits and losses during the introduction of the national digital currency.

     Within the framework of the specialized criteria of the model, a proposed solution will be developed on the feasibility of introducing digital tenge, taking into account the results of economic and regulatory research, assessment of technological parameters, quantitative and qualitative studies of consumer behavior, the results of design sessions and expert discussions.

     Task 2. Development of new financial technologies and digital services systems of the financial market

     Financial organizations and non-financial organizations form new business models that provide online access to financial and non-financial services in an integrated digital form. Foreign central banks and financial market regulators are currently studying and evaluating the impact of innovation and digital service systems on the development of financial markets.

In recent years, the financial market has been actively moving from an offline format to a system of digital financial services, including digital platforms. Banks have had a significant impact on the development of digital service systems in the country. Today, there are several digital service systems on the local market, the functionality of which includes the provision of financial and non-financial services in an online format. According to many parameters of digitalization, the financial market of Kazakhstan is one of the leading countries in the region. Innovations and online services are in demand by the population, there are technological and infrastructural conditions for their rapid development.

     There are many options for the formation of digital service systems that provide consumers with both financial services and non-financial services in an online format. Its scope may include not only IT companies, but also various support services, such as marketing, accounting and analysis, work with customers, quality control.

     The process of formation of new financial technologies and digital service systems in Kazakhstan is a species at an early stage of development. For their further development, an assessment of their impact on the development of financial markets will be carried out and standards and procedures for minimizing risks associated with the processes of introducing financial innovations and digital services will be developed within the framework of regulation.

     1. stimulate the development of new financial technologies, increase the competitiveness of the financial sector

     To date, Kazakhstan's legislation does not provide for the possibility of banks and bank holdings to create companies operating in areas other than the financial sphere or to purchase their shares (participation shares).

     In order to digitalize financial products and services, as well as stimulate the development and implementation of innovations, the agency will consider the possibility of granting Kazakhstani financial organizations the right to create companies operating in the field of online trade and services and participate in their capital, provided that financial stability and stability of financial conglomerates are ensured.

     Expanding the opportunities of banks to create and participate in the capital of such companies will contribute to increasing competition and financial inclusion, reducing the costs of conducting financial transactions and reducing their cost for the population and developing the competitiveness of the financial sector as a whole.

     At the same time, it is planned to analyze the processes of integration of information systems of participants in the financial market and introduce open banking technologies. For these purposes, approaches to creating conditions for the implementation of the OREP Bee and OREP Vapkipd open interface standards will be formulated.

     These measures will allow us to effectively exchange data, including information about customers and customers, providing the possibility of providing financial services through various channels of the digital service.

     The entry of foreign technology platforms into local financial markets is one of the challenges for regulators in many countries. In this regard, the National Bank and the agency, together with interested government agencies and financial organizations, conduct risk analysis and research.

     2. Analysis and control of potential risks

     International experience shows that the massive introduction of innovations, financial technologies and digital services is accompanied by a number of risks.

     In particular, investments and investments in the implementation of innovations, the development of information technologies, as well as the acquisition of companies engaged in the implementation and support of digital financial innovations are associated with risks related to the sustainability of financial organizations. At the same time, in the case of system-forming banks, risks of financial stability also arise.

     For these purposes, the agency, together with participants in the financial market, studies and formulates quantitative requirements for assessing the risks of investments of financial organizations in the capital of non-financial companies.

     In addition, the introduction of innovations and systems of digital services is accompanied by the integration of information systems of financial organizations and non-financial organizations, as well as the provision of access to databases that provide for the exchange of confidential, including client information.

     In order to ensure the protection of personal data and minimize the risks of cyber fraud, the agency, together with the National Bank, will develop the necessary information and cybersecurity standards, compliance procedures according to the principles of know your trust. At the same time, the discussion of risks to ensure information and cybersecurity will be carried out jointly with regulators in this area and relevant government agencies that are participants in the financial market, while maintaining a balance of decisions to stimulate the further development of financial technologies and the safe functioning of the financial market.

     The expansion of digital financial services will change the standard processes and procedures for working with consumers of financial services.

     To protect the rights of citizens purchasing financial services through various forms of financial innovations and digital service systems, the agency will study the international practice of regulators in terms of developing standards for working with clients of financial organizations and protecting consumer rights.

     Task 3. Implementation of the ESG principles

     The global goal in the field of application of the principles of sustainable development is to introduce environmental factors, social factors and corporate governance factors (ESG-factors) into operational activities and investment decision-making processes.

     The financial sector plays a key role in the implementation of the ESG principles, as it provides financing for the "green" economy and has an important mechanism for stimulating the transformation of companies taking into account the risks of ESG.

     The implementation of the ESG principles will contribute to the assessment of potential consumers of their services by financial organizations in terms of climate risks and environmental problems along with financial risks. This, in turn, encourages clients of financial organizations to comply with the principles of sustainable development.

     In many countries, regulators develop standards and regulatory documents in the field of ESG for the financial sector, which is the main source of financial resources for the economy.

     In order to increase the volume of investments in the economy, it is necessary to create conditions and incentives for taking into account ESG factors in the activities of financial sector participants.

     1. disclosure of information on exposure to ESG risks

     In order to create a favorable environment for attracting foreign capital and increasing green financing, the agency has developed recommendations for voluntary disclosure of information on the degree of exposure to ESG risks for financial organizations responsible for investing and using green financial instruments. As part of the annual reporting, financial organizations may voluntarily submit recommendations containing information on assessing the impact of ESG risks on their activities and publish the report.

     In order to monitor the implementation of these recommendations, requirements will be established for the publication of the relevant reporting period by financial organizations.

     2. implementation of ESG principles in the risk management system and corporate governance

     To ensure sustainable business development that meets the main trends of the agenda in the field of environmental, social and corporate governance, the agency plans to establish at the legislative level requirements for internal risk management systems and corporate governance of financial organizations for compliance with the principles of the ESG.

     The strategy and business model of a financial organization should take into account the establishment of Sustainable Development Goals, ESG factors and associated risks, strategic goals and (or) limits associated with ESG risks.

     The corporate governance system should be built taking into account the experience of the members of the board of directors in matters of sustainable development, environmental protection, the approval of the responsibility of the board of directors for monitoring and monitoring ESG risks through special committees, the remuneration system should take into account the achievement of the Sustainable Development Goals and effective management of ESG risks.

     In addition, financial organizations should have clearly regulated internal procedures and policies for ESG risk management, integrated into the existing risk management system, including the investment decision-making process.

     In relation to financial organizations, it is planned to establish requirements for the disclosure of information on the impact of ESG factors on the results of their activities:

     information on the strategy and business model of a financial organization in relation to the Sustainable Development Goals, as well as in terms of accounting for ESG factors and associated risks in them;

     information about the corporate governance system;

     description of policies and procedures related to the impact of a financial organization's activities on the environment, social sphere and economy and taking into account ESG-factors in its activities;

     ESG-description of the main risks associated with factors and methods of managing such risks.

     3. integration into the system of monitoring and monitoring ESG risks

     In order to stimulate financial market participants to implement and comply with the principles of sustainable development, as well as to establish mechanisms for state regulation of the ESG industry, it is planned to introduce the ESG risk monitoring mechanism into the supervisory system.

On an ongoing basis, the agency will monitor compliance of financial organizations with the recommendations and requirements in terms of ESG risk management. ESG risk monitoring is carried out within the framework of the annual supervisory control of the SRER for banks.

     In addition, it is planned to conduct stress testing of ESG risks, develop scenarios taking into account the forecast of climatic, social and managerial events and phenomena, assess the impact on equity and the risk management system.

     Task 4. Development of competence in the financial market

     The results of supervisory practice and the bankruptcy of individual financial organizations confirm the need to strengthen the procedures for the selection, appointment and development of the personnel potential of financial organizations, especially key employees making strategic and operational decisions.

     The resulting shortcomings lead to a decrease in the level of corporate governance, the quality of financial and other reporting generated, the risk management system, the protection of the interests of investors and consumers of financial services, as well as a negative impact on the competitiveness and investment attractiveness of the financial sector as a whole.

     It is necessary to improve the system of professional training and retraining of personnel, introduce requirements for the availability of Professional Certification, integrate a system of continuous professional training into the daily activities of employees of the financial sector (SRD/SRD).

     1. implementation of measures and programs of professional training and retraining of Personnel

     To improve the skills of employees of financial organizations, the agency will establish at the level of regulatory legal acts the requirements for a mandatory program of training and training of employees to improve personnel potential and professional skills. The purpose of training and training will be to gain knowledge in the field of corporate governance, management of operational, market, credit and liquidity risks necessary for making strategic and operational decisions.

     Certain requirements of the training and training program will be aimed at improving the knowledge of employees of financial organizations on industry legislation of the Republic of Kazakhstan, including banking legislation, legislation on the securities market and insurance, legislation on accounting and financial reporting.

     Training and training can be organized by financial organizations both on the basis of their own training centers and with the help of other specialized centers for professional training/retraining of personnel. For these purposes, the agency, together with interested state bodies, will provide for requirements for accreditation and subsequent systematic assessment of the activities of these centers.

     2. motivation of employees of financial organizations to undergo professional certification

     The introduction of international standards requires the formation of new qualification requirements for key employees of financial organizations.

     The main qualifications in Audit, Accounting, Finance and management are the programs of the Institute of certified professionals in management accounting (MFA), the British Association of certified jury accountants (ASSA), the Institute of certified analysts (SFA), the Association of alternative investment analysts (Saia) and the International Association of risk management specialists (SFRM), the Association of professional risk management (RRIMA), the International Association of risk management specialists (Garr).

     The agency, together with market participants, develops a set of measures to encourage key employees of financial organizations to undergo professional certification.

     3. introduction of Gray lists and restrictions on professional activities

     In order to increase the responsibility of the management of financial organizations, a set of measures will be implemented aimed at limiting the activities of legal entities and individuals, which led to a significant damage to the financial condition and reputation of financial organizations.

     Within the framework of these measures, the rules on impeccable business reputation will be approved at the legislative level, aimed at limiting the possibility of persons whose illegal actions or omissions previously led to the forced liquidation of a financial organization or its recognition as bankrupt.

     To implement legislative Innovations, a database of persons whose licenses of financial organizations were revoked through their fault will be formed. Thus, the agency and the NB can take measures to prevent the employment of unscrupulous persons in any position in the financial sector.

     Additional consideration will be given to the possibility of including in this base persons who have been brought to civil and criminal responsibility, who have controlled financial organizations recognized as insolvent.

     Task 5. Improving mechanisms of interaction with financial market participants

     Excessive costs of regulating the financial market require the development of effective measures to reduce both the costs of regulators and the cost of services for market participants. The main trends in improving regulatory technologies are due to the fact that today there is a decrease in manual processing of data - transactional reporting and identification of clients of financial organizations.

     To meet the requirements and expectations of financial market participants, it is necessary to increase the level of digitalization of their core business processes through the introduction of data-based supervision and the use of Regtech and SupTech technologies, as well as more efficient and technological interaction with financial market participants and consumers of financial services.

     1. establish data-driven tracking using SupTech technologies

     To reduce operating costs for collecting, processing and analyzing data, it is planned to develop SupTech technologies to improve the quality of supervisory functions due to updated data, technological processes for working with data, and reduce the regulatory burden on financial organizations.

     SupTech technologies include the use of innovative technologies to automate data collection and analysis, identify and assess risks, as well as improve existing risk-oriented surveillance procedures.

     2. establish data-driven tracking using RegTech technologies

     To increase the optimization of processes to ensure compliance with regulatory requirements, financial organizations plan to develop RegTech technologies.

     RegTech technologies are used by financial organizations to prepare reports, verify compliance with regulatory requirements in risk management, as well as to prevent fraud, conduct stress testing, etc. The active use of RegTech Technologies is expected in the field of customer identification and verification of compliance with the requirements of the NWP and MSW/MSW.

     The use of RegTech technologies in the financial market reduces costs and increases the efficiency of work processes, reduces costs and burdens on controlled entities.

     As part of the development of RegTech technologies, the NB and the agency, together with market participants, will work on automation and strengthening control over the reporting provided. Measures will be taken to improve the methodology and infrastructure for the formation and presentation of financial market entities ' reporting, including combining the data of the relevant reporting with the information of the state database.

     3. establishment of a "single window" of interaction with financial market participants and transition to electronic document management

     Improving the efficiency of interaction between the agency and the NB with the external environment requires modern IT solutions. For these purposes, it is planned to install a "single window" for interaction with participants in the financial market. The creation of a single space will ensure the exchange of information between the agency, the National Bank (including its branches and subsidiaries) and supervised entities.

     As part of the installation of the" single window", the target architecture of technological solutions will be determined, taking into account the variety of types of interaction and the specifics of financial market segments. The architecture is based on a centralized approach with the implementation of personal accounts for financial market participants.

     The number of documents to be stored and processed on paper will be reduced. This initiative will fully contribute to the implementation of the decree of the president of the Republic of Kazakhstan" on measures to remove bureaucracy from the activities of the state apparatus".

     Task 6. Information and cybersecurity

     Currently, the regulation of the financial market in the field of information and cybersecurity is carried out by several state bodies: at the national level - the authorized body in the field of ensuring information security - CDIAP, by financial market entities - the agency, by the market of payment systems and payment services - the NB.

     An important task is to organize effective interaction between state bodies in the field of ensuring information security. The formation of a unified approach to ensuring cybersecurity of the financial sector requires the implementation of a set of initiatives related to the updating of regulatory legal acts in the field of cybersecurity.

     The management of financial organizations should ensure control over compliance with the Information Security Policy and the requirements of the regulator to ensure information security, as well as the allocation of the necessary personnel and material resources.

     1. optimization of financial sector cybersecurity regulation

In order to avoid regulatory arbitration and develop a clear understanding of information security requirements from financial market entities, it is necessary to distinguish and consolidate the competencies of three regulators: the authorized body in the field of information security, the agency and the NB.

     In this regard, the agency, together with interested state bodies, plans to update the regulatory framework regulating the procedure for ensuring information security. For the formation of a safe and smoothly functioning financial market, information security criteria and rules will be developed that determine the objects of the constructive information and communication infrastructure of the financial market. The role, responsibility and responsibilities of the owners of these objects will be determined.

     It is planned to bring the legislation of the Republic of Kazakhstan in the field of information security into line with international standards 180 27000, 27001 and 27005.

     The implementation of appropriate measures will minimize systemic risks of information security by establishing requirements for the functioning of information security management systems, monitoring and management of information security risks. The requirements for the competencies of managers and employees of information security units and Information Security Incident Response Services will be improved.

     2. effective interaction of market participants in the field of Information Security

     To ensure the effectiveness of the interaction of market participants on information security issues, the activities of the industry Center for Information Security (Agency) in the financial market will be improved. Its functionality will be expanded in terms of automating and responding to monitoring incidents and incidents of cybersecurity of financial market entities. To this end, it is planned to impose on financial organizations the obligation to connect information security systems to the automated information processing system of the industry Center for information security incidents and incidents.

     For participants in the payment services market, a connection to the unified technological platform of the National Bank will be organized, which will provide an integrated approach to collecting, monitoring and responding to cyberwarfare events.

     In turn, the agency will introduce and conduct regular checks on the effectiveness of financial organizations ' response to cyber incidents and timely transmission of information to the industry center. Through a comparative analysis of the results of the above inspections, joint testing of information security systems with government agencies and other control mechanisms, a general policy for managing cyber incidents will be formed, which will allow us to effectively respond to risks and vulnerabilities that exist on the scale of the entire financial market.

     In order to improve the quality and efficiency of responding to cybersecurity incidents, it is planned to carry out measures to improve the processes of interaction of the sectoral center with the National Bank, special and law enforcement agencies. It is expected that the implementation of the appropriate mechanism will increase the competence in cybercriminals to investigate financial crimes.

     3. development direction "ensuring fair behavior, protecting the rights and interests of consumers of financial services"

     Diversification and increasing the availability of financial products and services for consumers requires consumers to understand the specifics of financial products and the risks associated with them in order to make the right decisions, and financial institutions - to understand the high standards of working with the population.

     In this regard, in the world practice of regulators, more and more attention is paid to the preventive form of supervision, which is aimed at improving the quality of interaction between financial service providers and their recipients and increasing the responsibility of market entities for unfair behavior, from responding to the facts that have occurred in matters of protecting the rights of consumers of financial services.

     It is necessary to introduce a comprehensive consumer protection model that will have a positive impact on public awareness and financial literacy of financial products, strengthen the responsibility of participants in the financial market to ensure fair and fair work with consumers.

     Task 1. Introduction of a new model for protecting the rights and interests of consumers of financial services

     An important task is the formation in the financial market of requirements that financial organizations themselves play a key role in ensuring the protection of the rights of consumers of financial products and services, contributing to the choice and availability of financial products and services that most meet their goals and needs. This requires the introduction of the principles of a risk-oriented approach and the transition to new standards of interaction with consumers.

     1. implementation of a risk-oriented approach to consumer protection

     In recent years, many countries have seen radical changes in the regulatory policy regarding the protection of the rights of consumers of financial services. The global trend is to shift the direction of supervision from responding to formal violations to proactive supervision to ensure consumer protection.

     To do this, the powers of national regulators in the European Union, the United States and the United Kingdom have been expanded to introduce an early warning system, which provides for conducting thematic inspections of financial service providers in order to identify unfair practices and apply mechanisms for reimbursing consumer expenses as a result of such practices.

     The powers of supervisory authorities were supplemented by the right of financial organizations to introduce standards for working with the population by law, significant investments were made in supervision to attract and train qualified specialists to monitor the implementation of standards of action.

     An important task is the introduction of an early warning system, which provides for conducting thematic inspections of financial organizations in order to identify unfair practices.

     In this regard, a new model of consumer protection will be introduced, the main element of which is the introduction of a risk-oriented approach, which involves the analysis of business models, processes and strategies of financial organizations to identify unfair practices at an early stage and take measures to enforce supervision and response to protect consumer rights.

     This requires the agency to be empowered to adopt the principles of a risk-oriented approach to consumer protection.

     To check the 4 main areas of work of financial organizations within the framework of risk-oriented supervision:

     1) management strategies and systems-to establish a specific model of action and consumer protection for which the company's senior management is responsible;

     2) product development - to identify issues related to the protection of customer rights when creating products;

     3) stages of sales and after-sales interaction with customers - to reduce "deception" depending on the risk profile of the consumer, fair handling of complaints and prompt settlement of disputes, disclosure of detailed information about products and related risks;

     4) Risk Management - based on data on the results of working with the population, attention will be paid to monitoring business processes using statistical models, updating plans to eliminate consumer risks.

     In the process of risk-oriented supervision, it is planned to develop a more refined and understandable list of standards for assessing regulated entities. To evaluate direct financial organizations, statistical reporting, customer survey data, customer requests, as well as the results of inspections obtained within the "secret buyer" function will be used.

     2. implementation of action standards for working with the population

     To strengthen consumer protection in many countries, standards and principles of action have been introduced aimed at maximizing the interests of consumers in the process of consuming financial services.

     Standards regulate 4 main areas in which risks for the interests of consumers are concentrated:

     1) price and quality - to avoid situations of consumption of products that do not allow consumers to clearly understand the benefits they achieve;

     2) product requirement - to prevent customers from presenting unfavorable characteristics of products intended for a category of consumers who do not feel the risk of products or products that may harm consumers;

     3) Customer Support - prevent late deadlines that prevent customers from making the right decisions in a timely manner;

     4) Customer Relations-to avoid misleading and establishing unreasonable requirements for financial products that do not allow you to refuse unworthy services.

     Task 2. Improving financial accessibility, inclusion and financial literacy of the population

     Improving financial accessibility, inclusion and financial literacy are key factors in the financial situation and Financial Protection of citizens. Improving services and infrastructure, forming public knowledge about financial products and risks takes a long time, so it is necessary to constantly work to adapt them to the rapidly changing conditions of the financial market.

     1. development of financial inclusion

The development of alternative tools will meet the needs of real sector enterprises in affordable financing, funding of large and start-up projects, necessary for the main and turnover replenishment of companies.

     1. increasing the attractiveness of factoring documentary operations

     For the development of factoring in 2020, the bank's provisions on factoring in terms of the possibility of deducting the amount of expenses for accumulated provisions were expanded. This measure will help eliminate the tax imbalance between lending and factoring in the medium term, reduce the cost of factoring for entrepreneurs. Further, based on the results of the assessment of the activities of factoring companies, the possibility of applying approaches to banks, leasing companies in terms of taxation to factoring companies will be considered. This contributes to reducing the cost of factoring and stimulates enterprises to use this type of financing.

     As part of improving the infrastructure of factoring services, the creation of a platform for accounting for electronic invoices will continue. Entrepreneurs get the opportunity to automatically transfer claim rights to financial organizations connected to this system by registering invoices in the factoring platform system.

     Access to the system will allow banks and factoring companies to assess the financial condition of suppliers, debtors, monitor the state of invoices, develop new products that act as security invoices issued by the client, and contribute to the automation of accounting. At the same time, measures will be taken to increase transparency and form general statistical information on factoring activities.

     2. stimulate the development of leasing operations

     Further development of leasing requires a gradual reduction in the state's share in the leasing market by increasing the turnover of private leasing companies. To do this, it is necessary to ensure equal access of private and quasi-state leasing companies to state entrepreneurship support programs.

     To stimulate the development of leasing, within the framework of tax legislation, it is also necessary to consider the possibility of providing tax incentives in the form of reducing taxable income on the amount of interest under a lease agreement with a term of more than one year by reducing the period of transfer of property to financial leasing (from three to one year). In addition, it is necessary to consider the possibility of exempting Islamic leasing companies from VAT, similar to the exemption of VAT on the amount of surcharges for goods sold by Islamic banks to the buyer. For the purposes of applying tax benefits, the conditions for transferring property to financial leasing will also be revised, in which the transfer of the lessor's right to claim between subsidiaries of the national managing holding will be exempt from VAT.

     The elimination of barriers limiting the development of the leasing market, including the AIFC, will continue. In particular, it will provide for a ban on encumbrance of the subject of leasing by the lessee, a mechanism will be approved that provides for the establishment of a mark that the registered property or part of it is the subject of leasing. This limits the possibility of illegal actions on the part of lessees.

     The development of leasing makes it easier for business entities to access long-term sources of financing, reduces costs and distributes the financial burden for a longer period.

     3. introduction of the syndicated lending mechanism

     The use of syndicated lending due to the participation of several creditors will increase the possibility of financing large infrastructure projects, contributing to maintaining a favorable credit risk for a private bank and the quality of the loan portfolio.

     Currently, a legal framework has been created that allows non-resident banks to participate in syndicated financing or perform the functions of an agent bank.

     To increase the attractiveness and participation of banks, the AIFC, together with Kazakhstani banks, will expand the list of Syndicate participants in syndicated financing of projects within the country, introduce regulatory incentives in terms of prudential requirements and creating provisions (reserves) for loans. When assessing the credit risk of each participating bank, the principle of equilibrium is used, which makes it possible to reduce the pressure on capital.

     The use of syndicated lending mechanisms with the participation of banks and the Development Bank of Kazakhstan will contribute to the gradual reduction of direct state financing of large businesses.

     4. development of PPP projects

     PPP is an important tool for attracting investment for the development of the economy by combining the resources of a public partner and a private partner for the development of infrastructure and life support systems for the population.

     In order to increase the attractiveness of PPP projects, the infrastructure and regulatory framework of PPP will be improved. At the legislative level, it is planned to provide for the possibility of covering the risks of the financing party by approving the take OG Rau payment mechanism for contracts in the form of agreements between the parties on guaranteed payment. This will minimize the credit risks of the financing party by effectively planning the cost of the PPP object and ensuring the return of borrowed funds. Also, in case of temporary absence of funds from the budget, collateral obligations will be provided by the state partner to fulfill obligations under the contract.

     5. creating conditions for the development of alternative financing instruments

     The market for alternative capital raising tools is represented by crowdfunding, trading and venture platforms, which are an additional channel for financing business projects.

     An appropriate legal environment will be created to develop and increase investor confidence, minimize investment risks in the alternative financing market. In particular, the issue of introducing crowdfunding platforms, trading platforms, including regulation on the territory of the AIFC, will be considered.

     Venture capital investments in companies can solve the problems of lack of capital that have made it difficult to access credit. Currently, the state has created legislative conditions and a favorable environment for the development of venture financing - Astana Hub Qaztech Ventures and AIFC activities.

     To develop and grow venture financing activity, it is necessary to create legislative stimulating conditions for the development of a class of investors who finance start - up companies directly or through venture funds or crowdfunding platforms registered with the AIFC.

     Task 3. Changing the role of the state in financing the economy

     Currently, the state is actively involved in direct financing of the economy through development institutions, as well as through the implementation of various programs of state support for business through interest rate subsidies and loan guarantees.

     The state's participation in financing the economy in the short term has a positive impact on the economy. However, in the long term, replacing market lending with cheap state financing will have negative consequences - reducing the effectiveness of monetary policy instruments, the effectiveness of interest and credit channels, the emergence of Arbitration at interest rates between state and market sources of financing, distorting the real value of money.

     1. coordination of measures of State bodies on an effective macroeconomic policy

     Macroeconomic stability contributes to the full development of the financial sector. To do this, the agency's actions aimed at developing the financial market should be strengthened by relevant initiatives of the National Bank to improve the effectiveness of monetary policy, as well as government measures related to macroeconomic policy. This will form the basis for sustainable economic growth in Kazakhstan in the long term.

     In this regard, work will continue to ensure the coordination and coordination of measures of the government, the National Bank and the agency aimed at ensuring macroeconomic stability, limiting risks, supporting the economy and adapting it to the changing conditions of the external and internal environment.

     2. gradual reduction of state support programs for the economy

     In order to reduce market shocks based on a simultaneous decrease in the volume of financing of the economy, the government, the NB and the agency will continue to work on a gradual reduction in direct state financing through development institutions and state support for business entities.

     The implementation of these measures will stimulate the transition of business entities to market principles of financing through bank lending, microcredit and stock market instruments. This contributes to the rational use of state funds, increasing the efficiency of monetary policy instruments. Subsequently, the gradual reduction of state support programs for the economy will lead to increased competition, reducing interest rates on loans and the development of tools for attracting debt financing on the stock market.

     For borrowers, this is an incentive to improve the efficiency of implemented projects, transparency and competitiveness, and improve the system of financial planning and budgeting.

     3. termination of state support for insolvent enterprises

     The development of the private sector is naturally not carried out without a wellness process. Currently, there are unprofitable enterprises in the economy that have access to cheap state financing. Such a situation leads to the redistribution of financing from unprofitable borrowers to unprofitable borrowers and puts the most profitable companies in a non-competitive position.

To limit the access of insolvent enterprises to borrowing programs, it is necessary to exclude state support for insolvent and incapacitated enterprises.

     In order to optimize state support measures and prevent financing of non-working borrowers, the government will take measures to develop specific mechanisms for assessing the operability (analysis) of enterprises.

     Task 4. Rehabilitation of insolvent borrowers and their bankruptcy

     The presence of effective bankruptcy mechanisms ensures the rapid recovery of the country's economy by removing insolvent and inefficient debtors from economic activity with the return of debtors ' property to economic circulation.

     1. improvement of Rehabilitation and bankruptcy procedures

     The imperfection of the institution of bankruptcy is one of the reasons for the accumulation of problem debt on the balance sheet of banks.

     Improving the effectiveness of bankruptcy procedures is one of the priority tasks of ensuring financial stability. The inefficient institution of bankruptcy increases the credit risks of banks and restricts lending to the economy, not allowing to reduce the level of non-working loans.

     The problems of the institution of bankruptcy, including the shortcomings of Legal Regulation and the lack of the same mechanisms for protecting the interests of collateral creditors, as well as the problems of judicial and law enforcement practice, the activities of administrators, remain unresolved and require revision.

     Low debt repayment rates, high cost of insolvency resolution procedures, and lack of interest of secured creditors in rehabilitation and bankruptcy procedures reduce the effectiveness of the bankruptcy institution.

     In addition, insufficient qualifications of participants in bankruptcy proceedings (administrators, judges, creditors) in the field of financial analysis and corporate law "pave the way" for insolvent debtors to evade responsibility and withdraw assets.

     Improving the transparency and efficiency of procedures for bankruptcy and rehabilitation, protection of creditors ' rights, as well as improving the qualifications of all participants in the bankruptcy procedure will reduce the credit risks of banks and create the most effective mechanisms for repayment of loans, which will ensure the return of collateral property to economic circulation. The possibility of introducing absolute priority of guaranteed creditors in bankruptcy and rehabilitation procedures is additionally considered. This will protect the collateral creditor and prevent abuse by unscrupulous debtors who illegally issue funds using the priority of other queues.

     2. optimization of bankruptcy and rehabilitation periods

     Work with stressful assets is accompanied by long periods of consideration of court cases on debt collection, foreclosure on collateral, execution of court decisions. Within the framework of these measures, the terms of repayment of the specified debt extend from the moment of appeal to the court to the moment of sale of collateral property and repayment of the debt.

     With standard foreclosure, this period is 1 year, but in practice it can last 5 or more years. In this regard, it is necessary to optimize the timing of initiating and conducting bankruptcy and rehabilitation procedures at the legislative level, which will reduce the accumulation of problem debts on the balance sheets of banks and CSOs.

     Task 5. Development of the non-performing asset market

     The development of stress assets in market conditions and their inclusion in the economic turnover are one of the main factors for improving the banking sector, which will allow freeing up capital and operating resources of banks for sustainable lending to the economy, as well as reducing the risk of accumulation of stress assets in the future. The level of non-performing loans in the banking sector does not pose a threat to the stability of the financial sector. At the same time, a significant amount of stress assets remains on the balance sheet of banks and CSOs, which imposes a burden on the capital of banks and limits the possibilities of lending to the economy.

     1. encourage the emergence of private investors and management companies in the stress asset market

     In order to reduce the likelihood of new growth of stressed assets in the future, there is a need to develop market mechanisms for the free sale of stressed assets with the involvement of private investors.

     In 2022, legislative amendments were adopted on the development of the stress asset market, providing for the expansion of access of new investors to the stress asset market by removing legislative restrictions on entities that purchase stress assets, the establishment of the institution of service companies based on collection companies and CSOs, as well as the establishment of limit periods (3 years) of the presence of recovered property on the balance sheet of banks and microfinance organizations to stimulate the introduction of stress assets into economic circulation.

     Taking this into account, measures will be taken to improve the efficiency of debt repayment mechanisms, attract collateral to the economic turnover, as well as institutional and legislative incentives for the emergence of private investors and managers in the stressful asset market.

     2. development of a single platform for the purchase and sale of stress assets

     Another priority task is the creation of a full - fledged infrastructure for the implementation of stress assets and the formation of a secondary market for the purchase and sale of stress assets.

     To do this, the agency, together with the National Bank and the government with the technical support of the EBRD, is implementing a project to create a single platform that will provide open access to the purchase and sale of stressed assets for all interested investors and holders of stressed assets.

     By the end of 2022, the operating model and the operator-organization will be determined, which will then provide technical support for the functioning of the electronic platform. At the same time, legislative changes necessary for the creation of an electronic platform will be determined.

     A single platform for the purchase and sale of stress assets will increase the transparency of the market, expand the base of investors interested in the purchase of stress assets, as well as form a secondary market for the purchase and sale of stress assets.

     Task 6. Improving credit risk assessment procedures

     As part of the requirements for creating an effective risk management system, banks need to develop their own models for assessing credit risks in order to calculate the expected loss.

     1. improving bank credit risk assessment models

     Currently, it is an advanced practice to use credit risk assessment models to assess the creditworthiness of borrowers and create provisions (reserves) for the expected loss. Advanced modeling methods can also be used in marketing to identify fraudulent transactions, regulate problem debt, and make investment decisions.

     As part of risk-oriented supervision, the agency will introduce control over the process of regular validation of models, which will contribute to improving the quality of the data used and create a favorable regulatory environment in relation to the digitalization of risk management. Financial organizations, in turn, increase expertise in advanced modeling approaches and increase the level of complexity of the algorithms used.

     2. clarification of the requirements of IFRS 9

     The formation by banks of provisions (reserves) for acts and conditional obligations is carried out in accordance with IFRS 9, which allows taking into account the expected loss.

     The agency plans to clarify the regulatory requirements for the formation of provisions under IFRS 9 in terms of establishing requirements for provision procedures, asset classification and accounting procedures on a consolidated basis, expanding impairment triggers, establishing requirements for calculating expected cash flows from core activities and collateral, forming requirements for reservation models in relation to the parameters of calculating expected credit costs.

     Task 7. Ensuring bank secrecy

     Ensuring bank secrecy is one of the basic principles of banking activity. In accordance with this principle, banks keep secret information about deposits and accounts of their customers, banking transactions on accounts and transactions in order to ensure the protection of the rights and legitimate interests of consumers of financial services, including the right to privacy.

     1. revision of information constituting a bank secret

     In recent years, the regime of banking secrecy has changed significantly in Kazakhstan, and the grounds for disclosing information constituting bank secrecy have been expanded.

     Since the introduction of Universal Declaration, bank secrecy becomes available to the tax authorities. As part of the declaration, the movement of money on accounts in Kazakhstan and foreign banks can be studied. In this regard, there may be no regime of confidentiality of bank secrets.

     One of the ways to solve the problem of secrecy of financial institutions is to revise the concept of data constituting a bank secret. To ensure confidentiality, the agency will consider the issue of changing the information constituting a bank secret, as well as legislative reduction of recipients of this information with simultaneous strengthening of responsibility for its illegal disclosure and use.

     At the same time, the possibility of changing the information constituting the secret of insurance and the secret in the securities market is considered.

     5. development direction "development of the insurance market as a means of protecting financial interests"

Insurance, being a socially oriented industry, provides additional opportunities to increase the well-being of the population and protect its property interests. It is necessary to create conditions for increasing the availability and provision of insurance services. As the level of well-being of the population, as well as the business environment, increases, the demand for insurance of possible risks of property losses increases. Insurance companies should be ready to offer a wide range of products aimed at meeting the growing demand, including life insurance and Annuity Insurance. This, in turn, will contribute to increasing the volume of private investments and gradually reducing the social burden on the state. At the same time, the development of institutional investors through insurance organizations is an important task.

     Task 1. Expanding the network of insurance services

     The level of savings of the population and property protection of the population remains low. One of the factors of low coverage by insurance services is a limited list of types of insurance. In this regard, it is necessary to expand the network of insurance services through the introduction of new products and technologies.

     1. expansion of the network of insurance services in the field of General Insurance

     Further development of the insurance market will be focused on creating favorable conditions for increasing the competitiveness and attractiveness of insurance services for the population and business, introducing measures aimed at protecting the rights and interests of policyholders (beneficiaries), ensuring the financial stability of insurance organizations.

     In the field of General Insurance, the main directions of development will be aimed at protecting the interests of the population and business entities through the introduction of entrusted insurance. The development of loaded insurance of liability of business entities to third parties will provide property protection of the population from professional errors, low-quality services provided by business entities. The government, together with the agency, will work out in this direction the issues of coverage of business entities operating on the basis of permits and licenses with professional liability insurance. The agency will determine the conditions for the introduction of the imposed insurance, and the government will work out the types of activities in the sectors of the economy in which the responsibility of business entities is insured.

     It is planned to gradually transfer the mandatory types of insurance to the imposed ones, which will make it possible to switch to a flexible pricing system based on actuarial calculations, apply insurance conditions depending on the degree of risk of the insurance object and the actual cost of the product. The model for calculating insurance tariffs for compulsory types of insurance will be built on the basis of an analysis of the current cost of types of insurance by market, which will allow us to switch to a flexible tariff system.

     Joint insurance of one risk by several insurers through the creation of an insurance pool is one of the mechanisms for expanding the capabilities of the national insurance market. Insurance organizations have the potential to create national insurance pools for assigned types of insurance, which will allow applying uniform conditions of insurance and tariffication, ensure the organization of an open and accessible insurance system, uniform standards for regulating payments, and increase the capacity of the Kazakhstan insurance market. The development of the pooling system will make it possible to insure large and catastrophic risks and will provide an effective system of redistribution of risks, including in the reinsurance market.

     In Kazakhstan, a significant part of the regions are susceptible to such natural risks as mudflows, floods, droughts. Insurance mechanisms in protecting the population and property interests of citizens from natural disasters are practically not put into operation. The burden of expenses for reimbursement of expenses falls mainly on the state budget. These factors cause significant damage to both the national economy and ordinary citizens. In this regard, in order to reduce potential large losses, an analysis will be carried out on the feasibility of introducing accident insurance, in which the state and the insurance sector participate.

     The presence of the AIFC as an integral participant in the country's economy will increase the transparency of reinsurance activities of Kazakhstani insurers. Foreign reinsurers registered in the AIFC may reinsure the risks of domestic insurers.

     2. promotion of accumulative Life Insurance

     The products of the life insurance industry, having an accumulative function, can become an alternative to bank deposits, which have advantages in terms of the presence of insurance protection and the ability to receive investment income.

     In order to stimulate citizens ' savings initiatives, the government, together with the agency, needs to continue working to expand the line of accumulative life insurance products and create favorable conditions for their distribution.

     These measures will increase the attractiveness of accumulative life insurance and expand the ability of citizens to use savings as collateral when receiving other financial services, for example, when issuing a mortgage loan.

     State support in the form of premiums for educational savings and contingency insurance provided by life insurance companies increase the attractiveness of the educational savings program for citizens. The agency will improve the regulatory and legal framework to increase the availability and reliability of accumulative educational life insurance products.

     The mechanism of pension annuities is one of the most important tools that contribute to the improvement of the pension system. Today, pension annuities are not available to most people due to insufficient pension savings. Improving this product by revising the methodology for calculating the sufficiency of pension savings for concluding a pension annuity agreement, the introduction of joint (matrimonial) annuities will have a positive effect on the availability and attractiveness of pension annuities for the population.

     A special place in the development of accumulative insurance should be occupied by new insurance products that allow policyholders to combine investment management with life insurance (unit-linked) and participate in the insurer's profit. In order to expand investment opportunities for individuals, measures will be taken to activate long-term accumulative investment products of unit-linked life insurance.

     Taking comprehensive measures to develop the insurance industry will ensure the sustainable growth of the insurance industry and the availability of insurance services to a large group of the population and the real sector.

     Task 2. Effective development of the insurance market aimed at increasing the welfare of the population and protecting its property interests

     The main initiatives for this task will be aimed at increasing the availability of insurance services to the population through the digitalization of the insurance business, improving the quality of services provided by introducing professional standards for participants in the insurance market, improving the system of training professional personnel and strengthening public confidence in insurance through the development of a system of insurance payment guarantees.

     1. development of digitalization of Insurance Services

     The main trends in the development of the insurance sector include the digitalization of the insurance business through the use of digital technologies to optimize the business processes of insurance services.

     As part of the development of financial technologies and ensuring inclusiveness in the insurance market, as well as simplifying the population's access to insurance, the transition to electronic interaction between insurance organizations, government agencies and consumers will continue due to digitalization of insurance services, including when receiving clients using biometric identification.

     In order to further improve the mechanism of online insurance, online regulation of insurance payments through a single insurance database will be introduced, which will simplify and speed up the process of receiving insurance payments, bring the process of assessing the damage caused in line with uniform standards, and introduce a mechanism for protecting against insurance fraud.

     In order to develop Insurance Innovations and introduce technologies in the insurance market, it is necessary to constantly modernize the unified insurance database. In the future, it is planned to create a full-fledged database of insurance statistics, including statistics of AIFC participants on permitted types of insurance, and for the insurance market to create conditions for the development of innovative insurance products using Etsigtesh technologies, the introduction of flexible tariff setting, full underwriting of customers, the creation of scoring models.

     This will reduce the burden on the financial sector and its infrastructure by reducing reporting to the regulator, and increase the transparency of the activities of insurance organizations. Using the experience of the AIFC participants, new insurance products with services at the level of international standards will appear for consumers of insurance services.

     Taking into account the increasing role of data in the conduct of the insurance business and the improvement of technologies, the integration of SDGs with state databases will continue, which will increase the coverage of the population with insurance services and ensure the quality of information.

To increase the level of digitalization of the activities of insurance organizations, it is worth considering the possibility of granting insurance organizations the right to purchase (create) companies, payment organizations and other legal entities engaged in activities in the field of development and implementation of IT technologies, mobile applications.

     2. formation of professional standards for participants in the insurance market

     It is impossible to develop the insurance sector, increase its attractiveness and financial stability only on the basis of the development and implementation by the regulator of the principles and principles of the functioning of the market. Based on the development of Professional Standards and a code of Conduct for participants in the insurance market, the best results can be achieved. Such professional standards should be presented at the initiative of market participants and adopted on a consensus basis, taking into account the competitive positions of market participants.

     Improving the quality of insurance services, including on behalf of the insurer, depends on the level of competence of intermediaries (insurance agents and adjusters) in the insurance market, acting as independent participants in interaction with the policyholders (insured). In order to improve the quality of the services of insurance intermediaries, the institution of self-regulation of individual participants in the insurance market that are not covered by regulation will be introduced.

     3. analysis of the possibility of simplifying the requirements of CW/MSW to insurance companies in terms of certain types of insurance

     According to the recommendations of the FATF, in terms of operations in the insurance market, the subject of monitoring of the CPF system is only life insurance contracts, contracts within the pension system, as well as other life insurance contracts related to investment. The recommendations of the FATF do not cover the activities of insurance organizations in the field of" General Insurance", and in Kazakhstan transactions on all types of insurance, including mandatory types of insurance, are subject to monitoring.

     The current legislation on AML/MSF significantly limits the development of remote sales channels for Insurance Services, does not ensure their ease and accessibility to the population, despite the fact that significant amounts of payments pass through second-tier banks in non-cash form with the proper verification of customers.

     In order to bring the CW/MSF requirements in line with the FATF's recommendations, it is necessary to consider the possibility of excluding transactions and transactions for compulsory types of insurance from the current national CW/MSF regime, as well as simplifying certain requirements for voluntary types of insurance (for minor amounts and low-risk operations), taking into account the risks of CW/MSF.

     4. improving the efficiency of the insurance payment guarantee fund (TCC)

     Increasing awareness of consumers of Insurance Services about the work of the RCC is a decisive factor in developing financial literacy and increasing protection of the rights of consumers. At the same time, improving the interaction of policyholders with the RCC will reduce the burden on the regulator in terms of conducting investigations and preparing responses to claims of participants in the insurance market.

     The insurance payment guarantee system has been introduced since 2003 and guarantees the implementation of payments for social and common types of insurance. In case of forced liquidation of an insurance organization, the TCC ensures the protection of the rights and legitimate interests of policyholders.

     In order to maintain public confidence in insurance, it is necessary to increase the status of the STCC and its role in protecting the interests of consumers of insurance services. A systematic approach to the further development of the insurance payment guarantee system will cover the issues of expanding the guaranteed classes of insurance, revising the mechanism for making guarantee payments, ensuring the continuity of payments for annuity types of insurance and corporate governance requirements in the RCC.

     5. development of specialized programs for training insurance specialists and actuaries at universities

     Improving the insurance culture of the population requires constant and comprehensive work. Measures to develop the education system with the introduction of elements of financial literacy of the population will ensure the formation of highly qualified personnel. School and university programs, as well as certificate programs, are growth drivers for professionals in the insurance market.

     The lack of professional and qualified personnel in the insurance sector requires the introduction of specialized training of risk managers, actuaries in insurance in higher educational institutions, the development of professional certification programs for specialists, taking into account international standards.

     6. development direction "development of the securities market as one of the most effective tools for financing the economy"

     An efficiently functioning securities market provides for the attraction and redistribution of investors ' capital to companies for their business growth. The development of the securities market should be aimed at increasing the savings opportunities of the population, the emergence and availability of new financial instruments, and improving the market infrastructure.

     The most important direction of the development of the stock market, including unfair practices, is the formation of a trust environment by countering unfair practices through the introduction of unlicensed intermediaries in the scope of regulation and the practice of suppressing offenses.

     Task 1. Increasing the role of the National Stock Market in financing economic growth and attracting investment

     An important component of economic growth, along with lending, is an effective stock market. The development of the National Stock Market should be ensured through comprehensive measures aimed at solving the problems of insufficient institutional and retail demand.

     1. increasing the attractiveness of financing through stock market instruments for private sector companies

     The presence of non-market conditions for financing by quasi-public sector entities and government programs has led to the emergence of arbitration with stock market instruments, which reduces their attractiveness for issuers and investors.

     The use of issuer support tools will contribute to increasing the attractiveness of securities market instruments among Kazakhstani companies in the medium term. One of these instruments is the mechanism for providing guarantees on debt securities issued by business entities. This has a positive effect on institutional demand for securities and attracts private capital for projects that seem risky to the investor without guarantees.

     When implementing the Entrepreneurship Support Program, an analysis of the effectiveness of measures to support and achieve the final goals of financial development is carried out.

     2. stimulating institutional demand in the stock market

     Today, the UAPF is the main institutional investor in the stock market. The consolidation of a significant amount of securities in circulation by Kazakhstani issuers in the uapf portfolio negatively affected trading volumes, liquidity of financial instruments and their pricing.

     In order to ensure further growth in the amount of financing of the economy through the instruments of the securities market, measures will be taken to stimulate institutional demand in the stock market. In order to increase the attractiveness of private management of pension assets, the issue of providing depositors with the opportunity to receive permanent investment income on pension savings transferred to private management before retirement will be worked out.

     In order to increase the interest and responsibility of depositors for the formation of savings, issues of granting the right to transfer pension savings formed at the expense of mandatory pension contributions to private management, with the exception of the minimum sufficient limit, are considered.

     In addition, the issue of partial transfer of assets of other funds with state participation to the management of private management companies will be considered.

     In order to expand the range of activities of institutional players and improve the quality of services provided, an investment banking institute will be gradually created. Investment banking includes brokerage services, trust management of securities and other property, lending to clients for securities transactions, providing a wide range of services, including financial advice and structuring of transactions, custodial services and others. This will reduce the costs incurred by customers in carrying out operations on the securities market and increase the volume of operations carried out.

     3. stimulating retail demand in the stock market

     The low share of retail investors from the economically active population of Kazakhstan limits the growth of stock market liquidity. The population chooses bank deposits, cash foreign currency and real estate as objects of accumulation and investment.

     To increase the investment potential of Kazakhstani retail investors in the stock market, it is necessary to update the placement of securities of companies in the quasi-public sector in the "people's IPO" format. This will expand investment instruments that will be available to the population, as well as create conditions for improving financial literacy.

As part of increasing investment interest on the part of the population, measures will be taken to improve the digital access of investors to the securities market and expand the product line by sending liquid foreign papers to the local market. In order to facilitate access to the stock market for retail investors, brokers will be provided with the opportunity to provide services to their clients by converting services to electronic format and improving remote identification mechanisms.

     In order to stimulate retail demand in the stock market, when determining income tax on transactions with financial instruments, the possibility of accounting for losses and expenses associated with the conclusion of a transaction is considered. The current tax legislation does not allow citizens to take into account losses and expenses on transactions with financial instruments, in connection with which they are obliged to pay tax on any income, not counting the expenses incurred (including the commission charged for a bank transfer, a broker's Commission) and losses incurred on operations.

     4. stimulating stock market offers by conducting IPOs of large companies

     The long absence of IPOs of large companies in the stock market of Kazakhstan reduces public interest in the local stock market. This contributes to the export of retail investors ' funds to the foreign capital market. In turn, attracting a large group of retail investors creates the necessary demand for shares and contributes to increasing the liquidity of the stock market.

     In order to further develop the Kazakhstan Stock Market and attract a large group of retail investors, it is necessary to introduce large companies to the stock market through IPOs.

     The agency, together with interested parties, will work out ways to conduct future IPOs of national companies, providing for the use of the potential of two exchanges - Kase and the AIFC exchange. In addition, there are mandatory requirements for the full satisfaction of applications from local investors, requirements for underwriters and financial consultants, including requirements based on the presence of a resident Mark and a large retail base of clients. To ensure maximum coverage, it is planned to hold a large-scale road show among the population in all regions of Kazakhstan within the framework of the "people'S IPO".

     Task 2. Institutional and information-technological development of the securities market

     In order to attract additional investment in the stock market of Kazakhstan, it is important to develop the stock market institutionally and strengthen inter-depository ties with foreign markets, which will be ensured by the development of infrastructure financial organizations.

     1. further development of infrastructure organizations of the Securities Market

     A high degree of integration of the stock market infrastructure into the global capital markets ecosystem can become a key element in attracting investment to the country and further development of the stock market.

     An important direction of institutional development will be the transformation of WKOD from a local accounting Center into a regional settlement and Accounting Hub, through which global players will have remote access to local and regional financial instruments. It is necessary to consolidate the entire settlement and settlement infrastructure of the stock market, optimize internal processes, expand the functionality of WKOD by introducing a modern technological platform that allows you to provide services that meet international standards.

     At the same time, the practice of foreign investors ' access to the local stock market through the global custodian bank, represented by a subsidiary in the Kazakhstan market, has been formed. Further development of WKOD services will increase the interest of foreign investors through direct access to the stock market through the WKOD infrastructure.

     Through the formation of inter-Depository and correspondent relations with foreign depositories and global custodians by opening direct accounts in its accounting system, WKOD will ensure direct access of foreign investors to local stock and foreign exchange markets at minimal cost.

     The concept of Trading foreign shares in Kase will be improved to make it easier and cheaper for Kazakhstani investors to access foreign securities.

     To ensure the fulfillment of the requirements of market participants for transactions and guarantee the completion of settlements, it is necessary to ensure the effective organization of the activities of the central counterparty institution in the stock market. The possibility of separating the central counterparty Institute from Kase into a separate organization is considered, which will prevent the concentration of systemic risks in Kase and ensure the stability of the securities market infrastructure.

     In order to ensure the availability of services for assigning rating prices, issues of introducing appropriate conditions for the creation of local rating agencies and determining the optimal regime for their regulation and supervision in accordance with the best international standards will be considered. At the same time, measures will be taken to increase the responsibility of rating agencies for their assessments.

     2. modernization of the activities of infrastructure organizations in accordance with modern technological solutions

     Currently, WKOD supports a broad information and hardware and technical complex, closely integrated with the interbank money transfer system, interbank clearing, State automated information systems and the KASE trade and settlement system.

     WKOD ensures the smooth operation of Information Systems in compliance with national and international standards of Information Security. The channels for transmitting and receiving SWIFT messages are constantly working, and interaction with international reporting organizations is in order.

     In order to optimize business processes, a project is underway to integrate WKOD systems with state databases, including the DBK "individuals", the DBK "legal entities", the DBK "E-Notary", the DBK "e-licensing".

     In connection with the increase in the number of active investors (accounts), transactions and transactions with securities, there is a need to popularize the existing WKOD accounting systems. As part of the technological improvement of the WKOD, the issue of purchasing new technological and digital solutions will be worked out. Wkod technological platforms that interact with customers will be equipped with mechanisms for assessing the degree of customer satisfaction with the quality of the services provided.

     In all areas of WKOD services, it is planned to introduce modern versions of accounting and client systems, use microservice architecture, automate business processes, integrate with government databases, use the tools of IP and remote customer identification.

     Kase's activities for tracking transactions in the trading system will be improved. Currently, Kase uses various reports and alerts from the back office system to identify suspicious transactions. The main risk in continuing to use this system is the inefficient detection of suspicious transactions in the context of increased activity in the KASE markets. In this regard, modernization will be ensured by purchasing new software for monitoring and monitoring transactions.

     Task 3. Improving Kazakhstan's position in international indices

     The high positions of the stock market in the indices of international rating agencies are the basis for stimulating the flow of investment in the economy by global investors.

     1. increasing Kazakhstan's position in international indices and attracting foreign investments

     Since 2017, the stock market of Kazakhstan has been included in the "Frontier Marets" category (border markets) by the International Index Services MSSI and FTSE. Currently, phased work is underway to raise this country's position to the level of "Emegdypd Markets" (Emerging Markets).

     The main condition for Kazakhstan's inclusion in the category of" Emegdypd Securities " remains access to the quantitative parameters of these indices and liquidity indicators of Kazakhstan's securities, which can be achieved through the IPO of large companies in the quasi-public and private sectors, capable of providing the necessary aggregate market capitalization.

     In addition, it is necessary to provide for mechanisms of" short sale", lending with securities.

     To revive the MSW market, the concept of "distribution netting" and the possibility of concluding transactions with MSW and repo on the basis of general agreements, including taking into account international standards of the ISDA, were legally introduced. The agency, together with the National Bank, will continue to create a favorable environment for the development of the MSW market.

     In order to increase the attractiveness of the Kazakhstan Stock Market among foreign investors, measures will be envisaged to form an adequate yield curve of the state securities and include them in the International Index "JPMorgan Government Bond Index - Emegdypd". This ensures demand from investors who carry out Index or passive management of the bond portfolio of emerging markets and the flow of portfolio investments to the countries participating in the index.

     It is necessary to further work out the issues of amendments to the legislation regarding the recognition of national regulation of central counterparties as equivalent to ESMA regulation.

     Task 4. Implementation of international corporate governance practices

     To ensure trust from investors, it is necessary to comply with the principles of corporate governance and integrate them into the daily activities of companies.

     1. improving the quality and transparency of corporate governance of Kazakhstani companies

It is necessary to implement a set of measures to improve the quality and transparency of corporate governance of Kazakhstani companies in accordance with international standards and principles. To this end, the agency, together with NCE RK "Atameken" and interested state bodies, is taking measures to introduce the National Code of corporate governance.

     The purpose of the new corporate governance (country) code of Kazakhstan is to improve corporate governance in Kazakhstani companies and ensure their long-term sustainable development. Compliance with this code by Kazakhstani issuers will ensure the widest possible availability of information on the financial results and management processes of companies, effective protection of the rights of shareholders, especially minority shareholders, and confidence from foreign investors.

     Task 5. Improving the quality of financial intermediaries and developing financial instruments

     Digital technologies make it possible to use new opportunities to optimize the interaction of financial intermediaries with customers, which should contribute to an increase in the efficiency of their activities, reduce costs and regulatory burden. In order to expand the means of diversification of sources of financing and more flexible management of borrowed capital, it is necessary to introduce new types of financial instruments.

     1. development of a remote customer identification system

     To improve the efficiency of the remote customer identification system, it is necessary to carry out its further development, especially in the direction of using biometric data.

     When establishing business relations, it is planned to improve the mechanisms of remote identification of brokers ' clients. This initiative will reduce labor costs and time for identification, as well as improve the efficiency of the remote customer identification system.

     2. expansion of the custodial services market

     Today, on the basis of licenses, custody activities are carried out by 9 banks. The main volume of customers (more than 80%) is concentrated in three large custodians.

     In order to reduce the potential burden on participants in the securities market, it is proposed to revise the requirements for conducting client operations exclusively through non-affiliated custodian banks. The agency adheres to the principle of the need to comply with international standards and ensure the highest level of security of securities.

     In addition, it is necessary to modernize the IT infrastructure and software and Technical Support used in the process of custody activities in order for the custodian banks to effectively perform the services assigned to them and increase the efficiency of settlements on transactions with financial instruments.

     3. introduction of new financial instruments

     The lack of quality instruments and issuers is one of the problems that hinders the further development of the stock market.

     In order to increase the liquidity of securities, the list of financial instruments of the money market will be expanded through "repo operations with clearing participation certificates".

     In order to expand the provision of financial instruments of foreign issuers, it is planned to introduce a mechanism for transactions with the Bask-to-bask in the Kazakhstan market. This mechanism provides for the placement of quotes on foreign securities from foreign platforms in the KASE system. The implementation of this innovation is envisaged in various ways, the most optimal of which is the establishment of trade links between Kase and foreign exchanges.

     In addition, today there is a tendency to switch to passive investment funds, as a result of which there is an increase in the share of passive investment in the global structure of funds under management. In this regard, the issues of introducing new financial instruments at the ETF level will be worked out.

     Task 6. Increasing competition and protection of investors ' rights

     The stock market is characterized by a low level of competition among WKNFPS, which leads to the predominance of large participants and the greatest concentration of assets and client base in them.

     The regulator's actions to protect the rights of institutional and retail investors should be aimed at strengthening the trust environment by increasing information transparency, accessibility of information perception for the implementation of a more conscious choice of a financial product or service, increasing the loyalty of clients of financial intermediaries, as well as not encouraging unfair behavior in the securities market.

     1. reducing the concentration of risks in brokerage organizations

     Today, there is a relatively low level of competition in the market of brokerage services provided in the Kazakhstan market, which leads to an increase in the concentration of risks in certain brokers. The five brokers account for about 95% of clients.

     To increase competition, it is necessary to modernize the digital financial infrastructure, including providing brokers with the opportunity to promote their own mobile platforms and applications.

     2. ensuring the protection of investors ' rights

     In connection with the growth of the number of retail investors and their influence on pricing, measures will be strengthened to protect and reduce the risks of loss of investments by unskilled investors. For this purpose, international standards for working with retail investors will be introduced.

     In order to determine the suitability of financial instruments provided for the provision of services to unskilled investors in terms of profitability, risk of possible losses, investment threshold for each client, a requirement will be introduced on the need for brokers to evaluate the client's investment profile.

     In order to protect investors from possible risks, Information and consulting services are included in the scope of regulation, including intermediaries providing services in the FOREH market, as well as qualification requirements and responsibility of investment consultants for providing investment recommendations. These services can be provided by the agency's licensees - brokers and investment portfolio managers.

     The development of regulation and supervision of activities as the main means of forming models of activity of market participants will continue. In addition, signs of unfair behavior on the stock market, including criteria for recognizing transactions with Securities concluded for the purpose of manipulating prices, will be worked out. This requires consideration not only of transactions concluded as cases of manipulation of prices, but also of the spread of false information that may affect the actions of investors and applications for transactions.

     Task 7. AIFC development

     In order to gradually develop the securities market of Kazakhstan, it is necessary to continue further integration of the domestic stock market and the AIFC. This will expand the opportunities for attracting investment and access of local investors to financial instruments and markets.

     1. main directions of interaction with the AIFC

     The integration of the National Stock Market and the AIFC infrastructure will be ensured by creating a consolidated settlement and clearing infrastructure.

     In order to increase the depth of the market and consolidate the liquidity of the stock market, a single liquidity pool will be created on two exchanges (Kase and AIX) according to the experience of the stock exchanges of China, the United States and the European Union. Market participants are given the opportunity to trade through the "single window" of applications and perform transactions with securities on one of the exchange platforms. Issuers and investors will be able to place and put into circulation securities in accordance with the legislation of the Republic of Kazakhstan or the law of the AIFC.

     As part of the development of the country's financial market, the possibility of expanding the list of financial and professional services that AIFC participants can provide to residents of the Republic of Kazakhstan, as well as providing AIFC participants with access to national infrastructure will be considered.

     In order to integrate the AIFC into the common financial market, regulatory standards will be harmonized, the sequence of financial market regulation and the Coordination of new regulatory initiatives will be ensured.

     Due to its structure, the market for rating agencies is not competitive enough. In this regard, it is proposed to create local rating agencies in the AIFC in order to diversify and reduce the cost of borrowing from the" Big Three " (Standard&Poors, Moody's Investors Service, Fitch).

     In addition, according to the mutual reports of the International Association of swaps and derivatives (ISDA), measures will be implemented to recognize the AIFC regime, as well as the potential of the AIFC as a regulatory environment for testing innovative ideas in the field of financial technologies, new tools and services.

     7. development direction "development of the non-banking sector and microfinance"

     There is an increase in the role of the microfinance market in meeting the needs of the population and business in borrowed funds. It is important to ensure the further development of the Microfinance System in order to increase the availability of financial services, especially for small and micro-business entities, where obtaining microcredit is the first step towards starting and expanding a business.

     Task 1. Expanding the scope of microfinance services

     In order to reduce risks in the microfinance sector, increase its transparency and strengthen the protection of the rights of consumers of financial services, online lending companies, credit partnerships and pawnshops have been included in the agency's regulatory perimeter since 2020. Since 2021, licensing of microfinance activities has been introduced.

Thus, to date, a legal basis has been created for the further expansion of the potential of subjects of the microcredit market in providing the economy with borrowed funds.

     1. strengthening the role of the microfinance market to ensure economic growth

     The need to expand the potential of microfinance market entities is due to the increased demand for credit resources from the microbusiness, where banking services are not always available for various reasons (territorial remoteness, lack of reporting, small turnover, lack of collateral). In such conditions, the microfinance sector, thanks to a developed branch network, knowledge of the specifics of doing business on the ground, plays an important role in ensuring access to financial resources and stimulating entrepreneurial activity, the growth of the employed population and the development of the agro-industrial complex.

     In order to ensure financing of the activities of entrepreneurs in regional and rural areas, measures will be taken to stimulate the development of the institution of credit partnerships, as well as to expand the participation of the microfinance organization system in business development programs.

     2. expanding the list of financial services provided

     For the development of online services, approaches to providing services with the help of new technological solutions, the internet and mobile applications will be improved. Requirements for remote identification of clients will be strengthened to prevent fraud and issue micro-loans to third parties.

     The current legislation on payments and Payment Systems provides for the possibility of MFIs to act as payment agents. The issue of encouraging microfinance market entities to provide services for accepting cash, selling (distributing) electronic money and payment cards for making payments without opening a bank account will be worked out.

     Task 2. Ensuring sustainable funding

     One of the factors restraining the development of the microfinance market is the limited sources of funding. Financing is carried out mainly through investments of a limited group of founders (participants), the equity of market entities, as well as attracting high-value bank loans. Large microfinance organizations attract funding in the securities market.

     1. creation of an apex organization in the microfinance sector

     In order to ensure stable and low-risk funding in the microfinance market, the issue of creating the apex organization institute, whose activities will be aimed at attracting wholesale financing, will be worked out. This will allow the subjects of the microfinance sector to attract funds from international financial organizations, banks, insurance organizations and other institutional investors through the placement of debt securities.

     2. development of a mechanism for transforming a microfinance organization into a second-tier bank

     In order to increase the availability of banking services for small and micro-business entities in the regions, a simplified mechanism for converting large MFIs into banks has been introduced at the legislative level. This mechanism ensures the possibility of MFIs to turn their activities into banking activities without stopping their activities to service borrowers on previously issued microloans until the moment of obtaining a banking license, while maintaining the continuity of microfinance practices. The possibility of turning large MFIs into banks with a wide branch network and an established client base in rural regions will contribute to the growth of competition in the lending market for SMEs, as well as expand the access of customers to financial services in the regions.

     Task 3. Improving the quality of services provided

     The main problems of the microfinance sector are non-compliance of individual participants with the requirements of the legislation, the principles of responsibility for lending and the transparency of their activities.

     The number of pawnshops providing short-term loans to the population under the Pledge of movable property has increased. In rural regions, the activities of credit partnerships have been actively developed, which play an important role in ensuring employment and developing agriculture. At the same time, the regulatory requirements for microfinance entities do not take into account the specifics of their activities and the list of permitted activities is limited.

     To solve these problems, it is proposed to implement a number of initiatives aimed at increasing the transparency of the microfinance market, improving the quality of services provided and developing an optimal model for regulating and developing the microfinance sector.

     1. implementation of regulatory measures aimed at improving sustainability and transparency

     In order to further increase the stability and transparency of the activities of microfinance market entities, the agency will continue to work on improving the regulation, control and supervision of their activities.

     Due to the different profile of risk, it is planned to limit the activities of credit partnerships, pawnshops and microfinance organizations, including online lending companies, at the legislative level. The possibility of optimizing the regulatory burden of microfinance market entities, including through differentiation of prudential standards related to the activities carried out, is considered.

     The principles of lending liability in the microfinance market will be introduced, aimed at strengthening the responsibility of market entities for issuing loans without taking into account a negative credit history and the level of the borrower's credit burden, as well as strengthening the borrower's responsibility for providing inaccurate information.

     It is planned to introduce standards for doing business and requirements for risk management systems of microfinance market entities (credit risk management, working with overdue debts and rehabilitation of problem borrowers, operational risk management standards).

     All planned regulatory changes will be made in stages in order to give market participants sufficient time to bring their activities in line with standards and requirements.

     2. improving the procedure and forms of reporting

     As part of improving the efficiency of control and supervision of microfinance market entities, it is planned to introduce new regulatory reporting. In particular, the forms of information on the structure of the loan portfolio, interest rates, overdue debts, the cost and structure of funding, prudential standards and the client base will be determined. In addition, the position on the structure of microloans issued to individuals will be revised, dividing them into consumer and entrepreneurial microloans, which are classified not by the type of entity, but by the intended purpose of microloans.

     Depending on the specifics of the activities carried out (microfinance organizations, Credit Partners, pawnshops), differentiation requirements are introduced into the submitted reporting.

     Section 6. Target indicators and expected results

     1. target indicators

     To monitor progress in the implementation of the vision of the development of the financial sector and to promote the active economic development of the Republic of Kazakhstan, as well as the growth of the well-being of the population, a list of TNCs of the financial sector and their target values has been developed.

     The achievement of the target values of these indicators reflects the real implementation of the main strategic goals of the entire sector as a whole (cross-functional TNCs) and the main segments of the financial sector (the TNCs of the banking segment include indicators of external independent assessment and internal development of the banking services market, indicators of stability and development of these segments of the insurance and non-banking segment, microfinance segment and securities market TNCs).

Download

№

Metrics

Description

Current values

Target values

2021

2025

2030

1

Financial market assets relative to GDP, %

Reflects the relative size and role of the financial market in the economy

52,8%

59%

70%

2

Share of second-tier banks using OREP Bee for financial products and services, %

Demonstrates the readiness of banks to move to the development of financial technologies and the implementation of platform solutions and ecosystems

27%

100%

100%

3

Financial literacy index, %

Indicates the level of financial literacy of the population

39,5%

41,5%

45%

Banking sector

4.1.

Growth of the loan portfolio compared to the loan portfolio indicator in 2021, %

The indicator reflects the change in relation to the size of the loan portfolio in 2021

0%

39%

80%

4.2.

Loan portfolio in relation to GDP

24,1%

33,4%

43,3%

4.3.

Growth of loans of legal entities from the level of 2021, %

0%

23%

55,5%

Insurance sector

5

Share of assets of insurance organizations in GDP

Reflects the size of the insurance sector in the country's economy

2,2%

3%

5%

Securities market

6

Increase in securities market capitalization by the securities market capitalization indicator in 2021, %

Reflects the change in 2021 in relation to the capitalization of the securities market

0%

10%

Non-banking sector and microfinance companies sector

7

Growth of the loan portfolio by the indicator of the loan portfolio of MFIs in 2021, %

Reflects the change in relation to the size of the loan portfolio in 2021

0%

62,9%

     * In case of full implementation of the measures provided for by the concept for the development of the securities market, as well as the following factors are included in the target targets for capitalization of the securities market:

     -Conducting IPOs of national companies with the participation of a wide range of retail investors in the stock market in the framework of the comprehensive privatization plan for 2021-2025;

     - maintaining the inflation rate in a given corridor;

- relative stability of the tenge exchange rate to foreign currencies;

     - positive dynamics of real incomes of the population is achieved when they are implemented simultaneously.

     2. expected results

     Based on the results of the implementation of strategic initiatives of the concept for the development of the financial sector of the Republic of Kazakhstan until 2030, the following results are expected:

     The position of the financial system of the Republic of Kazakhstan in the ranking of the Global Competitiveness Index of the World Economic Forum is not lower than the 60th place;

     Growth of the loan portfolio of the banking sector compared to GDP in 2021-up to 40.4%;

     high quality of the loan portfolio of second-tier banks and organizations engaged in microfinance activities: overdue loans and microloans (NRL)no more than 5% of the total loan portfolio;

     the active role of the insurance sector in improving the well-being of the population and protecting its property interests: premiums of insurance organizations, which account for at least 4% of GDP, total payments to premiums, with the exception of accumulative insurance - not less than 60%;

     growth of population activity in the securities market: citizens with a brokerage account (in the nominal holding system of the WKOD) make up at least 8% of the employed population.

Concept of financial sector development until 2030

Action plan for the implementation of the financial sector development concept until 2030

Download

№

Name of the reforms/main activities

Completion form

Completion date

Responsible performers

1

2

3

4

5

1. development direction "ensuring financial stability and reliable support for the financial sector" Target Indicator:financial market assets to GDP, %: in 2021-52.8%, in 2022 - 53.0%, in 2023 - 55.0%, in 2024 - 57.0%, in 2025 - 59.0%, in 2026 - 61.0%, in 2027 - 63.0%, in 2028 - 64.0%, in 2029 - 67.0%, in 2030 - 70.0%

Task 1. Development of macroprudential policy

1.

Development of macroprudential policy mechanisms

1)

Development of recommendations for the development of procedures for assessing financial stability risks

KMT protocol

IV-quarter annually

NB, NPR

2)

Improving the mechanism for issuing loans at the last stage to ensure the stability of solvent banks in the implementation of idiosyncratic liquidity shocks

Joint resolutions of the Departments of the National Bank of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan

IV quarter of 2024

NB, NPR

2.

Expanding the criteria for recognizing financial organizations as systematically important

1)

Develop recommendations based on the results of the analysis of the feasibility of introducing additional criteria for attributing financial organizations to systemically significant organizations

KMT protocol

IV quarter of 2024

NB, NPR

Task 2. Development of risk-oriented supervision

1.

Improving the risk-oriented supervision system in the banking sector

1)

Integration of stress testing in the SRER with monitoring of sustainable ACS and the banking sector

Order of the chairman of the SNR

IV quarter of 2023

KNRDA

2)

Establishment of a supervisory allowance for bank capital adequacy ratios (Rillar 2)

Resolution of the NPR Management Board

IV quarter of 2023

KNRDA

3)

Development of a supervisory methodology for internal procedures for assessing capital adequacy (ICAAR) and liquidity (ICAAR)

Order of the chairman of the SNR

IV quarter of 2022

KNRDA

4)

Introduction of the third component of the Basel II standard "disclosure of information" (Rillair 3)

Resolution of the NPR Management Board

IV quarter of 2024

KNRDA

5)

Development and implementation of a methodology for assessing the effectiveness of solvency recovery plans (Resoviru Rlans)

Order of the chairman of the SNR

IV quarter of 2023

KNRDA

2.

Improving the risk-oriented surveillance system in the insurance sector

1)

Step-by-step implementation of the components of Solvensu II in terms of calculating the required capital (SSR) according to the standard formula

Resolution of the NPR Management Board

IV quarter of 2024

KNRDA

2)

Step-by-step implementation of components of Solvensu II in terms of implementing requirements for minimum required capital (MCC), calculating liabilities and disclosing information

Resolutions of the NPR Management Board

IV quarter of 2030

KNRDA

3.

Improving the risk-oriented surveillance system in the securities market

1

2

3

4

5

1)

Implementation of supervisory stress testing tools

Order of the chairman of the KNRDA

IV quarter of 2023

KNRDA

4.

Transition to consolidated supervision

1)

Determination of the list of organizations that are part of the financial conglomerate in order to improve the effectiveness of consolidated supervision

Information to the AP

IV quarter of 2024

KNRDA, WKDA

Task 3. Countering abuse in the financial market

1.

Application of risk-oriented supervision in the field of MSW/MSW

1)

Implementation of the risk assessment component in the system of risk-oriented supervision of financial organizations

Order of the chairman of the SNR

IV quarter of 2022

SNR, NB, MNE

2.

Development of typologies, mechanisms and schemes for money laundering and terrorist financing

1)

Development of typologies and schemes for money laundering and terrorist financing

Typology approved by the deputy chairman of the KMA

IV quarter of 2023

KMA, KNRDA, NB

3.

Implementation of a set of measures aimed at identifying financial pyramids and illegal activities in the financial market

1)

Development and approval of a methodology for determining the signs of financial pyramids

Order of the chairman of the KMA

I-quarter of 2023

KMA

2)

Publication and updating of the list of persons who have signs of activity to attract money from citizens and organizations with a promise to pay guaranteed income (profit from property), including those whose actions have received complaints from citizens

List published on the SNR internet resource

on a permanent basis

KNRDA, KMA

1

2

3

4

5

3)

Expand the functionality of the Sall-center of the SNRDA and the mobile application "Fingramota Online" to receive information from citizens about existing organizations with signs of a financial pyramid, types of fraud and provide the necessary advice

Information to the AP

III quarter of 2023

KNRDA, KMA

4)

Interaction with the media on the issues of conducting information and explanatory work to improve the financial literacy of the population on combating fraud and financial pyramids

Publications in the media and social networks, interviews, round tables

on a permanent basis

KNRDA, KMA

4.

Taking measures aimed at regulating the turnover of digital assets

1)

Development of additional requirements for regulating the turnover of cryptocurrencies, taking into account international experience, to reduce the risks of use in illegal activities, withdrawal of capital, CJ/TF

Resolution of the management board of the NPR

IV quarter of 2023

KNRDA

2)

Development of proposals for the regulation and development of cryptocurrencies on the basis of a pilot project conducted on the territory of the AIFC

Recommendations for the AP

IV quarter of 2023

AIFC, CCI, NB, NPR

Task 4. Strengthening international cooperation

1.

Strengthening cooperation with international financial organizations and associations of financial market regulators

1)

Accession of the International Association of insurance supervision to the multilateral memorandum of understanding on cooperation and information exchange

Multilateral memorandum of understanding on cooperation and information exchange

IV quarter of 2023

KNRDA

2.

Intensification of bilateral cooperation with financial market regulators of foreign countries

1)

Verification and updating of existing agreements on cooperation and exchange of information, including confidential information, with foreign regulators of financial markets

International agreements on cooperation and information exchange

IV quarter of 2025

KNRDA

2)

Conclusion of agreements on cooperation and exchange of information with foreign financial regulators of states/jurisdictions of origin of branches of financial organizations

Information to the AP

every year

KNRDA

2. development direction "development of innovations, financial technologies, new business models and competencies in the Financial Market" Target Indicator:share of second-tier banks using OREP for financial products and services, %: in 2021 - 27%, in 2022 - 45%, in 2023 - 60%, in 2024 - 80%, in 2025 - 100%, in 2026 - 100%, in 2027 - 100%, in 2028 - 100%, in 2029 - 100%, in 2030 - 100%

Task 1. Promoting digitalization

1.

Creating a sustainable regulatory environment for the safe implementation of innovations in the financial market

1)

Bringing the regulation of the existing financial market in line with the needs of the development of digital technologies

Resolution of the NPR Management Board

IV quarter of 2025

SNR, NB, AIFC

2)

Creation of collaborative platforms for the development of financial technologies

Information to the AP

IV quarter of 2022

NB, NPR

3)

Development of recommendations for the development of regulatory environments

KMT protocol

IV quarter of 2022

SNRDA, NB

4)

Analysis and development of recommendations for international approaches to the use of blockchain technologies both in the development of financial market infrastructure and in the activities of financial organizations

KMT protocol

IV quarter of 2025

KNRDA, KFF

2.

Laying the foundation for the digital financial market through the development of digital infrastructure

1)

Development of OREP Bee and OREP Vapkipd technologies

Information to the AP

IV quarter of 2023

NB, NPR

3.

Introduction of digital tenge

1)

Conducting a research project "digital tenge" and developing recommendations for the introduction of the national digital currency

Recommendations for the AP

I-quarter of 2023

NB

Task 2. Development of new financial technologies and digital services of the financial market

1.

Stimulating new financial technologies, increasing the competitiveness of the financial sector

1)

Analysis of the possibility of granting Kazakhstani financial organizations the right to create and participate in the capital of companies involved in the field of online trading and the provision of services in the context of ensuring financial stability and sustainability of financial conglomerates

Information to the AP

IV quarter of 2023

KNRDA, NB, WKDA

2.

Analysis and control of potential risks

1)

Step-by-step implementation of the components of Solvensu II in terms of calculating the required capital (SSR) according to the standard formula

Resolution of the management board of the NPR

IV quarter of 2024

KNRDA

2)

Step-by-step implementation of components of Solvensu II in terms of implementing requirements for minimum required capital (MCC), calculating liabilities and disclosing information

Resolutions of the NPR Management Board

IV quarter of 2030

KNRDA

3.

Improving the risk-oriented surveillance system in the securities market

1

2

3

4

5

1)

Implementation of supervisory stress testing tools

Order of the chairman of the KNRDA

IV quarter of 2023

KNRDA

4.

Transition to consolidated supervision

1)

Determination of the list of organizations that are part of the financial conglomerate in order to improve the effectiveness of consolidated supervision

Information to the AP

IV quarter of 2024

KNRDA, WKDA

Task 3. Countering abuse in the financial market

1.

Application of risk-oriented supervision in the field of MSW/MSW

1)

Implementation of the risk assessment component in the system of risk-oriented supervision of financial organizations

Order of the chairman of the SNR

IV quarter of 2022

SNR, NB, MNE

2.

Development of typologies, mechanisms and schemes for money laundering and terrorist financing

1)

Development of typologies and schemes for money laundering and terrorist financing

Typology approved by the deputy chairman of the KMA

IV quarter of 2023

KMA, KNRDA, NB

3.

Implementation of a set of measures aimed at identifying financial pyramids and illegal activities in the financial market

1)

Development and approval of a methodology for determining the signs of financial pyramids

Order of the chairman of the KMA

I-quarter of 2023

KMA

2)

Publication and updating of the list of persons who have signs of activity to attract money from citizens and organizations with a promise to pay guaranteed income (profit from property), including those whose actions have received complaints from citizens

List published on the SNR internet resource

on a permanent basis

KNRDA, KMA

1

2

3

4

5

3)

Expand the functionality of the Sall-center of the SNRDA and the mobile application "Fingramota Online" to receive information from citizens about existing organizations with signs of a financial pyramid, types of fraud and provide the necessary advice

Information to the AP

III quarter of 2023

KNRDA, KMA

4)

Interaction with the media on the issues of conducting information and explanatory work to improve the financial literacy of the population on combating fraud and financial pyramids

Publications in the media and social networks, interviews, round tables

on a permanent basis

KNRDA, KMA

4.

Taking measures aimed at regulating the turnover of digital assets

1)

Development of additional requirements for regulating the turnover of cryptocurrencies, taking into account international experience, to reduce the risks of use in illegal activities, withdrawal of capital, CJ/TF

Resolution of the management board of the NPR

IV quarter of 2023

KNRDA

2)

Development of proposals for the regulation and development of cryptocurrencies on the basis of a pilot project conducted on the territory of the AIFC

Recommendations for the AP

IV quarter of 2023

AIFC, CCI, NB, NPR

Task 4. Strengthening international cooperation

1.

Strengthening cooperation with international financial organizations and associations of financial market regulators

1)

Accession of the International Association of insurance supervision to the multilateral memorandum of understanding on cooperation and information exchange

Multilateral memorandum of understanding on cooperation and information exchange

IV quarter of 2023

KNRDA

2.

Intensification of bilateral cooperation with financial market regulators of foreign countries

1)

Verification and updating of existing agreements on cooperation and exchange of information, including confidential information, with foreign regulators of financial markets

International agreements on cooperation and information exchange

IV quarter of 2025

KNRDA

2)

Conclusion of agreements on cooperation and exchange of information with foreign financial regulators of states/jurisdictions of origin of branches of financial organizations

Information to the AP

every year

KNRDA

2. development direction "development of innovations, financial technologies, new business models and competencies in the Financial Market" Target Indicator:share of second-tier banks using OREP for financial products and services, %: in 2021 - 27%, in 2022 - 45%, in 2023 - 60%, in 2024 - 80%, in 2025 - 100%, in 2026 - 100%, in 2027 - 100%, in 2028 - 100%, in 2029 - 100%, in 2030 - 100%

Task 1. Promoting digitalization

1.

Creating a sustainable regulatory environment for the safe implementation of innovations in the financial market

1)

Bringing the regulation of the existing financial market in line with the needs of the development of digital technologies

Resolution of the management board of the NPR

IV quarter of 2025

SNR, NB, AIFC

2)

Creation of collaborative platforms for the development of financial technologies

Information to the AP

IV quarter of 2022

NB, NPR

3)

Development of recommendations for the development of regulatory environments

KMT protocol

IV quarter of 2022

SNRDA, NB

4)

Analysis and development of recommendations for international approaches to the use of blockchain technologies both in the development of financial market infrastructure and in the activities of financial organizations

KMT protocol

IV quarter of 2025

KNRDA, KFF

2.

Laying the foundation for the digital financial market through the development of digital infrastructure

1)

Development of OREP Bee and OREP Vapkipd technologies

Information to the AP

IV quarter of 2023

NB, NPR

3.

Introduction of digital tenge

1)

Conducting a research project "digital tenge" and developing recommendations for the introduction of the national digital currency

Recommendations for the AP

I-quarter of 2023

NB

Task 2. Development of new financial technologies and digital services of the financial market

1.

Stimulating new financial technologies, increasing the competitiveness of the financial sector

1)

Analysis of the possibility of granting Kazakhstani financial organizations the right to create and participate in the capital of companies involved in the field of online trading and the provision of services in the context of ensuring financial stability and sustainability of financial conglomerates

Information to the AP

IV quarter of 2023

KNRDA, NB, WKDA

2.

Analysis and control of potential risks

1)

Development of procedures for the safe provision of financial services on the internet, compliance with the principles of Know Your costomer and the principles of consumer protection in the provision of digital financial services

Resolution of the management board of the NPR

IV quarter of 2025

SNRDA, NB

Task 3. Implementation of the ESC principles

1.

Disclosure of information on exposure to ESC risks

1

2

3

4

5

1)

Disclosure of information on the degree of exposure to ESC risks for financial sector participants, as well as development of recommendations on the procedure for identifying, assessing and managing these risks

Order of the chairman of the SNR

IV quarter of 2023

KNRDA, KFF

2)

Establishment of requirements for the periodic publication of the ES0 risk report by financial organizations

Resolution of the management board of the NPR

IV quarter of 2025

KNRDA, KFF

2.

Implementation of ESC principles in the risk management system and corporate governance

1)

Approval of requirements for risk management subsystems and corporate governance of financial organizations for compliance with ESC principles

Resolution of the management board of the NPR

IV quarter of 2024

KNRDA, KFF

3.

Integration into the ESC risk monitoring and monitoring system

1)

Introduction of the ESC risk monitoring mechanism and their integration into the system of supervision of financial organizations

Order of the chairman of the SNR

IV quarter of 2025

KNRDD, KFF

Task 4. Development of competence in the financial market

1.

Implementation of measures and programs of professional training and retraining of personnel

1)

Establishment of requirements for the mandatory program of training and training of employees of financial organizations

Resolution of the NPR Management Board

IV quarter of 2026

KNRDD, NB, KFF

2.

Motivation of employees of financial organizations to undergo professional certification

1)

Motivation of employees of financial organizations to undergo professional certification

Resolution of the management board of the NPR

IV quarter of 2026

KNRDA, KFF

3.

Introduction of lists and restriction of access to professional activities

1

2

3

4

5

1)

Establishment of requirements for an impeccable business reputation in order to exclude the possibility of holding a senior position of persons whose illegal actions or inaction led to the forced liquidation of a financial organization or its recognition as bankrupt

Draft law of the Republic of Kazakhstan

IV quarter of 2024

SNRDA, NB

2)

Drawing up a list of information about persons who have been deprived of a license by financial organizations due to their fault

Order of the chairman of the SNR

II quarter of 2025

SNRDA, NB

Task 5. Improving mechanisms of interaction with financial market participants

1.

Creation of data center control using sirtesh and Regtesh technologies

1)

Development of sertesh services

Order of the chairman of the NB, order of the chairman of the KNRDA

IV quarter of 2025

NB, KNRDA, KFF

2.

Creation of data center control using sirtesh and Regtesh technologies

1)

Development of regtesh services

Order of the chairman of the NPR, order of the chairman of the NB

IV quarter of 2025

KNRDA, NB, FF

3.

Creation of a "single window" of interaction with financial market participants and transition to electronic document management

1)

Transition to electronic document management on the principle of "single window" with financial market participants

Act of introduction of the information system into industrial operation

IV quarter of 2024

NB, NPR

Task 6. Information security and cybersecurity

1.

Optimization of financial sector cybersecurity regulation

1

2

3

4

5

1)

Differentiation of competencies in the field of information security and restriction and approval of competencies/powers of the Ministry of internal affairs, NB and SNR

Draft law of the Republic of Kazakhstan

IV quarter of 2025

CDIAPM, NNRDA, NB

2)

Conclusion of agreements on cooperation and exchange of information with foreign financial regulators of states/jurisdictions of origin of branches of financial organizations

Information to the AP

every year

KNRDA

2. development direction "development of innovations, financial technologies, new business models and competencies in the Financial Market" Target Indicator:share of second-tier banks using OREP for financial products and services, %: in 2021 - 27%, in 2022 - 45%, in 2023 - 60%, in 2024 - 80%, in 2025 - 100%, in 2026 - 100%, in 2027 - 100%, in 2028 - 100%, in 2029 - 100%, in 2030 - 100%

Task 1. Promoting digitalization

1.

Creating a sustainable regulatory environment for the safe implementation of innovations in the financial market

1)

Bringing the regulation of the existing financial market in line with the needs of the development of digital technologies

Resolution of the management board of the NPR

IV quarter of 2025

SNR, NB, AIFC

2)

Creation of collaborative platforms for the development of financial technologies

Information to the AP

IV quarter of 2022

NB, NPR

3)

Development of recommendations for the development of regulatory environments

KMT protocol

IV quarter of 2022

SNRDA, NB

4)

Analysis and development of recommendations for international approaches to the use of blockchain technologies both in the development of financial market infrastructure and in the activities of financial organizations

KMT protocol

IV quarter of 2025

KNRDA, KFF

2.

Laying the foundation for the digital financial market through the development of digital infrastructure

1)

Development of OREP Bee and OREP Vapkipd technologies

Information to the AP

IV quarter of 2023

NB, NPR

3.

Introduction of digital tenge

1)

Conducting a research project "digital tenge" and developing recommendations for the introduction of the national digital currency

Recommendations for the AP

I-quarter of 2023

NB

Task 2. Development of new financial technologies and digital services of the financial market

1.

Stimulating new financial technologies, increasing the competitiveness of the financial sector

1)

Analysis of the possibility of granting Kazakhstani financial organizations the right to create and participate in the capital of companies involved in the field of online trading and the provision of services in the context of ensuring financial stability and sustainability of financial conglomerates

Information to the AP

IV quarter of 2023

KNRDA, NB, WKDA

2.

Analysis and control of potential risks

1)

Development of procedures for the safe provision of financial services on the internet, compliance with the principles of Know Your costomer and the principles of consumer protection in the provision of digital financial services

Resolution of the management board of the NPR

IV quarter of 2025

SNRDA, NB

Task 3. Implementation of the ESC principles

1.

Disclosure of information on exposure to ESC risks

1

2

3

4

5

1)

Disclosure of information on the degree of exposure to ESC risks for financial sector participants, as well as development of recommendations on the procedure for identifying, assessing and managing these risks

Order of the chairman of the SNR

IV quarter of 2023

KNRDA, KFF

2)

Establishment of requirements for the periodic publication of the ES0 risk report by financial organizations

Resolution of the management board of the NPR

IV quarter of 2025

KNRDA, KFF

2.

Implementation of ESC principles in the risk management system and corporate governance

1)

Approval of requirements for risk management subsystems and corporate governance of financial organizations for compliance with ESC principles

Resolution of the management board of the NPR

IV quarter of 2024

KNRDA, KFF

3.

Integration into the ESC risk monitoring and monitoring system

1)

Introduction of the ESC risk monitoring mechanism and their integration into the system of supervision of financial organizations

Order of the chairman of the SNR

IV quarter of 2025

KNRDD, KFF

Task 4. Development of competence in the financial market

1.

Implementation of measures and programs of professional training and retraining of personnel

1)

Establishment of requirements for the mandatory program of training and training of employees of financial organizations

Resolution of the management board of the NPR

IV quarter of 2026

KNRDD, NB, KFF

2.

Motivation of employees of financial organizations to undergo professional certification

1)

Motivation of employees of financial organizations to undergo professional certification

Resolution of the management board of the NPR

IV quarter of 2026

KNRDA, KFF

3.

Introduction of lists and restriction of access to professional activities

1

2

3

4

5

1)

Establishment of requirements for an impeccable business reputation in order to exclude the possibility of holding a senior position of persons whose illegal actions or inaction led to the forced liquidation of a financial organization or its recognition as bankrupt

Draft law of the Republic of Kazakhstan

IV quarter of 2024

SNRDA, NB

2)

Drawing up a list of information about persons who have been deprived of a license by financial organizations due to their fault

Order of the chairman of the SNR

II quarter of 2025

SNRDA, NB

Task 5. Improving mechanisms of interaction with financial market participants

1.

Creation of data center control using sirtesh and Regtesh technologies

1)

Development of sertesh services

Order of the chairman of the NB, order of the chairman of the KNRDA

IV quarter of 2025

NB, KNRDA, KFF

2.

Creation of data center control using sirtesh and Regtesh technologies

1)

Development of regtesh services

Order of the chairman of the NPR, order of the chairman of the NB

IV quarter of 2025

KNRDA, NB, FF

3.

Creation of a "single window" of interaction with financial market participants and transition to electronic document management

1)

Transition to electronic document management on the principle of "single window" with financial market participants

Act of introduction of the information system into industrial operation

IV quarter of 2024

NB, NPR

Task 6. Information security and cybersecurity

1.

Optimization of financial sector cybersecurity regulation

1

2

3

4

5

1)

Differentiation of competencies in the field of information security and restriction and approval of competencies/powers of the Ministry of education and science of the Republic of Kazakhstan, the Ministry of education and science of the Republic of Kazakhstan and the Ministry of education and science of the Republic of Kazakhstan

Draft law of the Republic of Kazakhstan

IV quarter of 2025

CDIAPM, SNRDA, NB

2)

Development of proposals for determining the criteria for attributing financial market entities to the most important objects of information and communication infrastructure and their implementation in the regulatory environment

Information to the government

IV quarter of 2025

CDIAPM, SNRDA, NB

3)

Bringing the legislation of the Republic of Kazakhstan in the field of information security in the financial market in accordance with international standards 180 27000, 27001

Draft law of the Republic of Kazakhstan

IV quarter of 2025

CDIAPM, NNRDA, NB

2.

Effective interaction of market participants in the field of Information Security

1)

Improving the activities of the industry center (Snr) in terms of automation of monitoring and response to incidents and incidents of cybersecurity of the financial market

Resolution of the management board

IV quarter of 2027

KNRDA

2)

Connection of participants in the payment services market to the unified technology platform of the NB

Annual report on the activities of the National Bank

II quarter of 2023

NB

3)

Implementation of regular checks on the effectiveness of financial organizations ' response to cyber incidents

Order of the chairman of the SNR

IV quarter of 2024

KNRDA

4)

Formation of a mechanism for rapid response to cyber threats in the financial market, including improving the interaction of the industry center (Snr) with the National Bank, special and law enforcement agencies

Resolution of the board of the KDRDA

IV quarter of 2027

KNRDA

1

2

3

4

5

3. development direction "ensuring fair behavior, protecting the rights and interests of consumers of financial services" Target Indicator:financial literacy index, %: 2021-39.5%, 2022 - 40%, 2023 - 40.5%, 2024 - 41.0%, 2025 - 41.5%, 2026 - 42.0%, 2027 - 42.9%, 2028 - 43.6%, 2029 - 44.3%, 2030 - 45%

Task 1. Introduction of a new model for protecting the rights and interests of consumers of financial services

1.

Introduction of a risk-oriented approach to consumer protection

1)

Introduction of a new model of consumer protection with elements of a risk-oriented approach

Order of the chairman of the SNR

IV quarter of 2024

KNRDA

2.

Implementation of behavioral standards for working with the population

1)

Implementation of behavioral standards for working with the population of financial organizations

Draft law of the Republic of Kazakhstan

IV quarter of 2024

KNRDA

Task 2. Improving financial accessibility, inclusion and financial literacy of the population

1.

Development of financial inclusion

1)

Providing infrastructure access for people with disabilities, the elderly and other vulnerable segments of the population

Draft law of the Republic of Kazakhstan

IV quarter of 2024

KNRDA

2)

Expanding the network of financial market instruments aimed at meeting the needs of citizens with a relatively low income level

Order of the chairman of the SNR

II quarter of 2023

KNRDA

2.

Raising awareness of financial products and financial literacy

1)

www.fingramota.kz interactive means of interaction with users of the internet portal (questions and answers, tests, videos, reversible forms)

www.fingramota.kz certificate of commissioning of the updated internet portal

I-quarter of 2024

KNRDA

1

2

3

4

5

modernization in terms of implementation, implementation of financial literacy training measures for all Target groups, as well as systematic monitoring of the level of financial literacy of the population

2)

Interaction with the national and regional mass media on the issue of conducting information and explanatory work to improve the financial literacy of the population

Publications, interviews, round tables in the media and social networks

every year

KNRDA

3)

Strengthen work to promote financial, investment, digital, and cybersecurity issues through public and private educational programs, including conducting educational courses and financial discipline and social research to develop skills in using digital technologies in them

Educational programs, courses and social studies

on a permanent basis

KNRDA

Bringing the legislation of the Republic of Kazakhstan in the field of information security in the financial market in accordance with international standards 180 27000, 27001

Draft law of the Republic of Kazakhstan

IV quarter of 2025

CDIAPM, SNRDA, NB

2.

Effective interaction of market participants in the field of Information Security

1)

Improving the activities of the industry center (Snr) in terms of automation of monitoring and response to incidents and incidents of cybersecurity of the financial market

Resolution of the management board

IV quarter of 2027

KNRDA

2)

Connection of participants in the payment services market to the unified technology platform of the NB

Annual report on the activities of the National Bank

II quarter of 2023

NB

3)

Implementation of regular checks on the effectiveness of financial organizations ' response to cyber incidents

Order of the chairman of the SNR

IV quarter of 2024

KNRDA

4)

Formation of a mechanism for rapid response to cyber threats in the financial market, including improving the interaction of the industry center (Snr) with the National Bank, special and law enforcement agencies

Resolution of the board of the KDRDA

IV quarter of 2027

KNRDA

1

2

3

4

5

3. development direction "ensuring fair behavior, protecting the rights and interests of consumers of financial services" Target Indicator:financial literacy index, %: 2021-39.5%, 2022 - 40%, 2023 - 40.5%, 2024 - 41.0%, 2025 - 41.5%, 2026 - 42.0%, 2027 - 42.9%, 2028 - 43.6%, 2029 - 44.3%, 2030 - 45%

Task 1. Introduction of a new model for protecting the rights and interests of consumers of financial services

1.

Introduction of a risk-oriented approach to consumer protection

1)

Introduction of a new model of consumer protection with elements of a risk-oriented approach

Order of the chairman of the SNR

IV quarter of 2024

KNRDA

2.

Implementation of behavioral standards for working with the population

1)

Implementation of behavioral standards for working with the population of financial organizations

Draft law of the Republic of Kazakhstan

IV quarter of 2024

KNRDA

Task 2. Improving financial accessibility, inclusion and financial literacy of the population

1.

Development of financial inclusion

1)

Providing infrastructure access for people with disabilities, the elderly and other vulnerable segments of the population

Draft law of the Republic of Kazakhstan

IV quarter of 2024

KNRDA

2)

Expanding the network of financial market instruments aimed at meeting the needs of citizens with a relatively low income level

Order of the chairman of the SNR

II quarter of 2023

KNRDA

2.

Raising awareness of financial products and financial literacy

1)

www.fingramota.kz interactive means of interaction with users of the internet portal (questions and answers, tests, videos, reversible forms)

www.fingramota.kz certificate of commissioning of the updated internet portal

I-quarter of 2024

KNRDA

1

2

3

4

5

modernization in terms of implementation, implementation of financial literacy training measures for all Target groups, as well as systematic monitoring of the level of financial literacy of the population

2)

Interaction with the national and regional mass media on the issue of conducting information and explanatory work to improve the financial literacy of the population

Publications, interviews, round tables in the media and social networks

every year

KNRDA

3)

Strengthen work to promote financial, investment, digital, and cybersecurity issues through public and private educational programs, including conducting educational courses and financial discipline and social research to develop skills in using digital technologies in them

Educational programs, courses and social studies

on a permanent basis

KNRDA

4. development direction "financing of the economy and development of the banking sector" Target Indicator:growth of the loan portfolio compared to the loan portfolio indicator in 2021, %: 2021 - 0%, 2022 - 12%, 2023 - 21.5%, 2024 - 30%, 2025 - 39%, 2026 - 47.5%, 2027 - 56%, 2028 - 64%, 2029 year - 72%, 2030— 80%.The loan portfolio in relation to GDP for 2021: 2021-24.1%, 2022 - 26.9%, 2023 - 29.2%, 2024 - 31.3%, 2025 - 33.4%, 2026 - 35.5%, 2027 - 37.5%, 2028 - 39.5%, 2029 - 41.4%, 2030 year - 43.3%. Growth of loans of legal entities from the level of 2021, %: 2021 - 0%, 2022 - 5.5%, 2023 - 10.7%,2024 - 16.4%, 2025 - 23%, 2026 - 29%, 2027 - 36.2%, 2028 - 42.4%, 2029-48.8%, 2030-55.5%

1

2

3

4

5

Task 1. Stimulating lending to the economy

1.

Implementation of regulatory and incentive measures for banks to reorient liquidity to lending to the economy

1)

Reduction of requirements when calculating provisions (reserves) under IFRS for impaired loans secured by high-quality collateral

Resolution of the management board of the NPR

IV quarter of 2024

KNRDA

2)

Expanding the types of collateral accepted as" in-kind " Security

Resolution of the management board of the NPR

IV quarter of 2024

KNRDA

3)

Work out a set of measures to ensure affordable and stable lending to the real sector of the economy, including through the free liquidity of commercial banks

Recommendations for the AP

IV quarter of 2022

NB, NPR, government

2.

Increasing the requirements for the stability of the funding base

1)

Development of recommendations for improving the stability of the fund base of banks with established deadlines for repayment of obligations, as well as the stability of current deposits

KMT protocol

IV quarter of 2026

SNRDA, NB

2)

Development of the market of secured bonds of banks

Recommendations for the AP

II quarter of 2023

KNRDA, NB, FF

3)

Development of an effective uapf investment strategy that provides for the possibility of involving private management companies in the management of pension assets

Recommendations for the AP

II quarter of 2023

NB, NPR, WKDA, Finance, Labor Ministry

3.

Expanding access of credit organizations to information from state databases

1

2

3

4

5

1)

Determining the levels of access to information in state databases for banks, taking into account the list of state databases and requirements for information protection, as well as providing such access to banks

Order of the chairman of the SNR

IV quarter of 2024

SNRDA, NB

4.

Improving the credit history formation system

1)

Development of recommendations for improving the credit bureau model, taking into account the principle of minimum costs of financial market participants

KMT protocol

IV quarter of 2026

SNRDA, NB

5.

Introduction of market mechanisms for hedging credit risk

1)

Development of recommendations for the development of mechanisms for securitization of the credit portfolio

KMT protocol

IV quarter of 2024

KNRDA

6.

Expanding the participation of foreign banks in financing the economy

1)

Implementation of measures to increase the participation of foreign banks in financing the economy

Information to the AP

IV quarter of 2025

AIFC, NB, NPR

7.

Development of Islamic banking

1)

Preparation of proposals for additional measures for the development of Islamic banking

Information to the AP

IV quarter of 2026

AIFC, NB, NPR

Task 2. Development of alternative financial instruments

1.

Increasing the attractiveness of factoring documentation operations

1)

Creation of an electronic invoice accounting platform, an information system for receiving and processing electronic invoices

Information to the government

IV quarter of 2030

SNR, NB, MNE

2)

Conducting an analysis of taxation of factoring transactions and developing a unified approach for all participants in the financial market

Information to the AP

IV quarter of 2030

SNR, NB, MNE

2.

Stimulating the development of leasing operations

1)

Preparation of proposals for expanding the participation of private leasing companies in state programs to support entrepreneurship

Proposals to the government

IV quarter of 2025

NPR, MNE

2)

Preparation of proposals for removing barriers limiting the development of the leasing market

Proposals to the government

IV quarter of 2025

KNRDA

3)

Formation of general statistical information on leasing activities of all subjects of leasing financing

Proposals to the government

IV quarter of 2025

SJRA, SNRDA

3.

Introduction of the syndicated lending mechanism

1)

Introduction of mechanisms for stimulating banks involved in syndicated lending

Resolution of the management board of the NPR

IV quarter of 2023

KNRDA

2)

Financing of projects jointly with quasi-public sector entities on the principles of syndicated lending by banks

Information to the AP

IV quarter of 2023

JSC "Samruk-Kazyna", JSC" NMH "Baiterek", FSUE, NPR

4.

Development of PPP projects

1)

Development and implementation of regulatory acts regulating PPP in terms of protecting the rights of creditors, including by considering the possibility of introducing collateral obligations on the part of the state partner to fulfill contractual obligations in case of temporary absence of funds from the budget

Information to the government

IV quarter of 2022

KNRDA, KFF

5.

Creating conditions for the development of alternative financing instruments

1)

Creating conditions for the development of alternative financing tools (crowdfunding, organized and multilateral trading platforms, venture financing)

Information to the AP

IV quarter of 2024

AIFC, NPR

Task 3. Changing the role of the state in financing the economy

1.

Coordination of measures of state bodies on effective macroeconomic policy

1)

Development and adoption of a set of joint actions on the Coordination of macroeconomic policy measures of the government, the National Bank and the SNR

Information to the AP

II-quarterly annually

MNE, NB, NPR

2.

Gradual reduction of state programs to support the economy

1)

Development of proposals for alternative measures to support small and medium-sized businesses

Mne recommendations

IV quarter of 2023

NCE, NB, NCE" Atameken"

2)

Improving the quality of monitoring the implementation and evaluation of the effectiveness of state support programs for the economy

Information to the government

IV quarter of 2023

"Minister of Finance, NB, NCE" "Atameken"""

3.

Improving the quality of monitoring the implementation and evaluation of the effectiveness of state support programs for the economy

Information to the government

IV quarter of 2023

"Minister of Finance, NB, NCE" "Atameken"""

3.

Termination of state support for insolvent enterprises

1)

Development of specific mechanisms for assessing (analyzing) the viability of enterprises

Information to the government

IV quarter of 2025

Mne, Ministry of Finance

Task 4. Rehabilitation and bankruptcy of insolvent borrowers

1.

Improvement of rehabilitation and bankruptcy procedures

1)

Improvement of legislation on rehabilitation and Bankruptcy (improving the efficiency of rehabilitation and bankruptcy procedures, as well as professional development of all participants in the bankruptcy process)

Information to the government

IV quarter of 2025

Finance Minister, MNE, NPR, NB

2)

Analysis of the possibility of introducing the absolute priority of the guaranteed creditor in bankruptcy and rehabilitation procedures

Information to the government

IV quarter of 2025

KNRDA, KFF

2.

Optimization of the timing of bankruptcy and rehabilitation

1)

Analysis of the possibility of reducing the timing of bankruptcy proceedings with the participation of banks or subsidiaries for working with stressed assets

Information to the government

IV quarter of 2025

KNRDA, KFF

Task 5. Development of the non-performing asset market

1.

Encouraging the emergence of private investors and management companies in the stress asset market

1)

Improving the efficiency of debt repayment mechanisms, attracting collateral property to the economic turnover

KMT protocol

IV quarter of 2025

KNRDA, NB, MNE, Finance Minister, PKF, Baiterek NMH, FF

2)

Creating institutional and legislative incentives for the emergence of private investors and managers in the stressful asset market

Draft law of the Republic of Kazakhstan

IV quarter of 2025

KNRDA, NB, MNE, Finance Minister, PKF, Baiterek NMH, FF

2.

Development of a single platform for the purchase and sale of stress assets

1)

Implementation of the project to create a single platform for the purchase and sale of stress assets

Report on the creation of a platform for the purchase and sale of stress assets

IV quarter of 2023

Snr, NB, Finance Minister

1

2

3

4

5

Task 6. Improving credit risk assessment procedures

1.

Improving bank credit risk assessment models

1)

Implementation of control over the process of validating models for assessing credit risks of banks

Order of the chairman of the SNR

IV quarter of 2024

KNRDA

2)

Increasing expertise in advanced modeling approaches and increasing the level of complexity of the applied algorithms for assessing credit risks of banks

Internal rules, procedures and information systems of STB

IV quarter of 2025

KNRDA, KFF

2.

9 clarification of IFRS requirements

1)

Clarification of requirements for the formation of provisions (reserves)

Resolution of the management board of the NPR

IV quarter of 2025

SNRDA, NB

Task 7. Ensuring bank secrecy

1.

Revision of information constituting a bank secret

1)

Development of recommendations based on the results of the analysis of the possibility of changing information constituting bank secrets, insurance secrets and secrets on the securities market

KMT protocol

IV quarter of 2027

KNRDA, NB, FF

5. development direction "development of the insurance sector as a means of protecting financial interests" Target Indicator:share of assets of insurance organizations in GDP, %: in 2021-2.2%, in 2022 - 2.51%, in 2023 - 2.68%, in 2024 - 2.84%, in 2025 - 3.0%, in 2026 - 3.4%, in 2027 - 3.8%, in 2028 - 4.2%, in 2029 - 4.6%, in 2030 - 5.0%

Task 1. Expanding the network of insurance services

1.

Expansion of the network of insurance services for general insurance

1)

Determining the minimum requirements for standard imposed insurance contracts

Resolution of the management board of the NPR

IV quarter of 2022

KNRDD, NB, KFF

2)

Determination of the list of types of activities for the sectors of the economy in which the introduction of liability insurance of economic entities is envisaged

Information to the AP

IV quarter of 2024

KNRDA, Finance Minister

3)

Analysis of the implementation of the introduction of accident insurance with the participation of the state and the insurance sector in order to reduce potentially large losses

Information to the government

IV quarter of 2023

KNRDA, NB, FF

2.

Promotion of accumulative life insurance

1)

Development of state support tools to encourage the population to participate in accumulative life insurance, including by considering the possibility of subsidizing insurance premiums for social types of accumulative insurance in favor of the child and under deferred pension annuity contracts

Resolution of the management board of the NPR

IV quarter of 2022

KNRDA, Finance Minister, OAM

2)

Development of insurance, reinsurance and captive insurance in the AIFC

Resolution of the management board of the NPR

IV quarter of 2023

SNR, AIFC, NB

Task 2. Effective development of the insurance market, focused on increasing the welfare of the population and protecting its property interests

1.

Development of digitalization of insurance services

1)

Automation of applications for the purchase of insurance services and the regulation of events

Resolution of the management board of the NPR

I-quarter of 2024

KNRDA, KFF

2)

Automation of insurance payment regulation

Resolution of the management board of the NPR

I-quarter of 2024

KNRDA, KFF

3)

Modernization of the unified insurance database, including its integration with the MDGs

Act on industrial commissioning

IV quarter of 2025

GKB, NB, KNRDA, KFF

4)

Providing insurance organizations with the opportunity to purchase/create companies and other legal entities engaged in activities in the field of IT technologies, develop and implement mobile applications, payment systems

Draft law of the Republic of Kazakhstan

IV quarter of 2027

KNRDA, NB, FF

2.

Formation of professional standards for participants in the insurance market

1)

Introduction of professional standards for participants in the insurance market

Resolution of the management board of the NPR

IV quarter of 2025

KNRDA, KFF

2)

Introduction of the institution of self-regulation of individual participants of the insurance market not covered by regulation

Resolution of the management board of the NPR

IV quarter of 2027

KNRDA, KFF

3.

Analysis of the possibility of simplifying the requirements of CW/MSW to insurance companies in terms of certain types of insurance

1)

Simplification of claims for CL/CL based on the risks of CL / CL specific to certain classes of insurance

Information to the government

IV quarter of 2024

KNRDA, NB, KMA

4.

Improving the efficiency of the insurance payment guarantee fund (TCC)

1)

Improving the requirements for corporate governance of the RCC

Resolution of the management board of the NPR

IV quarter of 2023

KNRDA

5.

Development of specialized programs at universities for training insurance specialists and actuaries

1)

Development of university programs for training insurance specialties, as well as certification programs

Educational programs

IV quarter of 2028

OAM, NPRDA

6. development direction "development of the securities market as one of the effective instruments of financing the economy" growth of capitalization of the securities market in 2021, %: in 2022 - 0.4%, in 2023 - 0.8%, in 2024 - 2.8%, in 2025 - 10%, in 2026 - 17%, in 2027 - 23%, in 2028 - 28%, in 2029 - 33%, in 2030 - 38%

Task 1. Increasing the role of the National Stock Market in financing economic growth and attracting investment

1.

Increasing the attractiveness of financing through stock market instruments for private sector companies

1)

Based on the results of the analysis of the effectiveness of guarantee instruments, make changes to the rules for guaranteeing bonds issued by business entities within the framework of the national project for the development of entrepreneurship for 2021-2025

Government Decree

IV quarter of 2025

MNE, Ministry of Finance, DBK, KNRDA, NB, NCE" Atameken"

2.

Stimulating institutional demand in the stock market

1)

To work out the issue of providing depositors with the opportunity to permanently receive investment income on pension savings transferred to private management before retirement

Recommendations for the AP

III quarter of 2024

NPR, NB, Finance Minister, MNE, FF

2)

Activation of the Institute of investment banking, including through the introduction of the possibility of brokerage organizations to carry out services for crediting securities, carrying out exchange operations with foreign currency

Resolution of the management board of the NPR

III quarter of 2024

NCE, NCE, NCE" Atameken", FF

3.

Stimulating retail demand in the stock market

1)

Improving the infrastructure of digital access of investors to the securities market

Resolution of the Department of internal rules, procedures and information systems of brokers

IV quarter of 2027

KNRDA, NB, FF

4.

Stimulating supply in the stock market by conducting IPOs of large companies

1)

Conducting placement of securities of quasi-public sector companies in the "people'S IPO" format

Report on the implementation of the comprehensive privatization plan for 2021-2025

IV quarter annually until 2026

MNE, Samruk - Kazyna, NPR, Finance Minister, AIFC

Task 2. Institutional and information-technological development of the securities market

1.

Further development of infrastructure organizations of the securities market

1)

Transformation of WKOD from a local accounting center to a regional accounting and Accounting Hub

Resolution of the management board of the NPR

IV quarter of 2025

KNRD, WKOD, NB,FF

2)

Improving the concept of Trading foreign shares in KA8E

Internal rules, procedures and information systems of KASE

IV quarter of 2025

KASE, NPR, NB, WKOD

3)

Introduction of modern versions of accounting and clearing systems in the areas of WKOD services

Internal rules, procedures and information systems of the WKOD

I quarter of 2030

KNRDA, WKOD, KASE

2.

Modernization of the activities of infrastructure organizations in accordance with modern technological solutions

1)

Ensuring the transparency and stability of the central counterparty institution by dividing it into a separate legal entity

State registration of a legal entity

II quarter of 2024

KNRDA, NB, KASE, FF

2)

Digitalization of the Central Securities Depository's activities and optimization of its internal processes

Internal rules, procedures and information systems of the WKOD

IV quarter of 2030

KNRDA, WKOD, NB

3)

Integration of the WKOD database with state databases (RSE, RSE, MDB "E-notary", MDB "e-licensing", etc.)

Database integration

I-quarter of 2027

KNRDA, MJ, CDIAPM, WKOD, KASE

4)

Ensuring the modernization of KASE's activities through the introduction of new software in the field of supervision

Internal rules, procedures and information systems of KASE

IV quarter of 2025

KNRDA, KASE, NB

5)

Analysis of the need to amend the current legislation of the Republic of Kazakhstan on the issue of recognizing the national regulation of the central counterparty as an alternative to ESMA regulation

Information to the AP

IV quarter of 2027

KNRDA, KASE, WKOD

6)

Introduction of appropriate conditions for the establishment of local rating agencies, including in the AIFC, and determination of the optimal regime for their regulation and supervision

Information to the AP

IV quarter of 2024

SNR, NB, AIFC

Task 3. Improving Kazakhstan's position in international indices

1.

Increasing Kazakhstan's position in international indices and attracting foreign investment

1)

Continuation of work on improving Kazakhstan's positions in the international indices of ICSI and ICSI

Implementation of the roadmap to increase Kazakhstan's position in international indices

III quarter of 2025

"NCE, mne, Finance Minister, NB, FF, NCE" "Atameken"", AIFC"

2)

Continuation of the work on inclusion of Kazakhstan'S government agencies in international global indices

Implementation of the activities of the Joint Action Plan for the inclusion of the state budget in international indices

IV quarter of 2025

Finance Minister, NB, NPR, MNE, AIFC

Task 4. Implementation of international corporate governance practices

1.

Improving the quality and transparency of corporate governance of Kazakhstani companies

1)

Improving corporate governance in financial organizations

Internal rules, procedures and information systems of wkod /brokers

III quarter of 2026

KRDA, NB, KASE, WKOD, FF

2)

Development and adoption of the Kazakhstan (country) Corporate Governance Code

Kazakhstan (country) code of corporate governance

II quarter of 2023

NCE" Atameken", NPR, MNE, mne, mne, NB, FF

Task 5. Improving the quality of financial intermediaries and developing financial instruments

1.

Development of a remote customer identification system

1)

Improving the mechanisms of Remote (remote) identification of brokers ' clients when establishing business relations.

Internal rules, procedures and information systems of wkod /brokers

III quarter of 2025

KNRDA, NB, KASE, WKOD, FF

2.

Expansion of the custodial services market

1)

Modernization of IT infrastructure and software and technical content used in the process of custodial activities

Internal rules, procedures and information systems of custodian banks

II quarter of 2030

KNRDA, NB, KASE, WKOD, FF

3.

Introduction of new financial instruments

1)

introduction of the back-to-back transaction mechanism

Resolution of the management board of the NPR; internal rules, procedures and information systems of the KASE

IV quarter of 2026

KNRDA, KFF, KASE

2)

ETF-introduction of a new financial instrument

Resolution of the management board of the NPR

IV quarter of 2023

KNRDA, KFF, KASE

Task 6. Increasing competition and protection of investors ' rights

1.

Reducing the concentration of risks in brokerage organizations

1)

Modernization of the digital financial infrastructure, taking into account modern technological solutions, including providing brokers with the opportunity to promote their own mobile platforms and applications

Internal rules, procedures and information systems of professional participants in the securities market

III quarter of 2030

KNRDA, NB, FF, KASE, WKOD

2.

Ensuring the protection of investors ' rights

1)

Improving cybersecurity of consumers of services in the securities market

Educational programs, publications in the media

IV-quarter annually until 2030

KNRDA, NB, FF, KASE, WKOD

2)

Strengthening requirements for ensuring information protection on the part of professional participants in the securities market

Resolution of the NPR Management Board

IV quarter of 2024

KNRDA, NB, FF, KASE, WKOD

Task 7. AIFC development

1.

Main areas of interaction with the AIFC

1)

Ensuring a single liquidity pool based on the technological integration of Kase and AIX

Internal rules, procedures and information systems of Kase and AIX

I quarter of 2030

KNRDA, NB, AIFC, KASE, WKOD

2)

Creation of a consolidated settlement and clearing infrastructure based on the WKOD

Resolution of the management board of the SNR, internal rules, procedures and information systems of the WKOD

II quarter of 2030

KNRDA, NB, AIFC, KASE, WKOD

3)

Consideration of the possibility of expanding the list of financial services provided by AIFC participants in the territory of the Republic of Kazakhstan and access to the national infrastructure of financial regulators

Order on the creation of a working group

II quarter of 2023

AIFC, NB, NPR

4)

Implementation of measures to recognize the AIFC regime by mutual calculations of the International Association of swaps and derivatives (ISDA)

Publication of the International Association of swaps and derivatives (ISDA) on the netting regime in the AIFC

III quarter of 2023

AIFC

5)

Building the capacity of the AIFC as a regulatory environment for testing innovative ideas in the field of financial technologies, new tools and services

AIFC act

II quarter of 2025

AIFC

6)

Creation of credit rating agencies in the AIFC

Information to the AP

IV quarter of 2023

AIFC, NB, NPR

7. development direction "development of the non - banking sector and microfinance" growth of the loan portfolio compared to the loan portfolio indicator in 2021, %: in 2022 - 17.7%, in 2023 - 32.7%, in 2024 - 47.8%, in 2025 - 62.9%, in 2026 - 77.9%, in 2027 - 93%, in 2028 - 108.1%, 2029 in the year-123.2%, in 2030-138.2%

1

2

3

4

5

Task 1. Expanding the range of microfinance services

1.

Strengthening the role of the microfinance market in ensuring economic growth

1)

Development of the Institute of credit partnerships

Information to the government

IV quarter of 2026

NPR, MNE

2.

Expanding the list of financial services

1)

Improving the methods of providing microfinance services with the help of new technological solutions, the internet and mobile applications

Resolution of the management board of the NPR

IV quarter of 2025

KNRDA

Task 2. Ensuring sustainable funding

1.

Creation of an apex organization in the microfinance sector

1)

Creation of the apex organization institute, whose activities will be aimed at attracting wholesale financing

Information to the AP

II quarter of 2023

"Baiterek" NMH, NPR, Ministry of Agriculture, MNE, Finance Minister, AKC

2.

Development of a mechanism for transforming a microfinance organization into a second-tier bank

1)

Determination of the procedure for issuing permits for voluntary reorganization of a microfinance organization in the form of conversion into a bank

Resolution of the management board of the NPR

IV quarter of 2022

KNRDA

Task 3. Improving the quality of services provided

1.

Implementation of regulatory measures aimed at improving stability and transparency

1)

Development and implementation of a legal framework that restricts the activities of credit partnerships, pawnshops and microfinance organizations, including online lending companies, depending on the risk profile

Draft law of the Republic of Kazakhstan

IV quarter of 2025

SNRDA, NB

2)

Implementation of measures to implement the principles of Responsible Lending in the microfinance market

Resolution of the management board of the NPR

IV quarter of 2025

SNRDA, NB

2.

Improving the procedure and forms of reporting

1)

Development of measures to improve the procedure and forms of reporting by the SSC

Resolution of the management board of the SNR, resolution of the management board of the NB

IV quarter of 2025

SNRDA, NB

     Note: full spelling of abbreviations:

     Agency/SNRDA-Agency of the Republic of Kazakhstan for regulation and development of the financial market

     KMA-Financial Monitoring Agency of the Republic of Kazakhstan

     AFF-Association of financiers of Kazakhstan

     AKC-JSC "agrarian Credit Corporation"

     Agribusiness-Agro-Industrial Complex

     DBK / Kazakhstan Damu - Bank of Kazakhstan Development Bank JSC

     Samruk-Kazyna-JSC" National Welfare Fund" Samruk-Kazyna"

     WEF-World Economic Forum

     Gkb-JSC" State credit bureau"

     PPP-Public-Private Partnership

     EAEU-Eurasian Economic Union

     EU-European Union

     ETS - minimum wage

     MFi-microfinance organization

     NB-National Bank of the Republic of Kazakhstan

     VAT - value added tax

     NCE" Atameken "- National Chamber of entrepreneurs" Atameken"

     Baiterek NMH - Baiterek National Management Holding JSC

     CJ / TF - income laundering and terrorist financing

     MFI-organization engaged in microfinance activities

     OECD-Organization for Economic Cooperation and development

     CJ / MSW - countering income laundering and terrorist financing

     WKNF-professional participants in the securities market

     FATF-a group of financial measures to combat money laundering

     WKOD-Central Securities Depository JSC

     SRD / SRD-continuing professional development/continuing professional education

     G20 - group of twenties ("big twenties")

     IPO-public placement of shares

     Kase-Kazakhstan Stock Exchange JSC

     BCC-debt burden ratio

     DBK - Kazakhstan deposit guarantee fund JSC

     It-large business

     KS-credit partnership

     Crowdfunding is a way to raise funds for the creation and development of projects

     ESG-environmental, sosial, and Sosporate

     GDP-gross domestic product

     NPL-loans with expired payment terms

     IMF-International Monetary Fund

     SMEs - small and medium-sized businesses

     Ministry of digital development, innovation and aerospace industry of the Republic of Kazakhstan

     MNE-Ministry of national economy of the Republic of Kazakhstan

VAT - value added tax

     NCE" Atameken "- National Chamber of entrepreneurs" Atameken"

     Baiterek NMH - Baiterek National Management Holding JSC

     CJ / TF - income laundering and terrorist financing

     MFI-organization engaged in microfinance activities

     OECD-Organization for Economic Cooperation and development

     CJ / MSW - countering income laundering and terrorist financing

     WKNF-professional participants in the securities market

     FATF-a group of financial measures to combat money laundering

     WKOD-Central Securities Depository JSC

     SRD / SRD-continuing professional development/continuing professional education

     G20 - group of twenties ("big twenties")

     IPO-public placement of shares

     Kase-Kazakhstan Stock Exchange JSC

     BCC-debt burden ratio

     DBK - Kazakhstan deposit guarantee fund JSC

     It-large business

     KS-credit partnership

     Crowdfunding is a way to raise funds for the creation and development of projects

     ESG-environmental, sosial, and Sosporate

     GDP-gross domestic product

     NPL-loans with expired payment terms

     IMF-International Monetary Fund

     SMEs - small and medium-sized businesses

     Ministry of digital development, innovation and aerospace industry of the Republic of Kazakhstan

     MNE-Ministry of national economy of the Republic of Kazakhstan

     Finance Minister-Ministry of Finance of the Republic of Kazakhstan

     Educational and educational-Ministry of Education of the Republic of Kazakhstan

     Ministry of Agriculture-Ministry of Agriculture of the Republic of Kazakhstan

     Arra - Australian Prudential Regulation Authority

     MSCI-Mogdap Stamleu international rating agency

     GSV is an international organization created by twenty large industrial countries at the London summit in April 2009

     STSE-STSE Russell (Financial Times Stock Exchange) International rating agency

     S & P-Standarb & Roog's international rating agency

     DBK-state database

     State securities - government securities

     UAPF-Unified accumulative pension fund

     NPFS-accumulative pension funds

     OIC - organizations that carry out certain types of banking operations

     WKN-securities market

     Basel III-document of the Basel Committee on Banking Supervision containing methodological recommendations in the field of banking regulation

     Solvensu II-directive on European Union legislation aimed at harmonizing EU insurance principles

     OREP Bee / - open banking technologies

     OREP Wapkipd

     SRO-repeated public placement of shares

     LSR-liquidity compensation ratio

     NSFR-net fixed financing ratio

     Business-an internal process for assessing capital adequacy

     ILAAR-internal liquidity adequacy assessment process

     RBC-risk-oriented surveillance

     SRER is an ongoing process for assessing the quantitative and qualitative characteristics of banks ' activities and risks

     IFRS - International Financial Reporting Standards

     IAS 39-International Financial Reporting Standard" Financial Instruments: Recognition and evaluation"

     IFRS 9-International Financial Reporting Standard" Financial Instruments"

     AQR-Asset Quality Assessment

     SS-tracking stress test

     R&A-the operation of the simultaneous transfer of assets and liabilities

     AIFC-Astana International Financial Center

     SRV is a special purpose company, the preferred goals of its creation are the implementation and maintenance of projects

     MSW-derivative financial instruments

     KTC-Financial Stability Council of the Republic of Kazakhstan

     ALM-asset and liability management

     IOSSO-International Organization of securities commissions

     SRMI-Committee on payments and market infrastructure

     MiFID-European Union directive on markets in financial instruments

     EBRD-European bank for Reconstruction and development

     GFIN-global network for financial investments

     CSOs-organizations for the management of doubtful and hopeless assets

     RWA-risk-weighted assets

     NUS - "know your client" procedure for checking clients of financial organizations

     Sirtesh-technologies used by regulators to improve the efficiency of control and supervision of the activities of financial market participants

     Regtesh-technologies used to facilitate compliance with regulatory requirements by financial organizations

     Mass media-mass media

     ISO-International Organization for Standardization

     UN-United Nations

     Aix-exchange of the Astana International Financial Center

     Aix SSD-Central Securities Depository of the Astana International Financial Center exchange

     Aix Registrar-Registrar of the Astana International Financial Center exchange

     ASSA - British Association of sworn certified accountants, which brings together professionals in finance, accounting and audit

     Wail-іп-forced restructuring of insolvent bank obligations

     SFA-certified financial analyst

     Saia-certified alternative investment analyst

     SFRM-certified financial risk manager

     RRIMA-professional risk manager

     Garr - international risk management specialist

     VTO-World Trade Organization

     Vis-bank for International Settlements

     Vask-to-bask-the principle of calculating securities transactions, which allows you to calculate instructions that cannot be calculated individually due to the lack of assets for execution at the expense of netting of obligations of the parties within the framework of the general pool of assigned tasks

     Geas-Federation of European and Asian stock exchanges

     GOREH-international currency market

     GSI-Global Competitiveness Index

     IAIS-International Association of Insurance Supervisory Authorities

     IORS - International Organization of authorized bodies for the regulation of the pension system

     IFSV - Islamic Financial Services Council

     AFI-financial accessibility alliance

     PKF-Fund of problem loans

     ESL-expected credit loss

     Іпsigtesh-insurance technology

     BSD-unified insurance database

     Eat-Eurasian Group for combating the legalization of proceeds from crime and the financing of terrorism

     TCC-insurance payment guarantee fund

     EWIS-information system for regulating insurance activities

     REWS-profiling tool and early warning system

     P2P-lending - a form of lending in which the borrower receives money directly from another person without attracting financial organizations

     ETF-exchange funds

     SWIFT - international interbank system for providing information and making payments

     ESMA - European Securities and Markets Authority

     SSDR-regulation of the European Union on improving the procedure for settlements on securities in the European Union and regulating the activities of Central Securities Depositories

     Emir-European Union regulation on market infrastructure

     Arm-automated workplace

     USA - United States of America

     TNK-the main performance indicators

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