Head of State meets with Chairwoman of Financial Market Regulation and Development Agency
The President was briefed on the outcomes of the financial market development and the work on regulating financial organizations.
Special attention was placed on the measures aimed at ensuring financial stability. In particular, the Agency has developed the priorities of supervision policy on banking and insurance sectors, financial market requiring regular AQR and stress testing.
Tokayev was informed on the measures taken by the Agency to control banks’ supervision plans for reducing the level of stress assets, which has fallen by 15.5% (KZT497) to KZT2.3tln in the past six months.
According to Abylkassymova, bank financing has been limited in the current economic conditions. Economic crediting has been up 3.3% to KZT15.1trl since the beginning of the year.
The Head of State signed the law introducing the mandatory order of regulating citizens’ overdue debts for banks and microfinance organizations to protect the rights of borrowers on May 24.
In keeping with the President’s instruction, diversification of annual effective interest rate and reduction of collateral- and mortgage-based lending were implemented.
In order to restore access to lend for borrowers with negative credit history the mechanism of rehabilitating borrowers who paid their arrears was adopted. As of today, 1.4 million have received the status as rehabilitated.
The Agency Chairwoman reported on the completion of licensing microfinance activity, with 1,012 credit organizations licensed since the year began.
Abylkassymova informed the President on toughening the mechanisms of remote client indetification when issuing micro credits with mandatory checking of biometrics and two-factor authentication,
In conclusion, the Head of State tasked the Agency with maintaining financial stability, strengthening protection of the rights of financial service consumers, and increase the role of the financial market in recovering economic growth.