National Bank of Kazakhstan (NBK)

Overview

The National Bank of the Republic of Kazakhstan (NBK) was formally established on April 13, 1993, through the enactment of the Law "On the National Bank of the Republic of Kazakhstan", which renamed the National Bank of the Kazakh SSR into the independent central bank of the Republic of Kazakhstan. The Bank operates as Kazakhstan's primary monetary authority, tasked with maintaining currency stability, implementing monetary policy, and supervising the banking and payment systems infrastructure.

Current Governor: Timur Suleimenov (as of 2024-2025)

Headquarters: Astana, Kazakhstan

Status: Fully independent central bank with integrated supervisory authority

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

The National Bank of Kazakhstan maintains financial stability through:

Banking Supervision:

• Prudential supervision of all commercial banks

• Capital adequacy, liquidity, and asset quality oversight

• Basel Core Principles implementation

• Risk-based supervisory framework with focus on systemically important institutions

Macroprudential Policy:

• Financial system stress monitoring

• Countercyclical capital buffer implementation

• Systemic risk assessment and mitigation

• Coordination with other competent authorities

Lender of Last Resort Function:

• Emergency liquidity provision to solvent banks facing temporary funding stress

• Standing facilities for managing banking sector liquidity

Banking Sector Oversight:

• Regulation of commercial bank licensing, capital, and operations

• Supervision of banking groups and consolidated entities

• Credit organization registration and monitoring

The National Bank of Kazakhstan implements comprehensive anti-money laundering and counter-terrorism financing measures:

National AML/CFT System:

• Kazakhstan adopted coordinated 2025-2027 AML/CFT framework through Government Resolution No. 934

• Multi-year national action plan for counter-terrorism financing

• Coordination across banking, digital assets, foreign trade, real estate, corporate structures, luxury goods, precious metals, and gaming

FATF Compliance:

• 2023 Mutual Evaluation Report assessed compliance with 40 FATF Recommendations

• Substantial level of effectiveness in identifying and minimizing financial crime risks

• Active Financial Intelligence Unit (FIU) operations for ML/TF detection and investigation

• Effective counter-financing of terrorism system based on preventive measures

National Risk Assessment:

• Separate national risk assessments for money laundering and terrorism/proliferation financing

• Involvement of all competent authorities and private sector

• Methodology aligned with OSCE Guidance and World Bank Risk Assessment Tool

Supervisory Framework:

• AML/CFT supervision of financial institutions integrated with prudential oversight

• Reporting requirements for suspicious transactions

• Customer due diligence requirements aligned with international standards

• Beneficial ownership reporting requirements (strengthened through recent reforms)

Emerging Challenges:

• Anti-money laundering supervision of financial institutions requires ongoing strengthening

• Definition of beneficial ownership and "ultimate beneficial owner" strengthened in recent law updates

• Digital asset transaction monitoring enhanced through 2025-2027 framework

Regulatory Powers

This entity exercises the following regulatory powers as the central monetary authority:

Regulatory Role and Function

Legal Foundation

The National Bank of Kazakhstan operates under the constitutional and legislative framework established at independence:

• Law "On the National Bank of the Republic of Kazakhstan" (April 1993, as amended)

• Law "On Payments and Payment Systems" (with regulations establishing payment system importance criteria)

• Banking Law - Regulates banks and banking activities in Kazakhstan

• Resolution of the Board of the National Bank (August 31, 2016, No. 222) - Establishes payment system importance criteria

• Government Resolution No. 934 (2025-2027) - Comprehensive AML/CFT framework

The NBK's mandate encompasses monetary policy implementation, currency stability, financial system stability, payment system oversight, and banking supervision in accordance with Basel Core Principles.

Licensing and Authorization Relevance

The National Bank of Kazakhstan (NBK) is a key licensing authority in Kazakhstan's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

The National Bank of Kazakhstan implements inflation-targeting monetary policy with regular base rate adjustments:

Recent Monetary Actions (2024-2025):

• November 2024: Base rate raised 100 basis points to 15.25% to combat persistent inflation above the 5% target

• January 2025: Base rate maintained at 15.25%

• Current Stance: Restrictive policy to contain inflation pressures

Inflation Forecasts:

• 2025: 12.0-13.0% (elevated from earlier forecasts)

• 2026: 9.5-12.5%

• Assessment: Rapid economic growth above potential has generated overheating pressures with inflation projected near 13% by end-2025

GDP Growth Outlook:

• 2025 Forecast: 6.0-6.5% driven by oil production growth, consumer demand, and investment activity

Policy Approach: The NBK maintains sufficiently restrictive monetary stance with potential for further rate hikes should inflation increase beyond target. The Bank previously loosened policy in May-August 2023, cutting rates by 250 basis points, before pivoting to tightening in response to sticky price pressures.

The National Bank of Kazakhstan operates and regulates multiple layers of payment system infrastructure:

Systemically Important Payment Systems

Interbank Money Transfer System (IMTS):

• Operated by National Payment Corporation of the NBK

• Processes 97%+ of all payments for foreign exchange market, securities market, and banking sector participants

• Provides core interbank clearing and settlement infrastructure

ISMT (Interbank System of Money Transfer) - RTGS:

• Owned and operated by Kazakhstan Information and Settlement Center (KISC)

• Real-time gross settlement system for large-value, high-priority payments

• Provides irrevocable settlement finality throughout operating day

• Settles payments in national currency (tenge)

Instant Payment System (IPS):

• Launched and upgraded by NBK as modern retail payment infrastructure

• Operates 24/7/365 for instant interbank transfers and customer payments

• Enables instant payments using mobile phone number and QR code

• Accessible across multiple banks in Kazakhstan

• Core component of digital financial infrastructure modernization

Payment System Operators

National Payment Corporation of Kazakhstan (NPCK):

• Established through NBK resolution to manage systemically important payment systems

• Operates critical payment and settlement infrastructure

• Subject to NBK oversight and regulation

Regulation and Oversight

The NBK establishes importance criteria for payment systems through Board resolutions and ensures compliance with Law "On Payments and Payment Systems". All payment system operators must meet prudential and operational standards set by the NBK.

Tenge Management:

• National currency introduced as tenge following establishment of monetary independence

• NBK manages exchange rate stability through monetary policy tools

• Foreign exchange reserves held and managed by NBK

Currency Policy Framework:

• NBK implements foreign exchange policy as directed by Government and Parliament

• Currency account operations regulated for residents and non-residents

• Capital account management coordinates with fiscal and trade policy

International Reserves:

• Maintained in hard currencies and SDRs at IMF

• Managed for long-term currency stability and systemic resilience

Payment Systems Governed or Overseen

The NBK operates and/or oversees the national payment and settlement infrastructure of Kazakhstan through the National Payment Corporation (NPC). Specific systems include:

Relationship to Other Regulators

The National Bank maintains coordination with the Astana International Financial Centre (AIFC), Kazakhstan's special economic zone for financial services:

• AIFC operates special regulatory framework for participating institutions

• NBK coordinates with AIFC authorities on financial system stability

• AIFC institutions supervised for AML/CFT and prudential compliance

• Integration with domestic payment systems and foreign exchange infrastructure

International Monetary Fund (IMF):

• Member since 1992

• IMF Quota: 1,158.4 million SDR

• Participates in IMF Article IV consultations and technical assistance programs

• 2024 Article IV Consultation completed with Staff Concluding Statement in October 2024

Bank for International Settlements (BIS):

• Participates in BIS meetings and activities

• Coordination with BIS on central bank cooperation and financial stability issues

• Transition to Swiss Constituency of IMF (via BIS bilateral coordination, July 2010)

Commonwealth of Independent States (CIS):

• Regional cooperation on monetary policy and financial system stability

• Participation in CIS central bank coordination mechanisms

Asian Development Bank and World Bank:

• Technical assistance cooperation on financial sector development

• Financial sector assessment programs (FSAP) and joint reviews

• Capacity building support

Other Central Banks:

• Bilateral relationships with major central banks (Swiss National Bank, others)

• Participation in international central banking forums

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Headquarters:

• National Bank of Kazakhstan

• Address: Astana, Republic of Kazakhstan

• Website: https://www.nationalbank.kz/en/

Regulatory Inquiries:

• Official website provides contact information for regulatory divisions

• Public information office responds to inquiries on banking regulations

Notes on Naming and Language