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Kazakh banks to be able to meet Basel III requirements from Jan 1, 2019 – National Bank chairman

May 13, 2014

Kazakh financial institutions are ready to meet the requirements of Basel III, international regulatory framework for banks developed by the Basel Committee on Banking Supervision, from 1 January 2019, Chairman of the National Bank of Kazakhstan Kairat Kelimbetov told a briefing in the Central Communications Service.

"We have proposed approach when starting from January 1, 2015 banks will start transition to the requirements of Basel III. In the first three years the requirements to banks will remain virtually unchanged. But starting from 2018- 2019 the requirements will be raised. We expect that in general banks will be ready by January 1, 2019 and we will be able to say that Kazakhstan implements Basel III," Kelimbetov said.

He added that similar requirements were introduced for insurance companies. This program is called Solvency II.

Basel III contains guidelines on banking regulation. The Third Basel Accord was developed in response to the deficiencies in financial regulation revealed during the financial crisis of the late 2000s.

The main objective of Basel III is to improve the quality of risk management in the banking sector, which in turn will enhance the stability of the financial system as a whole.

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Source: AKIpress News Agency (Kyrgyz Republic)

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