Kazakhstan Banks to Revise Loans and Deposits Under New Regulations

Kazakhstan's financial regulator, the Agency for Regulation and Development of Financial Market (ARDFM), has issued a decree that will significantly alter how banks operate. Adopted on August 3, 2026, and officially published, the decree takes effect 60 days later in October. Following its implementation, all financial institutions will have a six-month period to conduct a comprehensive audit of their existing product portfolios and bring them into compliance with the new standards.

The primary objective behind this regulatory overhaul is to safeguard the rights of ordinary citizens by eradicating unfair market practices. Key changes include prohibiting banks from defaulting to paid services or obscuring the true cost of loans. Financial institutions will be required to clearly define the target audience for specific loans, preventing the sale of complex or high-risk financial instruments to inexperienced or low-income clients. Furthermore, the actual benefit of a deposit or loan must align with its price, necessitating modifications or discontinuation of products with excessive fees and questionable client benefits.

To ensure transparency, every loan and deposit will require a clear "fact sheet." This document must detail the annual effective interest rate (AEIR), all associated fees, potential risks, and the profile of the intended customer. Banks must also proactively analyze client complaints and remove fine print, hidden subscriptions, and pre-selected consent boxes from contracts. Products with revised terms will undergo pilot testing, with any emerging risks requiring further revision before market release. Products that cannot meet the new standards must be withdrawn entirely.

While the six-month deadline mandates a review of product creation and monitoring approaches, it does not require an automatic recalculation of terms for all existing loans and deposits held by Kazakh citizens. For clients, new protections include a 14-day "cooling-off period" for unsecured loans or insurance policies, allowing opt-outs without penalty. Contracts will also eliminate pre-checked boxes, ensuring intentional and informed consent. Advertising practices will be scrutinized to prevent misleading low interest rates without full AEIR disclosure. Additionally, bank managers' bonuses will no longer be solely tied to sales volume, reducing the incentive to push unnecessary products.