Nazarbayev Proposed To Give National Bank Power Of Banking Sector Control

National Bank forecasts risk of inflation growth in October due to situation with fuel in Kazakhstan

The National Bank of Kazakhstan must be empowered with the authority of tough control of the banking sector, said Nursultan Nazarbayev, President of Kazakhstan.

“Time has shown the National Bank as a regulator must work in the preventive regime. Thus, legislatively we must give it more authority to control the banks. If you remember I was holding the congress of financiers each year. There was active time, we got the money from the west- we could borrow as much as we wanted. All the banks used to declare: Mr. President, why don’t you allow us, they provide it, for such rates, we must take. But nobody thought how to settle it afterwards. When time came, BTA Bank faced problems and other banks… We were resolving it, invested huge money in it,” he said at the joint session of both chambers of the Parliament.

“Why did it happen? Because the National Bank did not control each step. When they were withdrawing money, where was the National Bank, the controlling bodies? Where was the National Bank when they were investing? Today the National Bank still has no rights, we must empower it, so each bank was controlled,” he said.