About the National Bank of Kazakhstan
The Republic of Kazakhstan has a two-tier banking system. The National Bank is the central
bank of Kazakhstan and presents the upper (first) tier of the banking system of Kazakhstan.
All other banks present lower(second) tier of the banking system, excluding the Kazakhstan
Development Bank, that has peculiar legal status.
Objectives, principles of activity, legal status and authorities of the National Bank are
determined by the Law of the Republic of Kazakhstan “On National Bank of the Republic
of Kazakhstan”.
National Bank performs the regulation and supervision over certain questions of banking
activities within the limits of its authority and contributes to formation of common
conditions for the functioning of banks and organizations performing certain banking
operations.
Regulatory and supervisory functions of the National Bank towards the bank and
organizations performing certain banking operations are targeted at maintenance the
stability of monetary system of the Republic of Kazakhstan, protection of interests of banks’
creditors, their investors and clients.
The National Bank of Kazakhstan represents, within the limits of its authority, the interests
of the Republic of Kazakhstan in the relations with the central banks, banks of other
countries, international banks and finance and credit organizations.
The National Bank in performing its tasks should not be guided by the aim of gaining profit.
The National Bank of Kazakhstan is accountable to the President of Republic of
Kazakhstan, within the limits of powers granted by legislation, is independent in its
activity.
The National Bank of Kazakhstan coordinates its activity with the Government of Republic
of Kazakhstan, takes into consideration the economic policy of the Government and
facilitates its implementation, if doing so is not in conflict with the realization of its main
functions and implementation of monetary and foreign exchange policies.
The National Bank has a common centralized system with a vertical administrative scheme.
The highest administrative authority of the National Bank is the Board, the authority of
executive management is the Council of Directors.
The primary goal of the National Bank is the maintenance of price stability in Republic of
Kazakhstan. In the accomplishing of the main goal National Bank of Kazakhstan is
responsible to settle the following tasks:
- the development and implementation of the state’s monetary policy,
- the support of payment system functioning,
- the implementation of foreign exchange regulation and foreign exchange control,
- the assistance for maintenance of financial system stability.
According to its tasks, the National Bank of Kazakhstan performs the following functions:
- realization of state monetary politics in the Republic of Kazakhstan;
- issuance of bank notes and coins on the territory of Kazakhstan;
- a bank of banks;
- a bank, a financial advisor and a financial agent of the Government of the Republic of
Kazakhstan and other services for the Government and other state agencies according to
agreements with them;
- organization and supervision of functioning of payment system;
- realization of currency control and currency regulation in the Republic of Kazakhstan;
- management of gold exchange assets of the National Bank;
- realization of control and supervision over the activities of the financial organizations and
regulation of their activities within the competence of the National Bank, etc.
For implementation of the state monetary policy the National Bank:
- sets the official refinancing rate depending on the state of the money market, demand and
supply for loans, level of inflation and inflation expectation;
- sets the levels of interest rates for the principal operations of the monetary policy with the
aim of influencing upon the market interest rates at the financial market in the frames of
monetary policy accomplishment,
- determines the standards of minimum required reserve requirements and realizes the
control over their fulfillment,
- in exceptional cases, when it’s impossible to settle the inflation processes by the indirect
methods, the National Bank has a right to introduce direct quantitative restrictions on the
level and volume of certain kind of operations, by setting the limits of credits, freezing the
interest rates on them, for stimulating or restraining the development of separate branches
maximum level of rates on certain kinds of operations and deals of direct regulation of
concrete kinds of credits;
- regulates the general volume of banks lending at the National Bank according to the
accepted marks of the monetary politics and regulates the order, conditions of attraction and
redemption, terms and limits of the granted loans;
- performs the reception of deposits, determines the order, conditions of granting and
redemption, kinds, terms and limits of deposits attraction at the National Bank;
- performs the intervention to the currency market, appraisal and analysis of the currency
demand and supply sources at the internal currency market;
- issues the state securities - short-term notes of the National Bank, sets the order,
conditions of issuance, investment, circulation and redemption of the sort-term notes;
- buys and sells the state and other securities within the frames of the realized monetary
policy;
- rediscounts the commercial papers according to the official refinancing rate, determines
the order of discounting the commercial papers and conditions, for the commercial papers
accepted by the National Bank for the rediscount.
Starting with 2002 the marks of the monetary policy are determined by the National Bank
for 3 years ahead, with the yearly specification, due to the comparative macroeconomic
stability that allows forecasting and development of the strategic directions for the longer
period with regard to the situation in economics and financial markets. The targets are
settled with the use of the consumer price index. Together with it, from 2004, the index of
the “basic inflation” for the internal analysis is used, which eliminates the shocking
influence over the price level of non-monetary factors and shows the general tendencies of
the inflation processes. From 2004, Inflation Review - the quarterly inflation report is
published.
In March 2006, the Principal directions of the monetary policy of the National Bank of
Kazakhstan for 2006-2008 were accepted. The National Bank determines the priority
direction of its activity the realization of the monetary policy, oriented on price stability.
Accordingly, the work on transition to the principles of inflation targeting will be continued.
It assumes building of forecasting of the basic parameters of the monetary policy proceeded
from the inflation targets.
The basic macroeconomic indices are presented for 3 years (2006-2008) with the
elaboration of measures, aimed to the realization in 2006, what underlines the mid-term
direction of this document. Indices for the next year will be specified at the end of the
current year.
The structure of National Bank of Kazakhstan includes:
- central administration, that consists of 11 departments (one department is in Astana), 10
independent divisions and 1 independent sub-division
- 16 territorial branch offices and one branch in Almaty - the Center of Cash Operations
and Valuables Maintenance
- Representative Office of National Bank of Kazakhstan in the Russian Federation
- 5 organizations, accountable to the National Bank:
the Republican State Enterprise with the right of the administrative management
“Kazakhstan Interbank Settlement Center of the National Bank of Republic of
Kazakhstan”,
the Republican State Enterprise with the right of the administrative management “Bank
Service Bureau of the National Bank of Republic of Kazakhstan”,
the Republican State Enterprise with the right of the administrative management
“Kazakhstan Mint of the National Bank of Republic of Kazakhstan”,
the Republican State Enterprise with the right of the administrative management “Banknote
Factory of the National Bank of Republic of Kazakhstan”,
the Republican State Enterprise with the right of the administrative management “National
Bank Activities Providing Center”,
The National Bank is a founder of Joint-Stock companies:
- Kazakhstan Deposit Insurance Fund,
- Insurance Payments Guaranty Fund,
- Mortgage Guarantee Fund of Kazakhstan
- Kazakhstan Actuarial Center,
The National Bank is also one of the founders of teh Joint Stock Company “The National
Processing Center”
The National Bank of RK is one of shareholders of joint-stock company - JSC
"Accumulative Pension Fund "GNPF"
Address: 21 "Kоktem-3", 050040, Almaty
Republic of Kazakhstan
Fax: 704-703, 61-73-52, 704-799
Telex: 251130 BNK KZ
e-mail: hq@nationalbank.kz
hq@nbrk.kz
© The National Bank of Kazakhstan, 2005