The Republic of Kazakhstan has a two-tier banking system. The National Bank of the Republic of Kazakhstan (hereinafter – 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 Development Bank of Kazakhstan, that has peculiar legal status.
The National Bank represents, within the limits of its authority, the interests of the Republic of Kazakhstan in the relationship with the central banks, with banks of other countries, in the international banks and other financial-credit organizations. The National Bank should not be guided by the aim of gaining profit in performing its tasks.
The National Bank is the entity that reports to the President of the Republic of Kazakhstan, but within the limits of authority granted by the legislation, is independent in its activity.
The National Bank coordinates its activity with the Government of the Republic of Kazakhstan, in its activity 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 policy.
The National Bank is a common centralized system with the vertical administrative scheme. The highest administrative authority of the National Bank is the Board, the authority of the executive management is the Board of Directors.
The primary goal of the National Bank is to ensure the stability of prices in the Republic of Kazakhstan. To accomplish the main goal, the National Bank is assigned the following tasks:
- development and implementation of the state’s monetary policy;
- ensuring the functioning of payment systems;
- implementation of foreign exchange regulation and foreign exchange control;
- promotion of the stability of financial system;
- regulation, control and supervision of the financial market and financial institutions and also other parties, within its competence;
- ensuring a due level of protection of the rights and legitimate interests of consumers of financial services;
- carrying out statistics activities in the area of monetary statistics and external sector statistics.