Kazakhstan regulator to strip banks of trade secrecy on loans
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The Agency for Regulation and Development of the Financial Market (ARDFM) plans to require banks to disclose loan terms to third parties without borrower consent, citing consumer protection. The move would effectively eliminate trade secrecy for lending data, according to Exclusive.kz. Banks warn the measure could expose proprietary risk models and client strategies.
The Proposed Rule
The ARDFM has drafted amendments to the Law on Banks and Banking Activities that would allow third parties — including credit bureaus and collection agencies — to access individual loan agreements without the borrower's permission. Currently, such data is protected as a trade secret and disclosed only with client consent. The regulator argues the change will prevent unfair lending practices and improve transparency for borrowers.
Industry Pushback
Banking associations have objected, saying the rule would force lenders to reveal proprietary algorithms used to assess creditworthiness. They estimate compliance costs could reach 2-3 billion tenge per major bank for system overhauls. The Kazakhstani Bankers' Union has called for a public hearing, warning that the measure could reduce credit availability by 15-20% if risk models become public.
New Criminal Penalties for Collection Agencies
The Financial Market Regulation Agency has introduced criminal liability for collection agencies that pressure or threaten borrowers. Fines for extortion and illegal actions have also been increased. The agency can now dismiss heads of collection companies and remove them from the registry.
What's Next
The ARDFM is expected to publish the final draft for public comment by July 1. It remains unclear whether the regulator will soften the disclosure requirements or if banks will challenge the rule in court.
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Kazakhstan regulator to strip banks of trade secrecy on loans
