The National Bank of Kazakhstan reported that as of February 24, 2025, no applications have been received from Hungarian banks to open branches or subsidiaries in Kazakhstan. The regulator reminded that negotiations were held at the end of 2024 with two major commercial banks from Hungary — OTP Bank and MBH Bank.
The parties agreed to continue regular interactions to discuss opportunities for expanding cooperation in the banking sector.
The National Bank also highlighted that during the visit of Kazakhstan's President Kassym-Jomart Tokayev to Hungary in 2024, a memorandum of cooperation was signed with the Hungarian National Bank (Magyar Nemzeti Bank). This document was adopted to ensure effective cross-border supervision of banks in accordance with the Basel Committee standards. Additionally, the National Bank recalled President Tokayev's directive in 2023 to attract reliable foreign banks to the country and enhance competition in the market. To achieve this, the regulator plans to ease the requirements for opening branches of foreign banks or their subsidiaries. The list of required documents will be shortened, and regulatory requirements for branches of non-resident banks will be reduced. As noted by the agency, the licensing process for foreign banks currently consists of two phases and can take up to a year.
Most experts are indicating that OTP Bank is a strong candidate for entering Kazakhstan. Halyk Bank's CEO, Umut Shayahemtova, considers the arrival of foreign banks, including Hungarian ones, to be a normal market trend.
“I cannot comment specifically on Hungarian banks, but I do know that OTP Bank acquired a bank as part of its privatization and entered Uzbekistan. The more reputable large foreign banks we have, the better. However, it is important to note that of the 21 banks registered in Kazakhstan, only 12 are operational, and their total share in lending to the economy does not exceed 5%,” Shayahemtova emphasized.
According to Shayahemtova, foreign financial institutions have the opportunity to provide direct lending to the Kazakhstan economy. She pointed out that such organizations should be interested in taking on the risks associated with corporate clients and investing funds in the Kazakhstan economy.
Financial expert Andrey Chebotarev believes that OTP Bank has the greatest potential for entering the Kazakhstan market because it has experience operating in Russia and other post-Soviet countries. The OTP Bank group is geographically represented in 12 countries, including Albania, Bulgaria, Croatia, Serbia, Ukraine, Russia, Moldova, Montenegro, Slovenia, and Uzbekistan.
Requirements for a foreign bank to open a branch in Kazakhstan
In the first phase, the financial organization must submit an application to the Financial Market Regulation and Development Agency (FMRDA) for permission to open a branch or representative office of a non-resident bank. Within this framework, shareholders must obtain approval to hold the status of a bank holding or major participant in the bank.
The main requirements for those wishing to open a foreign bank in Kazakhstan relate to financial stability, impeccable business reputation of shareholders, and the presence of a minimum required credit rating from one of the international rating agencies for the parent company. The authorized body will review the documents required to establish such a financial organization within 65 working days.
Once permission is granted, the applicant must, within one year:
Complete all organizational and technical measures in accordance with the requirements of the National Bank and FMRDA;
Hire the appropriate personnel;
Establish the rules for conducting banking operations;
Ensure the availability of premises;
Register with the "Government for Citizens" State Corporation;
Pay the bank's authorized capital/form assets for the branch of the non-resident bank as reserves;
Register the issuance of bank shares with the state.
After this, the foreign bank must submit the necessary documents to the FMRDA to obtain a license for conducting banking and other operations, including for agreeing on candidates for managerial positions. The documents for obtaining a license will be reviewed within 30 working days.