Day: October 22, 2025

A group of deputies in the Mazhilis, Kazakhstan’s lower house of parliament, has proposed amendments to the Law “On Banks and Banking Activities,” seeking to prohibit the use of specific words in the names of financial institutions, most notably “halyk” (“people’s”).

Deputy Murat Abenov announced the initiative via his official Facebook page, stating that more than 50 lawmakers are backing the proposal to revise Article 7 of the banking law. The draft amendment would expand existing restrictions on bank names, currently banning terms such as “national,” “central,” “state,” and “republican”, to also exclude “people’s” and “halyk,” in any language or form.

If adopted, the legislation would directly affect Halyk Bank JSC, one of Kazakhstan’s most prominent and systemically important financial institutions. Halyk Bank, whose name translates to “People’s Bank,” is part of the broader Halyk Group, which is active in banking, insurance, brokerage, and leasing services. The bank’s largest shareholder is ALMEX Holding Group JSC, controlled by Timur and Dinara Kulibayev, the son-in-law and daughter of former President Nursultan Nazarbayev.

Abenov argued that the term “people’s” carries specific legal and symbolic significance. Under Article 3 of Kazakhstan’s Constitution, the people are the bearers of sovereignty and the sole source of state power. He contended that allowing a private commercial institution to use this term may mislead the public into believing it serves or is governed by the population at large.

The proposal has drawn strong criticism from the Kazakhstan Investors Association, which views the amendment as selectively targeting Halyk Bank. “The discussion and especially the adoption of this amendment pose significant risks to legal certainty, the investment climate, and the national economy,” the Association said in a public statement.

The Association further emphasized that brand names are legally protected intellectual property. Under Kazakhstan’s Constitution, private property, including trademarks, can only be expropriated through a court ruling. “A legislative prohibition on an established, lawfully registered brand violates core principles of Kazakhstan’s legal system,” the statement read.

Investor representatives also warned that the move could damage Kazakhstan’s reputation among foreign investors. “The Halyk Bank brand has existed for decades and holds historical significance. Forcing a name change may be viewed as retroactive regulation, undermining investor confidence, especially considering the bank’s shares are listed on the London Stock Exchange,” the Association noted.

The group called for a “constructive dialogue grounded in legal principles, economic rationale, and common sense,” warning that arbitrary restrictions could harm financial stability and deter investment.

As previously reported by The Times of Central Asia, Halyk Bank has expanded regionally, acquiring a 49% stake in Uzbek digital payments firm Click, marking a major fintech investment in Central Asia.