The Law of the Kazakh Soviet Socialist Republic № 385-XII of 2 December 1990 "On Banks and Banking Activity in the Kazakh SSSR" (as amended by the Law of the Republic of Kazakhstan № 1820a-XII of 23 December 1992) expired in accordance with the Resolution of the Supreme Council of the Republic of Kazakhstan № 2140-XII of 14 April 1993.
Banks are institutions mandated to attract financial means, in accordance with the present Law, with the aim to accommodate them and to perform other banking operations provided by the present Law.
All credit funds created on the territory of the Kazakh SSR are the property of the republic.
The Republic has a two-tier banking system presented by the State Bank of the Kazakh SSR and network of commercial banks. (Commercial banks are defined as commercial (cooperative) banks based on shareholder or unit share system and other credit institutions).
Banks are legal authority which have their regulations and operates on the principles of full economic settlements and self-benefitting.
Article 1. State Bank of the Kazakh SSR is a central bank in the republic.
State Bank of the Kazakh SSR is a property of the republic and its central bank. Interrelations between the State Bank of the Kazakh SSR and the State Bank of the USSR on the questions of the single currency and single monetary policies on the territory of the republic are defined by the Union Treaty.
Article 2. Principle objectives and functions of the State Bank of the Kazakh SSR.
The principle objectives of the State Bank of the Kazakh SSR are achieving sustainable single currency used on the territory of all Soviet republics, maintaining the state policy in the sphere of cash operations, credits, and settlements, working out and observing common rules of the state regulation and control over the activity of commercial and other banks.
State Bank of the Kazakh SSR:
has the monopoly right to issue cash in circulation on the territory of the Kaz SSR;
carries out monetary-credit regulation in the Kazakh SSR;
organizes execution of cash accounts of the state budget, system of collective insurance mechanisms and management of external and domestic debt of the Kazakh SSR;
organizes interbank operations on the territory of the republic;
carries out operations on purchasing and selling gold and precious metals as well as purchasing and selling of securities;
authorizes establishment of commercial banks on the territory of the republic.
Article 3. Legal basis of the activity and подотчетность of the State Bank of the Kazakh SSR.
The State Bank of the Kazakh SSR in his activity does not depend on executive and administrative organ of Government, is guided by the present Law and accountable to the Supreme Council of the Kazakh SSR.
The state is not liable for obligations of the State Bank of Kazakh SSR while the State Bank of Kazakh SSR is not liable for obligations of the state unless this obligation is assigned to it by the Supreme Council of the Kazakh SSR.