The law was passed by the Legislative Chamber on 8 November 2012 and passed by Senate on 5 December 2012. The law came into force on 18 December 2012.

The document consists of five chapters and 28 articles. The law is aimed at regulating relations in private banking and other private financial institutions, as well as guarantees of their activities.

According to the law, private banking and financial institutions are banks and other credit organizations, insurance organizations, as well as other legal persons, rendering only financial services, in which share of individuals makes up at least 50%.

Private banks and financial institutions are businesses entities, the law said.

Legal entities, in which there are share of the state or state bodies, political parties, professional unions, public funds and religious organizations, cannot be founder of the private banks and financial institutions.

Officials of the state bodies cannot hold paid position in private banks and financial institutions.

The law stated that the Government guarantees equal rights to private banks and financial institutions and creates opportunities to access material-technical, financial, labour, information and other resources.

The government guarantees freedom of business activities and legal protection of private banking and financial institutions. The document said that discrimination against banking and financial institutions is not permitted.

Property of private banking and financial institutions will not be nationalized and confiscated, commandeered, except in cases, envisages in legislation.

Private banking and financial institutions can appeal decision on nationalization, confiscation and commandeering property at court.

The law said that the state bodies, other organizations and officials cannot interfere to activities of private banking and financial institutions, who conduct their activities in line with the legislation.

The state bodies, other organizations their officials will reveal violation in legislation in activities of private banking and financial institutions, they can accept measures in line with their jurisdiction and related to elimination of violation. The state bodies, other organizations and officials cannot use violation to interfere or limit activities of private banking and financial institutions.

The state bodies, other organizations their officials cannot interfere to activity of private banking and financial institutions, including appoint top managers of the institutions or their branches, demand various payments, etc. Law enforcement and controlling bodies are banned to interfere activities related to business risks, formation of credit portfolio of assets of the private banking and financial institutions.

Private banking and financial institutions can set the size of payment for rendered services independently, except in cases, envisaged with the legislation.

Private banking and financial institutions can distribute income on their own will after payment of taxes and mandatory payments in line with their charter.

The law also regulates repayment of damages and losses, caused by state bodies and their officials in the result of interference to activities of the private banking and financial institutions.

The law said that the activities of the private banking and financial institutions can be inspected once in five years on the decision of special authorize body on coordination of controlling bodies. Inspections cannot exceed 30 days and controlling bodies should notify institutions 30 days before inspection.

Law enforcement bodies – prosecutors, interior affairs bodies and national security service – can launch inspection only in case of opening of criminal case against private banking and financial institutions. They can only inspect only those aspects of the institutions, related to criminal case.