THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND DEVELOPMENT OF THE FINANCIAL MARKET

of October 28, 2022 No. 78

About modification of some regulatory legal acts of the Republic of Kazakhstan concerning banking regulation

Board of the Agency of the Republic of Kazakhstan on regulation and development of the DECIDES: financial market

1. Approve the List of regulatory legal acts of the Republic of Kazakhstan concerning banking regulation to which changes are made (further - the List), according to appendix to this resolution.

2. To provide to department of methodology and prudential regulation of the financial organizations in the procedure established by the legislation of the Republic of Kazakhstan:

1) together with Legal department state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of the Agency of the Republic of Kazakhstan on regulation and development of the financial market after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the action provided by the subitem 2) of this Item.

3. To impose control of execution of this resolution on the supervising vice-chairman of the Agency of the Republic of Kazakhstan on regulation and development of the financial market.

4. This resolution becomes effective after ten calendar days after day of its first official publication, except for paragraphs of the hundred twenty second, hundred twenty third, hundred twenty fifth, hundred twenty sixth, hundred twenty seventh, hundred twenty eighth, hundred twenty ninth, hundred thirtieth, hundred thirty first, hundred thirty second, hundred thirty third, hundred thirty fourth, hundred thirty fifth, hundred thirty sixth, hundred thirty seventh, hundred thirty eighth, hundred thirty ninth, hundred forty first, hundred forty second, hundred forty third, hundred forty fourth and hundred forty fifth item 4 of the List which become effective since January 1, 2023, paragraphs of the ninety ninth, hundred first, hundred fourth, hundred fifty eighth, hundred sixty first, hundred sixty fourth Item 3 of the List which become effective since January 1, 2024. Paragraphs the 100-th, the hundred fifth, the hundred fifty ninth, the hundred sixty second, hundred sixty fifth, hundred sixty ninth Item 3 of the List extend to the legal relationship which arose since September 1, 2022 and are effective till December 31, 2023.

It is approved Ministry of Finance of the Republic of Kazakhstan

It is approved Bureau of national statistics of the Agency on strategic planning and reforms of the Republic of Kazakhstan

 

Appendix

to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of October 28, 2022 No. 78

The list of regulatory legal acts of the Republic of Kazakhstan concerning banking regulation to which changes are made

1. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of May 30, 2016 No. 144 "About establishment of prudential standard rates and other regulations and limits, obligatory to observance, for Islamic banks, their normative values and technique of calculations of prudential standard rates and other regulations and limits, obligatory to observance, for Islamic banks" (it is registered in the Register of state registration of regulatory legal acts at No. 13939) the following changes:

in Normative values and technique of calculations of prudential standard rates and other regulations and limits, obligatory to observance, for the Islamic banks approved by the specified resolution:

state Item 10 in the following edition:

"10. Sufficiency of equity of bank is characterized by the following coefficients:

1) coefficient of sufficiency of fixed capital (k 1):

relation of fixed capital to the amount:

assets, contingent and possible obligations weighed on degree of credit risk;

assets, conditional and possible requirements and obligations calculated taking into account market risk;

operational risk;

2) capital adequacy ratio of the first level (k1-2):

relation of the capital of the first level to the amount:

assets, contingent and possible obligations weighed on degree of credit risk;

assets, conditional and possible requirements and obligations calculated taking into account market risk;

operational risk;

3) coefficient of sufficiency of equity (k 2):

equity relation to the amount:

assets, contingent and possible obligations weighed on degree of credit risk;

assets, conditional and possible requirements and obligations calculated taking into account market risk;

operational risk.

The assets, contingent and possible obligations weighed on the risk degrees taken into consideration of coefficients of k 1, k1-2 and k2 join less the reserves created according to IFRS.

Values of coefficients of sufficiency of equity and Value of capital adequacy ratios taking into account the conservation buffer and the system buffer are established by appendix 3 to Standard rates.

In addition to values of coefficients of sufficiency of equity the following values of buffers of equity are established:

the requirement to the conservation buffer is fulfilled on permanent basis and constitutes:

since January 1, 2015 - 1 (one) percent;

since January 1, 2016 - 1 (one) percent;

since January 1, 2017 - 2 (two) percent;

since June 1, 2020 - 1 (one) percent;

since July 1, 2021 - 2 (two) percent;

for systemically significant banks:

since January 1, 2015 - 2,5 (two whole five tenth) percent;

since January 1, 2016 - 2,5 (two whole five tenth) percent;

since January 1, 2017 - 3 (three) percent;

since June 1, 2020 - 2 (two) percent;

since July 1, 2021 - 3 (three) percent;

which counter-cyclical buffer, the size and terms of introduction are established by authorized body at least in 12 (twelve) months prior to start date of calculation of the counter-cyclical buffer. The range of the size of the counter-cyclical buffer constitutes from 0 (zero) percent to 3 (three) percent from the amount of assets, contingent and possible obligations weighed taking into account risks;

the system buffer, the requirement to which calculation extends to systemically significant banks recognized systemically significant according to the resolution of Board of National Bank of the Republic of Kazakhstan of December 23, 2019 No. 240 "About approval of Rules of reference of the financial organizations to number systemically significant" registered in the Register of state registration of regulatory legal acts at No. 19925. The requirement to the system buffer is fulfilled since January 1, 2017 on permanent basis and constitutes 1 (one) percent from the amount of assets, contingent and possible obligations weighed taking into account risks.

If the actual values of coefficients k 1, k1-2 and k2 are not lower than the established Values of capital adequacy ratios according to appendix 3 to Standard rates, but at the same time any of the provided coefficients below, than the established values of coefficients taking into account equity buffers, then on use of retained net income of bank restriction according to the Minimum amount of restriction of retained net income according to appendix 4 to Standard rates, regarding the termination of dividend payout and the return share repurchase, except as specified, provided by the Law of the Republic of Kazakhstan "About joint-stock companies" is imposed (further - the Join-stock companies law).

On the banks having positive difference, and the actual values of capital adequacy ratios (which k 1, k1-2 and k 2) any of the provided coefficients below what, the established values of capital adequacy ratios taking into account equity buffers is not lower than the capital adequacy ratios established according to Values according to appendix 3 to Standard rates, but at the same time, restriction for use of retained net income according to the Minimum amount of restriction of retained net income according to appendix 4 to Standard rates, regarding the termination of dividend payout and the return share repurchase, except as specified, provided by the Join-stock companies law is imposed.

In case of the case provided in parts ten of this Item, bank and (or) its shareholders, bank holding and (or) its large participants develop and represent to authorized body for approval the actions plan which, without being limited to following, contains the following information about (about):

the actions for capitalization of bank to the level sufficient for covering of positive difference including including replenishment of the authorized capital, and (or) increase in net retained earnings, and (or) the redemption by shareholders of doubtful and (or) bad assets;

actions no more than 5 years for step-by-step improvement of quality of assets and return of problem debt, including the following measures:

repayment of problem debt for the account of mortgage providing and subsequent its realization or acceptance of collateral mortgage security;

realization and (or) concession of the right (requirement) for the agreement of bank loan of the affiliated organization of bank acquiring doubtful and bad assets of parent bank, to the collection agencies, banks, the organizations performing separate types of banking activities, to the organizations, specializing in improvement of quality of credit portfolios of banks of the second level, the special finance company created according to the Law of the Republic of Kazakhstan "About project financing and securitization" in case of the transaction of securitization;

realization and (or) transfer of assets to the third parties;

the financial model of bank for at least 5 years by every year constituted taking into account the development strategy of bank approved by authorized body of bank;

obligations assumed by bank and (or) its shareholders, bank holding and (or) large participants during action of the actions plan;

completion dates of the actions plan on each its Item;

the list of the leading employees responsible for execution of the actions plan (with indication of the leading employees responsible for execution for each Item of the actions plan).

In case of actions plan overfulfillment in the accounting period offsetting of execution of the actions plan in the next accounting period is allowed.

In case of non-compliance with the actions plan the authorized body applies measures of supervising reaction according to the Law on banks.

Values of coefficients of sufficiency of equity taking into account equity buffers, are reached at the expense of components of fixed capital according to Item 7 of Standard rates.

The size of buffers of equity calculated according to requirements of this Item of Standard rates is not reflected in financial accounting.

Values of standard rates of sufficiency of equity and buffers of equity are reviewed by authorized body at least once in 3 (three) years.";

state Item 31 in the following edition:

"31. It is necessary to understand each physical person or legal entity to which the bank has requirements or probability of emergence of the requirements specified in Item 34 of Standard rates as the term "one borrower".

The extent of risk for the group consisting of two or more borrowers is calculated in total, as on one borrower if the extent of risk of each of borrowers exceeds 0,1 (zero whole one tenth) percent of equity of bank, and also in the presence of one of the following circumstances:

one of borrowers is large participant (physical person or legal entity which owns directly or indirectly in 10 (ten) or more percent of shares in the authorized capital or voting shares of joint-stock company, limited liability partnership or partnership with the accessorial liability; the complete companion in partnership in commendam, the participant in complete partnership), the affiliate, the close relative (the parent, the child, the adoptive father adopted the full and not full brother or the sister, the grandfather, the grandmother, the grandson), the spouse (spouse), the close relative of the spouse (spouse), the first head of other borrower, or person interested in transaction by other borrower;

the large member, the close relative, the spouse (spouse), the close relative of the spouse (spouse) or the first head of one borrower or person interested in transaction by one borrower is large member, the close relative, the spouse (spouse), the close relative of the spouse (spouse) either the first head of other borrower, or person interested in transaction by other borrower;

the large member, the close relative, the spouse (spouse), the close relative of the spouse (spouse) or the first head of one borrower or person interested in transaction with one borrower is large member, the close relative, the spouse (spouse), the close relative of the spouse (spouse) or the first head or person interested in transaction, the large participant, the close relative, the spouse (spouses), the close relative of the spouse (spouse) or the first head of other borrower or person interested in transaction by other borrower;

there are good causes, confirmatory that one of borrowers transferred another in use the money received by it from bank in loan, in the amount of, exceeding equity of the transferring borrower;

there are good causes, confirmatory that borrowers jointly or separately gave the means received from bank in loan, in the amount of, exceeding cumulative equity of these borrowers, in use to the same third party who is not the borrower of bank;

borrowers are connected in such a way that one of borrowers (except for banks of the Republic of Kazakhstan) bears joint or subsidiary liability in the amount exceeding 10 (ten) percent of its assets according to obligations of other borrower;

the official of one borrower has financial interest in activities of other borrowers of bank;

borrowers are connected among themselves by cooperation agreement or other document which contains signs of cooperation agreement, except for the borrowers who are members of consortium;

borrowers are connected in such a way that their obligations are provided with common mortgage property and (or) guarantee and (or) the guarantee of the same third party which aggregate value covers more than 35 (thirty five) percent of book value of loan, except as specified availability of the general providing provided in the form of insurance policies, reserve letters of credit, guarantees, and also guarantees of joint-stock company "Fund of development of entrepreneurship "LADY", joint-stock company "National welfare fund "Samruk-Kazyna", joint-stock company "National managing holding "Bayterek" and their affiliated organizations, Fund of the Problem Credits joint-stock company, institutes of development and support of entrepreneurship of the Republic of Kazakhstan, the national company performing functions on support of export, international financial institutions, financial organizations, nonresident banks of the Republic of Kazakhstan having rating "B" of the Standard & Poor agency "is not lower than s (Standard энд Purs) or the rating of similar level of one of other rating agencies;

borrowers are connected in such a way that one of borrowers provided mortgage property, guarantee, the guarantee in providing obligations of other borrower, except as specified availability of the providing provided in the form of insurance policies, reserve letters of credit, guarantees, and also guarantees of joint-stock company "Fund of development of entrepreneurship "LADY", joint-stock company "National welfare fund "Samruk-Kazyna", joint-stock company "National managing holding "Bayterek" and their affiliated organizations, Fund of the Problem Credits joint-stock company, institutes of development and support of entrepreneurship of the Republic of Kazakhstan, the national company performing functions on support of export, international financial institutions, financial organizations, nonresident banks of the Republic of Kazakhstan having rating "B" of the Standard & Poor agency "is not lower than s (Standard энд Purs) or the rating of similar level of one of other rating agencies;

the borrowers corresponding to one of the following conditions:

are the legal entities registered in the territory of the following states: Principality of Andorra, Principality of Liechtenstein, Republic of Liberia, Principality of Monaco, Marshall Islands (Republic of the Marshall Islands), or their citizens;

are the legal entities registered in the territory of the states carried by Organization for Economic Cooperation and Development to the list of the offshore territories which did not assume obligations on information exchange or their citizens;

have the large participants, affiliates, close relatives, the first heads or persons interested in transactions with these borrowers registered or who are citizens of the states specified in paragraphs the thirteenth and fourteenth to part two of this Item;

borrowers are connected among themselves on other bases provided by the Law on banks;

borrowers are project participants on real estate construction, including the project orderer on construction of the real estate, equity participants on construction of object under construction and guarantors of equity participants. The extent of risk on one borrower formed by group of the borrowers listed in this paragraph is not taken into cumulative consideration of the extent of risk as on one borrower according to paragraphs the second, third, the fourth, the fifth, the sixth, the seventh, the eighth, the ninth, the tenth, the eleventh, the twelfth, the thirteenth, fourteenth, to the fifteenth and sixteenth part two of this Item of Standard rates for the group formed with participation of physical persons - equity participants on construction of object under construction and (or) guarantors of equity participants.";

state Item 34 in the following edition:

"34. The extent of risk on one borrower (R), including bank, is calculated as the amount of requirements in type:

1) loans, deposits, receivables, securities (except for the investments specified in Item 8 of Standard rates);

2) the contingent and possible obligations calculated according to the Table of the contingent and possible obligations of bank weighed on degree of credit risk according to appendix 5 to Standard rates;

3) the securitized assets relating to borrowers on whom the bank has no written confirmation of authorized body on application of the framework approach of securitization;

4) securitization line items;

5) the credits according to transactions of securitization with special finance company of Fund of Stressful Assets joint-stock company;

6) the requirements for correspondent accounts to resident banks of the Republic of Kazakhstan and nonresident banks of the Republic of Kazakhstan weighed taking into account credit risk according to the Table of the assets of bank weighed on degree of credit risk of investments according to appendix 2 to Standard rates;

minus requirements to the borrower in type:

the assets financed by the funds raised under the agreement on the investment deposit;

the amounts of the reserves created according to IFRS, and also the providing amounts according to obligations of the borrower in type:

the deposits made available to bank as providing this obligation;

the government securities of the Republic of Kazakhstan issued by the Government of the Republic of Kazakhstan and National Bank of the Republic of Kazakhstan;

the government securities issued by the central governments of the foreign states having sovereign rating "AA" on the international scale of the Standard & Poor agency "is not lower than s (Standard энд Purs) or rating assessment of similar level of one of other rating agencies;

the affined precious metals;

guarantees of the Government of the Republic of Kazakhstan;

guarantees of joint-stock company "National welfare fund "Samruk-Kazyna" and joint-stock company "National managing holding "Bayterek", joint-stock company "Fund of development of entrepreneurship "LADY", Development Bank of Kazakhstan joint-stock company;

the guarantees or reserve letters of credit issued according to the International practice of reserve letters of credit (International Standby Practices, ISP98) or the Unified rules for on-demand guarantees (Uniform Rules for Demand Guarantees, URDG758), the nonresident banks of the Republic of Kazakhstan having long-term debt rating are not lower "And -" the Standard & Poor agencies "of s (Standard энд than Purs) or the rating of similar level of one of other rating agencies;

the guarantees and insurance contracts containing Items on unconditional and irrevocable obligation fulfillment on insurance payment, concluded with the insurance companies and export credit agencies performing functions on export support, created with participation of foreign states, having long-term debt rating s (Standard энд Purs) or the rating of similar level of one of other rating agencies is not lower "And" than the Standard & Poor agency ";

the securities issued by bank and provided as providing on the acquired bank to securities on which issuer is the joint-stock company "National welfare fund "Samruk-Kazyna", joint-stock company "National managing holding "Bayterek", or their affiliated organizations and on which at bank the right to unconditional collection of such providing is had;

the insurance contracts containing Items on unconditional and irrevocable obligation fulfillment on insurance payment, concluded with the national company which is performing functions on export support, and having the state warranty of the Government of the Republic of Kazakhstan.

On one borrower do not join in calculation of risk:

requirements to the Government of the Republic of Kazakhstan, National Bank of the Republic of Kazakhstan, joint-stock company "National welfare fund "Samruk-Kazyna", to joint-stock company "National managing holding "Bayterek", special finance company of Fund of Stressful Assets joint-stock company, the requirements of bank to the borrower which are written off from balance of bank, the requirement of bank to the borrower on which 100 (hundred) percent of reserves according to IFRS are created;

requirements of bank to the affiliated organization;

during the period from July 1, 2021 to December 31, 2021 inclusive requirements in the form of the money which is fees in guarantee or reserve funds of the clearing organization (the central partner), mid-flight fees, complete and (or) partial ensuring obligation fulfillment according to the bargains concluded in trade system of stock exchange by method of open tenderings and (or) with participation of the central partner;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info