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

of December 30, 2023 No. 100

About modification and amendments in 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 and amendment, according to appendix to this resolution are made.

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.

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 December 30, 2023 No. 100

The list of regulatory legal acts of the Republic of Kazakhstan concerning banking regulation to which changes and amendment 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:

state preamble in the following edition:

"According to the laws of the Republic of Kazakhstan "About banks and banking activity in the Republic of Kazakhstan" and "About the state statistics" the Board of National Bank of the Republic of Kazakhstan DECIDES:";

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 1 in the following edition:

"1. These normative values and technique of calculations of prudential standard rates and other regulations and limits, obligatory to observance, (further – Standard rates) are developed for Islamic banks according to the Law of the Republic of Kazakhstan "About banks and banking activity in the Republic of Kazakhstan" (further – the Law on banks) and establish normative values and technique of calculations of prudential standard rates and other regulations and limits, obligatory to observance, for Islamic banks (further - banks).";

state Item 35 in the following edition:

"35. The relation of the extent of risk of bank on one borrower according to its obligations to equity of bank does not exceed:

for borrowers, being the faces tied with bank the special relations of k3-1 - 0,10. The cumulative amount of risks on the borrowers connected with bank the special relations shall not exceed the size of equity of bank;

for other borrowers of k3 - 0,25 (including, no more 0, on blank loans, unsecured contingent obligations before the borrower or for the borrower for benefit of the third parties on whom the bank has probability of emergence of the requirement to the borrower within the current and 2 (two) next months according to obligations of the corresponding borrowers specified in Item 36 of Standard rates and also according to obligations of the nonresidents of the Republic of Kazakhstan registered or who are citizens of offshore zones, except for requirements to residents of the Republic of Kazakhstan with the rating of the Standard & Poor agency "s (Standard энд Purs) or the rating of similar level of one of other rating agencies is no more than 1 (one) Item lower than the sovereign rating of the Republic of Kazakhstan and to nonresidents with rating not below "And" the Standard & Poor agencies" s (Standard энд Purs) or the rating of similar level of one of other rating agencies).

The relation of the extent of risk of bank on one borrower on blank loans to equity of bank does not extend to the legal resident person of the Republic of Kazakhstan corresponding to all following conditions:

50 (fifty) and more percent of voting shares (shares in the authorized capital) the legal entity directly or indirectly belong to the state or national managing holding or national welfare fund or legal nonresident person of the Republic of Kazakhstan having long-term debt rating is not lower than the sovereign rating of the Republic of Kazakhstan;

information on shareholders (participants) directly or indirectly owning more than 5 (five) percent of voting shares (shares in the authorized capital) the legal entity, is public and is placed on Internet resource of the stock exchange performing activities in the territory of the Republic of Kazakhstan of either foreign state, or electronic systems (REUTERS, Bloomberg) or on official Internet resource of the legal entity;

the financial reporting of the legal entity for the last 3 (three) years is confirmed with the international auditing organization.

The cumulative amount of risks of bank on one borrower, the size of each of which exceeds 10 (ten) percent from equity of bank, shall not exceed the size of equity of bank more than by 5 (five) times.";

state Item 53 in the following edition:

"53. Capitalization of banks to obligations to nonresidents of the Republic of Kazakhstan is characterized by k7 coefficient. The maximum value of coefficient is established in the amount of 3.

The coefficient of k7 is calculated as the relation of the amount of short-term obligations before nonresidents of the Republic of Kazakhstan to equity of bank.

For the purpose of calculation of this coefficient join in the amount of obligations to nonresidents of the Republic of Kazakhstan:

obligations to nonresidents of the Republic of Kazakhstan poste restante, including obligations, on which not fixed term of implementation of calculations;

urgent obligations to nonresidents of the Republic of Kazakhstan with initial term of repayment till 1 (one) inclusive;

urgent obligations to nonresidents of the Republic of Kazakhstan with the unconditional right of the creditor to require early repayment of obligations, including term and conditional deposits of banks, except for term and conditional deposits of physical persons and legal entities.

For the purpose of calculation of this coefficient are excluded from the amount of obligations to nonresidents of the Republic of Kazakhstan:

current accounts of legal nonresident persons of the Republic of Kazakhstan;

obligations to parent nonresident bank of the Republic of Kazakhstan and its group in type of loan;

short-term obligations before branches and representative offices of the foreign companies performing the activities in the territory of the Republic of Kazakhstan which enter sectors of economy the code "5" - other financial organizations, the code "6" - the state non-financial organizations, the code "7" - the non-state non-financial organizations and the code "8" - the non-profit organizations servicing households according to the Instruction for representation of the second level by banks, Development bank of Kazakhstan, branches of nonresident banks of the Republic of Kazakhstan, branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan and the mortgage organizations in National Bank of the Republic of Kazakhstan of data for forming of the overview of the financial sector, the Republic of Kazakhstan approved by the resolution of Board of National Bank of June 29, 2018 No. 139 (registered in the Register of state registration of regulatory legal acts at No. 17274);

short-term obligations before nonresidents of the Republic of Kazakhstan, being international financial institutions;

short-term obligations before nonresidents of the Republic of Kazakhstan, being the international settlement systems (Clearstream Banking S.A. (Klirstrim Banking) and Euroclear Bank SA/NV (Evroklir Bank);

during the period from March 1, 2022 to January 31, 2023 inclusive other obligations to parent bank - the nonresident of the Republic of Kazakhstan in the form of deposits and the credits with initial term of repayment till 1 (one) inclusive, and also remaining balance on correspondent account.";

state Item 59 in the following edition:

"59. Internal assets of bank represent assets (money) and requirements (the placed deposits, the issued loans, equity and debt securities, receivables) to residents of the Republic of Kazakhstan, participation in the authorized capital of legal entities - residents of the Republic of Kazakhstan, intangible assets and the affined precious metals, the personal and real estate located (being) in the territory of the Republic of Kazakhstan the requirements to nonresidents of the Republic of Kazakhstan on the loans issued for financing of export of the processed goods and services from the Republic of Kazakhstan provided with the insurance contracts containing Items on unconditional and irrevocable obligation fulfillment on insurance payment, concluded with the national company which is performing functions on support of export and having the state warranty of the Government of the Republic of Kazakhstan, and also the bond of international financial institutions issued in tenge and traded in trade system of Kazakhstan stock exchange joint-stock company, and also the bonds of international financial institutions issued in tenge, and also in foreign currency (US dollars, EURO) in which prospectus of release the condition of the obligatory direction of the raised funds for crediting of residents of the Republic of Kazakhstan for projects implementation in the territory of the Republic of Kazakhstan is provided, and traded in trade system of Kazakhstan stock exchange joint-stock company and also on the stock exchange in the International financial center "Astana".

Internal obligations of bank represent obligations to residents of the Republic of Kazakhstan, except for subordinated debt, termless financial instruments, debt securities issued by bank and not invested remaining balance of the means accepted by bank based on the custodial agreement, and also remaining balance on correspondent accounts of banks, Kazakhstan stock exchange joint-stock company, KASE Clearing Center joint-stock company, "Central Securities Depository" joint-stock company in foreign currency.

For the purposes of calculation of coefficient for placement of part of means of banks in internal assets according to Items 57 and 58 of Standard rates the smallest value from following is used:

authorized capital, or

equity according to data of the balance sheet less investments into subordinated debt of the affiliated nonresident organizations of the Republic of Kazakhstan, into shares of the affiliated nonresident organizations of the Republic of Kazakhstan, increased by 0,75.

The coefficient on placement of part of means of banks in internal assets is not considered broken during the period from February 21, 2022 to December 31, 2022 inclusive in case of decrease in its value below of the established minimum value on the circumstances, independent of bank, connected with:

in cash outflow of clients;

revaluation of asset cost and obligations in connection with change of the stock exchange rate of tenge to foreign currencies;

change of currency structure of obligations of bank.

The bank within 3 (three) working days from the date of identification of such decrease sends for approval in authorized body the actions plan on increase in coefficient on placement of part of means of banks in internal assets up to level at least the established minimum value till 9 (nine) months from the date of identification of the specified decrease.

The authorized body performs approval of the actions plan specified in part five of this Item within 10 (ten) working days from the date of its representation.

If this decrease will not be eliminated in time, established by the actions plan, decrease in coefficient on placement of part of means of banks in internal assets is considered as violation of this standard rate from the date of identification of the specified decrease.";

state appendix 2 in edition according to appendix 1 to the List of regulatory legal acts of the Republic of Kazakhstan concerning banking regulation to which changes and amendment are made (further - the List).

2. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of September 13, 2017 No. 170 "About establishment of normative values and techniques of calculations of prudential standard rates and other regulations and limits, obligatory to observance, the size of the capital of bank and Rules of calculation and limits of open foreign exchange position" (it is registered in the Register of state registration of regulatory legal acts at No. 15886) the following changes and amendment:

in Normative values and techniques of calculations of the prudential standard rates and other regulations and limits, obligatory to observance, the size of the capital of bank approved by the specified resolution:

state Items 1-3 and 2 in the following edition:

"1-3. For the purposes of Standard rates authorized body rating estimates of the rating agencies corresponding to the following criteria are recognized:

1) the rating agency is subject to regulation in country of source and estimates of rating agency are recognized within prudential regulation;

2) the minimum size of equity of rating agency constitutes the amount equivalent to at least 600 000 000 (six hundred million) tenges;

3) objectivity, independence and responsibility:

the methodology applied by rating agency is reliable and is subject to check on the basis of historical and (or) anticipated data about defaults, and also contains the detailed description of all key quantitative and high-quality factors determining capability of reytinguyemy person to fulfill the assumed financial liabilities, and also the description of their influence on credit ratings and forecasts for credit ratings;

the rating agency is not controlled by state bodies or officials in state bodies, subjects of the quasi-public sector or political parties and which do not interfere with activities of rating agency and have no influence on processes of assignment of ratings;

legal entities to whom the rating agency appropriates, confirms or reviews rating, are not affiliates of rating agency, except for no persons who directly own less than 10 (ten) percent of shares of rating agency and are had by influences on rating activities of rating agency;

the rating analysts of rating agency participating in rating actions concerning reytinguyemy person do not consist and did not consist in employment or business relations with reytinguyemy person within the last 3 (three) years before date of implementation of rating action, and also do not own directly or indirectly, including through close relatives, securities, other financial instruments or other property of reytinguyemy person or the persons exercising control over reytinguyemy person or exerting considerable impact on such person;

the rating agency has service of the internal audit or internal control including performing internal audit functions, accountable to the board of directors of rating agency;

in rating agency at least one third, but at least two board members are the independent members who are not performing rating actions, advertizing of services of rating agency and other actions for customer acquisition;

the share of immediate or indirect possession by shares of each shareholder of rating agency does not exceed 50 (fifty) percent from total quantity of voting shares of this rating agency in case shareholder is the financial organization, the share of immediate possession does not exceed 10 (ten) percent;

internal procedures of rating agency provide measures for prevention of unauthorized use and disclosure of information and provide protection and confidentiality of information;

4) transparency and disclosure of information:

the rating agency provides disclosure on Internet resource of rating agency of the following information:

the methodology applied by rating agency in case of determination of rating;

the list of the credit scores assigned for the last year and also reytinguyemy persons and other persons, the share of cash receipts from whom constituted 5 (five) and more percent in the annual total revenue of rating agency as of the end of the last expired calendar year;

5) reliability of ratings:

the rating agency performs rating activities on regular basis at least 5 (five) last years;

the number of the organizations to which the rating agency assigned and reviewed credit score makes at least thirty, including for the last 3 (three) years at least twenty, from them at least five were the financial organizations;

the personnel of rating agency which are directly engaged in assignment of ratings have the corresponding education, skills and experience;

at least one worker participating in process of adoption of rating decisions, being the member of the body making the rating decision (further - rating committee), has at least two-year work experience in rating agency, or in the analytical agency, or in the research center, or in the financial organization, or in auditing organization;

as a part of rating committee there are at least five rating analysts, including the leading rating analyst for reytinguyemy person and (or) its financial liabilities or financial instruments (further - rating object), the chairman of the rating committee and one rating analyst specializing in type of objects of rating to which the considered rating object does not belong (if the rating agency performs activities for assignment of ratings concerning different types of objects of rating);

the rating agency on permanent basis performs monitoring of the assigned scores, and also provides timely response to the changing factors connected with changes in financial position, corporate management or other aspects of activities of reytinguyemy person, changes of macroeconomic conditions or conditions of the financial market that is confirmed by the actual updates of ratings no later than 1 (one) calendar year from the date of assignment or the last review of rating or date of the last review of the methodology applied by rating agency.

The rating agency sends to authorized body inquiry for acceptance of rating estimates of rating agency for the purposes of prudential regulation with appendix of supporting documents.

In case of compliance of rating agency to the criteria established by part one of this Item, the authorized body on official Internet resource in time no later than 30 (thirty) working days from the date of receipt of request of rating agency about acceptance of its rating estimates publishes data on rating agency and comparability of rating scales of rating agencies.

The methodologies applied by rating agency validirutsya by authorized body in case of primary appeal of rating agency to authorized body and at least 1 (one) time a year.

In case of modification of the methodologies applied by rating agency, the rating agency in time no later than 10 (ten) working days sends information to authorized body with indication of the reasons and effects of such changes.

2. In Standard rates the following concepts are used:

1) book value - the amount on which the loan is recognized the balance sheet after deduction of the provisions (reserves) created on them;

2) investment loan (credit) - I will jam (credit), conforming to the following requirements:

the term of loan (credit) constitutes 5 (five) and more years;

terms of the contract of loan (credit) establish prohibition on complete early repayment. Partial repayment of loan is performed in the terms and procedure provided by the business plan of the borrower;

the loan (credit) is granted the legal entity according to its business plan providing realization of complex of the actions directed to creation, expansion and upgrade of production of goods, production and transport infrastructure;

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