Article 11. Refusal to issue a permit to open a bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

Home / Laws / Article 11. Refusal to issue a permit to open a bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

1. A refusal to grant permission to open a bank is made on any of the following grounds:

1) the bank's name does not comply with the requirements of paragraph 3 of Article 7 of this Law;

2) unstable financial situation of the founder of the bank.

An unstable financial situation is defined as the presence of any of the following signs:

the obligations of the founder of the bank exceed its assets minus the amount of assets placed in shares, shares, units or other forms of equity participation in organizations and the bank's shares expected to be acquired;

losses of the founder of the bank based on the results of each of the two completed financial years;

the amount of the bank's founder's obligations poses a significant risk to the bank's financial condition;

the analysis of the financial consequences of the acquisition by the founder of the bank of the status of a major participant in the bank (bank holding company) suggests a deterioration in the financial condition of the founder of the bank;

the value of the bank founder's property (minus his obligations) is insufficient to purchase the bank's shares;

other grounds identified using reasoned judgment, indicating the existence of an unstable financial situation of the founder of the bank and (or) the possibility of causing damage to the bank and (or) its depositors and other creditors.

In the case of the creation of a bank as part of a voluntary reorganization of a microfinance organization in the form of conversion into a bank, an unstable financial situation should be absent only from a person acquiring the status of a major participant in the bank (bank holding company).;

3) in cases where the founder of the bank is an individual or the first head of the executive body and (or) the governing body of the founder is a legal entity.:

has an outstanding or outstanding criminal record;

He held the position of first head of the management body, first head of the executive body or his deputy, chief accountant, deputy chief accountant of a financial institution, including a non–resident financial institution of the Republic of Kazakhstan, for a period of no more than one year prior to the adoption by the authorized body or financial supervisory authority of the state of which the financial institution is a resident – a non–resident of the Republic of Kazakhstan, decisions on the application of the settlement regime, decisions on the revocation of the license of a financial organization, including a non-resident financial organization of the Republic of Kazakhstan, which led to their liquidation and (or) termination of activities in the financial market, or the entry into force of a judicial act on the compulsory liquidation of a financial organization, including a financial organization – a non–resident of the Republic of Kazakhstan, or declaring it insolvent (bankrupt) in accordance with the procedure established by the legislation of the Republic of Kazakhstan or the legislation of the state in which the non-resident financial institution of the Republic of Kazakhstan is a resident.

The grounds for refusal to issue a permit to open a bank, provided for in the third paragraph of this subparagraph, shall apply within ten years after the relevant decision is made by the authorized body or the financial supervisory authority of the state in which the non–resident financial institution of the Republic of Kazakhstan is a resident, or the entry into force of the relevant judicial act.

For the purposes of this subparagraph, a financial institution also means a branch of a non–resident bank of the Republic of Kazakhstan, a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, and a branch of a non–resident insurance broker of the Republic of Kazakhstan.;

4) non-compliance with the restrictions established by Article 9 of this Law;

5) non-compliance with the requirements established by Article 10 of this Law and Article 9-5 of the Law of the Republic of Kazakhstan "On State Regulation, Control and Supervision of the Financial Market and Financial Organizations";

6) refusal of the authorized body to grant consent to acquire the status of a major participant in the bank (bank holding company);

7) refusal of the authorized body to grant permission for the establishment of a subsidiary bank or significant participation in the capital of another bank;

8) failure to eliminate the comments of the authorized body on the submitted documents and (or) information within the time period provided for in the third part of paragraph 8 of Article 10 of this Law;

9) unreliability of the data (information) in the documents and (or) information submitted by the applicant for obtaining a permit.

2. The authorized body is obliged to notify the applicant in writing of the refusal to grant permission to open a bank, explaining the reason for the refusal.

The Law of the Republic of Kazakhstan dated January 16, 2026 No. 258-VIII SAM.

President

Republic of Kazakhstan

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