Article 16. Application for permission to open a branch of a non–resident bank of the Republic of Kazakhstan of the Law on Banks and Banking Activities in the Republic of Kazakhstan Kazakhstan

Home / Laws / Article 16. Application for permission to open a branch of a non–resident bank of the Republic of Kazakhstan of the Law on Banks and Banking Activities in the Republic of Kazakhstan Kazakhstan

1. An application for a permit to open a branch of a non–resident bank of the Republic of Kazakhstan is submitted by the applicant in the form established by the authorized body.

2. The following documents and information are attached to the application for a permit to open a branch of a non–resident bank of the Republic of Kazakhstan:

1) notarized copies of the founding documents of a non–resident bank of the Republic of Kazakhstan;

2) a copy of the current license (current permit) of a non–resident bank of the Republic of Kazakhstan for banking activities, issued (issued) by the financial supervisory authority of the state of which the non–resident bank of the Republic of Kazakhstan is a resident, indicating the list of banking and other operations permitted under the license (permit).;

3) a copy of the decision of a non–resident bank of the Republic of Kazakhstan on opening a branch in the territory of the Republic of Kazakhstan, which contains, among other things, decisions on the following issues:

on acceptance by a non–resident bank of the Republic of Kazakhstan of responsibility for obligations arising in the course of carrying out the activities of its branch in the territory of the Republic of Kazakhstan, and on accounting for such obligations on the balance sheet of a non–resident bank of the Republic of Kazakhstan;

on approval of the amount of assets of a branch of a non–resident bank of the Republic of Kazakhstan accepted as a reserve in accordance with paragraph 4 of Article 72 of this Law;

4) a copy of the consent (permission) to open a branch of a non–resident bank of the Republic of Kazakhstan in the territory of the Republic of Kazakhstan issued by the financial supervisory authority of the state of which the non–resident bank of the Republic of Kazakhstan is a resident, or a copy of the confirmation from the financial supervisory authority of the state of which the non–resident bank of the Republic of Kazakhstan is a resident, that such consent (permission) is not required;

5) information on persons who directly or indirectly own ten or more percent of shares (stakes in the authorized capital) of a non–resident bank of the Republic of Kazakhstan and persons exercising control over a non–resident bank of the Republic of Kazakhstan, provided for by a regulatory legal act of the authorized body, as well as copies of documents confirming this information;

6) copies of the annual financial statements of a non–resident bank of the Republic of Kazakhstan (consolidated financial statements if a non–resident bank of the Republic of Kazakhstan has subsidiaries) for the last two financial years, confirmed by audit reports, as well as a copy of the financial statements of a non–resident bank of the Republic of Kazakhstan for the last completed quarter before submitting the application.

If there is no audit report confirming the financial statements for the last completed financial year from January 1 to June 1 of the current year, the non–resident bank of the Republic of Kazakhstan submits copies of the financial statements (consolidated financial statements if the non–resident bank of the Republic of Kazakhstan has subsidiaries) for the last completed financial year and the last completed quarter before by submitting an application, as well as copies of the annual financial statements (consolidated financial statements, if available to the bank – non-resident of the Republic of Kazakhstan subsidiaries), confirmed by audit reports for the two years preceding the last completed financial year.

The financial statements specified in this subparagraph shall not be submitted in cases where these financial statements are posted and available in Kazakh, Russian or English on the Internet resource of a non-resident bank of the Republic of Kazakhstan or a foreign stock exchange.;

7) brief information about the senior staff of a non–resident bank of the Republic of Kazakhstan in the form established by the authorized body;

8) copies of documents confirming the authority of the person to submit the application and the documents and information attached to it.

3. The requirements for the submission of documents confirming the information specified in subparagraph 5) of paragraph 2 of this Article, as well as documents provided for in subparagraph 7) of paragraph 2 of this article, do not apply to a non–resident bank of the Republic of Kazakhstan if it has a credit rating of at least "A-" of one of the rating agencies, the list of which is established by the regulatory a legal act of the authorized body.

4. The authorized body has the right to request additional information or documents necessary for making a decision on granting permission to open a branch of a non–resident bank of the Republic of Kazakhstan.

5. The procedure for issuing a permit to open a branch of a non–resident bank of the Republic of Kazakhstan is determined by a regulatory legal act of the authorized body.

6. An application for a permit to open a branch of a non–resident bank of the Republic of Kazakhstan is considered by the authorized body within sixty-five working days from the date of submission of the application.

The authorized body has the right to suspend the period of consideration of an application for a permit to open a branch of a non–resident bank of the Republic of Kazakhstan in any of the following cases:

identification of false data (information) about the applicant and (or) its founders contained in the submitted documents and (or) information;

inconsistencies in the content of submitted documents and (or) information with the requirements of the legislation of the Republic of Kazakhstan;

the need to verify the accuracy of the data (information) in the submitted documents and information.

The deadline for the applicant to eliminate the comments of the authorized body to the submitted documents and (or) information is no more than ten working days.

The deadline for reviewing an application for a permit to open a branch of a non–resident bank of the Republic of Kazakhstan is resumed after the applicant has eliminated the comments of the authorized body on the submitted documents and (or) information and the authorized body has completed verification of the accuracy of the data (information) in these documents and (or) information, or if the applicant fails to submit corrected (clarified) documents and (or) information within the period specified in part three of this paragraph.

7. Notification of the issuance of a permit to open a branch of a non–resident bank of the Republic of Kazakhstan is sent to a non–resident bank of the Republic of Kazakhstan and a State Corporation.

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

President

Republic of Kazakhstan

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The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444. On banks and banking activities, with the introduction of the Law of the Republic of Kazakhstan dated January 16, 2026 No. 258-VIII, the SAM has lost its legal force.

Article 16. The authorized and equity capital of the Bank of the Law on Banks and Banking Activities in the Republic of Kazakhstan

1. The authorized capital of the bank is formed in the national currency of the Republic of Kazakhstan through the placement of shares, except for the cases specified in paragraph 2 of this Article.

2. The bank's shares must be paid for exclusively in cash upon placement. This requirement does not apply to banks in the following cases::

1) placement of shares of the bank among the creditors of the bank and their payment by offsetting any right (claim) under the monetary obligation of the bank to the relevant creditor, when the bank carries out restructuring in cases provided for by this Law and other laws of the Republic of Kazakhstan;

1-1) conversion of securities and other monetary obligations of the bank into common shares of the bank in case of application of measures to settle an insolvent bank on the basis and in accordance with the procedure provided for in Articles 61-10 of this Law;

2) conversion of securities into shares of the bank on the basis of the prospectus for the issue of equity securities convertible into shares of the bank;

2-1) exchange of outstanding shares of a bank of one type for shares of a given bank of another type on the basis of the bank's charter and its share issue prospectus;

3) payment of the bank's shares in case of reorganization carried out in accordance with the procedure established by the Law of the Republic of Kazakhstan "On Joint-Stock Companies";

4) payment of the bank's shares in government securities of the Republic of Kazakhstan in the case provided for in Article 17-2 of this Law.

When placing shares of the bank in the cases provided for in this paragraph, an assessment is not required.

3. In case of conversion of securities into shares of the bank as part of its restructuring procedure and (or) as part of the application of measures to resolve an insolvent bank in accordance with the procedure provided for in Article 61-10 of this Law, the right of pre-emptive purchase is not granted to the bank's shareholders when placing its shares by converting securities and (or) monetary obligations of the bank into its shares.

3-1. The Bank has the right to issue preferred shares, the issue prospectus of which provides for the right of the bank's executive body not to accrue dividends on preferred shares if the accrual of dividends on shares leads to a decrease in prudential standards below the values established by the regulatory legal act of the authorized body.

3-2. A bank that uses funds from the state budget, the National Fund of the Republic of Kazakhstan, the National Bank of the Republic of Kazakhstan and (or) its subsidiaries to ensure financial stability and (or) improve its health, in the period from the date of the decision to provide funds from the state budget, the National Fund of the Republic of Kazakhstan, the National Bank of the Republic of Kazakhstan and (or) its subsidiaries. subsidiaries and distributes profits until the bank fully fulfills its obligations to return the funds received ., accrues dividends on ordinary and (or) preferred shares and (or perpetual) financial instruments, and also carries out the repurchase of its own shares subject to the conditions stipulated by the regulatory legal act of the authorized body.

4. The minimum amount of the authorized capital of a newly created bank must be paid in full by its founders within thirty calendar days after the state registration of the bank.

The minimum amount of the authorized capital of a bank established as a result of the voluntary reorganization of a microfinance organization in the form of conversion into a bank is formed at the expense of the authorized capital of the microfinance organization, subject to compliance with the requirements of part one of paragraph 1 of Article 42 of this Law before applying for a license to conduct banking and other operations.

5. The methodology for calculating the bank's equity and investments is determined by the authorized body.

If the amount of the bank's liabilities exceeds the value of its assets, the bank's equity is negative.

6. When establishing a negative amount of the bank's equity, the authorized body has the right to make a decision on the compulsory purchase of shares of its shareholders and immediately sell them to a new investor at the purchase price, on terms that guarantee an increase in the bank's capital and its normal functioning, taking into account the obligations assumed by the investor.

The authorized body's compulsory repurchase of the bank's shares is carried out at a price determined based on the value of the bank's assets minus the amount of its liabilities as of the date of its decision on compulsory repurchase of the bank's shares (shareholders' shares) for the purpose of their subsequent sale to a new investor. The sale of the bank's repurchased shares is carried out by the authorized body immediately at the purchase price. The rights and obligations of the owners of all forcibly repurchased shares of the bank are transferred to the new investor.

The procedure for the compulsory repurchase of the bank's shares and their mandatory subsequent sale to investors is established by the authorized body. - Excluded by the Law of the Republic of Kazakhstan dated June 24, 2025 No. 196-VIII SAM

The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.

President

Republic of Kazakhstan

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