Article 80. Measures to improve the financial condition and/or minimizing the risks of the Law on Banks and Banking Activities in the Republic Kazakhstan

Home / Laws / Article 80. Measures to improve the financial condition and/or minimizing the risks of the Law on Banks and Banking Activities in the Republic Kazakhstan

1. In order to eliminate deficiencies, risks and (or) violations, including those identified using reasoned judgment, the authorized body applies measures to improve the financial condition and (or) minimize the risks of the bank, a major participant in the bank, a bank holding company, a banking conglomerate and (or) organizations that are part of the banking conglomerate, as well as persons who have the characteristics of a major participant in a bank or a bank holding company, by submitting claims for:

1) ensuring compliance of their activities with the legislation of the Republic of Kazakhstan;

2) suspension and (or) restriction of the implementation of certain types of banking activities, the execution of certain transactions, or the establishment of a special procedure for their implementation;

3) cost reduction, including through:

termination or restriction of additional employment of employees;

closure of individual branches, representative offices, and subsidiaries;

restrictions on monetary rewards and other types of financial incentives for executives;

4) suspension and (or) restriction of investments in certain types of assets or the establishment of a special procedure for their implementation;

5) formation (additional formation) of provisions (reserves) according to international financial reporting standards;

6) recognition of an individual or an organization as a person associated with a bank or a bank holding company in a special relationship;

7) changing the terms of a transaction concluded on preferential terms with a person associated with a bank or bank holding company by special relations to terms similar to those of similar transactions with third parties concluded on the date of the transaction with preferential terms;

8) restriction of transactions with persons connected with a bank or a bank holding company by special relations;

9) termination of accrual and (or) payment of dividends on ordinary and (or) preferred shares, and (or) remuneration on perpetual and (or) subordinated financial instruments;

10) review of internal policies and procedures, limits on the permissible amount of risks, procedures for evaluating the effectiveness of the risk management and internal control system;

11) removal from official duties of persons specified in Article 45 of this Law and (or) a regulatory legal act of the authorized body establishing the procedure for forming a risk management and internal control system, including in the case of removal by a bank, a bank holding company, a non–resident bank of the Republic of Kazakhstan of persons specified in Article 45 of this Law, from the performance of official duties to the application of this supervisory response measure by the authorized body. When applying this supervisory response measure to a senior employee, the authorized body revokes consent to the appointment (election) to the position of a senior employee.

From the day following the day on which the bank, the bank holding company, or a branch of a non–resident bank of the Republic of Kazakhstan receives a written notification from the authorized body on the application of a supervisory response measure on the removal of persons specified in Article 45 of this Law, all subsequent decisions of the collegial body with the participation of the suspended person shall be considered invalid.;

12) carrying out an assessment of the value of property owned by a major bank participant and (or) a bank holding company;

13) elimination of the causes and (or) conditions that contributed to the violation of the rights and legitimate interests of depositors and (or) other creditors, and (or) clients, and (or) correspondents of the bank;

14) elimination of deficiencies affecting the financial stability of the bank or banking conglomerate indicated in the audit report and (or) recommendations of the audit organization;

15) reduction (alienation) by the bank of its shares, participation interests, units or other forms of equity participation in a subsidiary or an organization in which the bank has a significant equity interest, and (or) termination of control over these organizations.

2. The measures provided for in paragraph 1 of this article shall be applied in the form of a written order or written agreement.

3. A written instruction is an instruction to a bank, a bank holding company, organizations that are part of a banking conglomerate, or a major participant in the bank to take mandatory measures established by paragraph 1 of this article.

A written instruction may contain a requirement to submit, within the time period established by the authorized body, an action plan for the fulfillment of the requirements of the authorized body established by paragraph 1 of this article (hereinafter referred to as the action plan).

The action plan contains a description of deficiencies, risks or violations, the reasons that led to their occurrence, a list of planned activities, the timing of their implementation, as well as responsible managers.

4. A written agreement is an agreement concluded in writing between an authorized body and a bank or a bank holding company, or organizations that are part of a banking conglomerate, or a major participant in a bank, on the implementation of measures established by paragraph 1 of this article, specifying the time frame for eliminating identified deficiencies, risks and (or) violations, and (or) a list of restrictions that the specified persons undertake to comply with until the identified deficiencies, risks and (or) violations are eliminated.

A written agreement must be signed by the bank, a bank holding company, organizations that are part of a banking conglomerate, and (or) a major participant in the bank.

5. A bank, a bank holding company, an organization that is part of a banking conglomerate, or a major participant in a bank must notify the authorized body of the implementation of the measures specified in the written instruction, action plan, and/or written agreement within the time limits provided for in these documents.

6. If it is not possible to eliminate the violation within the time limits set out in the written instruction, action plan and (or) written agreement, for reasons beyond the control of the bank, bank holding company, organization that is part of a banking conglomerate, a major participant in the bank, the deadline for the execution of the written instruction, action plan and (or) written agreement it may be extended until the date set by the authorized body.

7. The provisions of this article apply to branches of non–resident banks of the Republic of Kazakhstan and organizations engaged in certain types of banking operations.

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

President

Republic of Kazakhstan

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