Article 85. Signs of deterioration of the financial stability of the bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

Home / Laws / Article 85. Signs of deterioration of the financial stability of the bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

1. In order to protect the rights and legitimate interests of depositors, other creditors, clients and correspondents of the bank, ensure the financial stability of the bank, prevent the occurrence of insolvency or potential insolvency of the bank, reduce the negative consequences of deterioration of the financial stability of the bank, as well as reduce systemic risks, the authorized body identifies financial, economic and other signs of deterioration of the financial stability of the bank, determined on the basis of based on the quantitative and qualitative performance indicators of the bank.

2. Financial, economic and other signs of deterioration of the financial stability of the bank are:

1) reduction of the values of prudential standards and limits, including equity capital adequacy ratios and (or) liquidity ratios established by the authorized body, as well as the values of macroprudential standards and limits established by the National Bank of the Republic of Kazakhstan;

2) the bank's failure to fulfill monetary obligations to depositors and (or) other creditors due to the lack or insufficiency of money from the bank;

3) identification by the authorized body of facts (transactions), the reliable reflection of which in the financial and (or) other statements of the bank may lead to a violation by the bank of equity capital adequacy ratios and (or) non-fulfillment by the bank of monetary obligations to its depositors and (or) other creditors;

4) deficiencies and (or) risks in the bank's activities identified by the authorized body within the framework of control and supervision functions that may negatively affect the financial stability of the bank and (or) the interests of depositors, other creditors, clients and correspondents of the bank and (or) the stability of the banking system;

5) non-fulfillment by the bank of the financial stability restoration plan;

6) other signs of deterioration of the financial stability of the bank, established by the regulatory legal act of the authorized body.

The values of financial, economic and other signs of deterioration of the bank's financial stability are established by a regulatory legal act of the authorized body.

3. Depending on the presence and significance of financial, economic and other signs of deterioration in the financial stability of the bank, one of the following modes may be applied to it::

1) enhanced supervision regime;

2) financial stability recovery mode;

3) the settlement regime.

The settlement regime is applied if the results of the bank's viability assessment conducted in accordance with Article 91 of this Law confirm the possibility and expediency of applying settlement instruments to the bank in comparison with the forced liquidation of the bank.

4. The provisions of this article shall apply to branches of non–resident banks of the Republic of Kazakhstan, with the exception of subparagraph 3) of the first part of paragraph 3 of this Article.

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

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Republic of Kazakhstan

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