Article 89. Financial stability restoration regime of the Law on Banks and Banking Activities in the Republic Kazakhstan

Home / Laws / Article 89. Financial stability restoration regime of the Law on Banks and Banking Activities in the Republic Kazakhstan

1. The financial stability restoration regime is understood as a set of measures implemented by the decision of the authorized body by the bank, major participants of the bank, and bank holdings in order to restore the financial stability of the bank, including restoring the sufficiency of equity and liquidity of the bank, as well as preventing the application of a settlement or forced liquidation regime to the bank.

2. During the period of the financial stability restoration regime, in addition to the supervisory response measures provided for in Article 78 of this Law, the authorized body may:

1) apply the powers provided for in paragraph 2 of Article 87 of this Law;

2) require the implementation of measures to change the asset structure of the bank and (or) organizations that are part of the banking conglomerate, including the sale and (or) improvement of the quality of their assets;

3) require changes to the organizational structure of the bank, including the replacement of the bank's senior staff;

4) establish a special procedure for the performance by a bank, a bank holding company and (or) organizations that are part of a banking conglomerate of certain types of operations and (or) transactions, including the need for their prior approval with the authorized body.

3. The powers provided for in paragraph 2 of this Article shall be applied by the authorized body in the form of a written order or written agreement, taking into account the requirements established by paragraphs 3, 4, 5 and 6 of Article 80 of this Law.

4. The decision of the authorized body on the application of the financial stability restoration regime to the bank is brought to the attention of the bank, major participants of the bank, bank holdings, the National Bank of the Republic of Kazakhstan, the organization providing mandatory deposit guarantee, within three working days from the date of the decision and is not subject to dissemination (disclosure) by the specified persons.

5. From the date specified in the decision of the authorized body on the application of the financial stability restoration regime to the bank:

1) the bank shall independently proceed with the implementation of the financial stability restoration plan specified in paragraph 1 of Article 88 of this Law until such plan is updated in accordance with the requirements of paragraph 6 of this Article.;

2) the bank suspends decision-making, as well as the execution of previously made decisions on profit distribution, payment of dividends, fulfillment of any financial obligations to major participants of the bank, bank holding companies, as well as payment of remuneration to senior employees of the bank, with the exception of wages (except bonuses and other incentive payments) and other guaranteed payments in cases where established by the labor legislation of the Republic of Kazakhstan;

3) shareholders of the bank and persons holding derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which are voting shares of the bank that do not have the status of a major participant in the bank or a bank holding company, are deprived of the right to vote at the general meeting of shareholders of the bank.

For holding a general meeting of shareholders of a bank in financial stability recovery mode, the quorum is considered to be observed with the participation at the general meeting of shareholders of all shareholders and persons holding derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign country, the underlying asset of which are voting shares of the bank, having the status of a major participant in the bank or a bank holding company.

6. Within five working days from the date of the decision by the authorized body to apply the financial stability restoration regime to the bank, the bank is obliged to submit for approval by the authorized body a financial stability restoration plan updated taking into account the current financial situation of the bank.

The bank, major participants of the bank, and bank holdings, after approval by the authorized body of the updated plan for restoring financial stability, are obliged to immediately begin its execution and notify the authorized body of the results of its execution within the time limits set by the specified plan.

7. The authorized body applies to the bank, major participants of the bank, and bank holding companies the supervisory response measures provided for in Article 78 of this Law in any of the following cases:

1) failure to submit a plan for restoring financial stability to the authorized body in accordance with the procedure established by Article 88 or the first part of paragraph 6 of this Article;

2) failure to comply with the financial stability restoration plan within the time limits set by it when the bank is in financial stability restoration mode.

8. In case of violation of the financial stability restoration plan, the bank, major participants of the bank, and bank holdings are obliged, at the request of the authorized body, to take measures to correct violations.

9. The authorized body has the right to appoint a temporary administration for the management of the bank in accordance with the procedure established by Article 101 of this Law in any of the following cases:

1) non-fulfillment or improper fulfillment by the bank, major participants of the bank, and bank holding companies of the financial stability restoration plan;

2) based on the results of an assessment (analysis) of the financial and property status of the bank conducted in accordance with subparagraph 2) of Article 78 of Article 87 of this Law.

10. The interim administration for the management of the bank (if appointed by an authorized body) or the bank (if the interim administration for the management of the bank is not appointed), including at the request of creditors, for transactions made by the bank within three years prior to the date of commencement of the financial stability restoration regime, may apply to the court for recognition of transactions invalid if there are grounds for the invalidity of transactions provided for by the Civil Code of the Republic of Kazakhstan, the laws of the Republic of Kazakhstan and (or) paragraph 2 of Article 122 of this Law.

The provisions of paragraphs 3, 4, 5 and 6 of Article 122 of this Law shall apply to the recognition of transactions as invalid under the financial stability restoration regime.

11. The financial stability restoration regime is terminated by a decision of the authorized body upon elimination of the grounds for its application and the bank's compliance with equity adequacy ratios and other prudential standards and limits established by the authorized body, as well as macroprudential standards and limits established by the National Bank of the Republic of Kazakhstan for six consecutive calendar months.

12. The provisions of this article apply to branches of non–resident banks of the Republic of Kazakhstan.

For the purposes of part one of this paragraph, major bank participants and bank holding companies are understood to be the governing body of a non–resident bank of the Republic of Kazakhstan with a branch in the territory of the Republic of Kazakhstan.

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

President

Republic of Kazakhstan

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