Article 91. Assessment of the viability of the bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

Home / Laws / Article 91. Assessment of the viability of the bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

1. The bank's viability assessment is a comprehensive analysis conducted by an authorized body, including with the involvement of appraisers, auditing and (or) other specialized organizations, in order to determine:

1) the financial, accounting and economic situation of the bank, including the ability of the bank:

comply with 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;

fulfill obligations to its depositors, other creditors and customers, as well as carry out banking activities on a sustainable basis;

2) the bank has critically important banking and other operations that require continuity of their implementation.;

3) the existence of grounds for declaring the bank insolvent or potentially insolvent;

4) the possibility and expediency of applying settlement instruments to the bank in comparison with the forced liquidation of the bank in case the bank is declared insolvent or potentially insolvent, including:

the provisions of depositors, other creditors, clients and correspondents of the bank in connection with the possible application of settlement instruments to the bank, as well as their provisions in case of forced liquidation of the bank without the application of the settlement regime;

presence of systemic risks and (or) risks of significant negative impact on the banking system in case of forced liquidation of the bank;

the expediency of government involvement in the settlement of a systemically important bank.

The expenses of the authorized body related to the assessment of the viability of the bank are paid (reimbursed) at the expense of the bank.

2. The bank's viability is assessed on any of the following grounds:

1) reduction of the bank's equity capital adequacy and (or) liquidity ratios to a level below the minimum values established by the authorized body;

2) non-fulfillment by the bank of monetary obligations to depositors and (or) other creditors within seven business days due to lack or insufficiency of money;

3) systematic (three or more times within twelve consecutive calendar months) improper fulfillment by the bank of contractual obligations on transfer transactions due to lack or insufficiency of money;

4) significant deficiencies in the bank's corporate governance and/or risk management and internal control system, which significantly negatively affect the bank's financial stability;

5) the presence of material misstatements in the bank's regulatory or financial statements, including intentional misrepresentation or non-recognition of losses, manipulation of accounting policies;

6) identification by the authorized body within the framework of its supervisory functions of signs that may lead to the creation of a situation that threatens the financial stability of the bank and (or) the rights and legitimate interests of its depositors, other creditors, clients and correspondents and (or) the stability of the financial system;

7) failure to implement measures to improve the financial condition and (or) minimize risks provided for in Article 80 of this Law, and (or) compulsory supervisory response measures provided for in Article 81 of this Law;

8) non-fulfillment or inefficiency of the bank's financial stability recovery plan;

9) making transactions (operations) by a bank under enhanced supervision or restoration of financial stability that lead to a deterioration in the financial stability of the bank, including:

transactions (operations) that result in a significant deterioration in the quality of the bank's assets, including the sale or replacement of assets or collateral, if these transactions (operations) result in losses to the bank;

transactions (operations) on non-market terms, as a result of which the bank incurs losses, as well as transactions with persons with special relations with the bank in violation of the requirements established by Article 50 of this Law and (or) restrictions established by the authorized body through the application of supervisory response measures.;

acceptance by the bank of obligations that have resulted in the inability of the bank to fulfill monetary obligations to depositors and (or) other creditors in whole or in part;

the transfer of property (including for temporary use) is free of charge or at a price significantly different for the worse for the bank from the price of similar property under comparable economic conditions, or without grounds, to the detriment of the rights and legitimate interests of depositors, other creditors, clients and correspondents of the bank;

10) the existence of the grounds established by this Law for revoking a bank's banking license to carry out all types of operations;

11) the existence of circumstances (information) indicating that any of the grounds provided for in the subparagraphs 1), 2), 3), 4), 5), 6), 7), 8), 9) and 10) of this paragraph, will come in respect of the bank within the next six months.

3. The procedure for assessing the viability of the bank, criteria for the presence of systemic risks and risks of significant negative impact on the banking system, criteria for the presence of critically important banking and other operations requiring continuity of their implementation, as well as a list of transactions (operations) on non-market terms, as a result of which the bank incurs losses, are determined by a regulatory legal act of the authorized body. the organ.

4. Depending on the results of the bank's viability assessment, the authorized body recognizes the bank:

1) able to restore its financial stability, provided that the bank implements an updated plan to restore financial stability;

2) insolvent or potentially insolvent.

5. If the bank is declared insolvent or potentially insolvent, one of the following decisions is taken on:

1) applying a settlement regime to the bank in accordance with the procedure specified in paragraph 3 of Article 92 of this Law, if the results of the bank's viability assessment confirm the possibility and expediency of using settlement instruments in comparison with the forced liquidation of the bank;

2) withdrawal by the authorized body of the bank of a banking license to carry out all types of operations and applying to the court for a decision on compulsory liquidation of the bank, if the results of the assessment of the bank's viability confirm the absence of the possibility and (or) expediency of applying settlement instruments to the bank.

The expediency of applying settlement instruments to the bank is confirmed by the possibility of achieving the settlement objectives provided for in paragraph 1 of Article 92 of this Law.

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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