RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of September 13, 2017 No. 170

About establishment of normative values and techniques of calculations of prudential standard rates and other regulations and limits, obligatory to observance, size of the capital of bank and Rules of calculation and limits of open foreign exchange position

According to the laws of the Republic of Kazakhstan "About banks and banking activity in the Republic of Kazakhstan" and "About the state statistics" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Establish:

1) Normative values and techniques of calculations of prudential standard rates and other regulations and limits, obligatory to observance, the size of the capital of bank according to appendix 1 to this resolution;

2) Rules of calculation and limits of open foreign exchange position according to appendix 2 to this resolution.

2. Recognize invalid:

1) the resolution of Board of National Bank of the Republic of Kazakhstan of May 30, 2016 No. 147 "About establishment of normative values and techniques of calculations of prudential standard rates and other regulations, obligatory to observance, and limits of the size of the capital of bank for certain date and Rules of calculation and limits of open foreign exchange position of bank" (registered in the Register of state registration of regulatory legal acts at No. 13919, published on July 26, 2016 in information system of law of Ad_let);

2) Item 2 of the resolution of Board of National Bank of the Republic of Kazakhstan of August 8, 2016 No. 188 "About modification of some regulatory legal acts of the Republic of Kazakhstan concerning banking regulation" (registered in the Register of state registration of regulatory legal acts at No. 14263, published on October 5, 2016 in Reference control bank of regulatory legal acts of the Republic of Kazakhstan).

3. To department of methodology of the financial market (Abdrakhmanov N. A.) in the procedure established by the legislation of the Republic of Kazakhstan to provide:

1) together with Legal department (Sarsenov N. V.) state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this resolution the direction it the copy in paper and electronic type in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information" for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) placement of this resolution on official Internet resource of National Bank of the Republic of Kazakhstan after its official publication.

4. To management on consumer protection of financial services and external communications (Terentyev A. L.) provide within ten calendar days after state registration of this resolution the direction it to the copy on official publication in periodic printing editions.

5. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Smolyakov O. A.

6. This resolution becomes effective since September 25, 2017 and is subject to official publication.

It is approved Chairman of Committee according to the statistics Ministries of national economy of the Republic of Kazakhstan September 28, 2017

__________________ N. Aydapkelov

Appendix 1

to the Resolution of Board of National Bank of the Republic of Kazakhstan of September 13, 2017 No. 170

Normative values and techniques of calculations of prudential standard rates and other regulations and limits, obligatory to observance, size of the capital of bank

Chapter 1. General provisions

1. Normative values and techniques of calculations of prudential standard rates and other regulations and limits, obligatory to observance, the size of the capital of bank (further – Standard rates) are developed according to the Law of the Republic of Kazakhstan "About banks and banking activity in the Republic of Kazakhstan" (further – the Law on banks) and establish normative values and techniques of calculations of prudential standard rates and other regulations and limits, obligatory to observance, the size of the capital of bank.

Normative values for banks and their affiliated organizations calculated on the basis of consolidated financial statements are established according to article 42 of the Law on banks.

Normative values are expressed by number with three signs after comma.

And limits of the size of the capital of bank for obligatory observance by banks enter into structure of prudential standard rates and other regulations, obligatory to observance:

minimum size of authorized and own capitals of bank;

coefficient of sufficiency of equity;

the maximum extent of risk on one borrower;

liquidity rates;

coverage ratios of liquidity and net stable funding;

capitalization of banks to obligations to nonresidents of the Republic of Kazakhstan;

coefficient on placement of part of means of bank in internal assets;

coefficient of debt load of the borrower of bank;

debt coefficient to the income of the borrower of bank.

1-1. In addition to rating estimates of the Standard & Poor agency "s (Standard and Purs) authorized body on regulation, control and supervision of the financial market and the financial organizations (further - authorized body) are also recognized rating estimates of the Moody agencies" to s Investors Service (Mudis Investors Service), Fitch (Features), the Boards of National Bank of the Republic of Kazakhstan established by the resolution of December 24, 2012 No. 385 "About establishment of the minimum rating for legal entities and the countries which need of availability is required according to the legislation of the Republic of Kazakhstan regulating activities of the financial organizations, branches of nonresident banks of the Republic of Kazakhstan, branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan, the list of the rating agencies assigning this score" and the rating agencies corresponding to the criteria, stipulated in Item 1-3 Standard rates in case of observance of condition, stipulated in Item 1-2 Standard rates registered in the Register of state registration of regulatory legal acts at No. 8318, (further - other rating agencies).

1-2. When calculating Standard rates the long-term credit scores assigned by the rating agencies corresponding to criteria, stipulated in Item 1-3 Standard rates on the international rating scale are used only concerning foreign objects of rating.

1-3. For the purposes of Standard rates authorized body rating estimates of the rating agencies corresponding to the following criteria are recognized:

1) the rating agency is subject to regulation in country of source and estimates of rating agency are recognized within prudential regulation;

2) the minimum size of equity of rating agency constitutes the amount equivalent to at least 600 000 000 (six hundred million) tenges;

3) objectivity, independence and responsibility:

the methodology applied by rating agency is reliable and is subject to check on the basis of historical and (or) anticipated data about defaults, and also contains the detailed description of all key quantitative and high-quality factors determining capability of reytinguyemy person to fulfill the assumed financial liabilities, and also the description of their influence on credit ratings and forecasts for credit ratings;

the rating agency is not controlled by state bodies or officials in state bodies, subjects of the quasi-public sector or political parties and which do not interfere with activities of rating agency and have no influence on processes of assignment of ratings;

legal entities to whom the rating agency appropriates, confirms or reviews rating, are not affiliates of rating agency, except for no persons who directly own less than 10 (ten) percent of shares of rating agency and are had by influences on rating activities of rating agency;

the rating analysts of rating agency participating in rating actions concerning reytinguyemy person do not consist and did not consist in employment or business relations with reytinguyemy person within the last 3 (three) years before date of implementation of rating action, and also do not own directly or indirectly, including through close relatives, securities, other financial instruments or other property of reytinguyemy person or the persons exercising control over reytinguyemy person or exerting considerable impact on such person;

the rating agency has service of the internal audit or internal control including performing internal audit functions, accountable to the board of directors of rating agency;

in rating agency at least one third, but at least two board members are the independent members who are not performing rating actions, advertizing of services of rating agency and other actions for customer acquisition;

the share of immediate or indirect possession by shares of each shareholder of rating agency does not exceed 50 (fifty) percent from total quantity of voting shares of this rating agency in case shareholder is the financial organization, the share of immediate possession does not exceed 10 (ten) percent;

internal procedures of rating agency provide measures for prevention of unauthorized use and disclosure of information and provide protection and confidentiality of information;

4) transparency and disclosure of information:

the rating agency provides disclosure on Internet resource of rating agency of the following information:

the methodology applied by rating agency in case of determination of rating;

the list of the credit scores assigned for the last year and also reytinguyemy persons and other persons, the share of cash receipts from whom constituted 5 (five) and more percent in the annual total revenue of rating agency as of the end of the last expired calendar year;

5) reliability of ratings:

the rating agency performs rating activities on regular basis at least 5 (five) last years;

the number of the organizations to which the rating agency assigned and reviewed credit score makes at least thirty, including for the last 3 (three) years at least twenty, from them at least five were the financial organizations;

the personnel of rating agency which are directly engaged in assignment of ratings have the corresponding education, skills and experience;

at least one worker participating in process of adoption of rating decisions, being the member of the body making the rating decision (further - rating committee), has at least two-year work experience in rating agency, or in the analytical agency, or in the research center, or in the financial organization, or in auditing organization;

as a part of rating committee there are at least five rating analysts, including the leading rating analyst for reytinguyemy person and (or) its financial liabilities or financial instruments (further - rating object), the chairman of the rating committee and one rating analyst specializing in type of objects of rating to which the considered rating object does not belong (if the rating agency performs activities for assignment of ratings concerning different types of objects of rating);

the rating agency on permanent basis performs monitoring of the assigned scores, and also provides timely response to the changing factors connected with changes in financial position, corporate management or other aspects of activities of reytinguyemy person, changes of macroeconomic conditions or conditions of the financial market that is confirmed by the actual updates of ratings no later than 1 (one) calendar year from the date of assignment or the last review of rating or date of the last review of the methodology applied by rating agency.

The rating agency sends to authorized body inquiry for acceptance of rating estimates of rating agency for the purposes of prudential regulation with appendix of supporting documents.

In case of compliance of rating agency to the criteria established by part one of this Item, the authorized body on official Internet resource in time no later than 30 (thirty) working days from the date of receipt of request of rating agency about acceptance of its rating estimates publishes data on rating agency and comparability of rating scales of rating agencies.

The methodologies applied by rating agency validirutsya by authorized body in case of primary appeal of rating agency to authorized body and at least 1 (one) time a year.

In case of modification of the methodologies applied by rating agency, the rating agency in time no later than 10 (ten) working days sends information to authorized body with indication of the reasons and consequences of such changes.

2. In Standard rates the following concepts are used:

1) book value - the amount on which the loan is recognized the balance sheet after deduction of the provisions (reserves) created on them;

2) investment loan (credit) - I will jam (credit), conforming to the following requirements:

the term of loan (credit) constitutes 5 (five) and more years;

terms of the contract of loan (credit) establish prohibition on complete early repayment. Partial repayment of loan is performed in the terms and procedure provided by the business plan of the borrower;

the loan (credit) is granted the legal entity according to its business plan providing realization of complex of the actions directed to creation, expansion and upgrade of production of goods, production and transport infrastructure;

3) unsteady types of pledge - the property and money arriving in the future (except for the rights of requirements to the state partner in the cash receipts transfered to account, intended for transfer of compensation of investment costs, under the agreement of public-private partnership signed according to the legislation of the Republic of Kazakhstan which is the key under the agreement of bank loan which conditions are provided in Item 2-1 of Standard rates, and also the money arriving in the future on off-take (off-take) to the contract which is the key under the agreement of bank loan in case of compliance to the conditions provided in Item 2-2 of Standard rates), including under agreements of equity (except for the money arriving under the agreements signed with the companies with the state participation (subjects of the quasi-public sector), insurance contracts (except for insurance contracts, containing Items on unconditional and irrevocable obligation fulfillment, concluded with the insurance companies having rating "BB+" of Standard & Poor rating agency "is not lower than s (Standard and Purs) or the rating of similar level of one of other rating agencies, insurance contracts which conditions are provided in Item 2-1 of Standard rates), guarantee of physical persons or legal entities (except for guarantees of the legal entities having credit rating "BB+" of Standard & Poor rating agency" is not lower than s (Standard and Purs) or the rating of similar level of one of other rating agencies, guarantees of the banks of the second level having credit rating is not lower "In -" Standard & Poor rating agency "of s (Standard and than Purs) or the rating of similar level of one of other rating agencies, and also the guarantees issued by national managing directors of holdings and their affiliated organizations), intangible assets, shares in the authorized capital or the securities which are not included in the official listing of organizers of the biddings of the Republic of Kazakhstan and (or) organizers of the biddings recognized by the international stock exchanges, (except for the share accepted in mortgage providing in the authorized capital and (or) securities of legal entities which have relation of debt on the loans issued on the purposes which are not connected with financing of current assets to profit to deduction of expenses on payment of the added remunerations of tax assignments and charged depreciation (EBITDA) (EBITDA) constitutes no more 4), paper grain receipts (except for the rights of requirements for grain receipts corresponding to conditions, stipulated in Item 2-3 Standard rates), the mortgage providing which is outside the Republic of Kazakhstan (except for the mortgage providing which is in the countries of the Eurasian Economic Union in the presence of the conclusion of legal consultants or specialists of the affiliated organizations of bank according to the right of the said countries confirming proper registration of mortgage providing);

4) unsecured consumer loan – consumer bank loan, except for:

the loans provided with the pledges of the rights to real estate, the pledge of personal estate which is subject to obligatory state registration, completely covering the amount of the issued loan;

the loans provided with pledge of the rights on the issued securities which are subject to registration, completely covering the amount of the issued loan;

the loans provided with pledge of right to claim under agreements of equity in housing construction, completely covering the amount of the issued loan;

loans on which the money which is completely covering the amount of the issued loan acts as providing;

the loans issued within system of educational crediting;

the loans issued within system of housing construction savings;

5) loan - implementation of banking loan, leasing, factoring, forfaiting activities by bank, accounting of bills of exchange and receivables on earlier issued bank loans;

6) the borrower - the physical person or legal entity which signed the loan agreement (credit);

7) provisions (reserves) - the reserves created under impairment of loan;

8) the co-borrower - the physical person or legal entity which is signing the loan agreement (credit) together with the borrower and acting according to the loan agreement (credit) as the solidary actionee of obligations on return of the received money;

9) regular AQR – the annual quality evaluation of assets and contingent (possible) obligations of banks performed within risk - the oriented supervision;

10) off-take (off-take) the contract - the agreement between the producer (supplier) and the customer on sales of goods and (or) services with delivery in the future on in advance resolutive conditions at the cost, quantity (amount) and delivery dates;

11) SREP – the annual supervisory process of risks assessment and shortcomings of activities of banks performed within risk - the oriented supervision by quantitative and qualitative analysis of assessment of business model, risks of the capital, liquidity risk, corporate management system of bank.

2-1. The agreement of bank loan is signed by bank with the legal entity within the agreement of public-private partnership and corresponds to the following conditions:

the investment period of project implementation of public-private partnership does not exceed 36 (thirty six) months. The investment period is the period from the date of the conclusion of the agreement of bank loan (the agreement on provision (opening) of credit line) on start date of payment of compensation of investment costs;

step-by-step financing of the project of public-private partnership within loan amount (the loan issued within credit line) is performed in the following procedure:

the amount of step-by-step financing during one quarter of the investment period does not exceed 30 (thirty) percent of the general size of loan (the loan issued within credit line);

the amount of step-by-step financing during half of the investment period does not exceed 50 (fifty) percent of the general size of loan (the loan issued within credit line);

technical supervision of construction object is exercised by the legal entity chosen by bank on the basis of the agreement of public-private partnership.

The insurance contract signed with the insurance company having rating is not lower than "BB+" of Standard&Poor rating agency "s or other rating agencies contains exclusively following conditions allowing the insurer to refuse (not to perform) in insurance payment (insurance payment) to the beneficiary (bank):

requirements of the insurer (insured, the beneficiary) about indemnification exceed the size of insurance sum;

the damage or expenses resulted from impact of nuclear explosion, radiation or radioactive infection, military operations, civil war, any national disorders, mass riots or strikes;

the agreement of bank loan is nullified;

introduction of amendments to the agreement of bank loan, the agreement of pledge, the agreement of guarantee or the guarantee without written coordination of such changes with the insurer;

message beneficiary (bank) to the insurer of obviously false data on object of insurance, insurance risk, insured event and its consequences;

receipt of loss by the beneficiary (bank) of full recovery from the face, responsible for losses, or third party;

hindrance by the beneficiary (bank) to the insurer in investigation of circumstances of loss occurrence and in establishment of the size of the caused loss;

refusal of the beneficiary (bank) of the right to claim according to the loan agreement against the insurer, including in judicial or extrajudicial procedure.

In the insurance contract specifying of condition of implementation of insurance payment without taking into account (less) the agreement of the pledge nullified by court is allowed. In this case the insurance contract is considered as providing less the agreement of the pledge nullified by court.

In case of acceptance by bank as providing the insurance contract is accepted less the unconditional franchize.

 2-2. The money arriving in the future under the ofteyk-contract is excluded from unsteady types of pledge in case of observance of the following conditions:

1) customer is:

the legal entity, more than 50 (fifty) percent of voting shares (shares in the authorized capital) which directly or indirectly belong to the state or national managing holding, or;

public institution, or;

local executive body of area, city of republican value, capital;

the legal entity with rating not below "BB-" of Standard & Poor rating agency "s (Standard and Purs) or other rating agencies, or;

large systemically important enterprise, or;

the legal entity whose at least 70 (seventy) percent of the income within the last 2 (two) years are created by persons specified in paragraphs the second, third, the fourth, fifth and sixth this subitem;

2) terms of the contract provide obligatory execution by the customer of the obligations to the potential supplier in case of proper execution by the potential supplier of the obligations assumed under the contract;

3) the potential supplier - the borrower has positive credit history according to credit bureau which is expressed in lack of overdue debt more than 60 (sixty) calendar days for the last 2 (two) years.

For the purposes of Standard rates the companies corresponding to the following criteria treat the large systemically important enterprises:

the proceeds from sales of products (rendering services) constitute at least 50 (fifty) billion tenges annually for the last 2 (two) years;

tax assignments constitute at least 3 (three) billion tenges annually for the last 2 (two) years.

During the period from July 1, 2021 to December 31, 2021 inclusive the property which is providing under the agreement of syndicated loan is excluded from unsteady types of pledge in case of observance of the following conditions:

under the agreement of syndicated loan agent bank is the bank having debt rating "BB+" of the Standard & Poor agency "is not lower than s (Standard and Purs) or the rating of similar level of one of other rating agencies;

the share of financing by agent bank constitutes at least 50 (fifty) percent from the financing amount on the agreement of syndicated loan;

under the agreement of syndicated loan the amount of financing is allocated for the investment purposes on construction of production facilities;

the financed project provides profitability of the project company and positive cash flows from operating and financial activities in the period after introduction of construction object in operation and before the termination of term of financing;

the financing amount under the agreement of syndicated loan is issued for the term of at least 7 (seven) years.

2-3. Rights to claim according to grain receipts are excluded from unsteady types of pledge in case of observance of the following conditions:

1) according to grain receipts the warranty of the legal entity is had, 100 (hundred) percent of voting shares (shares in the authorized capital) which directly or indirectly belong to the state or national managing holding, or;

the property (grain) which is the key according to the grain receipt is provided with the insurance contract containing Items on unconditional and irrevocable obligation fulfillment, concluded with the insurance companies having rating is not lower "In + than" Standard & Poor rating agency "of s (Standard and Purs) or the rating of similar level of one of other rating agencies or the insurance contract which conditions are provided in Item 2-1 of Standard rates), at the same time part of the insurance responsibility (reinsurance) organization according to the insurance contract is transferred to reinsurance in the reinsurance organization having rating s (Standard and is not lower "In +" on the international scale of Standard & Poor rating agency "than Purs) or the rating of similar level of one of other rating agencies;

2) the term of the grain receipt does not exceed maximum permissible storage duration of the grain belonging to the holder of the grain receipt, established by the grain Storage precautions approved by the order of the Minister of Agriculture of the Republic of Kazakhstan of June 26, 2015 No. 4-1/573 (registered in the Register of state registration of regulatory legal acts at No. 11839);

3) the hlebopriyemny company which issued the grain receipt conforms to the Qualification requirements imposed to activities for rendering services in warehouse activities with release of grain receipts and the list of the documents confirming compliance to them approved by the order of the Minister of Agriculture of the Republic of Kazakhstan of April 16, 2015 No. 4-1/339 (registered in the Register of state registration of regulatory legal acts at No. 11595).

Chapter 2. Minimum size of authorized and own capitals of bank

3. The minimum size of authorized and own capitals for again created bank is established in the amount of 10 000 000 000 (ten billion) tenges.

4. The minimum size of equity of bank is established in the following procedure:

for housing construction savings bank in the amount of 4 000 000 000 (four billion) tenges;

for other banks in the amount of 10 000 000 000 (ten billion) tenges.

5. The bank redeems from shareholders own shares provided that such redemption will not lead to violation of any of prudential standard rates and other regulations, obligatory to observance, and limits of the size of the capital of bank set by authorized body.

Chapter 3. Coefficient of sufficiency of equity

6. Sufficiency of equity of bank is characterized by the following coefficients:

1) coefficient of sufficiency of fixed capital of k1:

relation of fixed capital to the amount:

assets, contingent and possible obligations weighed on degree of credit risk;

assets, conditional and possible requirements and obligations calculated taking into account market risk;

operational risk;

2) capital adequacy ratio of the first k1-2 level:

relation of the capital of the first level to the amount:

assets, contingent and possible obligations weighed on degree of credit risk;

assets, conditional and possible requirements and obligations calculated taking into account market risk;

operational risk;

3) coefficient of sufficiency of equity of k2:

equity relation to the amount:

assets, contingent and possible obligations weighed on degree of credit risk;

assets, conditional and possible requirements and obligations calculated taking into account market risk;

operational risk.

The assets, contingent and possible obligations weighed on the risk degrees taken into consideration of coefficients of k 1, k1-2 and k2 join less the reserves created according to international accounting standards (further - IFRS).

Values of capital adequacy ratios are determined as the amount of the values established according to Values of capital adequacy ratios according to appendix 2 to Standard rates.

The minimum values of coefficients of sufficiency of equity k 1, k1-2 and k2 are determined as the amount of the values established according to Values of capital adequacy ratios according to appendix 2 to Standard rates and the supervising allowance by results of SREP or by results of SREP and regular AQR.

The supervising allowance by results of SREP is applied to the banks which did not enter perimeter of regular AQR.

The range of the size of the supervising allowance by results of SREP constitutes from 0 (zero) percent to 3 (three) percent from the amount of assets, contingent and possible obligations weighed on degree of credit risk, the assets, conditional and possible requirements and obligations calculated taking into account market risk, operational risk.

The supervising allowance by results of SREP and regular AQR is applied to the banks which entered perimeter of regular AQR.

The range of the size of the supervising allowance by results of SREP and regular AQR constitutes from 0 (zero) percent to 6 (six) percent from the amount of assets, contingent and possible obligations weighed on degree of credit risk, the assets, conditional and possible requirements and obligations calculated taking into account market risk, operational risk.

The supervising allowance by results of SREP, the supervising allowance by results of SREP and regular AQR are established annually. The supervising allowance by results of SREP, the supervising allowance by results of SREP and regular AQR is effective before establishment of the new size of the corresponding allowance.

In addition to values of coefficients of sufficiency of equity the following values of buffers of equity are established:

the requirement to the conservation buffer is fulfilled on permanent basis and constitutes:

for all banks:

since January 1, 2015 - 1 (one) percent;

since January 1, 2016 - 1 (one) percent;

since January 1, 2017 - 2 (two) percent;

since June 1, 2020 - 1 (one) percent;

since July 1, 2021 - 2 (two) percent;

since January 1, 2024 – 2,5 (two whole five tenth) percent;

for systemically significant banks:

since January 1, 2015 - 2,5 (two whole five tenth) percent;

since January 1, 2016 - 2,5 (two whole five tenth) percent;

since January 1, 2017 - 3 (three) percent;

since June 1, 2020 - 2 (two) percent;

since July 1, 2021 - 3 (three) percent;

which counter-cyclical buffer, the size and terms of introduction are established by Standard rates at least in 12 (twelve) months prior to start date of calculation of the counter-cyclical buffer. The range of the size of the counter-cyclical buffer constitutes from 0 (zero) percent to 3 (three) percent from the amount of assets, contingent and possible obligations weighed taking into account risks;

the system buffer, the requirement to which calculation extends to systemically significant banks recognized systemically by significant banks according to the resolution of Board of National Bank of the Republic of Kazakhstan of December 23, 2019 No. 240 "About approval of Rules of reference of the financial organizations to number systemically significant" registered in the Register of state registration of regulatory legal acts at No. 19925. The requirement to the system buffer is fulfilled since January 1, 2017 on permanent basis and constitutes 1 (one) percent from the amount of assets, contingent and possible obligations weighed taking into account risks;

the buffer by results of supervising stress testing which includes the risks of financial stability of banks to hypothetical (stressful) scenarios of succession of events revealed by authorized body by results of supervising stress testing. The buffer size range by results of supervising stress testing constitutes from 0 (zero) percent to 3 (three) percent from the amount of assets, contingent and possible obligations weighed on degree of credit risk, the assets, conditional and possible requirements and obligations calculated taking into account market risk, operational risk.

The buffer by results of supervising stress testing is established annually and is effective before establishment of the new size of the buffer.

If the actual values of capital adequacy ratios of k 1, k1-2 and k2 bank not below values of the capital adequacy ratios specified in part four of this Item, but at the same time to any of the provided coefficients below than the established values of capital adequacy ratios taking into account equity buffers, then on use of retained net income of bank restriction according to the Minimum amount of restriction of retained net income according to appendix 3 to Standard rates, regarding the termination of dividend payout and the return share repurchase, except as specified, provided by the Law of the Republic of Kazakhstan "About joint-stock companies" is imposed.

Values of coefficients of sufficiency of equity taking into account buffers of equity are reached at the expense of components of fixed capital which list is stipulated in Item 10 Standard rates.

The supervising allowance by results of SREP and the supervising allowance by results of SREP and regular AQR are established on equity and become covered 56,25 at least (fifty six whole twenty five 100-th) percent by fixed capital (k 1), at least 75 (seventy five) percent at the expense of the capital of the first level (k1-2) which list is stipulated in Item 10 Standard rates.

The buffer by results of supervising stress testing is established on fixed capital.

The size of buffers of equity calculated according to requirements of Standard rates is not reflected in financial accounting.

Values of coefficients of sufficiency of equity and buffers of equity, except for the supervising allowance by results of SREP, and also the supervising allowance by results of SREP and regular AQR and the buffer by results of supervising stress testing, are reviewed by authorized body at least 1 (one) time in 3 (three) years.

7. The equity is calculated as capital sum of the first level and the capital of the second level.

8. For the purposes of Standard rates, in addition to long-term credit rating evaluations of the Standard & Poor agency "s, authorized body are also recognized long-term credit rating evaluations of other rating agencies.

For the purposes of Standard rates the following organizations treat international financial institutions:

Asian Development Bank (Asian Development Bank);

African development bank (African Development Bank);

Development bank of the European Council (Council of Europe Development Bank);

Eurasian Development Bank;

European Bank for Reconstruction and Development (European Bank for Reconstruction and Development);

European Investment Bank (European Investment Bank);

Islamic development bank (Islamic Development Bank);

Islamic corporation on private sector development (ICD);

Inter-American Development Bank (Inter-American Development Bank);

International Development Association;

International Finance Corporation (International Finance Corporation);

International Bank for Reconstruction and Development (International Bank for Reconstruction and Development);

International Monetary Fund;

International Centre for Settlement of Investment Disputes;

Multilateral agency of guarantee of investments;

Scandinavian investment bank (Nordic Investment Bank).

9. For the purposes of item 4 of article 8 of the Law on banks of investment of bank when calculating equity since July 1, 2011 represent investments in subordinated debt of the legal entity which cumulative size exceeds 10 (ten) percent of capital sum of the first level and the capital of the second level of bank.

10. The capital of the first level is calculated as the amount of fixed capital and the added capital:

1) fixed capital is calculated as the amount:

the paid common shares corresponding to the criteria established in Criteria for classification of tools within equity of bank according to appendix 4 to Standard rates;

supplementary paid-in capital;

retained net profit of last years;

retained net profit of the current year;

the cumulative opened reserve determined as the amount of remaining balance on the balance sheet account 3510 "Reserve capital" of the Standard chart of accounts of financial accounting in banks of the second level, the mortgage organizations, Development Bank of Kazakhstan joint-stock company and branches of nonresident banks of the Republic of Kazakhstan approved by the resolution of Board of National Bank of the Republic of Kazakhstan of January 31, 2011 No. 3, registered in the Register of state registration of regulatory legal acts at No. 6793 (further - the Standard chart of accounts);

minus the following regulatory adjustments:

own redeemed common shares;

intangible assets, including goodwill;

losses of last years and losses of the current year;

deferred tax asset, except for parts of the deferred tax assets recognized concerning deductible temporary differences;

reserves on other revaluation;

the sales returns connected with transactions on securitization of assets. The deferred revenue in connection with the expectation of the complete or partial income in the future received from securitization conditions belongs to such income;

the income or losses from change of fair value of the financial liability in connection with change of credit risk according to such obligation;

the regulatory adjustments which are deductible from the added capital, but in connection with its insufficient level subtracted from fixed capital;

the investments specified in Item 11 of Standard rates.

2) the added capital joins the termless agreements corresponding to the criteria established in Criteria for classification of tools within equity of bank according to appendix 4 to Standard rates as a result of which at the same time there is financial asset at one person and the financial liability or other financial instrument confirming the right to share of the assets of the legal entity which remained later deductions of all its obligations at other person (further - termless financial instruments) and also the paid preferred shares corresponding to the criteria established in Criteria for classification of tools within equity of bank according to appendix 4 to Standard rates.

The size of the added capital decreases by the amount of the following regulatory adjustments:

investments of bank into own termless financial instruments by direct or indirect method;

own redeemed preferred shares of bank;

the investments specified in Item 11 of Standard rates;

the regulatory adjustments which are deductible from the capital of the second level, but in connection with its insufficient level subtracted from the added capital.

If the amount of the added capital of bank is insufficient for implementation of deduction, then the rest is subtracted from fixed capital of bank.

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