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

According to the Law of the Republic of Kazakhstan of August 31, 1995 "About banks and banking activity in the Republic of Kazakhstan" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Establish:

1) Normative values and technique 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 according to appendix 1 to this resolution;

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

2. Recognize invalid regulatory legal acts of the Republic of Kazakhstan, and also structural elements of some regulatory legal acts of the Republic of Kazakhstan according to the list according to appendix 3 to this resolution.

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) the direction of this resolution in the republican state company on the right of economic maintaining "The republican center of legal information of the Ministry of Justice of the Republic of Kazakhstan":

on official publication in information system of law of Ad_let within ten calendar days after its state registration in the Ministry of Justice of the Republic of Kazakhstan;

for inclusion in the State register of regulatory legal acts of the Republic of Kazakhstan, Reference control bank of regulatory legal acts of the Republic of Kazakhstan within five working days from the date of its obtaining by National Bank of the Republic of Kazakhstan after state registration in the Ministry of Justice 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 the direction of this resolution on official publication in periodic printing editions within ten calendar days after its state registration in the Ministry of Justice of the Republic of Kazakhstan.

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 after ten calendar days after day of its first official publication.

Appendix 1

to the Resolution of Board of National Bank of the Republic of Kazakhstan of May 30, 2016 No. 147

Normative values and technique 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

These normative values and technique 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 (further - Standard rates) are developed according to the Law of the Republic of Kazakhstan of August 31, 1995 "About banks and banking activity in the Republic of Kazakhstan" (further - the Law on banks) and establish normative values and method of calculation of prudential standard rates and other regulations, obligatory to observance, and limits of the size of the capital of bank for certain date.

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.

Chapter 1. Minimum size of authorized and own capitals of bank

1. 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.

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

for housing construction savings bank and bank which single shareholder is Central Bank of other state, 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.

3. 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 on state regulation, control and supervision of the financial market and the financial organizations (further - authorized body).

Chapter 2. Coefficient of sufficiency of equity

4. 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 1 to Standard rates and the supervising allowance provided by the resolution of Board of National Bank of the Republic of Kazakhstan of February 29, 2016 No. 69 "About establishment of the factors influencing deterioration in financial position of bank and banking conglomerate, and also approval of Rules of application of measures of early reaction and technique of determination of the factors influencing deterioration in financial position of bank and banking conglomerate" registered in the Register of state registration of regulatory legal acts at No. 13606.

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;

for systemically important 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;

the counter-cyclical buffer the size and terms of introduction which 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 the systemically important banks recognized as those according to the resolution of Board of National Bank of the Republic of Kazakhstan of December 24, 2014 No. 257 "About approval of Rules of reference of the financial organizations to number backbone" registered in the Register of state registration of regulatory legal acts at No. 10210. 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.

If the actual values of coefficients of the capital of k 1, k1-2 and k2 bank are not lower than the capital adequacy ratios established according to Values according to appendix 1 to Standard rates, but at the same time any of the provided coefficients below what, 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 2 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 of May 13, 2003 "About joint-stock companies" is imposed.

Values of coefficients of sufficiency of equity taking into account equity buffers, are reached at the expense of components of fixed capital which list is stipulated in Item 8 Standard rates.

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 are reviewed by authorized body at least 1 (one) time in 3 (three) years.

5. The equity is calculated as capital sum of the first level and the capital of the second level minus positive difference between deposit amount of physical persons and equity according to the data of the balance sheet increased by 5,5.

For the purposes of calculation of the equity specified in part one of this Item:

the deposit amount of physical persons in foreign currency is calculated for the current official rate of tenge to foreign currency established by National Bank of the Republic of Kazakhstan (further - National Bank), but no more established for January 1, 2016;

the positive difference between deposit amount of physical persons and equity according to data of the balance sheet joins in the following size:

since January 1, 2016 - 0 (zero) percent;

since February 1, 2016 - 20 (twenty) percent;

since March 1, 2016 - 40 (forty) percent;

since April 1, 2016 - 60 (sixty) percent;

since May 1, 2016 - 80 (eighty) percent;

since June 1, 2016 - 100 (hundred) percent.

The requirements established by parts one and the second this Item do not extend to housing construction savings bank which equity is calculated as capital sum of the first level and the capital of the second level.

6. 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 the Moody agencies" to s Investors Service and Fitch (further - 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).

7. 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.

8. 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 of financial instruments of fixed capital provided in Criteria for classification of tools within equity of bank according to appendix 3 to Standard rates;

since January 1, 2018 the paid common shares issued by subsidiary banks belonging to minority shareholders (third parties);

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 accounts 3510 "Reserve capital" as of January 1, 2014 and 3400 "Dynamic reserves" of the Standard chart of accounts of financial accounting in banks of the second level, the mortgage organizations and Development Bank of Kazakhstan joint-stock company approved by the resolution of Board of National Bank of the Republic of Kazakhstan of January 31, 2011 No. 3 "About approval of the Standard chart of accounts of financial accounting in banks of the second level, the mortgage organizations and Development Bank of Kazakhstan joint-stock company (further - the Standard chart of accounts) registered in the Register of state registration of regulatory legal acts at No. 6793;

reserves on revaluation of fixed assets and the cost of financial assets, available for sale;

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 minus deferred tax liabilities, 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 9 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 3 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 3 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 Item 9 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.

Investments of bank represent investments of bank in the share (shares in the authorized capital), termless financial instruments, and also subordinated debt of the legal entity.

9. The deduction of stock investment (share in the authorized capital), termless financial instruments, subordinated debt (further - financial instruments) banks from the capital of the first level is performed in the following procedure:

1) from fixed capital:

from January 1, 2015 to December 31, 2015:

the amount of the investments constituting less than 10 (ten) percent from issued shares of insurance company, in total exceeding 10 (ten) percent from fixed capital of bank;

the amount of the investments constituting 10 (ten) and more percent from issued shares of insurance company, in total exceeding 15 (fifteen) percent from fixed capital of bank;

since January 1, 2016:

investments of bank into financial instruments of legal entities which financial reporting are not consolidated in case of creation of the financial reporting of bank according to IFRS, according to the following conditions:

if investments of bank into financial instruments of the financial organizations in which the bank has less than 10 (ten) percent of issued shares (shares in the authorized capital) in total exceed 10 (ten) percent from fixed capital of bank after application of the regulatory adjustments specified in Item 8 of Standard rates, the excess amount increased by share of investments into common shares in the total amount of investments is deductible from fixed capital;

if investments of bank into common shares of the financial organization in which the bank has 10 (ten) and more percent from issued shares (shares in the authorized capital) and also part of the deferred tax assets recognized concerning deductible temporary differences in total exceed 15 (fifteen) percent from fixed capital of bank after application of the regulatory adjustments specified in Item 8 of Standard rates, the amount of excess is deductible from fixed capital.

Since January 1, 2018 the amount of the investments constituting 10 (ten) and more percent from issued shares (shares in the authorized capital) the legal entity, and the deferred tax assets recognized concerning deductible temporary differences does not exceed 15 (fifteen) percent from fixed capital of bank, after application of the regulatory adjustments specified in Item 8 of Standard rates;

2) from the added capital:

if investments of bank into financial instruments of the financial organizations in which the bank has less than 10 (ten) percent of issued shares (shares in the authorized capital) in total exceed 10 (ten) percent from fixed capital of bank after application of the regulatory adjustments specified in Item 8 of Standard rates, the excess amount increased by share of investments into termless financial instruments in the total amount of investments is deductible from the added capital;

investments of bank into termless financial instruments of the financial organizations in which the bank has 10 (ten) and more percent from issued shares (shares in the authorized capital) are deductible from the added capital.

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

3) from the capital of the second level:

if investments of bank into financial instruments of the financial organizations in which the bank has less than 10 (ten) percent of issued shares (shares in the authorized capital) in total exceed 10 (ten) percent from fixed capital of bank after application of the regulatory adjustments specified in Item 8 of Standard rates, the excess amount increased by share of investments into subordinated debt in the total amount of investments is deductible from the capital of the second level;

investments of bank into subordinated debt of the financial organizations, in which the bank has 10 (ten) and more percent from issued shares (shares in the authorized capital), of the legal entity, is deductible from the capital of the second level.

If the capital sum of the second level is insufficient for implementation of deduction, then the amount is subtracted from the capital of the first level of bank.

Investments, not deductible at the rate of equity, are weighed on degree of credit risk according to the Table of the assets of bank weighed on degree of credit risk of investments according to appendix 4 to Standard rates.

10. The termless financial instruments attracted till January 1, 2015, which are not corresponding to the criteria established in Criteria for classification of tools within equity of bank according to appendix 3 to Standard rates turn on in the added capital according to the following conditions:

since January 1, 2015 - in the amount of 100 (hundred) percent of the amount of termless financial instruments;

since January 1, 2016 - in the amount of 100 (hundred) percent of the amount of termless financial instruments;

since January 1, 2017 - in the amount of 80 (eighty) percent of the amount of termless financial instruments;

since January 1, 2018 - in the amount of 50 (fifty) percent of the amount of termless financial instruments;

since January 1, 2019 - in the amount of 20 (twenty) percent of the amount of termless financial instruments;

since January 1, 2020 the amount of termless financial instruments is excluded from calculation of the added capital.

Calculation of equity joins paid amount of termless financial instruments in the amount of the money which is actually received by bank.

11. The paid preferred shares of bank which are not corresponding to the criteria established in Criteria for classification of tools within equity of bank according to appendix 3 to Standard rates join in the added capital according to the following conditions:

since January 1, 2015 - in the amount of 100 (hundred) percent of the amount of the paid preferred shares;

since January 1, 2016 - in the amount of 100 (hundred) percent of the amount of the paid preferred shares;

since January 1, 2017 - in the amount of 80 (eighty) percent of the amount of the paid preferred shares;

since January 1, 2018 - in the amount of 50 (fifty) percent of the amount of the paid preferred shares;

since January 1, 2019 - in the amount of 20 (twenty) percent of the amount of the paid preferred shares;

since January 1, 2020 the amount of the paid preferred shares is excluded from calculation of the added capital.

Calculation of equity joins the amount of the paid preferred shares in the amount of the money which is actually received by bank.

12. The bank to authorized body represents copies by the approved authorized body of bank of the agreement or conditions of release of termless financial instruments. Termless financial instruments turn on in calculation of equity of bank from the written confirmation of authorized body about compliance of the agreement or conditions of release of termless financial instruments of bank to the criteria established in Criteria for classification of financial instruments within equity of bank according to appendix 3 to Standard rates.

13. The capital of the second level is calculated as the amount:

subordinated debt minus the redeemed own subordinated debt of bank;

minus the investments specified in Item 9 of Standard rates.

For the bank which is subject to restructuring according to the Law on banks, the subordinated debt joins in the capital of the second level in the amount which is not exceeding 75 (seventy five) percent of capital sum of the first level minus the redeemed own subordinated debt of bank within 5 (five) years from the date of the expiration of the carrying out restructuring determined by the judgment.

The size of the subordinated debt attracted till January 1, 2015, which is not corresponding to the criteria established in Criteria for classification of tools within equity of bank according to appendix 3 to Standard rates joins in calculation of the capital of the second level according to the following conditions:

in national currency:

since January 1, 2015 - in the amount of 100 (hundred) percent of the amount of subordinated debt in national currency;

since January 1, 2016 - in the amount of 100 (hundred) percent of the amount of subordinated debt in national currency;

since January 1, 2017 - in the amount of 80 (eighty) percent of the amount of subordinated debt in national currency;

since January 1, 2018 - in the amount of 50 (fifty) percent of the amount of subordinated debt in national currency;

since January 1, 2019 - in the amount of 20 (twenty) percent of the amount of subordinated debt in national currency;

since January 1, 2020 the amount of subordinated debt in national currency is excluded from calculation of the capital of the second level;

in foreign currency:

since January 1, 2015 - in the amount of 80 (eighty) percent of the amount of subordinated debt in foreign currency;

since January 1, 2016 - in the amount of 60 (sixty) percent of the amount of subordinated debt in foreign currency;

since January 1, 2017 - in the amount of 40 (forty) percent of the amount of subordinated debt in foreign currency;

since January 1, 2018 - in the amount of 20 (twenty) percent of the amount of subordinated debt in foreign currency;

since January 1, 2019 the amount of subordinated debt in foreign currency is excluded from calculation of the capital of the second level.

The size of subordinated debt with repayment period as of the January 1, 2015 constituting less than 5 (five) years continues to join in calculation of the capital of the second level in the amount of, included as of December 31, 2014, and annually as of January 1 decreases by 20 (twenty) percent from the amount of subordinated debt.

14. Calculation of retained net profit (loss) of the current year or last years for the purposes of the capital of the first and second levels does not include the debit balance reflected in account 3300 "The account of adjustment of reserves (provisions)" (further - debit balance) the Standard chart of accounts as of December 31, 2012 in the following size:

in 2013 - 83,3 (eighty three whole three tenth) percent of the amount of debit balance;

in 2014 - 66,6 (sixty six whole six tenth) percent of the amount of debit balance;

in 2015 - 50 (fifty) percent of the amount of debit balance;

in 2016 - 33, ((thirty three whole three tenth) percent of the amount of debit balance;

in 2017 - 16,6 (sixteen whole six tenth) percent of the amount of debit balance.

For the purposes of Standard rates the debit balance on account 3300 "The account of adjustment of reserves (provisions)" is understood as the amount of negative difference between reserves (provisions) created as of December 31, 2012 and the reserves which developed for December 31, 2012 according to IFRS.

15. The subordinated debt of bank is the unsecured obligation of bank corresponding to the criteria established in Criteria for classification of tools within equity of bank according to appendix 3 to Standard rates.

16. The banks performing (performed) restructuring according to the Law on banks can not include in calculation of equity negative difference between fair values of the financial instruments taking into account charged depreciation issued (acquired) within restructuring in the amount which is not exceeding 15 (fifteen) percent from the amount of the paid authorized capital minus own redeemed bank shares.

17. Calculation of assets, the contingent and possible obligations weighed on degree of credit risk is carried out according to the Table of the assets of bank weighed on degree of credit risk of investments according to appendix 4 and the Table of the contingent and possible obligations of bank weighed on degree of credit risk according to appendix 5 to Standard rates.

For the purposes of weighing of assets, contingent and possible obligations on risk degree assets, contingent and possible obligations decrease by the amount of the created reserves, according to IFRS.

The contingent and possible obligations weighed on degree of credit risk are determined as the work of the amount of the contingent and possible obligations expected according to the Table of the contingent and possible obligations of bank weighed on degree of credit risk according to appendix 5 to Standard rates the risk degree corresponding to category of the partner specified in the Table of the assets of bank weighed on degree of credit risk of investments according to appendix 4 to Standard rates on which the bank bears credit risks.

Swaps, futures, options, forwards join in calculation of the contingent and possible obligations weighed taking into account credit risk, by multiplication of the amount of market value of the specified financial instruments and credit risk on them on the risk degree corresponding to category of the partner specified in the Table of the assets of bank weighed on degree of credit risk of investments according to appendix 4 to Standard rates.

The credit risk on swap transactions, the future, the option and the forward is calculated as the work of nominal value of the specified financial instruments on the coefficient of credit risk specified in the Table of coefficients (as a percentage) of credit risk for derivative financial instruments according to appendix 6 to Standard rates and determined by repayment period of the specified financial instruments.

Market value (replacement cost) of financial instruments specified in this Item represents:

according to transactions on purchase - the size of excess of the current market value of the financial instrument over the nominal contractual value of this financial instrument. If the current market value of the financial instrument is less or is equal to its nominal contractual value, the replacement cost is equal to 0 (zero);

according to transactions for sale - the size of excess of nominal contractual value of the financial instrument over the current market value of this financial instrument. If the nominal contractual value of the financial instrument is less or is equal to its current market value, the replacement cost is equal to 0 (zero).

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