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RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of December 26, 2016 No. 308

About establishment of prudential standard rates and others obligatory to observance by the mortgage organizations and affiliated organizations of national managing holding in the sphere of agro-industrial complex of regulations and limits, and also the list, forms and rules of submission of the reporting on their accomplishment

(as amended on 16-04-2021)

According to the laws of the Republic of Kazakhstan of December 23, 1995 "About mortgage of real estate", of July 4, 2003 "About state regulation, control and supervision of the financial market and the financial organizations", of March 19, 2010 "About the state statistics" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Establish:

1) prudential standard rates and others obligatory to observance by the mortgage organizations and affiliated organizations of national managing holding in the sphere of agro-industrial complex of regulation and limits according to appendix 1 to this resolution;

2) the list of the reporting on accomplishment of prudential standard rates by the mortgage organizations and the affiliated organizations of national managing holding in the sphere of agro-industrial complex, according to appendix 2 to this resolution;

3) report form about accomplishment of prudential standard rates, according to appendix 3 to this resolution;

4) report form about disaggregation of the assets weighed taking into account credit risk according to appendix 4 to this resolution;

5) report form about disaggregation of the contingent and possible obligations weighed taking into account credit risk according to appendix 5 to this resolution;

6) Rules of submission of the reporting on accomplishment of prudential standard rates by the mortgage organizations and the affiliated organizations of national managing holding in the sphere of agro-industrial complex, according to appendix 6 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 7 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" 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 ten calendar days from the date of its 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 since March 1, 2017 and is subject to official publication.

Chairman of National Bank

D. Akishev

It is approved

Chairman of Committee according to the statistics Ministries of national economy of the Republic of Kazakhstan

January 11, 2017

 

N. Aydapkelov

Appendix 1

to the Resolution of Board of National Bank of the Republic of Kazakhstan of December 26, 2016 No. 308

Prudential standard rates and others obligatory to observance by the mortgage organizations and affiliated organizations of national managing holding in the sphere of agro-industrial complex of regulation and limits

Chapter 1. General provisions

1. These prudential standard rates and others obligatory to observance by the mortgage organizations and affiliated organizations of national managing holding in the sphere of agro-industrial complex of regulation and limits (further - Prudential standard rates) are developed according to the laws of December 23, 1995 "About mortgage of real estate", of July 4, 2003 "About state regulation, control and supervision of the financial market and the financial organizations" and establish prudential standard rates and others obligatory to observance by the mortgage organizations and affiliated organizations of national managing holding in the sphere of agro-industrial complex of regulation and limits.

2. Prudential standard rates are expressed by number with three signs after comma.

3. For the mortgage organizations and the affiliated organizations of national managing holding in the sphere of agro-industrial complex (further - the Organizations) enter into structure of prudential standard rates and other regulations and limits, obligatory to observance:

1) minimum size authorized and equity of the Organization;

2) coefficient of sufficiency of equity;

3) the maximum extent of risk on one borrower;

4) liquidity rate;

5) capitalization of the Organization to obligations to nonresidents of the Republic of Kazakhstan.

Chapter 2. Minimum size authorized and equity of the Organization

4. The minimum size of the authorized capital of the Organization is established in the amount of, No. 127 determined by the resolution of Board of National Bank of the Republic of Kazakhstan of March 26, 2012 "About the minimum sizes of the authorized capital of the organizations performing separate types of banking activities based on the license of authorized body on the regulation, control and supervision of the financial market and the financial organizations" (registered in the Register of state registration of regulatory legal acts at No. 7642).

The organization 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 set by authorized body on state regulation, control and supervision of the financial market and the financial organizations (further - authorized body).

5. The minimum size of equity of the Organization constitutes 800 (eight hundred) million tenges.

Chapter 3. Coefficient of sufficiency of equity

6. The equity of the Organization is calculated as capital sum of the first level and the capital of the second level (the capital of the second level joins in the amount of, not exceeding the capital of the first level) less investments of the Organization.

Investments of the Organization represent investments of the Organization in the share of the issuer, including the shares intended for trade and available for sale, and share in the authorized capital of the legal entity, and also subordinated debt of the legal entity.

7. The capital of the first level is calculated as the amount:

the paid authorized capital, regarding common shares, minus own redeemed common shares;

the paid authorized capital, regarding preferred shares, minus own redeemed preferred shares;

supplementary capital;

retained net income of last years;

the funds, reserves created at the expense of net income of last years;

behind minus:

intangible assets, except for the licensed software acquired for the purposes of the main activities of the Organization and corresponding to the International accounting standard (IAS) 38 "Intangible assets";

losses of last years;

loss of the current year.

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

retained net profit of the current year;

amount of revaluation of fixed assets and securities;

the size of general reserves (provisions) in the amount which is not exceeding 1,25 (one whole twenty five 100-th) percent of the amount of the assets weighed taking into account risk;

the preferred shares which are not included in calculation of the capital of the first level;

subordinated debt of the Organization in the amount which is not exceeding 50 (fifty) percent of the amount of the paid authorized capital minus own redeemed shares, the supplementary capital, retained net income of the last years, funds, reserves created at the expense of net income of last years minus the redeemed own subordinated debt of the Organization.

The share of the preferred shares included in the capital of the first level does not exceed 15 (fifteen) percent of the capital of the first level. The amount of preferred shares which is not included in calculation of the capital of the first level can be included in calculation of the capital of the second level.

9. Subordinated debt of the Organization is the unsecured obligation of the Organization corresponding to the following conditions:

1) is not contribution or the obligation to bearer;

2) is not mortgage providing according to requirements of the Organization or persons, affiliirovanny with it;

3) in case of liquidation of the Organization it is satisfied in the last queue (before distribution of the remained property between shareholders);

4) it is settled (fully or partially) by the Organization, including ahead of schedule only at the initiative of the Organization provided that such repayment according to the conclusion of authorized body cannot lead to non-compliance by the Organization with the values of prudential standard rates established by Prudential standard rates subsequently.

The subordinated debt of the Organization included in equity is the subordinated debt having attraction term more than 5 (five) years prior to repayment.

Bonds are recognized subordinated debt of the Organization and join in equity of the Organization only based on the report on results of placement of the bond issue approved by authorized body according to article 24 of the Law of the Republic of Kazakhstan of July 2, 2003 "About the security market".

The subordinated debt of the Organization joins in calculation of equity of the Organization:

during term more than 5 (five) years prior to debt repayment - in full amount of debt;

within 5 (five) years which remained prior to debt repayment:

The 1st year - 100 (hundred) percent of the amount of subordinated debt;

The 2nd year - 80 (eighty) percent of the amount of subordinated debt;

3rd year - 60 (sixty) percent of the amount of subordinated debt;

The 4th year - 40 (forty) percent of the amount of subordinated debt;

The 5th year - 20 (twenty) percent of the amount of subordinated debt.

Subordinated debt of the Organization the loan of the Organization attracted from the European Bank for Reconstruction and Development or Asian Development Bank or the International Finance Corporation, conforming to requirements of this Item, except for the subitem 3) of part one of this Item is also recognized if the agreement provides opportunity early (complete or partial) repayments of loan at the initiative of the borrower provided that such repayment according to the conclusion of authorized body cannot lead to deterioration in financial position of the Organization and violation of requirements of the legislation of the Republic of Kazakhstan subsequently.

10. Sufficiency of equity of the Organization is characterized by the following coefficients:

1) k1 - the relation of the capital of the first level to the size of assets of the Organization;

2) k1-2 - the relation of the capital of the first level to the amount of the assets, contingent and possible obligations weighed on the degree of credit risk reduced by the amount of general reserves (provisions) which are not included in calculation of equity;

3) equity relation to the amount:

assets, contingent and possible obligations weighed on the degree of credit risk reduced by the amount of general reserves (provisions) which are not included in calculation of equity;

k1-3 - operational risk.

The operational risk is calculated as the work of coefficient of the reduction equal to 8,3, on the work of average size of annual gross income for the last expired 3 (three) years on coefficient of the operational risk equal to 0,12.

The average size of annual gross income for the last expired 3 (three) years is calculated as the relation of the amount of annual gross incomes for the last expired 3 (three) years, in each of which the Organization gained net income on the number of years in which the Organization gained net income. For the newly created Organizations the operational risk is calculated after financial year, and the average size of annual gross income is calculated proceeding from the number of the expired years.

The annual gross income of the Organization is determined as:

the amount of net annual income to the taxation, the annual amount of assignments for forming of provisions (reserves) and the size of the incurred extraordinary expenses,

minus the extraordinary income of the Organization.

11. Values of coefficients of sufficiency of equity of the Organization:

k1 - is at least 0,06;

k1-2 - is at least 0,06;

k1-3 - is at least 0,12.

Calculation of assets, the contingent and possible obligations weighed on degree of credit risk of investments is carried out according to the Table of the assets of the organization weighed on degree of credit risk of investments according to appendix 1 to Prudential standard rates (further - the Table 1).

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 calculated according to the Table of the contingent and possible obligations of the organization weighed on degree of credit risk according to appendix 2 to Prudential standard rates (further - the Table 2) on the risk degree corresponding to the category of the borrower specified in the Table 1, on which the Organization bears credit risks.

Assets for the purposes of calculation of coefficient k1 and assets, contingent and possible obligations weighed on the degrees of credit risk taken into consideration of coefficients of k1-2 and k1-3, join less the reserves created according to International accounting standards.

12. The organization-originator (further - originator) applies the framework approach of securitization to calculation of equity according to the Framework approach Basel II: International convergence of measurement of the capital and standards of the capital: new approaches (June, 2006) in case of which the securitized assets are excluded from calculation of the assets of originator weighed on degree of credit risk (further - the framework approach of securitization) if the substantial credit risk as a result of implementation of the transaction of securitization is transferred to the third parties.

The organizations participating in transactions of securitization and not being originator apply the framework approach of securitization according to Prudential standard rates when calculating of the credit risks of the securitization positions held by them weighed on degree in such transaction.

13. For application of the framework approach of securitization by the Organizations when calculating equity the originator submits the following documents to authorized body:

1) the questionnaire, according to appendix 3 to Prudential standard rates;

2) the document determining persons from board of the Organization, responsible for determination of feasibility of application of the framework approach of securitization;

3) the copy of the prospectus of issue of securities (or the bonded program) for the cross-border transactions of securitization with foreign special finance companies performed according to the legislation of foreign state or the copy of the certificate on state registration of the bonded program (or bond issue within the bonded program) for the transactions of securitization performed according to the Law of the Republic of Kazakhstan of February 20, 2006 "About project financing and securitization";

4) data on coefficient of sufficiency of equity taking into account securitization and without securitization, according to the Data on calculation of coefficients of sufficiency of equity provided by appendix 4 to Prudential standard rates.

14. If documents are prepared by the Organization in foreign language, then their translation on Kazakh and (or) Russian is represented.

15. The documents submitted by the Organization are considered by authorized body within 15 (fifteen) calendar days from the date of their obtaining.

16. After consideration of documents, stipulated in Item 13 Prudential standard rates, the authorized body makes the decision on issue or on refusal in confirmation on application of the framework approach of securitization by the Organization when calculating equity and in writing notifies on it originator in terms, stipulated in Item 15 Prudential standard rates.

In confirmation on application of the framework approach of securitization by the Organization when calculating equity refuses in case:

non-presentations by the Organization of complete document package, stipulated in Item 13 Prudential standard rates;

discrepancies of the subitem 4) Item 13 of Prudential standard rates to requirements of Items 18 and 20 of Prudential standard rates.

17. For the purpose of determination of materiality of transfer of risk the originator performs:

1) calculation of coefficient of sufficiency of equity of k1-3 without securitization;

2) calculation of coefficient of sufficiency of equity of k1-3 taking into account securitization.

18. Transfer of risk is essential if:

1) value of coefficient of sufficiency of equity k1-3 taking into account securitization is more than value of coefficient of sufficiency of equity k1-3 without securitization;

2) the third parties which are not members of banking conglomerate to which the originator belongs hold at least 10 (ten) percent from the trenches provided with the securitized assets.

19. Transfer of risk does not happen if value of coefficient of sufficiency of equity k1-3 taking into account securitization is less than value of coefficient of sufficiency of equity k1-3 without securitization. In this case the originator does not apply the framework approach of securitization when calculating equity and calculates the weighed sizes of the corresponding risks without securitization. At the same time the originator does not subtract the securitization positions held by it from equity and (or) does not weigh such line items on degree of credit risk of assets when calculating coefficient of sufficiency of equity.

20. Originator excludes the securitized assets at the rate of the credit risks of assets weighed on degree in case of accomplishment of the following conditions:

1) the substantial credit risk connected with the securitized assets was translated to the third parties;

2) documents according to the transaction of securitization reflect economic essence of the transaction;

3) the special finance company created according to the legislation of the Republic of Kazakhstan on project financing and securitization (further - special finance company), bears all risks connected with possible nonpayment by debtors of payments on the securitized assets including in case of bankruptcy (insolvency) of originator;

4) except as specified, provided by Prudential standard rates, the originator shall not:

own directly or indirectly shares in the authorized capital or voting shares in special finance company;

appoint or elect most of board members or board of special finance company;

determine decisions of special finance company owing to the agreement or otherwise;

assume any obligations according to the redemption of the securitized assets from special finance company except those which are provided in the relevant agreements or documents relating to the transaction of securitization;

assume liabilities on deduction of any risks concerning the securitized assets except those which are provided in the relevant agreements or documents relating to the transaction of securitization;

after transfer of the securitized assets of special finance company to incur the expenses connected with securitization and activities of special finance company;

provide indirect support of special finance company. Provision of indirect support by persons connected with originator the special relations is not allowed.

Indirect support arises in case the originator, and also the faces tied with originator the special relations gives to special finance company help according to requirements of cash nature (further - credit providing) or other support in cases when such support is not provided by the relevant agreements or documents relating to the transaction of securitization.

In case of detection of the facts of rendering by the originator or faces tied with originator the special relations of indirect support of special finance company when making the subsequent transactions of securitization the originator loses opportunity to reduce requirements to the capital on the securitized assets;

5) the securities issued by special finance company do not represent payment obligations of originator;

6) the party to which risks are transferred is the special finance company founded for implementation of one or several transactions of securitization;

7) if the option of the return redemption is provided in the transaction of securitization, then all following conditions are satisfied:

the option of the return redemption is implemented only at the discretion of originator;

the option of the return redemption can be realized only provided that the general amount of outstanding primary obligations on the securitized assets or the general amount of primary obligation according to issued securities reaches value of 10 (ten) percent and below from their initial size;

the option of the return redemption is not structured for the purpose of improvement of credit quality of line items of securitization;

8) the originator redeems the securitized assets or replaces them in bullet with other assets in case of observance of the following conditions:

the securitized assets are redeemed at the cost which is not exceeding them fair market value;

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