Over six years, the Agency for Regulation and Development of the Financial Market (ARDFM) has shifted banking supervision from reacting to existing problems to early detection. Banks now regularly undergo asset quality reviews and stress tests, and capital requirements depend on the risks of each institution. These approaches have been legislated in the new banking law. This was reported by Qazaqyia.kz citing Kursiv Media.

ARDFM is the state regulator of Kazakhstan's financial market: the agency sets requirements for banks, insurance companies, microfinance organizations, collectors, and securities market participants, issues and revokes licenses, and monitors the financial stability of organizations and their compliance with legislation. Its main tasks are to protect client rights, reduce risks to the financial system, curb unfair practices, and create conditions for competition and new financial products.

The agency began operations in January 2020, headed by Madina Abylkasymova. At that time, there were 27 banks in Kazakhstan with assets of 26.5 trillion tenge, and the share of loans overdue by more than 90 days was 8.4%.

According to the National Bank as of July 1, 2026, there are now 23 banks with assets of 74.2 trillion tenge. Thus, the sector's volume increased approximately 2.8 times. The NPL90+ share was 4.1%, down 4.3 percentage points from early 2020.

The growth of banking sector assets also depends on inflation, economic activity, and credit demand. However, capital, liquidity, and asset quality indicators directly reflect the stability of banks, which ARDFM monitors. As of July 1, 2026, banks' equity reached 11.2 trillion tenge. According to ARDFM data as of June 1, the core capital adequacy ratio was 19.8%, and total capital adequacy was 20.5%. Highly liquid assets reached 21 trillion tenge, or 28.8% of bank assets.

One of ARDFM's key achievements is the introduction of risk-based supervision. The agency conducts regular asset quality reviews (AQR), supervisory stress tests, and bank assessments using the SREP methodology. It checks not only compliance with regulations but also the bank's business model, corporate governance, asset quality, capital adequacy, and ability to withstand adverse scenarios.

In 2025, stress testing covered 11 largest banks, accounting for 86% of assets and 87% of the sector's loan portfolio. Under the stress scenario, the aggregate core capital adequacy ratio of these banks was 16.1%, with a minimum requirement of 5.5%. Following the review, each bank was assigned an individual capital buffer from 0% to 3%, which is considered when limiting dividend payments.

Earlier, ARDFM and the International Monetary Fund discussed the stability of the banking system, improving mechanisms for resolving problem banks, and implementing international supervision standards. Special attention was paid to the new banking law, implementation of FSAP recommendations, development of the financial safety net, and the transition to risk-based supervision of securities market participants and strengthening investor protection.

ARDFM changed conditions for banks that previously received state aid. In 2023, dividend payments by banks retaining state support funds were legally restricted, and a mechanism for their early repayment was launched.

Since the start of the financial stability program, Kazakh banks have returned approximately 738.2 billion tenge in state support. Halyk Bank repaid 250 billion tenge, Bank RBK — 243.7 billion, Bank CenterCredit — 60 billion, Alatau City Bank — 150 billion, Eurasian Bank — 30 billion, and Nurbank — 4.5 billion. As of early 2026, 1.112 trillion tenge remained outstanding: Alatau City Bank owed 950.2 billion, Eurasian Bank 120 billion, and Nurbank 42.3 billion.

In July, Alatau City Bank announced an early repayment of another 125.3 billion tenge. After this operation, the debt of the three banks to the state should decrease to approximately 987.2 billion tenge, of which about 824.9 billion will be owed by Alatau City Bank.

The link between state support and dividends changed owners' incentives. As long as state funds remain in the bank, shareholders are limited in distributing its profits. This approach was later developed in the new mechanism for dealing with insolvent banks.

The new law "On Banks and Banking Activities" was signed on January 16, 2026. The bill was developed jointly by ARDFM and the National Bank, so attributing its preparation solely to the Agency would be incorrect. However, a significant part of the document enshrines supervision directions that ARDFM has developed since 2020.

The law introduced a model of basic and universal banking licenses, behavioral supervision, and a new system for resolving insolvent banks. For a problem bank, three sequential regimes are provided: enhanced supervision, financial recovery, and insolvency resolution. Transitions between them should occur according to pre-established criteria.

The new model stipulates that bank losses are first covered by shareholders' capital and investor obligations provided by law. State support is considered an exceptional measure for systemically important banks and must be accompanied by restrictions on dividends and bonuses, a recovery plan, and subsequent repayment of state funds.

In recent years, ARDFM has established a mandatory system for resolving problem debts, where primary responsibility remains with the original lender. In 2025, financial institutions resolved citizens' debts totaling 814.3 billion tenge: 740.4 billion went to restructuring, and 73.8 billion to full or partial write-offs. Additionally, obligations of more than 142.5 thousand socially vulnerable citizens were fully written off.

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