The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has developed and published a “Guideline on Calculation of Economic Capital” for second-tier banks as part of efforts to strengthen risk management practices. The guidance is intended to clarify economic capital requirements more precisely, supporting banks’ resilience to financial risks and more informed management decision-making. The document sets out methodological recommendations for calculating economic capital across key risk types, covering credit, market, operational and interest rate risk in the banking book (IRRBB). The methodology is aligned with international standards from the Basel Committee on Banking Supervision and the European Banking Authority, and the full text is available on the Agency’s website.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-05-26
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan publishes guidance on economic capital calculation for second-tier banks
Kazakhstan's Financial Market Agency issued a "Guideline on Calculation of Economic Capital" for second-tier banks to enhance risk management. It offers recommendations for calculating economic capital for credit, market, operational, and interest rate risk, aligning with international standards from the Basel Committee and the European Banking Authority.