The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has published its annual report on supervisory stress testing for the banking sector. The 2025 exercise covered 11 large banks included in the asset quality review perimeter, representing 86% of sector assets and 87% of the loan portfolio, and found the sector remained resilient under the stress scenario. Aggregate core capital adequacy under stress stood at 16.1% in the first quarter of 2025, up from 15.0% in 2024 and well above the minimum regulatory requirement of 5.5% excluding buffers. At the point of maximum stress, credit risk reduced capital by 1.3 percentage points and market risk by 1.9 percentage points, while net interest and non-interest income added 1.4 percentage points and partly offset those effects. Following the exercise, each participating bank was assigned a capital adequacy buffer intended to strengthen loss-absorption capacity in adverse conditions and to be taken into account when restricting the distribution of net income for dividends. Depending on each bank's vulnerability, the buffer ranges from 0% to 3% of risk-weighted assets and contingent liabilities. The report also provides detailed results by risk type and comparison with the previous year's assessment, and for the first time discloses selected risk data for each participating bank as part of a phased increase in stress test transparency.

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