The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published remarks outlining its approach to reducing problem assets and developing a liquid stressed asset market. The stock of stressed assets in the banking system has fallen by more than half since 2017, from KZT 7.7 trillion to KZT 3.1 trillion, following supervisory measures and bank balance-sheet cleanups. The framework combines risk-based supervision under the Supervisory Review and Evaluation Process model with annual asset quality reviews, regular supervisory stress tests and capital buffer add-ons linked to banks’ risk levels. Market reforms have allowed private investors, including nonresidents, to buy stressed assets, established servicing companies and removed tax differences between resident and nonresident investors. Two accredited digital platforms, DMAS and Debex, have conducted 408 auctions involving KZT 310 billion of asset sales. The new Law on Banks and Banking Activities, signed in January 2026, introduced prudential standards that limit stressed assets to a maximum of three years on financial institutions’ balance sheets. The agency said the next phase of market development will depend on attracting more capital and institutional investors.

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