The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has, for the first time, applied a supervisory capital add-on mechanism to banks’ capital adequacy requirements based on the results of the 2024 Supervisory Review and Evaluation Process (SREP) and Asset Quality Review (AQR). Two add-on types were set, with ranges of 0% to 6% for banks participating in a regular AQR and 0% to 3% for banks outside the regular AQR framework. Individual add-ons were approved at the December 2024 meeting of the Agency’s Committee on Prudential Regulation Policy, and the applied add-ons in 2024 ranged from 0% to 4.5% depending on each bank’s risk profile. Banks are expected to reflect the add-on in strategy, budgeting, risk appetite and stress-testing scenarios and escalate the issue to the board of directors for decision-making, while the Agency noted that banks continue to maintain sufficient capital buffers and meet minimum regulatory requirements. Reports on the 2024 SREP and AQR results have been published on the Agency’s website.

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