ASTANA, Kazakhstan, November 5. The Kazakh government will support banks only in extreme cases and on a reimbursable basis, Trend reports via the Kazakh parliament.
This approach is embodied in a draft law, approved in its first reading by the Mazhilis, the lower house of parliament, which incorporates reforms for the management of insolvent banks.
The law defines systemically important banks, with the list to be published publicly, and proposes a three-tier response model: enhanced supervision, financial recovery, and resolution.
State intervention is allowed only as a last resort and after fully utilizing shareholder capital. Any government support would take the form of temporary capital participation, followed by a change in shareholders and management, and would prohibit dividend and bonus payments until all losses are covered and the state’s costs reimbursed. This framework aims to ensure shareholder accountability and minimize risks to the national budget.