Republic of Kazakhstan: Technical Assistance Report-Risk-Based Supervision Recovery Plans and Interest Rate Risk

IMF Staff Country Reports, July 5, 2022

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Presented Technical Assistance (TA) report on risk-based supervision recovery plans and interest rate risk in the banking book (IRRBB).
Mission provided recommendations and training to the Agency on:
- Assessment of banks’ recovery plans.
- Assessment and management of interest rate risk in the banking book (IRRBB).
Two prior missions in September 2020 and November 2020 focused on:
- Strengthening the Agency’s institutional set up.
- Implementation of certain elements of the Pillar 2 requirements of the Basel Framework.
The mission included six training sessions for supervisors on IRRBB and recovery plans.

The Agency continues to make progress on aligning its prudential regulatory and supervisory frameworks with international standards.
Identified need for the Agency to develop comprehensive regulatory requirements for banks’ recovery plans.
Recommended that the new framework:
- Provide standards that comply with international standards.
- Reflect proportional application to Kazakhstan banks’ systemic risk profile.

Develop comprehensive regulatory requirements for banks’ recovery plans that are:
- Compliant with international standards.
- Proportionally applied according to Kazakhstan banks’ systemic risk profile.
Consider a short-term follow-up TA to:
- Ensure consistency of the revised regulations with international standards.