Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market

The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (hereinafter – the Agency) has published an Overview of key aspects of the SREP (Supervisory Review and Evaluation Process) supervisory model. This publication is aimed at increasing the transparency of the supervisory process in the banking sector.

The review covers important aspects, including the basic principles and stages of the supervisory process for banks, as well as key characteristics of the updated SREP methodology.

"Updating the SREP methodology and publishing an overview of key aspects of the supervisory model are part of the process of improving risk-based supervision," said Timur Abilkasymov, Advisor to the Chairman of the Agency.

In addition, the Review includes recommendations that determine the focus of the regulator's attention in the implementation of supervisory activities and serve as a guideline for improving banks' internal processes and risk management methods. Accordingly, in order to reflect current trends and changes in the regulatory environment, the SREP methodology, as well as recommendations, will be periodically updated and supplemented.

"The publication of key aspects of the supervisory model and recommendations is also aimed at demonstrating that SREP is a tool for a comprehensive assessment of the risk profile of banks and diagnostics of existing internal processes, rather than their formal compliance with the minimum requirements of the regulator," Abilkasymov summed up.

 

The full text of the Review can be found at the link: https://www.gov.kz/memleket/entities/ardfm/documents/details/594855 ?lang=ru

 

The Agency's External Communications Division:

+7 (727) 2371089, press@finreg.kz