Supervisory stress testing revealed high resilience of Kazakhstan’s banking sector

The Agency for Regulation and Development of the Financial Market conducted supervisory stress testing (SST) of 11 banks in 2024. They account for 85% of all assets and 86% of the total loan portfolio of the country's banking sector.

In order to conduct the 2024 SST, a baseline and stress scenario were developed jointly with the National Bank. The stress scenario assumed negative changes in the economy against the background of global economic shocks and a downturn in key industries.

As a result of the SST, adequacy level of the total equity capital of 11 banks made 15.0%, which significantly exceeds the minimum established threshold of 5.5% (excluding buffers) and indicates high capitalization and resilience of banks to economic shocks.

During the period from May to August, preparatory activities were carried out, including data collection, model calibration, scenario development and methodology adaptation. The main phase of the SST took place from September to December last year, with results approved in the first quarter of this year.

The 2024 SST report can be found on the Agency's website.