Agency published SREP results for the first time

The Agency for Regulation and Development of the Financial Market has completed another cycle of risk-oriented supervision in the banking sector. In 2024, the cycle included a comprehensive SREP (Supervisory Review and Evaluation Process), a regular asset quality review (AQR) and supervisory stress testing (SST).

The SREP, designed to improve quality of corporate governance, as well as business processes for risk assessment and management in banks, was carried out using an updated methodology. It provided a more in-depth analysis of banking processes, and also made it possible to better identify, assess and manage risks.

The 2024 SREP covered 21 banks. The Agency conducted a comprehensive analysis of the banks' risk profile in four main areas: business model assessment, capital risks, liquidity and corporate governance system.

According to SREP results, the banking system demonstrates stability and compliance with regulatory requirements, confirming its ability to function effectively in a changing economic environment.

Along with that, areas where there is potential for improvement were noted, which will allow banks to more effectively counter potential challenges and enhance their position in the long term.

For the first time, the Agency published a report on results of the SREP supervisory review. This document reflects not only key results of the supervisory review but also describes in detail the entire process and the methodology used, which makes it significant for understanding the sustainability of the banking sector in Kazakhstan. The report also allows the professional community to better understand the level of sustainability of the banking sector.

Publication of the report is intended to increase transparency of the supervisory process and strengthen the Agency's communication policy in terms of interaction with the professional community.