Issuance of a permit to a bank or a banking holding company for the establishment or acquisition of a subsidiary, or for a bank’s or banking holding company’s significant participation in the capital of organizations

You can obtain a service via the Portal:

1. Click “Order Online” button, then a new window will open of e-Licensing Portal;

2. Sign in or log in on e-Licensing Portal;

3. Click “Order Service Online” button on e-Licensing Portal page;

4. Fill in the fields of request;

5. Sign a request with digital signature;

6. You can track status of request in “My applications” section of Personal Account, status on obtainment of license in “My licensing documents” section and status on obtainment of notification in “My notifications” section.

1) the non-compliance of law in the field of consolidated supervision of financial institutions of the country of location of the subsidiary being created or acquired with the requirements for consolidated supervision set forth in legislative acts of the Republic of Kazakhstan;

2) the non-compliance of the executives of the subsidiary (or candidates recommended for appointment or election to executive positions) with the requirements of subparagraphs 3), 4), 5) and 6) of paragraph 3 of Article 20 of the Law of the Republic of Kazakhstan
"On Banks and Banking Activities in the Republic of Kazakhstan";

3) the non-compliance with prudential standards by a banking conglomerate, of which the service recipient is a part, as a result of the alleged existence of a subsidiary of the service recipient;
4) an analysis of financial consequences, suggesting the deterioration in the financial condition of the service recipient (bank, banking holding) or banking conglomerate due to the activities of the subsidiary or investments planned by the service recipient;

5) the failure of a subsidiary to comply with established prudential standards in cases stipulated by law of the country the subsidiary is located wherein, as well as by the service recipient of prudential standards, including on a consolidated basis, and other mandatory standards and limits during the last 3 (three) months preceding the date of filing an application to the service provider for a license, and (or) during the period of consideration of the application;

6) the presence of effective supervisory response measures for the bank and (or) the bank holding company and (or) subsidiary proposed for acquisition, as provided for in subparagraphs 1), 2), 3), 4), 5), 6), 9) and 14) of paragraph 1 of Article 46, Article 47-1 of the Law on Banks and (or) administrative penalties for administrative offenses provided for in parts six and eight of Article 213, Article 227 of the Code of the Republic of Kazakhstan on Administrative Offenses, on the date of filing the application and during the period of consideration of documents;

7) in cases of creation or acquisition by the service recipient of a subsidiary organization - a bank, an insurance (reinsurance) organization, an investment portfolio manager - residents of the Republic of Kazakhstan – the failure to comply with the requirements stipulated by the Law on Banks, law of the Republic of Kazakhstan on insurance and insurance activities, the securities market regarding the issuance of consent to obtain the status of a banking or insurance holding company, a major participant in a bank, an insurance (reinsurance) organization, an investment portfolio manager - residents of the Republic of Kazakhstan;
8) the failure to rectify the service provider's comments on the submitted documents;

9) the failure by a bank, a bank holding company to comply with the requirements established by Articles 8 and 40 of the Law on Banks, regarding the creation of subsidiaries of a bank, a bank holding company, the acquisition by banks, bank holding companies of shares or stakes in the authorized capital of legal entities;
10) unprofitable activity of the bank and (or) bank holding on a consolidated and non-consolidated basis based on the results of each of the last two completed financial years preceding the date of filing an application for license to establish or acquire a subsidiary organization by the service provider;

11) the absence of consent of the service recipient, provided in accordance with Article 8 of the Law of the Republic of Kazakhstan "On Personal Data and Their Protection", to access sensitive personal data that are required to provide the public service.

The grounds for rejection to provide the public service for issuing a license to establish or acquire a subsidiary organization acquiring bad and doubtful assets of the parent bank:
1) grounds provided for in subparagraphs 2), 3), 8) and 11) of part one of this paragraph;

2) the non-compliance of bad and doubtful assets transferred to a subsidiary with the requirements of paragraph 4 of Article 11-2 of the Law on Banks and (or) Rules requirements No. 61.

The rejection to issue a license for a bank or bank holding company to have significant participation in the capital of organizations shall be made on the grounds provided for in Part One of this paragraph.

The grounds for rejection to provide the public service for issuing a license for a bank to have significant participation in the capital of an organization acquiring bad and doubtful assets created (acquired) jointly with an organization specializing in improving the quality of second-tier banks' loan portfolios shall be the grounds provided for in subparagraphs 2), 3), 8) and 11) of Part One and subparagraph 2) of Part Two of this paragraph.

• appeal;
• initiative of an administrative body or official.

 General requirements for the appeal

The appeal submitted in hard copy or electronic form shall indicate:

• Full name, IIN, postal address of a natural person, BIN of a legal entity;
• name of administrative body, official to whom the appeal is submitted;
• the essence of an appeal;
• date of filing an appeal;
• signature of the applicant or his representative;
• other information provided for by legislation of the Republic of Kazakhstan.

If the administrative procedure is on a paid basis, the applicant must submit a document confirming the payment.

Source: Administrative Procedural Code of Republic of Kazakhstan,
The Law of the RK "On Public services"