Kazakhstan’s Agency for Regulation and Development of the Financial Market has proposed new rules for the sale of banks that previously received state support. The regulator has published a draft resolution that, for the first time, clearly defines the conditions under which shareholders can exit the capital of such banks, DKNews.kz reports.
The initiative targets banks that still carry government support on their balance sheets – an area that until now remained largely unregulated.
Two ways to sell a bank with state support
Under the proposed rules, shareholders of banks that received government assistance will be allowed to sell their stakes only if one of two conditions is met.
The first option is a full and early repayment of state support before the transaction is completed.
The second option allows the sale if the new investor assumes responsibility for repaying the government funds. In this case, the buyer must submit a written commitment to the regulator outlining a clear repayment plan, including timelines, funding sources, and mechanisms for returning the money to the state.
These requirements apply specifically to shareholders seeking to exit the bank’s capital. Other shareholders are not affected by the proposed changes.
Lessons from the Alatau City Bank deal
In effect, the regulator appears to be closing a regulatory gap that became evident last year. In 2024, Alatau City Bank, which had received more than 1 trillion tenge in state support, was sold to Vyacheslav Kim.
At the time, market participants questioned how and from what sources the new owner would repay the government funds. The regulator was unable to provide a clear answer, largely because no formal requirements existed.
Besides Alatau City Bank, Nurbank and Eurasian Bank still owe funds to the state, highlighting that the issue is systemic rather than isolated.
Banks will be pushed to repay state funds faster
The draft resolution also includes measures designed to encourage banks to return government funds more actively.
Previously, banks were allowed to allocate between 10% and 66% of dividends or share buybacks toward repaying state support. The regulator now proposes raising the minimum threshold to at least 66%.
This means that banks will be required to direct the majority of their profits toward repaying obligations to the state rather than distributing funds to shareholders.
What this means for the market
The proposed changes aim to increase transparency and discipline in transactions involving banks that received government aid. For potential investors, the rules become clearer – but also more demanding.
On the one hand, the state gains stronger guarantees that public funds will be recovered. On the other, the pool of investors willing to acquire banks with state support may narrow, as repayment obligations become more formalized and financially binding.
Why it matters
The issue of selling banks that received government support goes beyond financial mechanics – it is also about trust in financial regulation. The new rules send a clear signal to the market: banks with state support can no longer be sold without clear accountability.
Any exit from ownership will now require either the actual return of public funds or a transparent, enforceable plan to repay them. For Kazakhstan’s banking sector, this could mark the beginning of a more disciplined and predictable phase of development.
