The rules for issuing loans to Kazakhstani citizens who have special relationships with banks have been tightened. The Agency for Regulation and Development of the Financial Market (ARDFM) has developed new regulations limiting loan volumes relative to the bank's capital, reports Todayinfo news agency.
For a bank with a basic license, the maximum loan to an employee cannot exceed 0.02% of capital. Additional conditions: the borrower must be a resident, provide collateral, and show no signs of bankruptcy. Other banks can lend to employees without amount limits, provided there is collateral and no bankruptcy.
For all banks, the size of an unsecured loan to a single borrower related to the bank by special relations cannot exceed 20 million tenge. Members of the board of directors and major participants (owning more than 10% of shares) and a bank holding (25% of shares) cannot receive loans exceeding 0.02% of capital. The limit for any banking transactions (including lending), except for purchasing stakes in other companies, is set at the same level. For the latter, the limit is 10% of capital.
The document also defines criteria for classifying loans as preferential. A loan is considered preferential if it is issued to a borrower related to the bank without recording information about them, without a clear purpose for using the funds and liability for misuse, and its amount exceeds 0.1% of the bank's capital. When purchasing shares of a related company, the same criteria apply, except for the amount – it equals 10% of capital.
The size of a bank guarantee issued to a client not related to the bank cannot exceed 0.05% of capital. Persons related to the bank by special relations include managers, members of the board of directors, shareholders, officials of the shareholder company, and subsidiaries.
