The Kazakh regulator has closed a loophole allowing banks to distribute profits while bypassing budget obligations. Banks with unpaid state aid must now direct an amount equal to the full volume of accrued dividends toward repayment.
What happened
The Agency for Regulation and Development of the Financial Market (ARDFM) established new rules for Kazakh banks that received state support. A resolution was adopted raising the state fund return threshold during shareholder dividend payouts from 66% to 100%.
The document also introduces a tiered scale for repayment deadlines. As reported by the industry channel nb_kz, the time to transfer the money now depends on the withheld amount:
- up to 50 billion tenge inclusive — no later than three months from the dividend accrual date or the share buyback decision;
- from 50 to 100 billion tenge — no later than 12 months;
- over 100 billion tenge — no later than 18 months.
Country and market
State support remains a sensitive issue for Kazakhstan’s banking sector. The World Bank estimates that 8.2 trillion tenge went toward bailing out banks between 2009 and 2020. ARDFM calls this estimate inaccurate and keeps its own record of returned funds.
According to the agency, three market participants have fully repaid the state. Halyk Bank returned 250 billion tenge, Bank RBK — 243.7 billion, and Bank CenterCredit closed its 60 billion tenge obligations. Finteqstan previously reported that Bank RBK was among the leaders in loan portfolio growth, developing its business without relying on state injections.
The remaining debt belongs to three players. Alatau City Bank holds 950.2 billion tenge from the initially allocated 1.1 trillion. Eurasian Bank owes 120 billion out of 150 billion, and Nurbank — 42.3 billion out of 46.8 billion tenge.
Why it matters
In 2023, the regulator introduced restrictions to stimulate fund returns, requiring banks to give back a portion of the money when paying dividends. The threshold was 66% at the time. The transition to a 100% withdrawal shifts the financial priorities of credit organizations.
For shareholders of banks with outstanding state aid, paying dividends becomes economically unviable until they fully close their obligations to the state.
What’s next
Debtor banks will have to revise their dividend policies. They will likely abandon profit distribution among shareholders entirely in the coming years, directing capital toward organic growth or accelerated debt repayment to the budget.
