Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 256 of 22 December 2017 on Amendments to Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 144 of 30 May 2016 on Establishing Prudential Standards and Other Mandatory Norms and Limits for Islamic Banks, Their Normative Values and Methodology for Calculating Prudential Standards and Other Mandatory Norms and Limits for Islamic Banks

«NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN»	[pic]	REPUBLICAN STATE INSTITUTION «NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN»
RESOLUTION OF THE BOARD		RESOLUTION OF THE BOARD
22 December 2017		No. 256
Almaty city		Almaty city

On Amendments to Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 144 of 30 May 2016 «On Establishing Prudential Standards and Other Mandatory Norms and Limits for Islamic Banks, Their Normative Values and Methodology for Calculating Prudential Standards and Other Mandatory Norms and Limits for Islamic Banks»

In order to improve the regulatory legal acts of the Republic of Kazakhstan regulating the activities of second-tier banks, the Board of the National Bank of the Republic of Kazakhstan RESOLVES:

1. To introduce into Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 144 of 30 May 2016 «On Establishing Prudential Standards and Other Mandatory Norms and Limits for Islamic Banks, Their Normative Values and Methodology for Calculating Prudential Standards and Other Mandatory Norms and Limits for Islamic Banks» (registered in the Register of State Registration of Regulatory Legal Acts under No. 13939, published on 22 July 2016 in the information and legal system «Adilet») the following amendments:
   the preamble shall be stated in the following wording:
   «In accordance with the laws of the Republic of Kazakhstan of 31 August 1995 «On Banks and Banking Activity in the Republic of Kazakhstan» and of 19 March 2010 «On State Statistics», the Board of the National Bank of the Republic of Kazakhstan RESOLVES:»; in the Normative Values and Methodology for Calculating Prudential Standards and Other Mandatory Norms and Limits for Islamic Banks approved by the said resolution:
   paragraph 50 shall be stated in the following wording:
   «50. Open currency position is the excess of the bank's claims (liabilities) in the currency of a separate foreign state (group of foreign states) or in refined precious metal over the bank's liabilities (claims) in the same foreign currency or refined precious metal.
   Long currency position is an open currency position in the currency of a separate foreign state (group of foreign states) or in refined precious metal in which the claims (aggregate amount of assets and contingent claims) exceed the bank's liabilities (aggregate amount of liabilities and contingent liabilities) in the same foreign currency or refined precious metal. Short currency position is an open currency position in the currency of a separate foreign state (group of foreign states) or in refined precious metal in which the liabilities (aggregate amount of liabilities and contingent liabilities) exceed the bank's claims (aggregate amount of assets and contingent claims) in the same foreign currency or refined precious metal. The calculation of currency positions includes claims (aggregate amount of assets and contingent claims), liabilities (aggregate amount of liabilities and contingent liabilities) expressed in tenge, the amount of which is determined by changes in the exchange rate of currencies (value of refined precious metals). Claims (aggregate amount of assets, contingent and possible claims), liabilities (aggregate amount of liabilities, contingent and possible liabilities) expressed in tenge, the amount of which is determined by changes in the exchange rate of more than one foreign currency, are included in the calculation of currency positions in the foreign currency having the smallest open currency position limit established by paragraph 51 of the Norms. For each foreign currency and for each refined precious metal, the open currency position is calculated separately. When calculating open currency positions in the currencies of separate foreign states (groups of foreign states) (refined precious metals), the balance of accounts for each foreign currency (refined precious metal) opened on asset accounts, less reserves formed in accordance with IFRS, and on the bank's liability accounts is calculated first. Then the balance of accounts in the same foreign currency (refined precious metal) opened on contingent claim accounts and on contingent liability accounts, less reserves formed in accordance with IFRS, is determined. The balance reflecting the excess of claims (liabilities) in a foreign currency (refined precious metal) over liabilities (claims) is mutually summed up, and the resulting amount determines the size and type of the bank's open position in the foreign currency (refined precious metal). The bank's open long and (or) short position in derivative financial instruments in the currency of a separate foreign state (group of foreign states), opened on contingent claim accounts and on contingent liability accounts, shall not exceed 30 (thirty) percent of the bank's own capital. For the purposes of calculating the bank's open long and (or) short position, the list of derivative financial instruments does not include spot transactions concluded by banks. For the purposes of calculating the bank's open long and (or) short
   position in derivative financial instruments, transactions with derivative financial instruments whose counterparty is the National Bank of the Republic of Kazakhstan, exchange operations with currency instruments with a value date of 2 (two) days or less, currency swap operations with a value date of 2 (two) days or less, and derivative financial instruments whose underlying asset is a currency pair not containing the national currency are not included. The bank's net currency position is calculated as the difference between the aggregate amount of the bank's long positions in all foreign currencies (refined precious metals) and the aggregate amount of short positions in all foreign currencies (refined precious metals). Claims and liabilities expressed in foreign currency are included in the calculation of the currency position in respect of the foreign currencies in which these claims and liabilities are expressed (fixed). When conducting currency operations containing a future value date that is not the date of conclusion of the transaction, such currency operations are included in the calculation of the currency position starting from the date of conclusion of such transaction. Comparison of maturities of assets and liabilities is performed in accordance with the Table for Comparing Maturities of Assets and Liabilities according to Appendix 9 to the Norms. Comparison of maturities of assets and liabilities in foreign and national currencies is performed in accordance with the Table for Comparing Maturities of Assets and Liabilities in Foreign Currency according to Appendix 11 and the Table for Comparing Maturities of Assets and Liabilities in National Currency according to Appendix 12 to the Norms, respectively.»; the second paragraph of the fourth part of paragraph 53 shall be stated in the following wording:
   «short-term liabilities to branches and representative offices of foreign companies operating in the territory of the Republic of Kazakhstan, which belong to the economic sectors «other financial organizations - code 5», «state non-financial organizations - code 6», «non-state non-financial organizations - code 7» and «non-profit organizations serving households - code 8» in accordance with the Rules for Applying Codes of Economic Sectors and Assigning Payments approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 203 of 31 August 2016, registered in the Register of State Registration of Regulatory Legal Acts under No. 14365 (hereinafter - Resolution No. 203);»; the third and fourth paragraphs of the second part of paragraph 54 shall be stated in the following wording:
   «liabilities to branches and representative offices of foreign companies operating in the territory of the Republic of Kazakhstan, which belong to the economic sectors «other financial organizations - code 5», «state non-financial organizations - code 6», «non-state non-financial organizations - code 7» and «non-profit organizations serving households - code 8» in accordance with Resolution No. 203; liabilities to non-residents of the Republic of Kazakhstan that are international organizations of which the Republic of Kazakhstan is a member in accordance with the Law of the Republic of Kazakhstan of 6 December 2001 «On Membership of the Republic of Kazakhstan in the International Monetary Fund, the International Bank for Reconstruction and Development, the International Finance Corporation, the International Development Association, the Multilateral Investment Guarantee Agency, the International Centre for Settlement of Investment Disputes, the European Bank for Reconstruction and Development, the Asian Development Bank, the Islamic Development Bank, the Asian Infrastructure Investment Bank», as well as the Eurasian Development Bank;»; the third and fourth paragraphs of the second part of paragraph 55 shall be stated in the following wording:
   «liabilities to branches and representative offices of foreign companies operating in the territory of the Republic of Kazakhstan, which belong to the economic sectors «other financial organizations - code 5», «state non-financial organizations - code 6», «non-state non-financial organizations - code 7» and «non-profit organizations serving households - code 8» in accordance with Resolution No. 203; liabilities to non-residents of the Republic of Kazakhstan that are international organizations of which the Republic of Kazakhstan is a member in accordance with the Law of the Republic of Kazakhstan of 6 December 2001 «On Membership of the Republic of Kazakhstan in the International Monetary Fund, the International Bank for Reconstruction and Development, the International Finance Corporation, the International Development Association, the Multilateral Investment Guarantee Agency, the International Centre for Settlement of Investment Disputes, the European Bank for Reconstruction and Development, the Asian Development Bank, the Islamic Development Bank, the Asian Infrastructure Investment Bank», as well as the Eurasian Development Bank;».

2. The Financial Market Methodology Department (Abdrakhmanov N.A.) shall, in the manner established by the legislation of the Republic of Kazakhstan, ensure:
   1) jointly with the Legal Department (Sarsenova N.V.) state registration of this resolution with the Ministry of Justice of the Republic of Kazakhstan;
   2) within ten calendar days from the day of state registration of this resolution, sending its copy in paper and electronic form in the Kazakh and Russian languages to the Republican State Enterprise with the right of economic management «Republican Centre for Legal Information» for official publication and inclusion in the Reference Control Bank of Regulatory Legal Acts of the Republic of Kazakhstan;
   3) posting of this resolution on the official internet resource of the National Bank of the Republic of Kazakhstan after its official publication;
   4) within ten working days after state registration of this resolution, submission to the Legal Department of information on the implementation of the measures provided for by subparagraphs 2), 3) of this paragraph and paragraph 3 of this resolution.

3. The Department for Protection of Rights of Consumers of Financial Services and External Communications (Terentyev A.L.) shall ensure, within ten calendar days after state registration of this resolution, sending of its copy for official publication to periodical printed publications.

4. Control over the execution of this resolution shall be entrusted to the Deputy Chairman of the National Bank of the Republic of Kazakhstan Smolyakov O.A.

5. This resolution enters into force upon the expiry of ten calendar days after the day of its first official publication.

Chairman
	D. Akishev
«AGREED»
Chairman of the Committee on Statistics
of the Ministry of National Economy
of the Republic of Kazakhstan
______ N. Aidapkelov
05.01.2018
of the National Bank