The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
How is the solvency of a borrower evaluated during the bank loan approval process?
The assessment of the borrower’s creditworthiness and the calculation of the borrower’s debt-to-income ratio (hereinafter referred to as DTI) are carried out in accordance with the procedure established by Resolution No. 170.
Paragraph 92 of Resolution No. 170 defines the list of income criteria for banks to assess clients’ creditworthiness.
At the same time, paragraph 100 of Resolution No. 170 establishes that the bank independently determines the borrower’s debt burden.
Meanwhile, the DTI when issuing loans must not exceed the maximum level of 0.5, as set by Resolution No. 292.
According to paragraph 10-1 of Article 34 of the Law on Banks, when considering the issuance of a bank loan, the bank takes into account the individual’s credit scoring, calculated based on its own methodology or the credit scoring provided by a credit bureau.
In this regard, based on the results of the credit scoring, the bank assesses the risks associated with lending and makes an appropriate decision.
What mistakes do borrowers most commonly make when taking out a mortgage?
The most common mistakes include underestimating one’s financial capabilities, focusing solely on the amount of the monthly payment without considering the total cost of the loan and the overall amount of interest paid, and overlooking additional expenses associated with purchasi...
What additional expenses, apart from the monthly payment, should be taken into account when purchasing a home with a mortgage?
When purchasing a home with a mortgage, it is important to consider not only the monthly loan payment but also additional expenses associated with acquiring and maintaining the property. These may include property appraisal costs, insurance, notarial and registration fees, taxes,...
Can a borrower lose their home due to a prolonged mortgage delinquency? What is the foreclosure procedure?
In the event of a prolonged failure to fulfill obligations under a mortgage loan, the legislation provides for the possibility of foreclosure on the mortgaged property. However, before such measures are taken, borrowers are provided with a number of tools to settle their debt. In...
What are the “gray” and “black” lists of droppers?
To combat dropper schemes, a centralized system for recording suspicious clients has been established. The system is operated by the Anti-Fraud Center of the National Bank, which receives information from banks, payment organizations, telecommunications operators, and law enforce...
What new requirements have been introduced for the remote issuance and reissuance of bank cards?
For the remote issuance and reissuance of bank cards, financial institutions are required to use two-factor authentication, including biometric identification. Bank cards may only be linked to Kazakhstan-registered mobile phone numbers, which reduces the risk of using foreign SIM...
What is “dropping” and what penalties are provided by law?
“Dropping” refers to the illegal provision, transfer, or use of access to a bank account, payment instrument, or identification tool, as well as the execution of unauthorized payments or money transfers, including on behalf of third parties, in exchange for financial compensation...
How has the regulator strengthened its oversight of collection agencies in recent years?
Since 2017, the Agency has pursued a regulatory policy aimed at strengthening oversight of collection activities, improving the functioning of the debt collection market, and reducing unfair collection practices. Since 2017, the following regulatory measures have been introduced:...
Does a debtor have the right to record a conversation with a collector?
Yes. Under subparagraph 7) of paragraph 1 of Article 16 of the Law on Collection Activities, a debtor and/or their representative has the right to independently record interactions with employees of a collection agency using audio and/or video recording equipment.
