...Devaluation Pressures Capital Ratios: The Kazakhstan banking sector's regulatory core Tier I and Tier I capital ratios declined by 1.2 percentage points, to 12.7% and 13.3%, respectively, in 3Q15 as risk-weighted assets expanded by 15% following the 44% tenge devaluation. The sector's total capital ratio fell by a more moderate 0.7pp to 15.8%, helped to a degree by subordinated debt issuances, notably by Kaspi Bank, ATF Bank and Bank Centercredit, purchased by the state-controlled pension fund. Capitalisation Rules Relaxed: In September 2015, the National Bank of Kazakhstan (NBK) suspended plans to raise minimum capital ratios in 2016 as some big banks, Bank Centercredit, Tsesnabank, and Eurasian Bank, already had low capital. The regulator also extended the capital ratio step-up period to 2021 from 2019 and lowered the end-point minimum total capital ratio to 10% from 12% (before any applicable buffers). Stricter NPL Definition Proposed: The NBK also indicated a potential change of definition...
