AFSA NOTICE №AFSA-Q-NB-2021-0006 ON APPROVAL OF ASSETS ELIGIBLE TO BE LEVEL 1 HQLA

NOTICE

THE ASTANA FINANCIAL SERVICES AUTHORITY HEREBY GIVES NOTICE THAT:

In accordance with paragraph 66(f) of the AIFC Banking Prudential Guideline, Astana Financial Services Authority approves the assets as being eligible to be Level 1 HQLA, which satisfy the following conditions:

1) Corporate RMB and USD bonds issued by state-owned Chinese corporations with S&P rating higher than BBB-;

2) RMB and USD bonds issued by China's state-owned financial institutions with S&P rating higher than BBB- and whereas they satisfy all of the following conditions:

-they are traded in large, deep and active repo or cash markets characterised by a low level of concentration; and

-they have proven record as a reliable source of liquidity in the markets (repo or sale) even during stressed market conditions.

The above assets can be included in the total stock of HQLA without any limit (i.e. up to 100% of HQLA).

EFFECTIVE PERIOD

This notice comes into effect from 2 June 2021 and remains effective until further notice.

INTERPRETATION

Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the AIFC Glossary. Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.

THIS NOTICE IS ISSUED PURSUANT TO SECTION 9 OF THE FINANCIAL SERVICES FRAMEWORK REGLATIONS BY THE ASTANA FINANCIAL SERVICES AUTHORITY.