National Bank of Kazakhstan revokes license of "Bank of Astana"

19 September 2018 13:58 (UTC+04:00)

By  Trend

The National Bank of Kazakhstan has deprived JSC "Bank of Astana" of the license to conduct banking and other operations, the press service of the National Bank stated Sept. 19.

"In accordance with the resolution of the Board of the National Bank dated September 18, 2018, it was decided to deprive JSC "Bank of Astana" of the license to conduct banking and other operations for systematic (three or more times within twelve consecutive calendar months) improper performance of contractual obligations for payment and transfer operations, systematic (three or more times within twelve consecutive calendar months) violation of prudential standards and (or) other mandatory norms and limits, as well as the failure of a major member of the Bank to comply with the requirements of the authorized body for additional capitalization, beginning from September 19, 2018," the regulator said in a statement.

Due to the low share (one percent) of the bank's assets and liabilities in the total assets and liabilities of the banking sector, the deprivation of the bank of its license does not carry risks for other financial institutions, the message reads.

By the order of the Chairman of the National Bank dated September 18, 2018, an interim administration has been appointed, to which the powers of all management bodies of the bank have been transferred. The interim administration of the bank will operate until the appointment of the liquidation commission of the Bank.

"Since September 19, all operations on bank accounts of clients and the bank itself have been stopped, except for the cases connected with the expenses specified in regulatory legal acts of the authorized body, the acceptance of the money arriving in the bank. In accordance with the procedure established by laws, the National Bank will apply to the court for compulsory termination (liquidation) of activity of the bank. From the moment of revocation of the bank's license, the creditors' claims against the bank may be submitted only in liquidation proceedings, with the exception of claims related to current expenses for the maintenance of the bank. The bank is a member of the mandatory insurance system for individual deposits, in connection with which, the depositors will be paid a guaranteed compensation in the prescribed manner," the message says.

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