National Bank revokes license of Eximbank Kazakhstan to conduct banking and other transactions and activities on the securities market

28.08.18, 12:17
/KASE, August 28, 2018/ – The National Bank of the Republic of Kazakhstan (the National Bank) published the following press release on its website on August 28, 2018: quote In accordance with the Resolution of the Management Board of the National Bank of the Republic of Kazakhstan No. 172 dated August 27, 2018, the decision was made to revoke the license of Eximbank Kazakhstan JSC (hereinafter, the Bank) No. 1.2.48/232 to conduct banking and other transactions and activities on the securities market as issued to the Bank by the National Bank of the Republic of Kazakhstan on January 18, 2017 on the grounds provided for by subparagraphs g), w), m-1) of paragraph 1 of Article 48 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" for systematic (three or more times during 12 consecutive calendar months) violation of prudential norms, laws and regulations and for the failure by major shareholder of the Bank to fulfil capital top-up requirements of the authorized body as of August 28, 2018. Given low proportion of assets and liabilities of the Bank in the total assets and liabilities of the banking sector (0.2%) revoking the Bank’s license does not bear risks for other financial institutions. The interim administration that had taken over all powers of the Bank’s management bodies was appointed by the order of the Chairman of the National Bank of the Republic of Kazakhstan No. 325 dated August 27, 2018. The Interim Administration will act until the appointment of the Liquidation Commission by the court. As of August 28, 2018, all transactions on the bank accounts of clients and the Bank have been stopped, except for the cases when the expenditure is provided for by laws and regulations of the authorized body and when the incoming money is credited. The National Bank of the Republic of Kazakhstan will file an application to a court according to the procedure established by the legislation requesting involuntary termination (liquidation) of the Bank’s activities. From the date of opening court proceedings on the involuntary liquidation of the Bank creditors’ claims to the Bank may be brought only under liquidation proceedings, except for the requirements related to the ongoing maintenance costs of the Bank. The Bank is a participant of the system for obligatory guaranteeing individuals' deposits, and debtors will be paid guarantee reimbursement in accordance with the established procedure. If you have any questions please contact to the head of the Interim Administration of Eximbank Kazakhstan Lyalya Serikovna Kadyrova +7 (727) 250-06-00. unquote [2018-08-28]