NBK wants to prove to the deputies that the banking supervision should be increased

/IRBIS, Oct.3, 00/ - REUTERS informs, with the reference to the head of the National Bank, Grigorii Marchenko, that the National Bank of Kazakhstan intends to persuade the deputies of the parliament of the necessity to adopt the law that gives the National Bank the right to supervise the banks and their affiliated companies irrespective of the contradiction of some financial- industrial groups. The head of the bank said that the matter was about the transparency of financial system in the interests of the depositors and the clients of the banks, as well as other financial institutions. It is said that the system, offered by the National Bank itself, means not only the supervision over the banks, but also over the companies affiliated with them. The National Bank believes that some Kazakhstani banks are highly affiliated with industrial, trade, insurance companies, as well as with pension funds and pension assets management companies. Kazakhstan is said to have been introducing international standards of banking supervision, and it is believed that due to this the 1998 financial crisis had been overcome. The head of the bank says that consolidated controlling system will be the second step of the reforms and complies with the recommendations of international experts. The experts said that in 1995 we were entering the Basil standards, though six of 25 standards are not met because of an absence of consolidated supervision, added Marchenko. The chairman of the bank does not agree with the opponents, who say that the National Bank is going to take exclusive authorities. As he says such system exists in may developed countries and that increasing the control will prevent such risks related to financial crisis that took place in 1998 in Russia, where the number of banks used the funds of the depositors and the clients to solve financial problems of their corporations. He said that there was no danger in current situation on financial markets, and the law had to be adopted in order to minimize the risks caused by the crisis like the one that happened in South-East Asia. It is said that the law had been under discussion for three months among the major banks and the Association of the financiers. Mr. Marchenko says that the law will be supported by Halyk Bank of Kazakhstan, Bank CenterCredit, Kazkommertsbank, Almaty Merchant Bank, and Eurasian bank. He added that foreign banks and joint venture banks had no problems with the introduction of international standards in Kazakhstan. He also said that those, who were against the adoption of the law had something to hide and therefore they were against the transparency. The chairman of the National Bank said that except for some articles in newspapers, some industrial and financial groups were ready to finance the blocking of the law, though he did not named interested parties yet. He said that some individuals were calling to the banks and two banks had confirmed such cases already, and another two banks had informed by themselves. The bank chairman believes the law will be supported by the president, Nursultan Nazarbaev, who put the law on consolidated supervision among the high priority laws and warned the deputies that some oligarchies can try "to buy" the parliament. It is said that the law was discussed at the Majilis, the lower house of the parliament. Reuters has the information that about 150 amendments have been made already into the law.