Reasons for recall of custodian license issued to Bank Caspian OJSC

/IRBIS, June 4, 01/ - On May 31, IRBIS agency informed that by the resolution #832 of the Directorate of the National Securities Commission of Kazakhstan (NSC), dated May 28, 2001, the license #0407100031, issued on Jan.14, 1999 to BANK CASPIAN OJSC (Almaty) to conduct custodian activity was recalled. The reason for recall of the license is that BANK CASPIAN OJSC did not eliminate the reasons that became the grounds for the resolution #709 of the NSC Directorate, dated Nov.06, 2000 on suspension of the bank's license for six months. Today IRBIS agency received additional information concerning the custodian license of the bank (according to REUTERS). In Autumn 2000, NSC applied strict capital adequacy requirements to professional participants of the securities market. For instance, by October 01, 2000 the equity capital must equal KZT1.5bn, by April 01, 2001 - KZT2bn. BANK CASPIAN OJSC appealed to NSC with request to suspend license until the bank would be able to comply with requirements. The bank informed that it has always fulfilled requirements of similar nature. However, the bank was not able to fulfill them during six months given by NSC. The equity capital amounted KZT1.560bn in March this year. The bank's shareholders agreed to rise the authorized capital up to KZT1.470bn from KZT1.020bn using six emission of shares for a total of KZT469.980m. This will increase equity capital to the level set by NSC. The representative of NSC informed REUTERS that recall of the license does not mean that the banks becomes less secure, nor it worsens its reputation.