National Bank strips Bank of Astana of license for banking and other transactions

19.09.18 10:54
/KASE, September 19, 2018/ – The National Bank of Republic of Kazakhstan (National Bank) on September 19, 2018 published the following press release on its website: quote In accordance with the resolution No. 214 of the Management Board of the National Bank of the Republic of Kazakhstan dated September 18, 2018 a decision was taken to strip Bank of Astana (hereinafter – the Bank) of the license No. 1.1.32 for execution of banking and other transactions issued to the Bank by the National Bank of the Republic of Kazakhstan on April 20, 2015, for reasons stipulated in sub-items в), г) and м-1) (Cyrillic lettering) of item 1 of article 48 of the Act of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", for systematic (three or more times within twelve consecutive calendar months) undue execution of contractual obligations on payment and transfer transactions, for systematic (three or more times within twelve consecutive calendar months) violation of prudential norms and (or) other compulsory norms and limits, as well as failure of the bank's major partner to meet requirements of authorized body for additional capitalization, as of September 19, 2018. Due to the low share of assets and liabilities of the Bank in the total assets and liabilities of the banking sector (1.0%) withdrawal of the bank's license doesn’t carry risks for other financial organizations. Following the Order No. 352 of the Chairman of the Management Board of the National Bank of the Republic of Kazakhstan dated September 18, 2018 a temporary administration was appointed, that took over powers of all executive bodies of the Bank. The temporary administration of the Bank carries out its activities during the period up to the appointment of the liquidation commission of the Bank. As of September 19, 2018 all transactions in client bank accounts and accounts of the Bank were stopped, except for expenses stipulated in normative legal acts of the authorized body, crediting of money incoming to the Bank. The National Bank of the Republic of Kazakhstan, as prescribed by law, will turn to the court with a request to enforce the discontinuation of activities (liquidation) of the Bank. From the date of withdrawal of the Bank's license, creditors' claims to the Bank can be presented only during the liquidation proceedings, except for claims related to current expenses on the Bank's maintenance. The Bank is a participant of the system of compulsory guaranteeing of individual deposits, meaning that depositors will be indemnified, as prescribed by law. With queries please turn to the head of the temporary administration Jemma Zinullina, tel. +7 (727) 259-60-60. unquote [2018-09-19]