Two Kazakh banks keep ratings despite suspended licenses
Baku, Azerbaijan, Nov. 15
By Elena Kosolapova – Trend:
The International Rating Agency S&P Global Ratings did not revised its ratings on Kazakhstan’s Delta Bank (B/Stable/B) and KazInvestBank (B-/Negative/C) following the decision by the National Bank of Kazakhstan to suspend their licenses to accept retail deposits and open retail customer accounts for a period of three months, effective from Nov. 7, 2016, the rating agency said.
“We believe that this restrictive measure imposed by the regulator does not have an immediate material negative impact on the banks' creditworthiness. For both banks, the share of retail customer deposits in total deposits is small: 5% for Delta and 7% for KazInvestBank as of Sept. 30, 2016.
S&P notes that so far, it has seen no signs of customers losing confidence and withdrawing deposits from Delta Bank or KazInvestBank.
“We expect that both banks will resolve the issues with the regulator and that the regulator will restore their licenses at the end of the three-month period,” S&P said.
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