Baku, Azerbaijan, Nov. 6
By Ali Mustafayev – Trend:
The National Bank (NB) of Kazakhstan disclosed the reasons why Delta Bank JSC was deprived of a license to conduct banking and other operations and of implementing activities in the Kazakh securities market.
“First of all, the reason if the Delta Bank’s closure is related to the procedures of managing credit risks, which allowed to make credits available for the customers with unsustainable financial condition, as well as to issue loans unsecured by qualitative collateral, which led to a significant increase in overdue loans,” said the Deputy Chairman of the National Bank of Kazakhstan Oleg Smolyakov, the press service of the National Bank said in a message.
He added that the loans with overdue debts accounted for 99.7 percent of the bank’s loan portfolio (KZT 314.8 billion) as of 1 October, 2017.
“At the time of making a decision to deprive the license of the bank, the balance of correspondent accounts and the bank's cash desk amounted to 215 million tenge. At the same time the amount of overdue liabilities to depositors and creditors was about 79.8 billion tenge,” said Smolyakov.
According to Smolyakov, the National Bank held an open dialogue with Delta Bank’s management and shareholders, indicating the urgent need to provide financial support to the bank in the face ofinsufficient bank capital and liquidity risks.
“However, the Bank hadn’t received any adequate support by its main shareholders,” said the official.
The National Bank of Kazakhstan revoked Delta Bank's license to conduct banking and other transactions and carry out activities in the securities market on November 3.
The National Bank of Kazakhstan appointed an interim administration in Delta Bank, which will function until the appointment of a liquidation commission by the court.
Delta Bank was founded on Sept. 1, 1993 in the Aktau City of Kazakhstan, initiated by large oil and gas companies in Western Kazakhstan.
The bank had 11 branches in Western Kazakhstan and a number of regional partners, including Sberbank, Svyaz-Bank, Raiffeisenbank and UniCredit Bank.