Baku, Azerbaijan, Oct. 18
By Nigar Guliyeva – Trend:
The National Bank of Kazakhstan has approved the participation of four second-tier banks in the Program for improving the financial stability of the banking sector.
Chairman of the National Bank Daniyar Akishev informed that the Board of the National Bank in September and October 2017 approved the participation of ATF Bank JSC, Eurasian Bank JSC, Tsesnabank JSC and Bank Center Credit JSC in the framework of the Program for the total amount of 410 billion tenge.
"These banks and their major shareholders presented plans of measures to improve financial stability, improve the quality of assets and reduce the level of non-performing loans, as well as written commitments to capitalize the bank," he said.
He further added that after agreeing with the National Bank action plans to improve the financial stability of banks in accordance with the established procedure, a subsidiary of the National Bank - JSC "Kazakhstan Stability Fund" - will acquire subordinated bonds of these banks.
Akishev further reminded that the applications of other banks to participate in the program will be submitted to the Board of the National Bank for consideration after agreeing on the financial models of banks and the fulfillment of the National Bank's requirements by the management and shareholders of the banks.
The Program stipulates three directions for ensuring the financial stability of the banking sector: changing the regulatory and supervisory environment to improve the quality and efficiency of supervisory regulation; increase the financial stability of the system-forming bank; increase financial stability of large banks.
The program is based on the principles of payment, urgency and repayment of public funds and provides for joint liability of shareholders to capitalize on banks.
The official exchange rate of the Kazakh tenge to USD is 333.53 KZT/ 1 USD for Oct.8.