...

License of Capital Bank Kazakhstan revoked

Kazakhstan Materials 25 June 2021 13:28 (UTC +04:00)
License of Capital Bank Kazakhstan revoked

BAKU, Azerbaijan, June 25

Trend:

The license of Capital Bank Kazakhstan JSC to carry out banking and other operations, as well as activities in the securities market has been revoked, Trend reports citing the Kazakh media.

Reportedly, the relevant decision was made in accordance with the resolution of the Agency of the Republic of Kazakhstan on Regulation and Development of the Financial Market, by which, this license had previously been issued.

The reason for revoking the license, in accordance with subparagraphs 7, 15, 16 of paragraph 1 of Article 48 of the Law of the Republic of Kazakhstan ‘On Banks and Banking Activities in the Republic of Kazakhstan,’ were:

- systematic (three or more times within twelve consecutive calendar months) violation of prudential standards and (or) other norms and limits that are mandatory to comply with;

- systematic (three or more times within twelve consecutive calendar months) failure to comply with supervisory response measures;

- failure of a major participant of the Bank to comply with the requirements of the authorized body for additional capitalization;

- reference of the bank to the category of an insolvent bank.

The size of the Bank's assets as of the date of revocation of the license amounted to 38.5 billion tenge ($89.9 million), the loan portfolio - 33.9 billion tenge ($79 million), including 30.4 billion tenge ($70.9 million) or 89.8 percent of the bank's loan portfolio represented by non-performing loans overdue for more than 90 days.

The size of the bank's liquid assets is 149 million tenge ($347,854), while the volume of unfulfilled customer payments exceeds 15 billion tenge ($35 million).

In connection with non-compliance with prudential standards, the Agency took 29 supervisory response measures against the Bank and drew up 67 protocols on administrative offenses.

In 2020, the Bank's shareholder presented an Action Plan to improve the financial condition of the Bank. As part of the implementation of this Plan, under the strengthened control of the Agency, the Bank during 2020 and 2021 reduced the bank's liabilities to depositors in the amount of 31 billion tenge ($72.3 million).

However, the measures taken by the Bank and its shareholder did not lead to the stabilization of the bank's financial position. The Bank continues to violate prudential regulations and fails to fulfill its payment and transfer obligations to the Bank's clients.

Tags:
Latest

Latest