Bank Astana's license to conduct banking transactions revoked

19 September, 2018, 12:38 417
Bank Astana's license to conduct banking transactions revoked

From 19 September 2018, the Bank's and banking account-related financial transactions are suspended.  

 

 

The National Bank of Kazakhstan issued an order to withdraw JSC Bank Astana's license to conduct banking and other transactions, Bnews.kz reports referring to the Financial Regulator's press service.  

"In accordance with the order of the Board of the National Bank as of September 18, 2018, No.214, a decision to withdraw JSC Bank Astana's (hereinafter the Bank) license to conduct banking and other transactions issued by the National Bank of the Republic of Kazakhstan as of April 20, 2015," they said in the National Bank.

The Bank was revoked the license because of systematic (three or more times over 12 consecutive calendar months) inappropriate observance of treaty obligations on payments and transfers; systematic (three or more times over 12 consecutive calendar months) violation of prudential regulation and other obligations to observe norms and limits, as well as unfulfilled capital requirements of the authorized body by the major members of the Bank.    

"Taking into account the Bank's low share of assets and obligations in the cumulative assets and obligations of the banking sector (1.0%), the license withdrawal from the Bank is not risky for other financial organizations.

An interim administration is appointed by the Chairman of the National Bank No.352 as of September 18, 2018, to which the authority of the Bank's management bodies was transferred. The interim administration will operate until the appointment of the Bank's liquidation commission," according to the Financial Regulator.  

From September 19, 2018, all Bank's and its clients' account-related financial transactions are suspended, except for spendings provided by the normative legal acts of the authorized body, charging money flowing into the Bank. 

The National Bank of the Republic of Kazakhstan in accordance with the given legislative order will refer to the court to involuntary terminate (liquidate) the Bank's activity. 

The Bank is a member of the system of compulsory guaranteeing deposits of individuals, in this connection depositors will be paid guaranteed reimbursement in the given order.