Banking Crisis Appears To Be Deepening – After Qazqom Bailout Kazinvestbank Is Stripped Of Licence
Kazakh National Bank has deprived KazInvestBank of license to conduct banking and other operations and activities on the securities market since Dec. 27, the message from the national bank said.
The license was recalled due to systematic improper performance of contractual obligations on payment and transfer operations.
The National Bank will apply to court for the forced cessation of activities (liquidation) of KazInvestBank.
KazInvestBank participates in the system of obligatory guaranteeing of deposits of individuals and the depositors will get guaranteed compensations. The maximum guarantee payment will be 10 million tenge (333.34 tenge = $1) for deposits in tenge and 5 million tenge for foreign currency deposits.
“Due to the small share of the assets and liabilities of KazInvestBank in the total assets and liabilities of the banking sector (0.7 percent) withdrawal of the bank’s license does not any bear the risk for other financial institutions,” said the message of the national bank.
Remind, that Kazakhstan’s biggest bank struggling as asset quality worsens, The Bloomberg reported.
Kazakhstan has extended an emergency loan to the country’s biggest bank, the first step in what could be a rescue that may reach 1.5 trillion tenge ($4.5 billion), according to people familiar with the plans.