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Bank of Astana has problems with liquidity

23 May 2018 [15:11] - TODAY.AZ

By  Trend


Bank of Astana is experiencing difficulties associated with the outflow of liquidity since the beginning of this year, the National Bank of Kazakhstan said, when commenting on the situation with Bank of Astana at the presentation of the report on financial stability, Kazinform reported.

The message says the clients of Bank of Astana continue to face difficulties with cash withdrawals and other operations. Meanwhile, the work to improve the situation is still continued.

"The bank has problems with liquidity, and these problems are associated with the outflow of this liquidity since the beginning of this year. Now, discussions are being held and measures are being developed by shareholders, executive staff of the bank and potential investors together with the National Bank, in order to improve the situation," Deputy Director of the Department of Banking Supervision of the National Bank of Kazakhstan Dauren Salimbayev explained.

The deputy director of the department said until recently, all the financial reports of the bank were positive, however, a difficult situation emerged overnight.

After the introduction of restrictions on transfers and withdrawal of funds on April 20, 2018, Bank of Astana sent an appeal to the National Bank of Kazakhstan on the provision of emergency liquidity.

"As far as I know, the National Bank sent a letter of refusal to issue a loan to the Bank of Astana," said Salimbayev.

The representative of the National Bank did not mention specific terms when the decision on stabilization of the situation in Bank of Astana will be made.

Taking into account the latest developments around Bank of Astana JSC, including unexpected liquidity outflows and restrictions on cash withdrawals by clients imposed on May 2, S&P Global Ratings has lowered the long-term and short-term credit ratings of Bank of Astana from CCC / C to D /D (default), and the rating on the national scale has also been reduced to D.

"We strengthen the supervisory mandate of the National Bank, and we introduce risk–based supervision, the central element of which is the supervisory judgment of the regulator on the quality of assets, cohesion of the bank's entities, the business reputation of executive staff and shareholders, and quality of risk management system as a whole," Salimbayev said.

URL: http://www.today.az/news/regions/170323.html

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