National Bank strips Delta Bank of license for banking and other transactions and operation on securities market

03.11.17 12:12
/KASE, November 3, 2017/ – The National Bank of Republic of Kazakhstan (National Bank) posted on its website a press release dated November 3, 2017 "On stripping Delta Bank of the license for banking and other transactions and operation on the securities market". The press release says as follows: quote In accordance with a resolution of the Management Board of the National Bank of the Republic of Kazakhstan No. 194 dated November 2, 2017, a decision was taken to strip Delta Bank (hereinafter – the Bank) of the license No. 213 for banking and other transactions and operation on the securities market, issued to the Bank by the Agency of the Republic of Kazakhstan on Regulation and Surveillance of the Financial Market and Financial Institutions on October 24, 2008, for reasons stipulated in sub-items c) and d) of item 1 of article 48 of the Act of the Republic of Kazakhstan "On Banks and Banking Operations in the Republic of Kazakhstan", for systematic (three or more times over twelve consecutive calendar months) undue performance of contractual obligations on payment and transfer transactions and systematic (three or more times over twelve consecutive calendar months) violation of prudential norms and (or) other compulsory norms and limits, effective as of November 3, 2017. By Order No. 402 of the Chairman of Management Board of the National Bank of Republic of Kazakhstan dated November 2, 2017 a temporary administration was appointed which took over authorities of all managing bodies of the Bank. The temporary administration will operate until a liquidation commission is appointed by court. As of November 3, 2017 all transactions over clients' bank accounts and those of the Bank were stopped, except for cases related to expenses stipulated to statutory legal acts of the authorized body, crediting of incoming money. The National Bank of Republic of Kazakhstan will in the order prescribed by law turn to the court with an application for compulsory discontinuation of operations (liquidation) of the Bank. From the date of initiation by the court of proceedings for compulsory liquidation of the Bank, creditors can present their claims against the Bank only as part of the liquidation proceedings, except for requirements, related to current operating expenses. The Bank is a participant of the system of obligatory guaranteeing of individual deposits. Deposits in tenge and foreign currency, funds in payment cards and bank accounts are protected by a guarantee of Kazakhstan's Deposit Guaranteeing Fund. The maximum limit of guarantee is as follows: on tenge deposits – KZT10 mln; on deposits in foreign currency – KZT5 mln. due to this fact, depositors will be paid indemnification. With queries please dial the Bank's hot line +7(727) 44 85 55, as well as contact the Department for protection of financial services consumers rights and external communications of the National Bank of Republic of Kazakhstan +7(727) 278 80 84 and Banks Surveillance Department of the National Bank of Republic of Kazakhstan +7(727) 270 48 93. unquote The press release is available on the National Bank's website – http://www.nationalbank.kz/cont/PR_DeltaBank_%D1%80%D1%83%D1%81_.pdf [2017-11-03]