By November 30, 2020, the fate of yet another two Kazakh banks will have been determined. We are talking about Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC. According to KZ.expert’s insiders, the banks will be unable to fulfil their client obligations without an outside help.
Here is a quote from a November 2, 2020, publication of the Capital business information centre titled «New Capital to Be Injected into Capital Bank and AsiaCredit Bank — Orifdzhan Shadiyev» (text in bold by KZ.expert).
«In 2020, Orifdzhan Shadiyev, Capital Bank Kazakhstan’s and AsiaCredit Bank’s shareholder, has provided the banks with financial assistance in the amount of more than 18.4 bln tenge. The funds were given as part of the new capital injection campaign of financial institutes, says the press-service of the banks. They remark that the additional stabilising measures are to be implemented.
«The bank management assures that the steps aimed for a comprehensive revival of the client services will be taken».
The operations related to the comprehensive revival of the client services are to be completed before November 30, 2020», say the bank’s representatives».
We have written about the problems of Capital Bank Kazakhstan and AsiaCredit Bank on several occasions. For instance, we can refer you to our publication titled «On the Financial Interests of Bolat Nazarbayev’s Son». Let us quote some paragraphs from it.
«It is worth mentioning that Shadiyev Orifdzhan Kabulovich is the sole shareholder of both banks. He owns 100% of the shares in both Capital Bank Kazakhstan as well as AsiaCredit Bank».
«Now then, based on the information provided by our insiders, Mr. Shadiyev has got a very influential silent partner. We are talking about Nurbol Nazarbayev, a son of the First President’s brother Bolat Nazarbayev. We do not know exactly how the shares of the two banks are divided between the Leader of the Nation’s nephew and Orifdzhan Shadiyev, but the mere thing that the National Bank of the Republic of Kazakhstan didn’t dare to make these banks go through the AQR speaks volumes.
For instance, it explains why Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC that have been experiencing financial problems for a long time and have a highly poor-quality loan portfolio, have never been punished or pressurised which, on the back of the Kazakh banking sector’s tumultuous history, looks like and absolute nonsense».
According to our insiders, the fate of Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC has already been decided — it is clear that they will unable to fulfil their client obligations and the regulators represented by the National Bank of Kazakhstan and the Agency for Regulation and Development of Financial Market will have to revoke their banking licences. All because the aforementioned Nurbol Nazarbayev has refused to provide financial support to the financial institutes. In other words, «wimped out» as they say.
This possibility is indirectly supported by the announcements that have recently appeared in the country’s information space, for instance, this one and that one. With that, the banks’ websites provide no hopeful information. One of the latest announcements was posted on November 2, 2020. The title reads «Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC Continue Injecting New Capital».
Therefore, we believe there is a 100 probability that Kazakhstan is soon to lose yet another two TTBs. Only a miracle can change this course of events. For instance, if the Government chooses to save Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC via the state resources provided by the Problem Loans Fund. However, this scenario is extremely unlikely. We only mention it because, theoretically, it is possible.
