KZ.expert has already commented on the cases of Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC. We have forecasted that the Regulator is very close to revoking their licenses. However, the “phantom” banks are still alive. So, the question arises – what is keeping them afloat?
Recall that, in our recent publication of November 24, 2020, titled “A Definite Wimping Out?” , we have forecasted that “we believe there is a 100 probability that Kazakhstan is soon to lose yet another two TTBs”.
And then, we’ve added: “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”.
However, the year 2020 is coming to an end, yet these two financial institutes are still here. Moreover, the Agency for Regulation and Development of Financial Market of the Republic of Kazakhstan continues to approve appointments of top-managers in these “phantom” banks.
For instance, on December 2, 2020, the Regulator approved the following appointments:
- Zhumabayev E.S. as interim Chairman of the Management Board of Capital Bank Kazakhstan JSC (record No. 57/TTB/ 17.11. 2020) and, simultaneously, as a member of the Management Board – Deputy Chairman of the Management Board of AsiaCredit Bank JSC (record No. 58/TTB/17.11.2020);
- Yurkov B.K. as a member of the Management Boards of Capital Bank Kazakhstan JSC (record No. 59/TTB/17.11.2020) and AsiaCredit Bank JSC (record No. 60/TTB/17.11.2020);
- Arinov D.S. as a member of the Board of Directors of AsiaCredit Bank JSC.
We are not going to comment on these appointments as well as insist that, sooner of later, Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC will lose their licences. The thing is that, according to our insiders, it is Nurbol Nazarbayev, the son of Bolat Nazarbayev and the “Leader of the Nation’s” nephew, who is standing behind Shadiyev Orifdzhan Kabulovich, the sole shareholder of these two financial institutes. And even though the former has, allegedly, refused to give the money for their rescue, nonetheless, he still seems to be backing them.
We can see no other plausible explanation as to why these banks continue their existence. Not surprisingly, the market players cannot help but wonder why this is happening and when the Regulator will finally start doing what it is supposed to be doing. (See this link for instance).
To us, the reasons why the people backing Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC do not let state agencies revoke their licenses are clear – if this happens, the sole shareholder and the top-management of the financial institutes will lose control over them. In other words, the control over these banks will end up in the hands of the liquidation committee (the outsiders) who may uncover something that can do damage to those who have been using these two banks as their pockets.
The recent high-profile scandal related to BTA Bank’s claim against billionaire Bulat Utemuratov filed in the British court (the scandal that has ended (or is ending) affluently for the wallet of Nursultan Nazarbayev) has shown how dangerous and sudden it can be. For had this story continued, it could have easily disrupted the current political concordia in the Kazakh ruling elite and had extremely negative consequences.
It looks like the Library and Akorda have chosen to let the sleeping dogs lie and not to touch Capital Bank Kazakhstan JSC and AsiaCredit Bank JSC in the hope that either the shareholder finds enough money to pull them out of the grave or the problem will somehow resolve itself by peaceful means. For instance, via merging these “bloaters” with some other bank from among those controlled by the members of Nursultan Nazarbayev family.
From the viewpoint of minimising political losses, it seems to be the most reasonably way. On one hand, the two banks would end their “pilgrimage”, on the other, all their documents, loans and hidden problems would end up in the hands of those who could be influenced.
