NUR-SULTAN – After the National Bank’s purge of what it identified as bad actors in 2018, Kazakhstan’s remaining second-tier banks are now undertaking mergers and acquisitions to ensure financial stability, reports Finprom.kz.
Photo credit: 24.kz.
The Kazakh National Bank’s measures were intended to remove unscrupulous financial institutions from the banking sector and support those that conducted a “healthy financial policy ensuring a competitive environment,” said the then Kazakh National Bank Governor Daniyar Akishev.
The shareholders of Tengri Bank, AsiaCredit Bank and Capital Bank Kazakhstan met May 31 to discuss their potential merger. Tengri Bank’s assets are worth 0.5 percent of the banking sector, AsiaCredit Bank’s assets are worth 0.4 percent and Capital Bank Kazakhstan’s assets are worth 0.3 percent. Their combined assets would be worth approximately 1.2 percent of the banking sector.
First Heartland Securities (FHS) acquired 99.5 percent of First Heartland Jýsan Bank (formerly Tsesnabank) in February. The latter will continue to develop services and products for Kazakh citizens and small and medium-sized businesses, and its activities will be instrumental in implementing economic diversification initiatives and promoting sustainable economic development, reports the Nazarbayev University press service.
ForteBank completed its acquisition of 100 percent of Kassa Nova in May 2019.
“In a period of rapid development and market changes, this transaction is an effective step to strengthen financial stability and increase the liquidity of the bank,” said Kassa Nova Bank Board Chairperson Sholpan Nurumbetova in May. “Thanks to access to ForteBank’s technological solutions, we will be able to not only optimise costs but also improve the quality of services. As a result, our employees and customers will receive a full range of unique services with the most favourable and comfortable conditions.”
Kazkommertsbank’s merger into Halyk Bank was completed in July 2018, in which all of its property, rights and obligations were transferred.
“We have completed a large process that lasted for more than a year and a half, starting with launching discussions, due diligence procedures prior to the acquisition of Kazkommertsbank shares, completion of a transaction, and, finally, the integration and merger of two banks. All of the transition procedures of Halyk Bank and Kazkommertsbank to a single technological platform were completed according to schedule. Now comes a new stage in the history of Halyk Bank and the entire financial sector of Kazakhstan. Millions of customers trust Halyk Bank, and we will do our best to meet their expectations,” said Halyk Bank CEO Umut Shayakhmetova last year.
