In response to LS's official request, the ARDFM explained that AsiaCredit Bank's violation of prudential standards was associated with unplanned large outflows of client funds. The poor quality of loans also played a role leading to a liquidity shortage and financial difficulties.
“The agency has submitted a new action plan to restore the timely and full service of AsiaCredit's client payments at the expense of the shareholder by December 25, 2020. The bank is on a special regulatory regime now, which provides for strict control over the timely and full fulfillment of obligations by the shareholder towards the clients,” the ARDFM noted.
As they explain in the financial regulator, within the framework of these measures, the work to attract additional liquidity to AsiaCredit is being carried out.
“Due to these actions since the beginning of 2020, the financial institute strengthened measures to repay the loan portfolio, which made it possible to attract about 6 billion tenge. Liquidity was also received from the shareholder and affiliates for about 5 billion tenge. These measures allowed reduce liabilities from the year beginning by 11 billion tenge, and the deposit portfolio decreased by 7 billion tenge. Individual deposits dropped by 2 billion tenge,” the agency informed.
Besides, the ARDFM stressed that they would continue to exercise strict supervision over the AsiaCredit’s activities. There will be no further extension of the deadlines for the execution of measures.
“In case of untimely and incomplete fulfillment of obligations, supervisory response measures will be taken in accordance with the requirements of the current legislation, up to revocation of license to conduct banking operations,” the agency concluded.
In September 2020, Oleg Smolyakov, deputy chairman of the ARDFM, said that Orifjan Shadiyev, a shareholder of Capital and Asia Credit, had provided a written commitment to support financial institutions by November 2 in the amount of 29.3 billion tenge. Later it became known that capitals of financial institutions were increased by 18.4 billion tenge.
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