"We have abnormal situation: a shareholder starts banking business with the guarantee that his bank will be recued under any conditions. Such guarantees create the conditions for moral irresponsibility - we do not want it to happen, it is incorrect, we must take more decisive actions in respect of such banks," said S. Khakimzhanov at the presentation "Report of financial stability of Kazakhstan in 2015-2017".
In order to sanction "firm measures" in respect of "bad" banks" the National Bank has developed and presented a number of law amendments aimed at extension of regulatory functions. The regulator aspires to get the right to take measures in respect of problematic banks in case it reveals factors which may result in violation of requirements on capital, without waiting for formal violation; the right to conduct compulsory restructuring of liabilities of insolvent bank to minimize the state expenses and share the loss of shareholders/creditors; right to recognize bargains on assets withdrawal as invalid through a court.
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