KazInvestBank (KIB), previously KazInterBank, is a Kazakhstan commercial bank. On 27 December 2016, the Kazakhstan authorities revoked the licence of Kazinvestbank citing its repeated failures to process payments.

History

1993-2003: Investment bank

In 1993, the Kazakhstan International Bank (KazInterBank or KIB) was founded with 50% interest in the Government of the Republic of Kazakhstan and 50% interest in Chase Manhattan Bank, NY. In 1995, shares of the Chase Manhattan Bank were acquired by the Government of Kazakhstan due to changes in

banking regulations Bank regulation is a form of government regulation which subjects banks to certain requirements, restrictions and guidelines, designed to create market transparency between banking institutions and the individuals and corporations with whom they ...

. The Bank becomes private following the privatization process. From 1995 to 2003, the bank provided primarily investment banking services, attracting investments to Kazakhstan, and assisting in the privatization of state

shareholding A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal owner ...

s in Kazakh companies. In 1998, the KIB acted as an advisor to help complete a merger of two major geophysical companies, International Energy Services Inc. (USA) and

Azimuth An azimuth (; from ar, اَلسُّمُوت, as-sumūt, the directions) is an angular measurement in a spherical coordinate system. More specifically, it is the horizontal angle from a cardinal direction, most commonly north. Mathematicall ...

(Kazakhstan) with a combined

asset value In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can ...

of US$40 million.

2004: Commercial bank

In 2003, the KIB was acquired by new

shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...

s. A new strategy was set to develop a universal commercial bank rendering a full range of services to corporate clients throughout Kazakhstan. In March 2004, the bank joined the Kazakhstan Individual Deposit Guarantee (insurance) System. Then in April 2004, KazInvestBank obtained a

banking license A banking licence is a legal prerequisite for a financial institution that wants to carry on a banking business. Under the laws of most jurisdictions, a business is not permitted to carry words like a ''bank'', ''insurance'', ''national'' in th ...

for main banking services and opened its first operating office in

Almaty Almaty (; kk, Алматы; ), formerly known as Alma-Ata ( kk, Алма-Ата), is the List of most populous cities in Kazakhstan, largest city in Kazakhstan, with a population of about 2 million. It was the capital of Kazakhstan from 1929 to ...

. In June 2004, the KIB jointly with Credit Suisse First Boston International arranged US$105 million pre-export facilities for JSC Food Contract Corporation. In December 2004, Adnan Ally Agha was appointed chief executive officer. In July 2005,

Oleg Kononenko Oleg Dmitriyevich Kononenko (russian: Олег Дмитриевич Кононенко; ; born 21 June 1964 in Turkmenistan) is a Russian cosmonaut from the Turkmen SSR. He has flown to the International Space Station four times, as a flight eng ...

joined KazInvestBank as a member of the board of directors. In September 2005, KazInvestBank obtained a license for complete range of banking services, including issuance of cards and issuance/confirmation of

letters of credit A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exp ...

. In June 2006, the KIB completes the consolidation

operational system An operational system is a term used in data warehousing to refer to a system that is used to process the day-to-day transactions of an organization. These systems are designed in a manner that processing of day-to-day transactions is performed ef ...

in branches which allowed the bank to present same services to customers in all branches and subsidiaries. In February 2006, the KIB acted as an arranger and a subscription agent for the first issue of international securities on the local market. In February 2006, the

European Bank for Reconstruction and Development The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies. Initially focus ...

(EBRD) approved a US$10 million line under trade facilitation program, to contribute to the development of trade finance products and strengthen the position of the KIB in the international market. Then in June 2007, the EBRD and City Venture Capital International (CVCI) jointly acquired 40% equity in KazInvestBank Bank. The following month, the ERBD increased the KIB's trading facility to $30 million, and to $60 million in August. In September 2007, the KIB decided to start retail banking in Kazakhstan and started to build a retail team. In June 2008,

mortgages A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...

/ secured loan for customers was introduced. In April 2008, a personal loan program along with re-finance feature was introduced. In March 2008, priority banking for VIP customers and a

debit card A debit card, also known as a check card or bank card is a payment card that can be used in place of cash to make purchases. The term '' plastic card'' includes the above and as an identity document. These are similar to a credit card, but u ...

s payroll product was launched. In March 2011, Adnan Ally Agha resigned from his position as CEO and Alexander Tsoy was appointed acting CEO.

2016: Licence revocation

On 27 December 2016, the Kazakhstan's central bank revoked the licence of Kazinvestbank citing its repeated failures to process payments and money transfers properly. The central bank said in a statement that it had appointed a temporary administrator at the bank and would seek its liquidation. The country's deposit insurance fund, also controlled by the central bank, would pay out Kazinvestbank's retail deposits within its insurance limits, the statement said.

References

External links

*http://www.afn.kz/ru/information-for-entities-of-financial-market/banks-sektor/2009-11-10-11-54-18/2009-11-12-04-54-19 *http://www.kib.kz *https://www.reuters.com/article/kazinvestbank-licence-idUSL5N1EM0Q0 {{Portal, Banks Banks of Kazakhstan Investment banks Financial services companies of Kazakhstan Investment promotion agencies Financial services companies established in 1993 Banks established in 1993 1993 establishments in Kazakhstan