ASTANA, Kazakhstan, October 23. The inclusion of Kazakhstan's VTB Bank in the EU's newly adopted 19th sanctions package will not have a negative impact on Kazakhstan’s financial stability, Deputy Chairman of the National Bank of Kazakhstan Yerulan Zhamaubayev told reporters on the sideline of the Senate (the upper house of the parliament) meeting, Trend reports.
Zhamaubayev noted that VTB’s operations in Kazakhstan had already been limited prior to the latest EU decision.
“VTB has not been conducting significant operations in Kazakhstan for some time, so it does not pose any systemic risks to the country’s financial stability,” he said.
The bank official added that the authorities are closely monitoring the situation to assess the possible impact on depositors.
“Every account holder possesses the autonomy to select their
financial institution.” "Should they opt to transition to an
alternative financial entity, that is within their prerogative,"
Zhamaubayev articulated.
He underscored that the nation’s deposit insurance framework
safeguards stakeholders in the occurrence of any banking
contingencies.
Zhamaubayev emphasized that the government and the National Bank
are meticulously monitoring all financial institutions and business
entities in Kazakhstan to mitigate the risk of secondary sanctions
arising within the jurisdiction.
VTB Bank of Kazakhstan is a wholly owned subsidiary of VTB Bank (PJSC) in Russia, a prominent worldwide financial institution, functioning as a comprehensive commercial bank in Kazakhstan. It offers a comprehensive array of banking products and services for people and enterprises, encompassing loans, deposits, money transfers, and internet banking. The bank participates in the Kazakhstan Deposit Guarantee System, with its Central Office situated in Almaty.
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