OREANDA-NEWS. November 26, 2008. The new credit organization that arose from the amalgamation of OJSC “AsiaUniversalBank” and OJSC “Kyrgyzpromstroibank” at the beginning of November, 2008, has started its work under the brand of “AsiaUniversalBank”, reported the press-centre of AUB.

This event is a result of the state policy on restructuring and consolidation of Kyrgyz banking system, and reflects the existing tendencies of financial systems’ progress in many developing countries. The amalgamated bank’s strategic priorities directed to internal market development   will promote Kyrgyzstan’s financial sustainability.

As a result of the two banking structures’ merge, Kyrgyzstan has got the biggest credit organization, which is supposed to be not only Kyrgyz banking system’s leader but a serious player at  Central- Asian financial market.  The new institution’s economic showing proves that AsiaUniversalBank is competitive enough to contest with some well-known commercial banking structures of the region.

 “The advantage for the customers is, first of all, expanding of the service range and crediting opportunity for small and medium-sized businesses, especially in the remote regions – all this thanks to the wide spread branch network. One can say that AUB’s services has reached every household,  noted Mikhail Nadel, the Chairman of the Board of Directors OJSC “AsiaUniversalBank”.- Currently the Bank is able to compete with the big banks not only in Kyrgyzstan, but on the post soviet arena”.

The amalgamation of the two banks is an evidence of dynamical growth of the country’s banking sector. Kyrgyzstan’s financial sector is one of the most sustainable and actively developing segments of the economy and its strengthening will positively influence the country’s economy as a whole. Today AUB has already developed a unified service range and rate policy; corporate and private clients may use the Bank’s services in more than 70 offices, located throughout the country. (35 branches and 45 savings banks).

“Development of the internal market and increase of lending volume will favor financial literacy of the community, more and more people will be involved in financial life of the country, added Mikhail Nadel.- It means that the country population’s trust to the banking system will increase too, and this is one of the most important factors of its sustainability”.

“Both AUB and KPSB proved their competence and reliability long ago, noted Nurdin Abdrazakov, the CEO of AsiaUniversalBank.- We consider the internal market’s development and retail services’ improvement, as well as further development of services for corporate clients, a number one priority.

Similar to any other bank, we want to justify the market trust.  By combining KPSB’s long term experience of work with retail clients and AUB’s high technologies and methods of work with corporate clients we’ve got new opportunities, emphasized Nurdin Abdrazakov.- We already have more than 30 ATMs, more than 100 self-service payment terminals and a wide choice of money remittance systems ”.

As before, AUB keeps  a leadership according to the amount of its assets (16% of the aggregate banking assets of the country, i.e. 8,1 billon soms), the total capital (18% of the country’s banking system total capital, i.e. 2,3 billion soms), and the deposit base (20% of the banking sectors’ total deposit base). The net income for 9 month comprised 293 million soms. Now the Bank possesses an expanded branch network of 35 branches and 45 savings banks. Due to this, AUB can  actively develop retail banking services in the remote areas.

Anvar Abdrayev, the President of the Banking Union of the Kyrgyz Republic named the amalgamation of the two banks unprecedented. “As the result, a new bank, which can successfully compete at Central Asian, CIS and other countries’ markets, arose. Now, I'm sure I'm speaking by the card,” said Anvar Abdrayev. “Unfortunately, not all the time and not all Kyrgyz banks are competitive enough. In this regard AsiaUniversalBank has big potential and can strengthen financial and banking system of the country”.

The amalgamated AUB will promote the more intensive integration of Kyrgyzstan’s financial system into the world economy. AUB’s experience of international development and its importance as a consolidated credit organization in Central Asian region will allow the Bank to enter international markets. As Mikhail Nadel said, a big bank attracts more attention of foreign investors and as the result, creates more opportunities for cooperation with foreign financial institutions. “And of course, the amalgamation caused strong synergy effect,- emphasized Mikhail Nadel.- In this case one can say that two by two makes not four, but five”.

 “Consolidation of the banking system – is a common and very positive tendency in the development of the banking sector of any country. Initiation of such credit institution is obviously a big event for Central Asian region, noted Marat Baitokov, First Vice-president and Executive Committee Chairman of the Bank Association of the Kazakh Republic. – Its total assets, deposit base, branch network and new opportunities make the bank competitive at the regional market. Probably, it is the first time in the country’s history, that the new bank - a big player not only in Kyrgyzstan but on the region level - was established”.

Deputy Chairman of the National Bank of the Kyrgyz Republic, Kubanychbek Bokontayev, also noted the importance of the amalgamation of the two country’s biggest banks for further development of the financial sector:

“The merge of the banks- is a very positive event for KR banking system. The new level of the bank will obviously provide advantages to it. We hope that this will provide crediting opportunities for rural regions of the country and the citizens of Kyrgyzstan will have an access to up-to-date high-technology services, which are offered by AUB.” Kubanychbek Bokontayev also expressed hope that the merge of the banks will provide opportunities to finance large scale projects, obtain syndicate loans together with other banks.