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BTA Bank () (''BTA Bank Joint-Stock Company'' in full) is a Kazakhstan
bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...
with headquarters in
Almaty Almaty, formerly Alma-Ata, is the List of most populous cities in Kazakhstan, largest city in Kazakhstan, with a population exceeding two million residents within its metropolitan area. Located in the foothills of the Trans-Ili Alatau mountains ...
. it was the third largest lender by assets. In 2009, BTA Bank was subject of one of the world's biggest financial frauds totaling US$5 billion.


History


Foundations and early years

Following the
dissolution of the Soviet Union The Soviet Union was formally dissolved as a sovereign state and subject of international law on 26 December 1991 by Declaration No. 142-N of the Soviet of the Republics of the Supreme Soviet of the Soviet Union. Declaration No. 142-Н of ...
in 1991, the Kazakh operations of the Soviet Promstroybank were re-organized as Turan Bank and those of the Soviet Vnesheconombank were re-organized as Alem Bank. On 15 January 1997, Turan Bank and Alem Bank merged to form Bank Turan Alem (BTA), a
joint-stock company A joint-stock company (JSC) is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareho ...
in accordance with the Decree of the Government of the Republic of Kazakhstan "On reorganization of the Kazakh joint-stock bank Turan Bank and joint-stock bank Alem Bank Kazakhstan". On 1 October 1998 Bank Turan Alem CJSC was renamed to Bank TuranAlem OJSC and then to Bank TuranAlem JSC. In spring 2008 the bank underwent
rebranding Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors ...
, which resulted in the change of the name, logo and corporate identity of the bank. After this the BTA Bank JSC name was no longer perceived as an
acronym An acronym is a type of abbreviation consisting of a phrase whose only pronounced elements are the initial letters or initial sounds of words inside that phrase. Acronyms are often spelled with the initial Letter (alphabet), letter of each wor ...
.


Events between 2009–2012


Fraud & Embezzlement

It was revealed in 2009 that the bank was defrauded of up to $6 billion of cash in one of the world's biggest cases of financial fraud. The bank's former chairman Mukhtar Ablyazov is alleged to have perpetrated the fraud. Ablyazov has said that under his leadership BTA did conceal assets to protect them from being seized by the government. Private investigators have been used in an attempt to recover some of the funds, who in October 2010 found documents and disc drives relating to the bank in a self-storage facility in north London. A found documents and disc drives relating to the bank in a self-storage facility in north Londonthrough which BTA had transacted.


Bankruptcy

BTA Bank sought bankruptcy protection in 2010 from U.S. creditors while it restructured $11.6 billion of debt. The debts were incurred by alleged mismanagement and embezzlement by former BTA Bank Chairman Muktar Ablyazov.


Restructuring

In February 2009 Samruk-Kazyna Fund purchased 75.1% of BTA Bank's shares as part of contingency measures of the government of the Republic of Kazakhstan. As the result the bank gained additional capital of KZT 251.3 bln. During 2009–2010 BTA Bank has completed restructuring of its certain financial indebtedness. As the result the bank's indebtedness decreased from $16.65 bln. to $4.2 bln, Samruk-Kazyna Fund's share in the capital increased up to 81.48%, both domestic and foreign creditors became the Bank's shareholders holding 18.5% in the capital. Due to aggravation of the Bank's financial status during 2011, relative shortage of liquid assets and negative financial performance, in 2012 BTA Bank started the second restructuring which resulted in cancellation of the Bank's certain financial indebtedness. In consideration, the creditors received $1,618 cash and $750 mln. New Notes. BTA Bank also entered into a revised Revocable Committed Trade Finance Facility (RCTFF) with liabilities amounting to around $348 mln. as of the restructuring date. Samruk-Kazyna Fund extended $1.592 bln. loan to BTA Bank JSC subordinated to the New Notes and RCTFF. During the restructuring BTA Bank was recapitalized for around $10 bln. Share of Samruk-Kazyna in the Bank's equity increased up to 97.3%. Creditors' share amounted to 2.5%, share of minority shareholders, who held shares prior to 2009–2010 restructuring, amounted to 0.2% of the Bank's shares in aggregate.


Events after 2013

After successful completion of rather difficult and scaled restructuring process BTA Bank focused on restoration of its former market positions and currently is a stable and sustainable financial institution. During the first six months of 2013 BTA Bank received KZT 15.579 bln. of net income (unaudited interim condensed consolidated IFRS statements). In June 2013 The board of directors terminated powers of Mr. Yerik Balapanov who chaired the bank's management board since April 2012 upon his own initiative. On 5 August 2013 Mr. Kadyrzhan Damitov was appointed as the chairman of the management board of the Bank In February 2014 it was announced that the BTA Bank and Kazkommertsbank will merge by the end of the largest bank in Central Asia. The Kazkommertsbank will take over 46.5 percent of BTA shares of the Kazakh state holding company Samruk-Kazyna, another 46.5 percent will buy the current chairman Kenes Rakischew, one of the largest private investors in Kazakhstan. The Kazkommerzbank and Rakischew will acquire its shares for each 72 billion Tenge (about 465 million US dollars).


Activities

BTA Bank provides a wide range of banking services to individuals, small and medium-sized enterprises, and major corporate customers. The bank's branch network includes 19 branches and over 170 outlets around Kazakhstan. International representative offices of the bank are located in Russia, Great Britain and China. BTA's banking networks are spread around
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a landlocked country primarily in Central Asia, with a European Kazakhstan, small portion in Eastern Europe. It borders Russia to the Kazakhstan–Russia border, north and west, China to th ...
, Russia,
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
,
Ukraine Ukraine is a country in Eastern Europe. It is the List of European countries by area, second-largest country in Europe after Russia, which Russia–Ukraine border, borders it to the east and northeast. Ukraine also borders Belarus to the nor ...
,
Kyrgyzstan Kyrgyzstan, officially the Kyrgyz Republic, is a landlocked country in Central Asia lying in the Tian Shan and Pamir Mountains, Pamir mountain ranges. Bishkek is the Capital city, capital and List of cities in Kyrgyzstan, largest city. Kyrgyz ...
,
Armenia Armenia, officially the Republic of Armenia, is a landlocked country in the Armenian Highlands of West Asia. It is a part of the Caucasus region and is bordered by Turkey to the west, Georgia (country), Georgia to the north and Azerbaijan to ...
, Georgia and
Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...
. In December 2021 BTA Bank has sold 100% of "Nord Star", operator of Vitino seaport in
Murmansk Oblast Murmansk Oblast is a federal subjects of Russia, federal subject (an oblast) of Russia, located in the northwestern part of the country, with a total land area of . Its only internal border is the Republic of Karelia to the south, and it is bor ...
, to Vladimir Golubev, co-owner of "Adamant" holding.


Shareholders and management

The largest shareholder of BTA Bank is Rakishev Kenes Khamituly. He owns 598,422,760,446 shares (93.28% of the placed, or 97.79% of the voting common shares). Previously 58% of the Bank's shares were held by a group of Kazakh businessmen led by
Mukhtar Ablyazov Mukhtar Qabyluly Ablyazov (, ''Mūhtar Qabylūly Äbliazov''; born 16 May 1963) is a Kazakh businessman and political activist who served as chairman of Bank Turan Alem (BTA Bank), and is a co-founder and a leader of the unregistered political ...
, another 11% were held by the family of late Yerzhan Tatishev, minority stakes were held by
European Bank for Reconstruction and Development The European Bank for Reconstruction and Development, shortened to EBRD ( French: ''Banque européenne pour la reconstruction et le développement'' or ''BERD''), is an international financial institution founded in 1991 in Paris. As a multilat ...
, IFC and FMO. Yerzhan Tatishev was murdered in 2004. Chairman of the board of directors of the bank is Yelena Bakhmutova, Deputy Chairman of the management board of Samruk-Kazyna JSC (since 15 February 2013). Since 5 August 2013, the chairman of the management board was Kadyrzhan Damitov. On 14 February 2014, Kenes Rakishev was elected as a chairman of the board of directors.


Structure

BTA has subsidiaries and representative offices in
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a landlocked country primarily in Central Asia, with a European Kazakhstan, small portion in Eastern Europe. It borders Russia to the Kazakhstan–Russia border, north and west, China to th ...
,
Ukraine Ukraine is a country in Eastern Europe. It is the List of European countries by area, second-largest country in Europe after Russia, which Russia–Ukraine border, borders it to the east and northeast. Ukraine also borders Belarus to the nor ...
,
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
,
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
,
Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...
,
Georgia Georgia most commonly refers to: * Georgia (country), a country in the South Caucasus * Georgia (U.S. state), a state in the southeastern United States Georgia may also refer to: People and fictional characters * Georgia (name), a list of pe ...
,
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
,
Armenia Armenia, officially the Republic of Armenia, is a landlocked country in the Armenian Highlands of West Asia. It is a part of the Caucasus region and is bordered by Turkey to the west, Georgia (country), Georgia to the north and Azerbaijan to ...
.


See also

* List of banks of Kazakhstan *
Mukhtar Ablyazov Mukhtar Qabyluly Ablyazov (, ''Mūhtar Qabylūly Äbliazov''; born 16 May 1963) is a Kazakh businessman and political activist who served as chairman of Bank Turan Alem (BTA Bank), and is a co-founder and a leader of the unregistered political ...


References


Strategic partner banks


Joint-Stock Bank BTA Kazan OJSC (Tatarstan)

BTA Bank PJSC (Ukraine)

BTA Bank CJSC (Belarus)

BTA Bank JSC (Georgia)

BTA Bank CJSC (Armenia)

"Şekerbank T.A.Ş." (Turkey)


Other companies in BTA Group


Subsidiary of BTA Bank JSC BTA Ipoteka JSC (Kazakhstan)

SPF Ular Umit JSC (Kazakhstan)

Subsidiary of "BTA Bank" JSC BTA Securities" JSC (Kazakhstan)

SK Leasing JSC (Kazakhstan)

Temirleasing JSC (Kazakhstan)

Life Insurance Subsidiary of BTA Bank JSC BTA Zhizn JSC (Kazakhstan)

Subsidiary of BTA Bank JSC BTA Insurance JSC (Kazakhstan)

Subsidiary of BTA Bank JSC Insurance Company London-Almaty (Kazakhstan)

National Joint-Stock Insurance Company "Oranta" OJSC (Ukraine)

Titan-Inkasatsia LLP (Kazakhstan)

Subsidiary of BTA Bank JSC AlemCard LLP (Kazakhstan)
{{DEFAULTSORT:Bta Bank Banks of Kazakhstan Banks established in 1991 Kazakh brands 1991 establishments in Kazakhstan