In early 2007, the bank was renamed into the Subsidiary Bank Joint Stock Company Sberbank of Russia. [8] In 2007, the credit institution received a license to conduct banking and other operations carried out by banks in national and foreign currencies. In the same year, the bank's authorized capital was increased by almost 15 times and amounted to 29 billion tenge (more than $240 million), which allowed it to enter the top 10 largest banks in Kazakhstan by authorized capital. [9]
Sanctions and sale
In connection with the 2022 Russian invasion of Ukraine, the parent company Sberbank was subject to UK and US sanctions in April 2022, [15] and to European Union sanctions in July. [16] As a result, the assets of Sberbank and its subsidiaries were frozen, and any interaction between US individuals and legal entities was prohibited. [17] In Kazakhstan, the Sber KZ application was removed from online stores for iOS and Android mobile phones, [18] and the bank was disconnected from the SWIFT international interbank system. [19]
In mid-April, Halyk Bank bought out part of the retail loan portfolio from SB Sberbank JSC under an assignment agreement. This deal affected car loans issued under the preferential lending program of the Development Bank of Kazakhstan, part of unsecured loans, loans for urgent needs, and mortgages. The total principal debt on the transferred loans amounted to 330 billion tenge (as of 1 April 2022, the loan portfolio of consumer loans of SB Sberbank JSC amounted to 1.1 trillion tenge). [20]
At the same time, the Russian Sberbank began to look for a buyer for its Kazakh subsidiary, [21] and the Office of Foreign Assets Control of the US Treasury Department issued a license setting a deadline for winding down operations with SB Sberbank JSC until 12 July 2022. [22] The bank began to feel an outflow of customer funds. After falling under sanctions, clients of the Kazakh subsidiadry of Sberbank withdrew about 38% of their funds from it. [23]
In May, the media reported that one of the main contenders for the asset was the Baiterek national holding, controlled by the government of the Republic of Kazakhstan, with which the European Bank for Reconstruction and Development (EBRD) may participate in the deal. [24] In June, EBRD CEO Odile Renaud-Basso said that her bank could recapitalize SB Sberbank JSC when it changed hands. [25] The following month, OFAC extended the license to complete transactions with SB Sberbank JSC for another three months, until 11 October 2022. [26] On 23 August, it was announced an agreement had been signed to sell of all Sberbank's shares in SB Sberbank JSC to Baiterek. [27] [28] [29] [30] [31] [32]
On 1 September, Baiterek and Sberbank of Russia closed the deal to buy and sell Sberbank Kazakhstan. At the same time, plans were announced to rename the organization to Bereke Bank ("bereke" in Kazakh means abundance, prosperity). On 21 September, the bank completed re-registration and became known as Bereke Bank. [33]
In February 2023, the US Treasury Department announced that it would lift sanctions on the bank on 6 March. [34]
