Reconciliation of views at AFK

At the Association of Financiers of Kazakhstan was a discussion on the practice of granting a double encumbrance on collateral (re-pledging) when refinancing a loan by a borrower to another bank initiated by the banking ombudsman.

According to the provisions of Article 311 of the Civil Code of the Republic of Kazakhstan and enforcement law practice of second-tier banks, the specifics of the settlement of disputes by the bank ombudsman are considered.

There was a comprehensive and useful exchange of views between the participants of the meeting – representatives of second-tier banks, the regulator and AFK.

During the discussion, various approaches to this issue and the existence of a conflict of interests were voiced.

In conclusion, the banking ombudsman Erserik Siyrbayev called on second-tier banks to pay more attention to the requests of borrowers when providing a double encumbrance and refinancing of loan on the best terms for the borrower in other banks.

The meeting was moderated by The Managing Director of the AFK Legal Support Center Mr. A. Uteugulov who expressed his readiness for further cooperation with the institution of the banking ombudsman on the protection of the rights of consumers of financial services on the Association of Financiers of Kazakhstan court.

Аuthor:  А.Zhauarova – adviser of a Bank ombudsman.