OREANDA-NEWS. June 19, 2008. KR National Bank gave an advance approval to the beginning of "reorganization of OJSC "AsiaUniversalBank" and OJSC "Kyrgyzpromstroibank" in the form of company takeover". In this connection the banks are starting the process of internal reorganization, which is expected to be completed by the end of 2008. As a result, a first-rate bank having an extended network of affiliates and providing a full range of modern banking services will appear in Kyrgyzstan. The bank’s capital will constitute 1, 4 billion soms and the total assets – 8 billion soms, which will predetermine its absolute leadership at Kyrgyz banking services market.

OJSC "AsiaUniversalBank" and OJSC "Kyrgyzpromstroibank" are starting the process of internal reorganization for the purpose of providing platform for synergy in all the spheres of banking activities. The procedure will be executed under the common control of the parties. It is well known that AsiaUniversalBank and Kyrgyzpromstroibank have worked according to utterly diverse principals, and now the banks undertake the task of adopting best practices of both institutions. Thus, the reorganization of their work means both sustainable, systematic and synergy based development of the newly established credit institution, and strengthening of the market position. One of the main goals of the above reorganization is increasing in quality and widening of range of provided services, which will require special staff training and substantial modernization of engineering basis of both credit organizations.

After reorganization of OJSC "AsiaUniversalBank" and OJSC "Kyrgyzpromstroibank" the banking services network will cover a very large extent of territory of the Kyrgyz Republic. Entry of the country’s biggest bank into the market of the regions will provide the various strata of society with access to advanced modern banking services and even will make it possible to allow credits to the citizens of the country’s remote areas. AsiaUniversalBank’s international practice, its experience in the work with remote operational branches, accurate organizational arrangement of working procedure, adoption of the best practices of Western commercial institutions together with Kyrgyzpromstroibank’s stainless domestic reputation, its long-term market work history and extended client base as well as its rich experience in providing retail services, will lead the country’s banking services market to the quite new level.

After gaining an indisputable leadership at the home market and unifying the best practices of both banks, the new bank will focus on providing better conditions both for present clients of AUB and KPSB and potential ones of the new credit institution. A lot of new opportunities for both categories of clients will arise as a result of the reorganization: AsiaUniversalBank intends to actively involve foreign funds for the development of mortgage crediting in the Kyrgyz Republic, and Kyrgyzpromstroibank’s branches in the regions are necessary for the implementation of this strategy.

Such a considerable positive reform at KR banking services market cannot but attract attention of international investors. After completion of the reorganization procedure the banks will considerably enlarge the range of their services, the network of branch offices will be expanded and thus new opportunities for attracting Western investments will arise. The enlargement of the client base which will take place as a result of synergy as well as development of the expertise may become key factors of the economic indicators’ increase.

While the two country’s leading banks merge into one, a collective dismissal is not planned, since there is a lack of highly qualified personnel in the banking sector, and the new bank will need experts for work in all the fields of its activity. AsiaUniversalBank’s and Kyrgyzpromstroibank’s governing bodies hope to maximally avoid dismissals, but one can speak about this with confidence after getting a mutual understanding on the issues of the main technical stages of reorganization of the above credit institutions, which are currently being discussed. How to name the new bank- it is still an open question too. But with the object of ensuring of investment appeal and improvement of image of the above financial institution, the banks’ governing bodies incline to merge under the common brand of "AsiaUniversalBank". And with it a lot of retail brands of Kyrgyzpromstroibank will be, probably, kept without any changes.

"Kyrgyzpromstroibank" has long-term traditions of retail clients servicing, the bank’s infrastructure includes its affiliates throughout the Republic, and AsiaUniversalBank is known for its high standards of corporate clients servicing (for this purpose the bank introduced innovation technologies, adopted advanced world practices and established contacts with the leading foreign financial institutions), - Mikhail Nadel, the Chair of the Board of Directors of OJSC "AsiaUniversalBank" comments the issue.- Consolidation of the competitive edges, technologies, experience and resources of the two banks will make a tremendous synergy and create an obvious leader of the banking sector. It will be the biggest universal bank servicing customers throughout the country".