Baku, Azerbaijan, Oct. 21
By Azad Hasanli – Trend:
Azerbaijan’s Financial Markets Supervision Chamber has prepared a mechanism to support the banks that are important for the banking system, chairman of the chamber’s board of directors, Rufat Aslanli said at a meeting of the parliamentary committee on economic policy, industry and entrepreneurship on Oct. 21.
“Based on international experience, we identified the criteria for the banks important for the banking system and prepared a support mechanism in case of need. Today, there is a decision to support two banks - International Bank of Azerbaijan and Bank Standard,” said Aslanli.
“As you know, in accordance with the decree of Azerbaijan’s President Ilham Aliyev, rehabilitation of the International Bank of Azerbaijan and its capitalization are underway at the moment,” he added. “As for Bank Standard, the government has taken steps to keep it in the system but after considering a number of scenarios, we realized that rehabilitation of the bank is impossible - rehabilitation costs were twice the cost of its closure. Therefore, it was decided to shut down the bank.”
Bank Standard’s license was revoked on Oct. 1 and the bank declared its bankruptcy on Oct. 4.
Bank Standard was established in 1995. It was one of the largest private commercial banks in Azerbaijan and one of the market leaders in terms of deposit amount.
The International Bank of Azerbaijan was founded in January 1992.
---
Follow the author on Twitter: @AzadHasanli