Baku, Azerbaijan, Apr. 6
By Anvar Mammadov – Trend:
Amendments to Azerbaijan’s ‘Law on Banks’ offer to define terms of appointment of temporary administrators to the banks that lose solvency.
These amendments were suggested to be discussed at the plenary session of Azerbaijan’s Parliament.
Under the amendments, a temporary administrator should be appointed in case a bank’s authorized capital is 25 percent of the minimum authorized capital amount specified by the regulator, or if the capital adequacy ratio is 3 percent (with the regulator’s minimum requirement of 10 percent).
In addition, a temporary administrator can be appointed if a bank is not able to pay its liabilities or does not have sufficient liquid assets to pay liabilities that are due. The exception is when a bank voluntarily restructures its debt.
Also, a temporary administrator can be appointed if the regulator revokes the bank's license.