Details added (first version posted on 19:23)
Baku, Azerbaijan, Feb. 2
By Anvar Mammadov - Trend:
The license of the NBCBank OJSC was reinstated by the Central Bank of Azerbaijan (CBA) Feb. 1, the CBA has said.
The bank's license was reinstated in connection with the plans to consolidate it with other banks operating in the country.
A protocol of intention has already been signed in this regard.
"NBC Bank has appealed to the country's central bank and informed about the desire to consolidate with other banks, as well as to carry out measures to improve the financial situation, ensure fulfillment of the obligations, as well as restoration of capital position," said the message.
The message said that execution of overdue obligations to public and creditors started through additional capitalization of the bank.
"Taking this fact into account, as well as compliance of the consolidation process with the banking sector development strategy, the decision to revoke the license of NBCBank has been canceled," the CBA said. "Before the completion of the consolidation process, the bank will operate under the strict supervision of the Central Bank of Azerbaijan."
The Central Bank of Azerbaijan (CBA) has revoked the license of NBC Bank Jan. 26.
This decision was taken because the total capital of the bank didn't correspond to the CBA minimum requirement of 50 million manats, the CBA said.
The bank couldn't fulfill its obligations to creditors and didn't manage its current activity reliably and prudentially, said the CBA.
It was earlier reported that NBCBank, which has been operating on the market since 1992, had intention to merge its assets with Parabank and KredoBank.
KredoBank entered the market in 1994 as Anar Bank. Parabank was established in 1991.
Currently, as many as 37 banks have license for implementation of banking activity in Azerbaijan.