Azerbaijani Central Bank elaborates on closure of local banks
BAKU, Azerbaijan, May 1
By Eldar Janashvili - Trend:
The Central Bank of Azerbaijan (CBA) is not interested in closing any bank operating in Azerbaijan, CBA Chairman Elman Rustamov said in Baku at the press-conference dedicated to the preservation of the discount rate, Trend reports on May 1.
The chairman said that the decision related to implementation of urgent measures to appoint temporary administrators by the CBA in four Azerbaijani banks (Amrahbank, AGBank, NBC Bank and AtaBank) and to withdraw the two banks’ licenses (Amrahbank and AtaBank) was made by the Financial Stability Council only after the parties came to a unanimous opinion that it was impossible to take measures to improve these banks.
"So, monitoring of the activity of Amrahbank and AtaBank revealed a big shortage of their capital,” the chairman added. “At the same time, Amrahbank management was provided with extra time and additional financing options were proposed. After the refusal, a decision was made to revoke the bank’s license."
Rustamov also commented on the fate of two other banks, the licenses of which were not withdrawn.
“As part of the emergency measures, the CBA interim administration is operating in these banks,” the chairman added.
“The banks’ activity will be re-evaluated,” the chairman said. “But there is no reason for concern as the salaries of employees will be paid. The deposits will be insured and will be returned in the usual manner.”
Follow the author on Twitter: @eldarjanashvili