BAKU, Azerbaijan, June 5. Azerbaijan may change the requirements for opening branches of local banks, Trend reports.
This is reflected in the proposed amendment to the law "On the Central Bank of the Republic of Azerbaijan", which was submitted for discussion at today's meeting of the Committee of the Milli Majlis (Parliament) on economic policy, industry and entrepreneurship.
According to the current legislation, a local bank cannot open branches and representative offices without the permission of the financial markets supervision authority.
The rules for obtaining and revoking permits to open branches and local representative offices of local banks, as well as the conditions and requirements related to their activities, are established by regulatory acts of the financial market supervisory authority.
According to the amendments, a local bank can open branches and representative offices, taking into account the requirements of the above-mentioned law. A bank that meets the standards of total capital liquidity and capital adequacy, and has an internal control system, may open branches and representative offices.
The storage of cash in branches must comply with the requirements of the relevant regulatory act of the Central Bank, as well as have information systems for transmitting real-time information to the bank about transactions carried out in branches.
The conditions and requirements for the activities of local bank branches are determined by the CBA. The local bank sends a written notification to the Central Bank within 7 working days from the date of the decision to open a local branch or representative office.
The notification shall be accompanied by a certified copy of the decision to open a branch or representative office adopted by the authorized management body of the bank, as well as the documents and information specified in this law on the administrators of the branch or representative office. The notification reflects the information specified in this law about the address of the branch, department or representative office, the time of the beginning of their activities, as well as about their administrators.
If the CBA fails to provide a written notification within 14 days about the bank's non-compliance with the requirements provided for by this law on the opening of a local branch or representative office, or about non-compliance with the impact measures (corrective measures) applied to the bank, the relevant local branch or representative office of the bank may begin operations.
A local bank must submit a written request to the Central Bank to obtain permission to open a foreign branch or representative office.