National Bank Reveals Problems with Capitalization of 2 More Azerbaijani Banks
Azerbaijan, Baku / corr Trend I.Khalilova / the National Bank of Azerbaijan (NBA) states complication of the situation with capitalization of the banking sector during the month. As of 1 September, 8 banks have not fulfilled the requirements set by the NBA on the minimal amount of the aggregate capital, which was to be AZN 10mln by 1 July.
As of 1 September, the capital of 35 banks compared 37 banks a month ago exceeded AZN 10mln. Their specific weight in the aggregate amount of capital of all banks made up 93.2%. Seven banks with the special weight of 6.3% have formed their capital between AZN 5 and 10mln, one bank - AZN 3.5 and 5mln.
There are 4 banks in the country and only Poctbank does not carry out accounts due to full limitation of the banking operations. Three banks, Kauthar Bank, Euro Bank (formerly AzInvestBank) and Azal Bank, function with limitation of the licenses.
According to the banking legislation, several sanctions are applied to those banks breaking the procedural norms of the NBA. These include changing their legal status and limitation of banking licenses. Despite NBA recommendations to unite capital, up to now, the banks have not submitted mutual proposals.
As of 1 September, the aggregate capital of all 43 banks functioning in Azerbaijan totaled AZN 935.4mln, an increase of 55% compared to the beginning of 2007 when it was AZN 603.3mln.