Interest of Foreign Capital in Banking Sector Increases: NBA Deputy Chair
Azerbaijan, Baku, 8 February / corr Trend I.Khalilova / The National Bank of Azerbaijan has received official applications to open two new banks in the country, Rufat Aslanly, the chairman of the NBA, said. The local investors proposed to establish banks with foreign participation.
In compliance with the law on banks, there exists a two-stage system for licensing banking activities.
"These processes will continue and it is difficult to name the terms. Unless there is a problem with the capitalization, in compliance with the legislation, the NBA management will consider this proposal," Aslanly said. In accordance with NBA's requirements while establishing a new bank the minimum amount of the statutory capital should be no less than AZN 10mln.
The second appeal was made by the Turkish bank Ish Bankasi, which has shown interest in the opening of a new bank or the purchase of one of the existing banks in Azerbaijan. However, documents have not been submitted and they are keen primarily to discuss the plans at the meeting, the deputy chairman of the NBA said.
"During the meeting we inform the Turkish bank of further actions in compliance with the banking legislation of Azerbaijan," Aslanly said.
The Russian bank VneshtorgBank has also submitted a proposal to purchase a share in one of the Azerbaijani banks (Russian bank was interested in the purchase of AFBank's stock). "However, we have had to return them for review due to claims made by VneshtorgBank representatives, Aslanly said. At present the bank is involved in the removal of the claims." Only after the removal of obstacles, will Aslanly name the local bank and the composition of the shareholders.
There are 46 banks in Azerbaijan, including 21 functioning with foreign capital.