Two Azerbaijani Banks Appeal to NBA for Removing Sanctions

Business Materials 9 February 2008 12:20 (UTC +04:00)

Azerbaijan, Baku, 8 February /corr. Trend I.Khalilova/ The National Bank of Azerbaijan limited activity of nine banks, imposing a ban on accepting community deposits because they could not join to the Deposit Insurance Fund of Azerbaijan, said the Deputy Chairman of the Executive Board of the National Bank of Azerbaijan (NBA), Rufat Aslanli. [The sanctions were applied against the banks due to their failure to meet minimal amount of aggregate capital in amount of AZN 10mln].

"However, only after assessing these banks (qualitative and quantitative parameters of the capital), we can discuss the issue of removing limitations on the banking license," Aslanli said.

Two banks made an appeal to the NBA with a request to remove the sanctions. Aslanli refused to mention these two banks till investigation of their situation.

The NBA reported to Trend that initially the sanctions have been applied with regards to Kauthar Bank, Euro Bank (former AzInvestBank) Azal Bank, Credo Bank, Atlant Bank, Birlik Bank, AFBank, Gunay Bank and Royal Bank.

Deposit Insurance Fund commenced its activity on 13 August 2007. From the beginning of 2008, the Fund increased maximal insured amount up to AZN 6,000 and from 1 January 2010 it will be increased up to AZN 8,000.