Central Bank of Azerbaijan receives appeal for banking license

Business Materials 16 March 2010 12:11 (UTC +04:00)

Azerbaijan, Baku, March 16 / Trend I.Khalilova /  

The Central Bank of Azerbaijan (CBA) received an appeal from the new BTB Bank to obtain a license for banking activities, CBA Communication Department Rufat Abbasov said today.  

"After passing the state registration system through the" single window "of the Taxes Ministry,  BTB Bank repeatedly appealed to the Central Bank in accordance with the requirements of banking legislation, " he added.

Presently, the issuance of a banking license to BTB Bank is under consideration, he said.

The bank passed the state registration of commercial activities in the Taxes Ministry Feb.

24, 2010. BTB Bank has registered with an authorized capital of 12 million manat. Emil Rzayev is he bank's legal representative. Its founders are three physical entities, including Nigar Mehtiyeva, Jafar Aliyev and Elmaddin Aliyev. Jeyhun Pashaly, Asim Salamov and Hafiz Mammadov are the members of the bank's supervisory board.

After obtaining permission of the Central Bank, BTB Bank could become the 47th bank in the Azerbaijani banking market. Recent developments in the country's banking market occurred in 2008. In 2008, thir number was reduced by two times as a result of revocation of licenses of two banks - Poctbank, which had long been virtually inactive, and Atlantbank - because of failure to comply with terms of capitalization, but just as their numbers increased. Permissions for banking activities were provided by OAO Nakhchevanbank and Azfinans Bank (the current AFB Bank).

Currently, 46 banks are licensed to conduct banking activities in Azerbaijan, of which 23 banks with foreign capital. The share of foreign capital is formed in the range from 50 to 100 percent in 7 banks, up to 50 percent - 14 banks and two local branches of foreign banks operate in the market.

Number of the bank's structures operating abroad is nine, including six offices, two subsidiaries and one branch. Four representative offices of foreign banks also operate in Azerbaijan.

In 2009, the total assets of the Azerbaijani banks amounted to 11.67 billion manat (an increase of 13.5 percent), total liabilities - 9.66 billion manat with an increase at 12.7 percent over 2009. Of these, 4.2934 billion manat fell to deposits, and 4.47788 billion manat - the financial market loans and deposits. As of Jan.1, 2010, the Azerbaijani banks' total liabilities amounted to 11.67 billion manat, or 13.5-percent increase.

The capitalization of the Azerbaijani banking sector has grown from year to 17.6 percent to 2.00498 billion manat.

March 16, the official exchange rate is 0.8033 manat to $1.

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