Number of banks with foreign capital in Azerbaijan remains unchanged in 2012

Business Materials 14 August 2012 19:04

Azerbaijan, Baku, Aug. 14 / Trend A.Hasanov /

According to the Central Bank of Azerbaijan (CBA), the number of banks with foreign capital remained at the same level in the country in the second quarter of 2012.

Today there are 23 banks with foreign capital in the country. In seven of them share of foreign capital is formed in the range from 50 to 100 percent, in 14 banks - up to 50 percent. Also two local branches of foreign banks operate in the country.

During this reporting period, 44 banks had a license for banking in the country.

The number of structures of banks operating abroad is 9, including 6 offices, two bank subsidiaries and one branch. Azerbaijan also has five representative offices of foreign banks.

As of the end of the second quarter, the country has 672 local branches of banks, of which 37 are branches of the International Bank of Azerbaijan, while 635 - branches of private banks.
From early year, the number of local branches increased by 6 units (0.9 percent).

The number of banks' divisions reached 162, decreasing from early year by 2 units (1.2 percent).

Following the second quarter, five banks in the country are in the process of liquidation.
In July 2008, the CBA has decided to revoke JSC Atlantbank and Poctbank's licenses for banking activity because of discrepancy of the minimum requirement to aggregate capital, failure to comply with prudential norms within the management and carrying out current operations.

In December 2010, Debutbank and Kovsarbank's licenses were revoked for failure to meet requirements for minimum aggregate capital, violation of banking laws, including for failure of management and current operations in a safe and prudential manner.

In January 2011, the CBA Board decided to eliminate Azerbaijani Birlikbank's licence.