Another Azerbaijani bank responds to requirement on raising minimum capital
Azerbaijan, Baku, Aug. 29 / Trend A. Akhundov /
Another Azerbaijani bank, Parabank, has reacted to the recent decision by the Central Bank (CBA) to increase the minimum capital requirements of banks five-fold.
The extraordinary general meeting of shareholders is scheduled for October 1. The issue of bringing total capital of the bank to a minimum of 50 million manat will be considered by late 2013, the bank said on Tuesday.
As of the first quarter, Parabank's total capital reached 13.85 million manat, the share capital amounted to 11.57 million manat.
Previously, local NBC Bank and Amrahbank announced similar plans.
According to the CBA Board decision as of July 25, 2012, the requirement for the minimum amount of the total capital of existing banks and the authorized capital of newly established banks was increased from 10 million manat to 50 million manat. The decision will take effect on January 1, 2014 for existing banks.
Moreover, during the meeting Parabank shareholders will consider the issue of the staff of the supervisory board.
Parabank was established on December 3, 1991. Over 80 percent of the bank's shares are owned by five physical entities and the rest part to 14 minority shareholders.
The official exchange rate is 0.7854 AZN/USD on Aug. 29.