EBRD to take part in acquisition processes in Azerbaijani banking sector
Azerbaijan, Baku, Oct.5 /Trend A.Akhundov/
The EBRD plans to take an active part in consolidation and acquisition processes in the banking sector in Azerbaijan in 2013, EBRD mission in Azerbaijan head Neil Mckain.
"Great changes are expected in financial sector next year due to increasing of requirements for the minimum total capital of banks. This is an absolutely correct decision, we support it and will try to support Azerbaijani banks if they decide to consolidate or in the issue of bank purchase," Mckain added.
In his words, EBRD is ready to assist the projects in financial as well as moral and technical fields.
"It's not only about financial capital, but also about working capital - knowledge and experience of Azerbaijani bankers," Mckain noted.
In his words, in this regard, the director on cooperation with financial institutions of Caucasus, Mongolia and Central Asia Mike Taylor will arrive to Baku.
Mckain said his visit is due to holding of negotiations with banks, not only local, but also those, which are interested in Azerbaijan's financial sector.
Within his visit, which will last from Tuesday to the end of the week, Taylor will hold meeting in Azerbaijani Central Bank and with microfinance organizations eager to participate in this process
Mckain noted that this is a very interesting time for financial sector, we have been waiting for it for a long time. We are very glad that the government has finally made this decision," Mckain added.
The minimal amount of acting banks' total capital, as well as authorized capital of recently established banks was increased from 10 million manats ($12.7 million) to 50 million manats ($63.7 million) due to decision of Azerbaijani Central Bank as of July 25. The new requirement to capitalization of acting banks will take effect on January 1 2014.
43 banks are currently operating in Azerbaijan.