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Azerbaijani Central Bank proposes transformation of certain banks

Business Materials 23 May 2013 18:04 (UTC +04:00)
The Azerbaijani Central Bank (CBA) has prepared a legal framework to transform the banks in the non-banking credit organisations if they fail to raise their joint capital up to new regulatory requirements, CBA chairman Elman Rustamov told media today.
Azerbaijani Central Bank proposes transformation of certain banks

Azerbaijan, Baku, May 23 / Trend A. Akhundov /

The Azerbaijani Central Bank (CBA) has prepared a legal framework to transform the banks in the non-banking credit organisations if they fail to raise their joint capital up to new regulatory requirements, CBA chairman Elman Rustamov told media today.

At present the country's banks must have a total capital of not less than 10 million manat. The CBA new requirements worth 50 million manat will take effect on January 1, 2014.

He said that turning the banks into non-banking credit organisations was one of the ideas while launching the consolidation process on the market.

"There is no legal basis for such a transformation," he said. "We will continue working on its creation. Its aim is to preserve the assets of the organisation and the rights of consumers having deposits in such a transformation. A legal basis is required. They are prepared in accordance with international practice."

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