Central Bank: Azerbaijani banks must submit capitalisation programmes by mid-January
Baku, Azerbaijan, Dec.2
by Abbas Akhundov - Trend:
Azerbaijani banks that are not able to meet the new capital requirements of the Azerbaijani Central Bank (CBA) should submit their individual programmes to increase their capitalisation by Jan.15, 2014, Director General of the Azerbaijani Central Bank Rashad Orujov told Trend.
Initially, the new CBA requirement for the minimum total capital of 50 million manat was due to come into force on Jan.1, 2014, but later on Nov.15, 2013, the regulator postponed the introduction of this standard for a year.
Some 95 per cent of the banking sector has already met the requirement for bringing the total capital to 50 million manat, or have time to carry it out until the end of 2013, CBA Chairman Elman Rustamov said earlier.
The Central Bank has no intentions of eliminating such commercial banks from the market, or create trading difficulties through administrative methods, Rustamov said.
"Nevertheless, it doesn't mean the banks can relax. They need to work and develop," Rustamov said.
Currently, around eight banks have capital of over 100 million manat. The capital adequacy indicator of Azerbaijan's banking sector is 17 per cent which exceeds the minimum level set in the world sevenfold, CBA chairman said.
The official exchange rate on Dec.2 is 0.7844 AZN/USD