Banks not meeting requirements for capitalization to remain open - head of CBA
Baku, Azerbaijan, Mar.18
By Azad Hasanli - Trend:
In Azerbaijan, the banks, the total capital of which does not meet the regulatory requirements of the Central Bank will not be closed, the Chairman of the Central Bank Elman Rustamov said Mar.17 at the meeting of the Milli Majlis (parliament), dedicated to the government's report on the activities in 2014.
Starting from January 1, 2015, the Central Bank's requirement for the minimum total capital of banks was determined at 50 million manats.
"The Central Bank has signed an agreement with the management of the banks, whose share capital is less than 50 million manats," said Rustamov. "We believe that in such a situation, the closure of banks could have a negative impact on the market as a whole. We have signed a special program of capitalization with these banks, so that they will not be closed and continue their activities."
The head of the CBA said that in general, the banking sector of Azerbaijan has no specific problems, the private banking sector is well capitalized, which allowed it to independently solve certain problems.
On the results of January 2015, the capital of the four banks of Azerbaijan is less than 50 million manats, according to the report of the Central Bank. Their share in the total capital volume of all banks in the country is 0.7 percent.
Edited by CN
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