Restructuring in Azerbaijan’s banking sector almost complete

Business Materials 26 February 2016 10:39 (UTC +04:00)
The process of restructuring of Azerbaijan’s banking sector is almost complete.
Restructuring in Azerbaijan’s banking sector almost complete

Baku, Azerbaijan, Feb. 26

By Huseyn Veliyev, Anvar Mammadov - Trend:

The process of restructuring of Azerbaijan's banking sector is almost complete, Elman Rustamov. chairman of the board of the Central Bank of Azerbaijan, told reporters Feb. 26.

"To date, the licenses of six banks have been revoked. Weak banks were eliminated, as a result of which the sustainability of the banking sector even more increased," said Rustamov.

"Only one bank - AGBank - adopted a decision on capitalization," he said. "It is highly likely that the general meeting of the bank's new shareholders will be held soon and these issues will be reviewed there."

The CBA has revoked the licenses of seven banks since early 2016: Bank of Azerbaijan, Ganjabank, United Credit Bank, NBCBank, AtraBank, Caucasus Development Bank and Bank Technique. However, later, the Central Bank restored the license of the NBCBank due to the plans to merge. The Caucasus Development Bank and AtraBank also have such plans.

Moreover, AGBank and Bank Standard have adopted a decision to combine their assets and have signed a corresponding protocol of intentions.

The shareholders of AGBank JSC will also adopt a decision to increase the authorized capital by 100 million manats. This issue is on the agenda of the general meeting of AGBank shareholders to be held Apr.5, 2016.

Edited by SI