Details added (first version posted on 09:55)

Baku, Azerbaijan, July 22

By Azad Hasanli - Trend:

The licenses of DekaBank, KredoBank, Parabank and Zaminbank have been cancelled in Azerbaijan, head the Board of Directors of the country’s Financial Market Supervisory Body, Rufat Aslanli said during a press conference July 22.

The relevant decision was made by the Financial Market Supervisory Body dated July 21, 2016.

“The licenses of those banks have been revoked, as their assets haven’t been classified in line with the law, they haven’t created adequate reserves and the aggregate capital of these banks doesn’t meet the minimum requirements [50 million manats],” said Aslanli. “In general, they haven’t fulfilled the regulator’s instructions.”

The purpose of closing down these banks is to reduce the risks in the banking sector, strengthen the financial stability, increase the confidence and ensure the development of the financial sector, he added.

Aslanli pointed out that all these banks are members of the Azerbaijan Deposit Insurance Fund, therefore, their clients will be able to get payments for insured deposits.

Temporary administrators were appointed to these banks July 22.