Azerbaijani financial regulator: no plans to close banks (UPDATE)
Details added (first version posted on 11:55)
Baku, Azerbaijan, Nov. 4
By Azad Hasanli – Trend:
Azerbaijan’s Financial Markets Supervision Chamber doesn’t plan to revoke licenses of banks in the near future, Rufat Aslanli, chairman of the Board of Directors of the Chamber, told reporters Nov. 4 in Baku.
“The issue on banks’ closure is not on the agenda,” said Aslanli. “Our task is to achieve sustainability of the financial sector as a whole. As part of these measures, we cancelled the licenses of several banks and currently, we give compensations to their depositors.”
The regulator didn’t have a task to revoke licenses of those banks, noted the chairman.
“Firstly, we conducted work with their shareholders on capital recovery of the banks. Unfortunately, the shareholders were not able to ensure the capitalization of banks,” he explained. “There were also a number of other banks that were among those with insufficient capital, but they were able to solve the problem and restored their capital.”
Thirty-two banks, including two state-owned ones, operate in Azerbaijan. Ten banks have been closed in the country since early 2016: Bank Standard, Zaminbank, Dekabank, Kredobank, Atrabank, Bank of Azerbaijan, Ganjabank, Texnikabank, Parabank and Caucasus Development Bank.
Compensations worth more than 667 million manats (1.6596 AZN/USD on Nov. 4) have been paid to depositors of these banks as of Nov. 4.