Bank Standard Expands Authorized Capital by Over Three Times
Azerbaijan, Baku / Trend corr U. Ismayilova /At the decision of shareholders of Bank Standard the authorized capital has been increased to AZN 50mln from 30 June, the first deputy president of the bank, Javid Guliyev, said at a press conference on 25 June.
The increase was implemented by Credit Suisse, one of the largest banks in the world. An agreement stipulating a credit in the amount of $35mln to the shareholders of Bank Standard for five years was signed with Credit Suisse.
The participation of Credit Suisse in this process takes place within the framework of crediting shareholders. Bank Standard will retain its status as the largest private financial institution in Azerbaijan with 100% local capital.
Having such large capital as AZN 50mln, Bank Standard will provide itself with wide and principally new opportunities for further development and will establish the basis necessary for entering a new level.
Expansion of the authorized capital will enable the bank to enter international markets for attraction of financial resources for longer periods with more profitable interest rates. That will expand the scale of loan products of the bank. Thus, large corporative clients will have access to finance more large-scale and long-term projects including regional ones, what will promote positive growth in the real sector of the economy, as well as provide new jobs. On the other hand, the bank will fortify the list of its cash-management products intended for corporative clients.
Significant profits from the new high-level capitalization of the bank will also benefit the clients. Using its leading position in the market of retail-banking, Bank Standard will be able to expand the socially important programme of mortgage loans both in Baku and in the regions, as well as be able to renew the product list on consumer crediting, in particular vehicle loans, credit cards and credit for common purposes. At the same time Bank Standard, which has the largest deposit portfolio among Azerbaijani private banks, will continue work on the establishment of deposit and derivative products intended to strengthen the position of the bank.