Azerbaijan, Baku / corr Trend I.Khalilova / Six banks have not fulfilled the requirements set by the National Bank of Azerbaijan (NBA) on the minimum amount of aggregate capital, which is to comprise AZN 10mln by 1 August, the NBA said on 8 September.
Within a month the situation has improved. Therefore, by 1 August the capital of 37 banks exceeded AZN 10mln against 31 banks a month ago, according to the NBA's statistic data. Their special weight in the aggregate capital of all banks made up 95%.
The capital of 5 banks (with the special weight of 4.5%) ranged between AZN 5mln to AZN 10mln and two banks from AZN 3.5mln to AZN 5mln.
There are 44 banks working in Azerbaijan, but Pochtbank does not carry out accounting, because its operations are completely restricted. Three banks, Kauthar Bank, Euro Bank (former AzInvestBank) and Azal Bank, function with a restricted license (without permission to accept deposits).
In accordance with banking legislation, there is a range of successive sanctions, namely the change of juridical status, restriction of bank licenses, recommendations to merge capital with another bank. The significant sanction is the withdrawal of a banking license. The merging of capital shall be initiated primarily by the stockholders of the banks.
The aggregate capital of all 43 banks operating in Azerbaijan increased by 47.8% compared to the beginning of 2007 (AZN 603.3mln to 1 January) making up AZN 891.6mln on 1 August.