CBAR gets serious with banks on capital optimization

cbarAccording to statistics bulletin of the Central Bank of the Republic of Azerbaijan (CBAR) for the III quarter, during the reporting period, the number of banks in liquidation has reached 7 as against 5 at the end of the II quarter.

Note that in the III quarter, the banking sector has lost two players – Eurobank and Azerbaijan Credit Bank. By the relevant decision of the Board of the CBA, the licenses of the aforementioned banks were liquidated. At present, Azerbaijan has 43 banks, 2 of them are state-owned and 41 are private.

Moreover, there is an observed reduction in the number of banks with foreign capital. While at the end of the II quarter the number of banks with foreign capital amounted to 23 units, but has now reduced to 22. The reason is that Eurobank fell out of the group.

The decision of the Central Bank of Azerbaijan (CBA) to revoke the license of “Azerbaijan Credit Bank” and “Eurobank” because of the failure to comply with the minimum amount of aggregate capital, as well as failure to written instructions of the Central Bank was taken on July 10.

At the end of the III quarter, banks in Azerbaijan are serving customers through 758 branches, while at the end of the II quarter of this number was 763. Banks have explained the short commings to be the result of the implementation of the policy on optimization. Nothwithstanding, interestingly the number of departments of local banks is growing. Whereas in the II quarter 163 bank departments were operating, now this figure increased to 165.