CBA lacks problem with bank liquidations

The Central Bank of Azerbaijan (CBA) has recorded no problems so far in the process of the liquidation of several banks in the country whose licenses were revoked, the CBA reported.

"Balance sheets, including the deposit portfolios of the banks undergoing liquidation process at the moment of revoking a license are very scant and their liquidation has not influenced the sector," the CBA said. In general, as the CBA said, the liquidation process is carried out within the existing legislation and procedures.

Today five banks in the country are in the process of liquidation. In July 2008, the CBA has decided to revoke JSC Atlantbank and Poctbank's licenses for banking activity because of discrepancy of the minimum requirement to aggregate capital, failure to comply with prudential norms within the management and carrying out current operations.

In December 2010, Debutbank and Kovsarbank's licenses were revoked for failure to meet requirements for minimum aggregate capital, violation of banking laws, including for failure of management and current operations in a safe and prudential manner. In January 2011, the CBA Board decided to eliminate Azerbaijani Birlikbank's licence.


/Trend/