Azerbaijan’s Financial Market Supervisory Authority is studying the possibility of local banks’ merger, according to the monitoring report on the implementation of measures reflected in the Strategic Roadmap for the Development of Financial Services.
The possibility of further capitalization of the banks is also being considered, according to the report. The Financial Market Supervisory Authority continues negotiations with shareholders of the banks to ensure recovery and stability of the banking system.
“As part of these measures, consolidation of AtaBank and Caspian Development Bank was successfully completed,” the report said. “Caspian Development Bank joined AtaBank. The process went smoothly and no need to provide additional liquidity emerged.”
In addition, the report indicates that the Azerbaijani government has drawn up a plan for analyzing the financial situation in the country’s banks, carried out diagnostic tests, and also assessed the quality of the banks’ assets, currency and capital positions.
“As a result of the diagnostic tests for banks with capital insufficiency, a special program was prepared and appropriate instructions were given to eliminate the shortcomings,” the report noted.
There are 31 banks including two state-owned ones in Azerbaijan. (Trend/Business World Magazine)