The Central Bank of Azerbaijan (CBA) supports bank mergers and acquisitions that contribute to the formation of stronger financial institutions, CBA Governor Taleh Kazimov said at a press conference dedicated to the monetary policy decision, APA-Economics reports.
According to him, consolidation in the banking sector could create conditions for the emergence of larger and stronger participants, thereby increasing competition.
The CBA Governor emphasized that the outcome of consolidation is what matters. Merging two troubled banks could exacerbate existing problems. If a bank merger results in the creation of a stronger financial institution, the Central Bank supports such a process.
Taleh Kazimov noted that the investments required for information technology and digitalization make it difficult for smaller banks to compete. In this regard, mergers or acquisitions could be a way for them to operate more efficiently.
The CBA Governor stated that there is currently no information about any additional specific consolidation plans and that the public will be informed if new developments occur.
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