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CBA cancels Eurobankâ€™s licence, appoints temporary administrator to Azerbaijan Credit Bank

13 July 2015 13:25 (UTC +04:00)

Baku – APA-Economics. Central Bank of Azerbaijan (CBA) continues to take complex and regular measures for development of banking sector and financial intermediation, extension of access to financial services and improvement of quality, financial sustainability of the banks and strengthening of stability. 1

CBA told APA-Economics that in order to provide security of personal savings and funds of other creditors, protection of stability of banking sector and increase of confidence in it, CBA takes regularly measures for limitation and removing of activity of banks operating in problem, without adequately capitalized, prudentially from the system.

As the next step in this direction, the CBA passed a decision on July 10,2015 about cancellation of EuroBank OJSC and appointment a temporary administrator to Azerbaijan Credit Bank OJSC.

EuroBank does not comply with the requirements of Central Bank on increase of total capital. In spite of instructions regarding elimination of shortcomings in its activity and capitalization, none of them have been fulfilled. As its activity does not comply with the prudential requirements, bank’s licence was limited, reception of deposits and accountings, crediting was banned. Bank has not any significant share in the sector and financial intermediation. The bank has not personal savings either.

“There are serious shortcomings in the activity of Azerbaijan Credit Bank OJSC, bank is managed non-prudentially and does not carry out the requirements. Bank’s capital is below Central Bank’s demand. Azerbaijan Credit Bank’sactivity was also limited. The personal savings in the bank are low and bank has not sufficient liquid funds for their fulfilment.

CBA’s these requirements aim to reduce risks, protect confidence and extension of financial intermediation and reduce its value.