Chairman of the coordination council of the Financial and Banking Council (FBC) CIS Anatoly Kazakov said on Thursday that tightening of the requirements for the capitalization of banks by the Central Bank of Azerbaijan (CBA), capital requirement increased fivefold in 2014 – to 50 million manat, makes the country’s market attractive for the CIS banks.
“The Central Bank of Azerbaijan is taking very serious measures aimed at protecting the country’s banking market from risks. New requirements are a hard act to follow. Several banks will cease working, but on the other hand it creates good conditions for the joining of the CIS banks. There is a good business environment, “Kazakov said.
According to the source the banks have already started negotiations on the consolidation.
“Negotiations are underway in various combinations between different banks. Of course, no one would disclose the plans at this stage. We are waiting for the results. This is not an easy process. This decision will lead to considerable changes in the market,” said the CEO of CBA, Orujov.
