Azerbaijan opposes compulsory consolidation of banks

Baku. 21 October. REPORT.AZ/ "We are against the forced consolidation of banks."

Report informs, Chairman of the Board of Directors of the Financial Markets Control Chamber Rufat Aslanli said.

"As a regulator, we believe attempt to combine 2-3 banks, insurance companies, and organizations is unsuccessful. This practice has not justified itself. Compulsory unification of the two groups leads to problems in management. Problems overlap, but the essence of responsibility doesn’t change. In the process of rehabilitation of the banking sector, we rely on the international experience", R. Aslanli added.

According to him, the Chamber conducted a thorough diagnosis of the banking sector and developed a rehabilitation policy: "There are banks of systemic importance, bankruptcy of which will affect not only customers, but also financial sector and economy. We have prepared a state support project to such banks, if necessary. Decisions have been already made for two banks. International Bank of Azerbaijan was allocated funds in the right amount."

R. Aslanli stressed that efforts were made to save Bank Standard: "However, in the process it became clear that expenses for bank’s improving will be a double burden on shoulders of taxpayers. Insured deposits are fully compensated."