Baku. 4 November. REPORT.AZ/ Legislative draft on management of insolvent banks grants additional functions to temporary administrators of credit organizations.
Report informs, Chairman of Board of Directors of Financial Market Supervision Chamber (FMSC) Rufat Aslanli said.
“We can call it rather improvement of bank legislation than change. Competencies of temporary administrator have not been clearly described in Azerbaijan legislation for regulation and supervision of banks. We aim to grant additional competences to temporary administrators assigned to insolvent banks “, Aslanli told.
According to him, legal draft envisages transfer of healthy assets of insolvent bank along with part of its obligations to another bank through auction and conduction of recovery measures using the income from this deal: “There is also “bridge bank” concept in the draft. It envisages transfer of insolvent bank’s obligations to “bridge bank” and later sale of this bank. This is in line with advanced international practice”.