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FMSB appeals to banks

16 August 2016 17:55 (UTC+04:00)
FMSB appeals to banks

By Nigar Abbasova

Azerbaijan’s Financial Market Supervisory Body (FMSB) has appealed to the commercial banks operating in the country with the request not to implement any banking or currency exchange procedures in the points of sale belonging to recently closed Dekabank, Kredobank, Parabank and Zaminbank.

The appeal is made on behalf of Ibrahim Alishov, CEO of the entity and Imran Mammadov, department head on the supervision over banking activity.

Banking activity and currency exchange procedures carried out in the points of sale of the banks on the basis of deals made between the banks’ employees and third parties are characterized as unofficial franchising operation, according to the appeal of the entity.

FMSB assesses such actions as deviation from corporate standards as well as unhealthy banking practice.

The licenses of DekaBank, KredoBank, Parabank and Zaminbank were cancelled in accordance with the decision of the Financial Market Supervisory Body, dated July 21, 2016.

The reason of a halt is the failure of banks to classify assets in line with the law and comply with statutory minimum capital requirements as well as manage their activities in a safe and prudent manner. The banks didn’t create adequate reserves and the aggregate capital of these banks didn’t meet the minimum requirement which stands at 50 million manats ($31.8 million).

FMSB aims to license, regulate and control the securities market, investment funds, insurance, credit organizations (banks, non-banking credit organizations and operator of postal communication) and payment systems.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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