Bank Standard launches returning deposits to customers
By Nigar Abbasova
Deposits of the customers of Bank Standard not exceeding 30,000 manats and with a term expiring in 2016 will be paid without application of a limit, the bank said in a message on August, 3.
“The process will be implemented within the framework of the first stage of the recovery of the Bank Standard.”
The message also reads that the bank is currently engaged in the consideration of a number of proposals on the payment of funds exceeding 30,000 manats.
Payment of funds, with an expiration term after 2016 will be made within the second phase of recovery, which is expected to begin in 2017.
The bank will re-activate its plastic cards beginning August 4, 2016, within and beyond of Azerbaijan.
New management of Bank Standard was formed during the extraordinary meeting of its shareholders on August, 3.
The Financial Market Supervisory Body (FMSB) appointed a temporary administrator at the bank on May 3 for three months, due to the deterioration of the quality of its assets, as the bank’s liquidity and capital position have significantly weakened.
A moratorium was imposed on payments for all deposits, except for social payments. Bank Standard got support from the Central Bank (CBA) and a recovery program was worked out for the bank to restore its financial sustainability. The controlling stake of Bank Standard was transferred to Azer Turk Bank for recovery.
Earlier, highlighting the issue of the existence of troubled bank in the country, Head of the FMSB Board of Directors Rufat Aslanli said that currently the country has no problem banks except the International Bank of Azerbaijan and Bank Standard. Nevertheless, the closure of these banks is not currently on the agenda.
FMSB has recently developed a special program for each bank of the country taking into account processes that occur within the national and global country’s economy.
Banks of Azerbaijan have been hit by lower oil prices and a double devaluation of the Azerbaijani manat in 2015, which deteriorated situation in the banking sector of the country and resulted in the increase of the non-performing loans and worsened the quality of assets.
Bank Standard is considered to be one of the largest private commercial banks operating in Azerbaijan since 1995. The bank holds high volume of deposits.
Currently, 33 banks have licenses for implementing banking activities in Azerbaijan.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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