Capital increase makes Azerbaijani banking market attractive for CIS
Tightening of the requirements for the capitalisation of banks by the Central Bank of Azerbaijan (CBA) and increasing the capital requirement fivefold to 50 million manat from 2014, makes the country's market attractive for the CIS banks, said chairman of the coordination council of the Financial and Banking Council (FBC) of CIS, Anatoly Kazakov, during a speech at the fifth Baku International Banking Conference of the CIS states on Thursday.
"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.
As the CEO of CBA Rashad Orujov told reporters on Thursday 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, "Orujov said.
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