Azernews.Az

PASHA Bank, a leading corporate bank in Azerbaijan, is not interested in acquiring a bank on the background of the process of consolidation which is expected on the banking market in 2013, board chairman Farid Akhundov told Trend news agency.

"We have a different strategy. We do not need retailers," Akhundov said.

Earlier, the largest bank in the country, the International Bank of Azerbaijan also said they had no plans to acquire smaller banks in the domestic market.

The Azerbaijani banks have already started negotiations on the consolidation in the frame of the total capital increase requirement, director general of the Central Bank of Azerbaijan (CBA) Rashad Orujov told Trend earlier.

According to the CBA board's decision dated July 25, the minimum total capital of existing banks and authorised capital of newly established banks increased from the current 10 million manat ($12.7 million) to 50 million manat ($63.7 million). The new requirement for the capitalisation of the existing banks will come into force from January 1, 2014.

"According to our information, at present negotiations between the various banking institutions are being held. There are no official appeals yet," Orujov said.

He noted that the banks will also negotiate with international financial institutions.

"We support this process. We have been discussing the strategy of international financial institutions participating in the capitalisation of the banking sector for some time, long before the decision to raise capital. Basically, there is close and very good cooperation with international institutions, including the European Bank Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and other structures," Orujov said.

According to the representative of the Central Bank, international financial institutions will actively participate in the process of a possible consolidation of banks in Azerbaijan.