Azerbaijani regulator takes control of troubled Bank Standard

By bne IntelliNews May 4, 2016

Azerbaijan's capital markets regulator has taken over the management of troubled Bank Standard and frozen deposits at the bank for a month as it is works to bail out the lender, abc.az reported on May 3.

Azerbaijan's banks have been hit by lower oil prices, which sent the economy into recession this year, and a double devaluation of the Azerbaijani manat in 2015, which eroded banks' asset quality and sent non-performing loans skyrocketing. 

The decision was prompted by critical liquidity levels at the bank, Rufat Aslanli, chairman of the newly established Financial Markets Supervisory Body (FMSB) said. The central bank has allocated AZN15mn (€8.7mn) to cover operational costs at the bank, such as salaries.

In April, medium-sized Bank Standard, which has not reported its financial results since 2013, was rumoured to be in negotiations to merge with the country's largest bank, International Bank of Azerbaijan (IBA). The latter also needed a government bailout in 2015 following the February devaluation.

Aslanli has said that the government would provide more funds to Bank Standard after a three-month programme aimed at reforming the bank's operations. According to the bank's 2013 financial statement, its assets stood at €994.48mn, liabilities at €946.51mn and its loss for the year at €7.39mn.

Related Articles

Moody's upgrades troubled Azerbaijani lender IBA's rating to 'Caa1', downgrades Moscow unit

Rating agency Moody's upgraded the long-term foreign and local currency deposit ratings of Azerbaijan's largest lender, International Bank of Azerbaijan (IBA), on July 25 from 'Caa2' to 'Caa1'. ... more

Azerbaijan's Aliyev, Russia's Putin hold surprise meeting in Sochi

Azerbaijani President Ilham Aliyev and Russian President Vladimir Putin held an unannounced meeting in Sochi on July 21, according to RIA Novosti press agency. The two heads of state reportedly ... more

KPMG to be audited in Azerbaijan after failing to spot banking client problems

KPMG Azerbaijan, a subsidiary of the Big 4 consultancy, will be audited by Azerbaijan's public Auditing Chamber, Turan news agency reported on July 22 citing Akram Hasanov, the head of the ... more

Dismiss