Bank mergers should come from the market - Jahangir Hajiyev

If banks can not compete in the market, for them would be better to go for a merger or consolidation of business, said the head of the International Bank of Azerbaijan (IBA) Jahangir Hajiyev.

He said that he considered appropriate the presence in the banking sector of about 20 instead of the current 43 banks, with the merger to go on the market principles. "Corporate and big banks periodically increase their capitals to expand their business, but I cannot judge if it is necessary for retail banks and those that deal with microfinance. Rather, this aspect should be taken into consideration. The Central Bank now monitors the performance of the decision to increase capital, and upon its completion we will have real results," he said.

Hajiyev also noted that the International Bank of Azerbaijan is not even considering the purchase of any local bank, because there is no sense to buy a bank with a network in the same place, where the bank already has divisions. - 15B -