Bank of Azerbaijan encounters problems due to low liquidity of assets

JSC Bank of Azerbaijan even after the increase in the level of total capital to 50.426 million manat (the requirement of the Central Bank is 50 million manat) is experiencing hard times.

Recently Turan received several complaints of depositors are not able to withdraw funds from deposit accounts. In addition, several employees laid off work with the wording "provide unpaid leave for an indefinite period." Several branches of the bank suspended all operations.

In the bank they could not explain to Turan the causes of the incident, although the central bank on May 10 stated problems with liquidity of assets from Bank of Azerbaijan. The Chairman of CBA Elman Rustamov acknowledged that negotiations with the bank are held in order to solve the pressing problems.

According to experts, the bank faces problems similar to those experienced by the Bank Technique (former Texnika Bank) in early 2012, when the bank's management, including the Chairman of the Supervisory Board and one of the main shareholders, was taken into custody. Up until August 2012 at the extraordinary shareholders' meetings the Board was updated as well as the Supervisory Board and the Audit Committee and it was decided to hold a re-branding and the elimination of several subsidiaries. The team from the International Bank of Azerbaijan joined the bank and after rebranding reports by international rating agencies have recognized the improvement of its activities.

In Azerbaijan, there are several banks - candidates for license suspension, but not all are treated equally. Thus, the license of Kovsarbank was canceled twice - in 2001 and 2010 due to non-compliance with the CBA, but each time the head of the Central Bank told journalists on the restoration of its activities and working with the bank on an individual program to increase its capital.

JSC Bank of Azerbaijan started business under the name Rabbatbank on December 1, 1993. In 1998 it became Ish Bankasi Azerbaycan. In 2004, the Bank became a public company.

By May 1, 2014 profit of the bank amounted to 9.64 million manat. The Bank issued one million transport payment cards and 125,000 of them have already been sold.

The Bank owners are members of the family of the President of Baghlan Group Azerbaijan, Hafiz Mammadov.

Shareholders of Bank of Azerbaijan are his sons, Kanan Mammadov (43.63 %) and Sanan Mammadov (43.63 %), his brother Mubariz Mammadov (12.07%) and NEM Holding (0.67%). - 17D-