Baku administrative decision of the Economic Court No. 1 of "Birlik Bank" is declared bankrupt and started the process of bankruptcy.
Appointed liquidator of the bank is PR VAM International Audit Consulting. Written claims of creditors must be made within 60 days from July 27.
Central Bank of Azerbaijan in January 2011 canceled the license of "Birlik Bank", basing its decision that the bank did not fulfill obligations to lenders and does not ensure the security of their own assets, and violated banking laws. Its management and ongoing activities were not reliable and was not carried out on the basis of prudential (regulatory) rules. In addition, the bank has consistently failed to fulfill instructions of the Central Bank.
A month earlier, the CBA is almost the same rationale has deprived the banking license of JSC Debutbank and JSC Kovsarbank. Against Kovsarbank they applied Article 16.1.10 of the Law on Banks - Implementation of activities not required by law. This includes the use of Sharia principles in the activities of Kovsarbank. And two weeks before the central bank abolished the license of Royalbank, in relation to non-compliance with bank requirements and the adequacy of the minimum level of total capital, non-fulfillment of obligations to creditors, including the management and ongoing activities were not reliable, as well as failure to written instructions of the Central Bank.
Some experts tend to think of the latest decisions of the CBA on the elimination of banks as a certain impetus to the consolidation of the banking sector. CBA said the revitalization process of consolidation of banks already in 2010, and these activities were the main form the basis of policies of monetary and financial stability in 2011. Recently, the head of the Central Bank said that after the summer they are going to start concrete negotiations with the banks on the issue of consolidation, because of the relatively weak association of banks will provide capital consolidation and increased resources.
Banks that do not consolidate their capital will be invited to transform into NBCO. -15B -
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