Creation of «Bridge Banks» Proposed
“The Financial Markets Supervisory Authority should compulsorily solve the problems of banks that cannot be voluntarily restructured. There are several solutions here.” According to Turan, the Chairman of the Board of Directors of the Financial Markets Supervisory Authority (FIMSA) Rufat Aslanli said this during the discussion in the Parliament on proposals to amend the administrative and civil procedural legislation.
According to him, there may be different directions. This includes resolving problems by obligatory transfer of deposits belonging to the bank’s people (shareholders, authorized persons to make decisions in the bank) into its shares, attracting funds from the market by selling part of the bank's shares and its active obligations in whole or in parts.
Or else, the bank has a certain deficit of capital, which can be sold to a healthy bank and thus it is possible to form a new healthy financial security, he said.
Aslanly noted that he proposed to establish “bridge banks”, which can be created by the regulator’s decision. He also touched on the details of the proposal.
Creating a “bridge bank” does not mean creating a new bank. It is a question of the fact that FIMSA will create an interim bank. This “bridge bank” will also obtain healthy assets and liabilities. After a certain time, this bank will be put on the market and sold as a healthy bank.
Aslanli noted that at present FIMSA has information about those who wish to acquire a bank in Azerbaijan, Georgia and Russia.
“If we come across such an event, we will know to whom we offer the bank. The creation of a “bridge bank” serves precisely this purpose,” Aslanli said. -0-