Three or Four Other Banks Can Lose Licenses – Expert
The probability of obtaining a "red card" by 3-4 banks is very high. This is due to the low volume of the deposit portfolio, the economist Samir Aliyev said.
According to him, even the efforts made by banks to improve the health and solve financial difficulties will not save them from the expected danger. "Processes for the recovery are conducted in a non-transparent form and the decision to close the banks is accepted on subjective criteria," the expert said.
Samir Aliyev noted that AZN is gradually losing ground and dollar loans are a kind of "time bomb." Therefore, the capitalization of banks can only temporarily help them keep the position, but it does not consider them from imminent collapse, experts predict.
"The decision of the Financial Markets Control House (FMCH) on the elimination of licenses of four banks is mainly preventive in nature. FMCH priority is to reduce the number of banks. Therefore, the remaining banks should think about the merger, "concluded Samir Aliyev.
Licenses of 12 banks have been revoked over the past 2 years. Today in Azerbaijan there are 33 banks. --08D
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