Central Bank of Azerbaijan warns "Rabitabank"

The Central Bank of Azerbaijan (CBA) has issued a binding order regarding "Rabitabank" OJSC to improve internal procedures.

This is stated in the CBA message.

According to the information, this step is guided by the requirements of Article 47 of the Law "On Banks" in connection with the violation of the norm of the maximum amount of credit risk at the request of an unsecured loan by a borrower or a group of related borrowers.
It is reported that the said violation will be eliminated as soon as possible and there should be no repetition of similar cases in the future. The Central Bank believes that this violation does not pose a threat to the financial stability of the bank.

Remind that the "Rabitabank" OJSC was established in 1993 and is one of the top 10 banks in Azerbaijan in terms of assets.

"Rabitabank" raised its assets by 19.2% in 2023 to 1 billion 138.45 million manats.

The bank's loan portfolio as of December 31, 2023 amounted to 721.159 million manats (an increase of 18% as compared to the index at the end of 2022). At the same time, the volume of consumer loans is estimated at 239.634 million manats (an increase of 16.5%), business loans - 345.405 million manats (an increase of 13.1%), lending to real estate transactions – 136.12 million manats (an increase of 36.3%).