Mortgage portfolios of closed Azerbaijani banks transferred to Bank BTB

Mortgage portfolios of four closed Azerbaijani banks – Ganjabank, Kredobank, Zaminbank and Royal Bank – have been transferred to management of the Bank BTB OJSC, said a message from the Bank BTB Aug. 1.

Bank BTB and Azerbaijan Mortgage Fund have reached an agreement to transfer the four banks’ portfolios consisting of 1,755 customers and worth nearly 59.5 million manats.

Transfer of mortgage loans of Ganjabank and Royal Bank to the management of the Bank BTB is related to the fact that earlier, these banks’ mortgage portfolios were under the management of Zamin Bank, the license of which was revoked by the decision of Azerbaijan’s Financial Market Supervisory Body.

The licenses of DekaBank, KredoBank, Parabank and Zaminbank were cancelled in Azerbaijan, in accordance with the decision of the Financial Market Supervisory Body dated July 21, 2016.

The licenses of those banks were revoked, as their assets were not classified in line with the law, they didn’t create adequate reserves and the aggregate capital of these banks doesn’t meet the minimum requirements [50 million manats]. In general, they haven’t fulfilled the regulator’s instructions.

Temporary administrators were appointed to these banks July 22.

Source: Trend News Agency