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Azerbaijan Rushes to Shut Banks Before Law on Insuring Deposits

  • Six lenders closed in 10 days for failing to meet requirements
  • Parliament to consider law next month on insuring all deposits

Azerbaijan closed down two more private lenders, bringing to six the total number of banks shuttered in the past 10 days before parliament approves a law on insuring retail deposits in full.

The central bank on Wednesday revoked the licenses of Atrabank ASC and Qafqaz Inkisaf Banki ASC, also known as Caucasus Development Bank, for failing to meet a minimum capital requirement of 50 million manat ($31.3 million). It said the lenders couldn’t meet their requirements to creditors and their management wasn’t “reliable or prudential.”