Regulatory Alerts2021-01-29
Regulations on Determining Actions for Resolution of Insolvent Banks and Holding an Auction
The Financial Markets Supervisory Authority of Azerbaijan issued these regulations to establish comprehensive procedures for resolving insolvent banks through asset transfers, liability assignments, or bridge bank sales. The framework mandates temporary officers to develop resolution action plans, defines strict qualification criteria for buyer banks and investors, and establishes an Auction Committee to conduct a structured two-stage bidding process. It further requires a centralized Information Center for data transparency, sets documentation and guarantee standards for participants, and outlines bid evaluation against liquidation costs to finalize transfer agreements.
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