Regulatory Alerts2021-02-02
Regulations on Determining a Special Simplified Procedure for Establishing a Bridge Bank, Issuing and Registering Shares, and Regulating Its Activities
The Financial Markets Supervisory Authority of Azerbaijan issued these regulations to establish a streamlined procedure for creating bridge banks that temporarily absorb the assets and liabilities of insolvent institutions. The framework designates the Authority as the sole shareholder, mandates a temporary administrator to manage operations and asset quality, and streamlines banking license issuance and share registration processes. It exempts bridge banks from standard reserve requirements, restricts new lending while permitting loan restructuring, and outlines precise timelines for asset transfers, reporting, and license revocation upon sale or liquidation.
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