Regulatory Alerts2021-01-27
Regulations on Substantiation and Comparative Analysis of Costs for Resolution Measures
The Financial Markets Supervisory Authority of Azerbaijan issued these regulations to standardize the cost substantiation and comparative analysis required for selecting the most economical bank resolution measure. The framework directs temporary officers to appraise assets and liabilities using market, income, or cost approaches while calculating precise resolution expenses for the Deposit Insurance Fund and creditors. It further establishes a definitive formula for determining the starting sale value of a bridge bank based on estimated asset and liability values plus any applicable premium.
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