Regulatory Alerts2021-02-02
Regulations on Bank Reorganization
The Financial Markets Supervisory Authority of Azerbaijan issued these regulations to establish standardized procedures for bank mergers, acquisitions, and transformations. Banks must obtain prior written consent from the authority at least ninety days before convening shareholder meetings, while ensuring successor entities meet prescribed capital adequacy and leverage standards. The framework mandates creditor notification, state registration of the legal successor or newly established non-bank credit institution, and a six-month post-reorganization period to rectify any remaining prudential violations.
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