Baku:The Central Bank of Azerbaijan (CBA) is in favor of bank mergers and acquisitions that lead to the development of stronger financial institutions, as stated by CBA Governor Taleh Kazimov during a press conference on the monetary policy decision.
According to Azeri-Press news agency, Kazimov highlighted that consolidation within the banking sector can pave the way for the emergence of larger and more robust participants, thereby enhancing competition.
Kazimov stressed the importance of the outcomes of such consolidations, noting that merging two troubled banks could worsen existing issues. However, if a merger results in a stronger financial institution, the Central Bank would support the process.
The CBA Governor also mentioned that the investments required for information technology and digitalization pose challenges for smaller banks, suggesting that mergers or acquisitions could enable them to operate more efficiently.
Kazimov concluded by stating that there is currently no information about any specific consolidation plans, and the public will be updated if new developments arise.