Azerbaijan's BTB Bank to be reorganized as non-bank credit institution

The board of the Central Bank of Azerbaijan has approved the reorganization of Bank BTB and its transformation into a non-bank credit organization (NBCO).

Report informs that, according to the regulator, the decision was made following an application submitted by the bank itself.

The regulator said the conversion process will be carried out under its supervision in strict compliance with procedures established by the Rules for the Reorganization of Banks.

As part of the restructuring, an agreement on the transfer of assets and liabilities has been signed between Bank BTB and International Bank of Azerbaijan (ABB), the country's largest bank by assets.

Under the agreement, deposits of individuals and legal entities-subject to their consent-will either continue to be serviced by ABB under the same conditions or be returned to clients by the bank. ABB will also assume creditor rights related to loans and other obligations of BTB Bank's clients.

The Central Bank of Azerbaijan said the reorganization process will not create risks for the bank's creditors and depositors.

Bank BTB accounts for about 0.6% of the banking system's assets, 0.9% of the loan portfolio, and 0.6% of the sector's liabilities in Azerbaijan.