Bank Standard and Azerigazbank (AGBank) established a working group to agree details of the merger, the latter said in a statement on Friday.

AGBank had earlier sought to merge with Demir Bank but the talks failed.

Azerbaijan’s Central Bank closed down six private lenders in the past few weeks as it pushed for a consolidation of the banking system.

Three other lenders – Parabank, NBC Bank and Kredobank – are also in talks to consolidate.