License of Azerbaijani "DemirBank" liquidated

Economy Materials 22 December 2017 22:47 (UTC +04:00)

Baku, Azerbaijan, Dec. 22


The decision of the Financial Markets Supervision Chamber of Azerbaijan from December 23, 2017 eliminates the license of OJSC "DəmirBank".

According to the report, the license was liquidated due to the discrepancy between the bank's total capital and the minimum requirement established for banks. The adequacy ratio of the aggregate capital of the bank is lower than the three percent stipulated by law, the report says. The bank also lacks the capacity to fulfill its obligations to creditors.

DemirBank is a member of the Azerbaijan Deposit Insurance Fund (ADIF), accordingly the deposits of the population in this bank will be returned by the Fund.

A temporary administrator in the bank was appointed by the Chamber's decision. The Chamber also appealed to the court in connection with the beginning of the bankruptcy process.