details added (first version posted at 11:03)
Baku, Azerbaijan, Feb. 2
By Anvar Mammadov - Trend:
The Central Bank of Azerbaijan (CBA) has revoked the license of Texnika bank OJSC.
This decision was made because the total capital of the bank didn't correspond to the CBA minimum requirement of 50 million manats, the CBA said.
The total capital adequacy ratio amounted to three percent [the CBA minimum requirement is 10 percent].
The bank couldn't fulfill its obligations to creditors and didn't manage its current activity prudentially, said the CBA.
Under the country's laws, the Azerbaijan Deposit Insurance Fund will pay the compensation to the bank's clients for insured deposits.
Currently, some 36 banks have banking activity licenses in Azerbaijan. The CBA has revoked the licenses of seven banks since early 2016 [Bank of Azerbaijan, Gence Bank, United Credit Bank, NBCBank, Atra Bank and Caucasian Development Bank, Texnika bank].
Texnikabank has been operating in Azerbaijan since 1994 (previously - Rashadbank).
Until now, the bank's shareholders comprised of Beaufort Investissements S.A investment company [head office is located in Luxembourg] with interest of 78.4421 percent, while 21.5579 percent belonged to physical entities.
Follow the author on Twitter: @Anvar_Mammadov