Licenses of four banks cancelled in Azerbaijan

Business Materials 22 July 2016 09:55 (UTC +04:00)
The licenses of Dekabank, Kredobank, Parabank and Zaminbank have been cancelled in Azerbaijan.
Licenses of four banks cancelled in Azerbaijan

Baku, Azerbaijan, July 22

By Azad Hasanli - Trend:

The licenses of DekaBank, KredoBank, Parabank and Zaminbank have been cancelled in Azerbaijan, head the Board of Directors of the country’s Financial Market Supervisory Body, Rufat Aslanli said during a press conference July 22.

The relevant decision was made by the Financial Market Supervisory Body dated July 21, 2016.

“The licenses of those banks have been revoked, as their assets haven’t been classified in line with the law, they haven’t created adequate reserves and the aggregate capital of these banks doesn’t meet the minimum requirements [50 million manats],” said Aslanli. “In general, they haven’t fulfilled the regulator’s instructions.”

The purpose of closing down these banks is to reduce the risks in the banking sector, strengthen the financial stability, increase the confidence and ensure the development of the financial sector, he added.

Aslanli pointed out that all these banks are members of the Azerbaijan Deposit Insurance Fund, therefore, their clients will be able to get payments for insured deposits.

Currently, the total volume of insured deposits in these banks is around 140.3 million manats (40,700 bank accounts).

Aslanli noted that the deposit payments will start seven days after determining the liquidators of these banks.

“The Financial Market Supervisory Body and the Deposit Insurance Fund have carried out serious preparatory work for giving compensations to depositors of those banks,” he said. “The Fund has enough resources to give compensations to the depositors. But in the case of necessity, it also can appeal to the Central Bank for getting additional funds.”

Temporary administrators were appointed to these banks July 22.