Baku, Azerbaijan, Dec. 25
By Azad Hasanli – Trend:
Azerbaijan Deposit Insurance Fund (ADIF) has enough funds to pay compensation to the depositors of DemirBank, the license of which was revoked, the fund said in a message Dec. 25.
DemirBank has been excluded from the ADIF registry of banks.
DemirBank’s license was revoked Dec. 23, 2017.
The Financial Market Supervisory Authority (FIMSA) of Azerbaijan said that the license was liquidated due to the discrepancy between the total capital of the bank and the minimum requirement established for banks, and the adequacy ratio of the aggregate capital is lower than three percent stipulated by the legislation.
The bank also lacks the capacity to fulfill its obligations to creditors.
DemirBank is a member of ADIF, and accordingly, deposits of the population in this bank will be returned by the Fund.
A temporary administrator was appointed in the bank under FIMSA’s decision. The Authority also appealed to the court in connection with the beginning of the bankruptcy process.