Baku, Azerbaijan, Jan. 12
By Anvar Mammadov – Trend:
The depositors of Azerbaijan’s DemirBank OJSC, the license of which was revoked in December 2017, will be able to obtain compensations in 26 branches of Kapital Bank OJSC, the Azerbaijan Deposit Insurance Fund (ADIF) said in a message Jan. 12.
Compensations will be paid from Feb. 1, 2018, ADIF said earlier.
The volume of compensated deposits in DemirBank totals 63.5 million manats, while the volume of uncompensated deposits amounts to 28.3 million manats.
According to the initial assessment conducted in the bank, DemirBank had 55,213 depositors in total. Meanwhile, the volume of deposits of most depositors (52,732 people) does not exceed 1,000 manats.
DemirBank’s license was revoked Dec. 23, 2017. The Financial Market Supervisory Authority (FIMSA) of Azerbaijan said the license was revoked due to a discrepancy between the total capital of the bank and the minimum capital requirement set for banks, and the adequacy ratio of the aggregate capital is lower than 3 percent stipulated by the legislation.
The bank also lacked the capacity to fulfill its obligations to creditors.
(1.7001 AZN = $1 on Jan. 12)