BAKU, Azerbaijan, October 19. The closing of Azerbaijan's Mugan Bank will not affect the banking sector, Trend reports.
The data of the Central Bank of Azerbaijan (CBA) shows that the share of Mugan Bank in the assets of Azerbaijan's banking system is 1.4 percent, in the loan portfolio, 2 percent, and in the sector's liabilities, only 1.3 percent.
"The revocation of Mugan Bank's banking license does not pose any threat to the financial stability and sustainability of the banking sector," the CBA said.
The license of Mugan Bank was revoked on October 19, 2023, by the decision of the CBA Board dated October 18, 2023, in accordance with Articles 16.1.6, 16.1.7, 16.1.9, 16.1.18, 57, and 61. 1 of the Law of the Republic of Azerbaijan "On Banks" (the amount of total capital is less than the minimum amount established by the legislation for banks, the ratio of total capital adequacy is less than 3 percent, the bank does not carry out its current activities in a reliable and prudent manner, as well as due to inadequate internal management and control procedures of the bank).