2024-02-09 17:56:25
By the decision of the Board of Directors of the Central Bank of Azerbaijan (CBA), the license of “Muganbank” was canceled.
This was reported by the regulatory body.
The information says that the reason for this is that the total capital of the bank is less than the minimum requirement (50 million manats), and its adequacy ratio is less than 3%, it does not carry out its current activities in a reliable and prudent manner, as well as the internal management and control procedures are not adequate. Therefore, according to Articles 16.1.6, 16.1.7, 16.1.9, 16.1.18, 57 and 61.1 of the Law “On Banks”, the license of “Muğanbank” was revoked, the Bank a temporary administrator was appointed and the court was applied for liquidation of the credit institution through bankruptcy. All powers for the management of “Muganbank”, including the powers of the general meeting of bank shareholders, have been transferred to the temporary administrator.
The specific weight of “Mughabank” in the assets of the banking system of the country is 1.4%, in the loan portfolio is 2%, and in the liabilities of the sector is 1.3%. The cancellation of its license does not pose any threat to the financial stability and financial stability of the banking sector.
“Muganbank” is a member of the Azerbaijan Deposit Insurance Fund (ADIF), and the Fund will pay compensations for people’s deposits insured in this bank in accordance with the legislation. The other obligations of the bank will be regulated in accordance with the liquidation legislation to be determined by the court. According to the reports submitted by the bank to the Fund, as of October 1 this year, the insured (compensated) deposits here are 216.7 million manats, and 99.9% of its depositors will receive compensation.
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