The license of one of the largest banks of Azerbaijan -JSC “Bank Standard” was canceled. This decision was takenby the Financial Markets Supervision Authority of Azerbaijan. The depositors whose deposits were insured are promised repayment.
“The Board of Directors of the Chamber at the extraordinary meeting on Friday decided to cancel the license of the bank,” said at a press conference the head of the Authority Rufat Aslanli. The decision to revoke the bank’s license enters into force on 1 October 2016.
The Authority adopted in consultation with the Ministry of Finance and the Central Bank of Azerbaijan, continued Aslanli.
According to him, the bank’s problems were caused by the shortcomings of the former leadership in the management and investment-credit policies. The Authority on Friday appointed a temporary administrator in the bank. On Monday, the itwill send a lawsuit on bankruptcy of the bank.
Azerbaijan Deposit Insurance Fund will pay the bank customers insured deposits. According to Aslanli, the total deposits is the equivalent of 520 million AZN. Of this amount, 460 million manat are insured deposits.
Earlier, the since May 3, 2016 the Authority introduced a temporary administrator to the Bank Standard on the grounds that the situation has worsened in the bank assets, liquidity. Since August 2016, the new management began to operate in the bank.