License of Bank Standard is cancelled

The license of one of the largest banks of Azerbaijan -JSC "Bank Standard"  was canceled. This decision was taken in the House  to  Supervision the financial market 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 House  to  Supervision the financial market Rufat Aslanli.  The decision to revoke the bank's license enters into force on 1 October 2016.

The Chamber  adopted the decision on the basis of sanatorium treatment of the bank (Azer-Turk Bank) and the new management of the bank 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 and credit policies. The House on Friday appointed a temporary administrator in the bank. On Monday, the House will send a lawsuit on bankruptcy of the bank.

The court will determine the obligations of the bank and the liquidator of them will be adjusted in accordance with the law. Azerbaijan Deposit Insurance Fund will pay the bank customers of their 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 House introduced a temporary administration Bank Standard on the grounds that the situation has worsened in the bank assets, liquidity for three months. Since August 2016, the new management began to operate in the bank. Thus, the number of banks in Azerbaijan with a license to operate was reduced to 32. Bank Standard was part of the five leading banks of Azerbaijan, and ranks second in terms of deposits. -06D--