The Central Bank of Azerbaijan has revoked the license of “Gnaybank”. This is reported by the CBA. The report says that it was due to the fact that the bank’s total capital is less than AZN 50 million of the established requirement, total capital adequacy ratio is less than 3%, and its current operations are not carried out in a safe and prudential manner. Under the “Law on Banks”, “Gnaybank”s licence was revoked, an application was made to the court to liquidate the bank through bankruptcy. With that end in view, temporary administrators were appointed and all management powers, including those of the Bank’s general shareholders’ meeting, were transferred to the credit institution. Recall that “Gnaybank” accounts for 0.6% of the country’s banking assets, 1% of its loan portfolio and 0.5% of its liabilities. The revocation of the bank’s license does not pose a threat to the financial stability and financial stability of the sector. “GnayBank” is a member of the Azerbaijan Deposit Insurance Fund and compensation for insured deposits will be paid in accord with the legislation. According to the reports submitted by the Bank to the Fund, as of the end of the first quarter of 2023, the insured (compensated) deposits amount to AZN 38.5 million. Deposits of 99.9% of bank depositors will be reimbursed. At that, other liabilities of the bank will be regulated in accord with the liquidation legislation to be established by the court.

Source: Turan News Agency