The Azerbaijani Central Bank (CBA) has named the reasons for liquidating a license issued to Royalbank for banking activity.
“The license was liquidated because the bank did not comply with the minimum level of requirements and the adequacy of the total capital,” the central bank said today. “It did not fulfill the obligations to creditors and the written instructions of the Central Bank. It did not operate properly.”
Trend reports that the Royal Bank has been declared bankrupt and bankruptcy proceedings began in accordance with the decision of the administrative and economic Baku Court N1.
The license for banking activities of “Royal Bank” has been eliminated by the Central Bank of Azerbaijan (CBA) on July 12. The closure of Royal Bank was officially recognized as insurance case, and moratorium was applied to fulfill its obligations to depositors. In this regard, three of the agent bank – Muğanbank, Bank Respublika, Agbank started paying compensation to the depositors of the bank.
Compensation will be paid to 6255 depositors in the total amount of $17.223 million manat. Accordingly, the accounts of depositors in 33 branches of the Royal Bank will be served by 27 branches of the three agent banks. It used to have 32 branches in Baku and regions of the country and Royal Card processing center.
