According to the Decision of the Board of Directors of the Central Bank of the Republic of Azerbaijan dated October 18, 2023, the amount of its total capital is less than the minimum amount determined for banks, the adequacy ratio of its total capital is less than 3 percent, it does not carry out its current activities in a reliable and prudent manner, as well as the internal management and “Mugan Bank” OJSC in accordance with Articles 16.1.6, 16.1.7, 16.1.9, 16.1.18, 57 and 61.1 of the Law of the Republic of Azerbaijan “On Banks” due to inadequate control procedures license was revoked from October 19, 2023, a temporary administrator was appointed to the bank, and the bank was appealed to the court to liquidate it through bankruptcy.
Publika.az informs that with the above-mentioned decision of the Board of Directors of the Central Bank, in connection with the appointment of a temporary administrator to “Mugan Bank” OJSC, all powers for the management of “Mugan Bank” OJSC, including the powers of the general meeting of bank shareholders, have been transferred to the temporary administrator.
“Mugan Bank” JSC’s share in the assets of the country’s banking system is 1.4%, 2% in the loan portfolio, and only 1.3% in the liabilities of the sector. Cancellation of the bank license of “Mugan Bank” OJSC does not pose any threat to the financial stability and financial stability of the banking sector.
We inform you that “Mugan Bank” OJSC is a member bank of the Deposit Insurance Fund (Fund) and compensations for the deposits of the population insured in this bank will be paid by the Fund in accordance with the law. Other obligations of “Mugan Bank” OJSC will be regulated by the liquidator appointed by the court in accordance with the law. According to the reports submitted by the Bank to the Fund, by the end of the 3rd quarter of 2023, the insured (compensated) deposits of the Bank amounted to 216.7 mln. is AZN. It should be noted that the deposits of 99.9% of the Bank’s depositors will be compensated.
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