10:09 - 19.10.2023

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October 19, Fineko/abc.az. By the decision of the Board of the Central Bank of Azerbaijan from October 18, 2023, due to the fact that the amount of total capital is less than the minimum amount established for banks, the adequacy ratio of total capital is less than 3%, does not carry out its current activities in reliable and prudential manner, as well as due to inadequate internal management procedures and according to Articles 16,1,6, 16,1,7, 16,1,9, 16,1,18, 57 and 61,1 of the Law on Banks, the license of Muğan Bank has been canceled since October 19, a temporary administrator was appointed to the bank, and a lawsuit was sent to the court to liquidate the bank through bankruptcy.

ABC.AZ was informed at the CBA that in connection with the appointment of the interim administrator of Muğan Bank by the above-mentioned decision of the CBA Board, all the powers to manage Muğan Bank OJSC, including the powers of the general meeting of shareholders of the bank, were transferred to the interim administrator.

The share of Muğan Bank in the assets of the country's banking system is 1.4%, in the loan portfolio – 2%, and in the liabilities of the sector – only 1.3%.

Cancellation of the banking license of Muğan Bank does not pose a threat to the financial stability of the banking sector.
We declare that Muğan Bank is a member bank of the Deposit Insurance Fund, and compensation for deposits of the population insured in this bank will be paid by the fund in accordance with the legislation. Other obligations of Muğan Bank will be regulated in accordance with the legislation by the liquidator, who will be appointed by the court. According to the reports submitted by the bank to the Fund, at the end of Q3 of 2023, insured (compensated) deposits in the bank amount to AZN 216.7 million.
According to the calculations of the bank's depositors, 99.9% of deposits will be compensated.