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CBA: â€˜Deletion of Royal Bankâ€™s license is related to unfulfillment of obligationsâ€™

13 July 2012 15:26 (UTC +04:00)

According to information, the deletion is related to that the bank does not meet several requirements.

â€˜As minimum amount of total capital and its adequate do not meet the requirements, as the bank can not fulfill its obligations in front of creditors and as its current activity is not realized reliably and prudentially, as well as as it did not fulfilled written tasks of the CBA, the license of Royal Bank has been deleted under the articles #16.1, 16.1.6, 16.1.7, 16.1.9, 16.1.16 and 16.1.18 of the law on Bankâ€™, says the information.

According to the mentioned law, from July 13, 2012, Royal Bank OJSC has been appointed temporary administrator. The temporary administrator operates at bankâ€™s headquarters.

CBA told that, in order to start bankruptcy procedures about Royal Bank, the CBA will appeal the courts: â€˜According to article #62.3 of the Law on Banks, after submission of petition for start of bankruptcy procedures by the CBA, an immediate moratorium law will come into the force on the Bankâ€™.

Note that, Royal Bank OJSC is a member of the Azerbaijan Deposit Insurance Fund. According to legislation, the Fund is already taking appropriate measures in order to start payment procedure of compensations to savers, whose deposits were kept at Royal Bank. The public will be informed on payment of compensation on deposits.