Azerbaijan Deposit Insurance Fund noted that, an insurance accident was occurred in Royal Bank on July 16.

ADIF says under the decision dated to 18.07.2012, the agent banks for reimbursement to Royal Bank’s depositors are Muganbank, Bank Respublika and AGBank. 

The reimbursement process will start from August 1 via selected agent banks. Information about agent banks’ branches, exact addresses and phones will be given. Each depositor will be compensated 100% of deposit but with the condition of not over AZN 30,000. 

Note that, 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 Bank.

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

CBA told that, in order to start bankruptcy procedures about Royal Bank, the CBA will appeal the courts: ‘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 Bank’.

Remind that, Royal Bank had been in operation since 1993. The bank operated 32 branches, 31 ATMs and 113 POS-terminals across the country.

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