The bank asked the court to cancel the decision on its liquidation. The complaint will be considered on Oct.7.
Earlier, the Chamber of Control of Financial Markets asked Baku Administrative-Economical Court No.1 to liquidate the bank and appoint the Deposit Insurance Fund as a liquidator of the bank from July 24, 2016. The bank appealed against that decision.
Under the relevant decision of Azerbaijan’s Financial Market Supervisory Body dated July 21, 2016, the licenses of Dekabank, Kredobank, Parabank and Zaminbank were cancelled.
The licenses of those banks have been revoked, as their assets haven’t been classified in line with the law, they haven’t created adequate reserves and the aggregate capital of these banks doesn’t meet the minimum requirements, they haven’t fulfilled the regulator’s instructions.
The purpose of closing down these banks is to reduce the risks in the banking sector, strengthen the financial stability, increase the confidence and ensure the development of the financial sector.