Information by the Central Bank about revocation of the banking license of “Günay Bank” OJSC and appointment of a temporary administrator

17-05-2023

17 May 2023, Baku: By the decision of the Management Board of the Central Bank of the Republic of Azerbaijan dated 16 May 2023, the license of “Günay Bank” OJSC was revoked from 17 May 2023 and an appeal was filed to the court to liquidate the bank through bankruptcy on the grounds that the amount of the bank’s aggregate capital was below the amount of minimum aggregate capital established for banks, the adequacy ratio of the bank’s aggregate capital was below 3 percent, as well as the bank failed to carry out its activities in a reliable and prudential manner in accordance with articles 16.1.6, 16.1.7, 16.1.9 and 61.1 of the Law of the Republic of Azerbaijan “On Banks”.

By the decision of the Management Board of the Central Bank mentioned above, a temporary administrator was appointed to “Günay Bank” OJSC and all powers on management of “Günay Bank” OJSC, including the powers of the general meeting of shareholders of the bank were transferred to the temporary administrator.

The specific weight of “Günay Bank” OJSC in the assets of the country’s banking system is 0.6%, in the loan portfolio – 1%, and in the sector’s liabilities – only 0.5%. Revocation of the banking license of “Günay Bank” OJSC does not pose a threat to the financial sustainability and financial stability of the banking sector. 

“Günay Bank” OJSC is a member bank of the Deposit Insurance Fund (the Fund) and the Fund will pay compensations on the insured deposits of the population in this bank in accordance with legislation. Other liabilities of “Günay Bank” OJSC will be regulated by a court-appointed liquidator in the manner prescribed by law. According to the reports submitted by the bank to the Fund, as of the end of the first quarter of 2023, the insured (reimbursed) deposits of the bank amounted to AZN38.5M. To note, the deposits of 99.9% of the bank’s depositors will be reimbursed.