Financial Market Supervisory Authority (FIMSA) is a public legal entity and independent in its operations. FIMSA is in charge of licensing, regulation and supervision of the credit institutions, insurance sector and securities market.
22 july 2016, 05:07
Licenses of "Dekabank", "Kredobank", "Parabank" and "Zaminbank" were revoked
The compensation will be paid on the guaranteed deposits of population
22.07.2016; BAKU - Based on the decision of the Board of Directors of the Financial Market Supervisory Authority of Republic of Azerbaijan, dated 21 July 2016, banking licenses of OJSC "Dekabank", OJSC "Kredobank", OJSC "Parabank", and OJSC "Zaminbank" have been revoked.
FMSA's decision was caused by the facts that said banks did not classify their assets in a manner required by the legislation, did not create adequate reserves for possible losses, did not comply with the requirement for a minimum amount of total capital, submitted the distorted reports, did not manage their current activities in reliable and prudential manner in general, and did not comply with the written instructions of the supervisory authority.
The decision aimed at mitigation of risks in banking sector through removal problematic and inadequately capitalizedbanks from the system, strengthening financial stability, confidence building, and the development of the financial sector as a whole.
OJSC "Dekabank", OJSC "Kredobank", OJSC "Parabank" JSC and OJSC "Zaminbank" are the Deposit Insurance Fund member banks and the population's guaranteed deposits in these banks will be paid by the Fund.
Since July 22, 2016, temporary administrators have been appointed by the FIMSA to the banks with revoked licenses. The Authority petitioned the court, asking to appoint a liquidator to the above mentioned banks and the liquidation of these banks will proceed under the supervision of the FIMSA.