OREANDA-NEWS.  July 20, 2012. The license of Royalbank OJSC was revoked at Order of Central Bank’s Management Board # 17. The banking license of Royalbank OJSC was revoked due to incompliance with the requirements of the minimum amount of aggregate capital and adequacy, failure to meet liabilities before creditors, non-implementation of management and current performance in a reliable and prudential manner, as well as non-implementation of written instructions of the Central Bank and being guided by Articles 16.1.1, 16.1.6, 16.1.7, 16.1.8, 16.1.9, 16.1.16 and 16.1.18 of the Law of the Republic of Azerbaijan on Banks, reported the press-centre of CBA.

A temporary administrator was appointed to Royalbank OJSC from 13 July 2012 at the order of the Central Bank in question. The temporary administrator is functioning in the headquarters of the bank (AZ1073, Huseyn Javid Ave. 5, Baku).

In order to start bankrupcy procedures with respect to Royalbank OJSC, the Central Bank shall apply to court on announcing the bank insolvent and its failure to meet liabilities before creditors. Under Article 62.3 of the Law of the Republic of Azerbaijan on Banks moratorium of the bank shall be deemed valid upon delivery of the application by the Central Bank on launch of bankrupcy procedures.

Royalbank OJSC is the member of the Azerbaijan Deposits Insurance Fund (ADIF). According to the legislation, the ADIF is taking necessary measures to start procedures to compensate to depositors on protected deposits of Royalbank OJSC. Additional information shall be released on compensations for deposits.