Thursday, 26 December 2024
Bank Standard’s mortgage portfolio transferred to Muganbank
The mortgage portfolio of Bank Standard, the license of which was liquidated on October 1, has been transferred to Muganbank. As a result, the number of Muganbank’s mortgage borrowers reached 2,000 people, while the bank moved into first place in the mortgage portfolio volume.
Muganbank had 1,105 active mortgage contracts as of June 30, 2016, while the number of contracts in Bank Standard was 1,181.
The decision on the revocation of the Bank’s license was taken by the Financial Market Supervisory Body, on basis of an appeal made by Bank Standard and Azer Turk Bank, which has been performing a role of a special administrator over the bank since July 4.
Following the decision, Azerbaijan Deposit Insurance Fund (ADIF), which was appointed a liquidator of the bank, appealed to the Central Bank of Azerbaijan (CBA) to get a credit worth 460 million manats ($ 282 million) to pay back to depositors of the Bank.
The Azerbaijani Finance Ministry has already approved a state guarantee for Central Bank’s loan that is meant for returning of deposits in the Bank Standard. The volume of deposits in Bank Standard totaled 603 million manats, including 568 million manats of insured deposits.
Bank Standard was founded in 1995. It was one of the largest private commercial banks in Azerbaijan and one of the market leaders in terms of deposits. The insurance event that occurred in the bank became the biggest ever occurred in the banking system of Azerbaijan.
Head of FMSB Rufat Aslanli earlier said revocation of Bank Standard’s license doesn’t envisage closing the Standard Insurance. The company, however, has to prepare a new strategy that does not include any joint activity with the Bank.
Meanwhile, the supervisory board of recently-closed Dekabank will appeal to the Baku Court of Appeal on October 7, against the decision to close down the bank.
On July 24, based on the appeal by Azerbaijan’s Financial Market Supervisory Body in the court, it was decided to liquidate the bank and appoint Azerbaijan Deposit Insurance Fund as its liquidator.
Re-disseminated by The Asian Banker from Azernews
