License of one of Azerbaijani oldest banks revoked

The license of Azerbaijan's Gunay Bank OJSC has been revoked, according to the Central Bank of Azerbaijan.

By the decision of the Board of Directors of Azerbaijan's Central Bank on May 16, 2023, the license of Gunay Bank OJSC was canceled from May 17, 2023.

The appeal was filed to the court for the liquidation of the bank through bankruptcy.

It was noted that the bank lost its license due to insufficient total capital and a low adequacy ratio (less than 3%). Moreover, the Central Bank reported on the unreliability and unreasonableness of the bank's current activities.

"The share of Gunay Bank OJSC in the assets of the country's banking system is 0.6%, in the loan portfolio - 1%, and in the liabilities of the sector - only 0.5%. The cancellation of the banking license of Gunay Bank OJSC is not a threat to the financial stability of the banking sector," the statement reads.

Gunay Bank OJSC is a member of the Deposit Insurance Fund, and the Fund will pay compensation for insured deposits of the population in this bank in accordance with the legislation.