Working group to be created to pay compensation to RoyalBank’s depositors

Three agent banks (Azerbaijani Muganbank, Bank Respublika, and AGbank) will create internal working groups to efficiently organise the operation to compensate RoyalBank's insured depositors. RoyalBank's licence for banking activity was previously revoked by the Central Bank of Azerbaijan (CBA), the Azerbaijan Deposit Insurance Fund (ADIF) said on Monday.

This decision was made at a meeting between the ADIF with board members and heads of the IT departments of Muganbank, Bank Respublika, and AGbank.

The issues of RoyalBank's obligations to the insured depositors, as well as those of the agent bank branches and agents that will make compensation payments, was discussed at the meeting.

The CBA board of directors made a decision on the revocation of RoyalBank's licence on July 12. According to the decision, a temporary administrator has been appointed in the Royal Bank since July 13. A moratorium on the bank was imposed on July 16. Agent banks will begin to pay compensation from August 1.

According to the preliminary data, about 47,000 depositors will get compensation. About 22 million manat will be required for paying this out.

RoyalBank is a commercial bank operating in Azerbaijan. It has 32 branches in Baku and regions of the country. The bank has RoyalCard processing centre.

RoyalBank was established on August 2, 1993 as the joint commercial bank 'OZ Bank'.


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