10.09.2007
4 banks added to the list of member banks of the Deposit Insurance Fund.
- “Azerbaijan Industry Bank”
- “Azerbaijan Credit Bank”
- “Caucasus Development Bank”
- “NBCBank”
So, list of member banks to the Deposit Insurance Fund reached 34. These banks pay membership fees to the Fund in the amount of 10 thousand manats once-only. Each member bank gets fund’s certificate and this “certificate” is hanged in the situated office of banks.
Deposits with foreign branch offices of member banks shall not be insured by the Fund and shall not be eligible for compensation.
According to the Law of the Azerbaijan Republic “on deposit insurance” when an insurance event happens, i.e. member bank forced liquidates or bankrupts or effect of a court judgment prohibiting performance of deposit liabilities under the law the Fund guarantees a depositor to get compensation.
The Fund shall compensate deposits at a member bank to the following extents:
26.1.1. by January 1, 2008 – 100 per cent of the deposit balance but not to exceed 4 (four) thousand manat;
26.1.2. by January 1, 2009 – 100 per cent of the deposit balance but not to exceed 6 (six) thousand manats;
26.1.3. by January 1, 2010 – 100 per cent of the deposit balance but not to exceed 8 (eight) thousand manats.
It should be noted that, If an insurance event takes place at several member banks where a depositor holds deposits, compensation shall be paid individually for deposits with each bank.
If a depositor holds several deposits with a bank such deposits shall be summed up and treated as a single deposit for purposes of compensation. Taking into consideration of this, depositors may share their deposits and hold in several banks. Depositors pay no money for the insurance of their deposits. Insurance fees are paid only by banks.
A depositor of the bankrupted bank shall apply to the Fund for compensation with an application in the respective order during a year.
The Fund shall pay compensation no later than in 90 calendar days from the date the depositor’s application was received. Notwithstanding the foregoing, the depositor shall at any rate retain the entitlement to compensation during five years from the date the Fund first announced the payment of compensation.
