Royal Bank (Azerbaijan)

Royal Bank
IndustryBanking
FoundedAugust 2, 1993
DefunctAugust 2, 2015
FateBankruptcy
HeadquartersBaku, Azerbaijan
Area served
Azerbaijan
Key people
Azer Shahmardanov,[1]
Chairman of the Supervisory Board
ProductsFinancial services
Commercial banking
Websitewww.royalbank.az

Royal Bank, also referred to as Royal Bank of Baku, was an Azerbaijani private commercial bank established as split off of ÖZ Bank on 2 August 1993.[2] It was liquidated in 2012 due to falling into insolvency.[3]

History

ÖZ Bank was founded in 1991 as the first venture capitalist bank in Azerbaijan following their independence from the Soviet Union.[2] They adopted the Royal Bank name in 1993 after splitting OZ Bank's commercial arm off as a separate commercial bank.[4] Royal bank provided financial services for individual customers, small- and mid-size businesses. The last supervisory board took control of the bank in 2004 and initiated a program on restructuring the financial and control systems.[2] Royal Bank was turned into an open stock company and was listed on the Baku Stock Exchange in 2006.[5] It had 32 regional branches, including the branches in Baku.[6] In 2011, they opened an independent subsidiary bank called Royal Investment Bank in Dubai, United Arab Emirates.[1]

On 2 August 2012, Central Bank of Azerbaijan cancelled the license of Royal Bank due to the unfulfilled liabilities and refusing to reply to the written notifications of the Central Bank. It was believed to be an insurance case.[3] On 2 August 2015, the Administrative Economic Court in Baku announced that Royal Bank had gone bankrupt.[7] 130 creditors received compensation for their lost savings from the Azerbaijan Deposit Insurance Foundation.[8] The government of Iran wrote to Azerbaijan and the Central Bank asking for the assets that they held with Royal Bank to be returned as a result.[9] As a part of the liquidation process, the real estate assets of the bank were auctioned off in 2022.[10]

References

  1. ^ a b "To Play the King". The Business Year. 9 February 2012. Retrieved 5 July 2025.
  2. ^ a b c "Royal Bank of Baku". ECBS. Retrieved 5 July 2025.
  3. ^ a b "Royal Bank declared bankrupt". Azernews. 2 August 2012. Retrieved 5 July 2025.
  4. ^ "Azerbaijani Central Bank revokes Royal Bank's licence". Trend. 13 July 2012. Retrieved 5 July 2025.
  5. ^ "Royal Bank of Baku. Information about the issuer". Cbonds. Retrieved 5 July 2025.
  6. ^ "Royal Bank". Banks AZ. Retrieved 5 July 2025.
  7. ^ "«RoyalBank» müflis elan edildi". Azadlıq Radiosu (in Azerbaijani). 2 August 2012. Retrieved 5 July 2025 – via Azadliq.
  8. ^ "Azerbaijani Central Bank: Loan liabilities of bankrupt Royal Bank to be fulfilled by its assets". OAN News. Retrieved 5 July 2025.
  9. ^ "Iran asks to return money from bankrupt bank in Azerbaijan (exclusive)". Trend. 4 August 2015. Retrieved 5 July 2025.
  10. ^ "Azerbaijan's Royal Bank auctions off real estate". Azernews. 12 November 2022. Retrieved 5 July 2025.
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