Regulatory Alerts2024-02-13
Law on Deposit Insurance
Enacted by the Republic of Azerbaijan, this law establishes a compulsory deposit insurance scheme to protect individual bank deposits and ensure financial system resilience. It creates the Deposit Insurance Fund, financed by membership and quarterly fees from member banks, to compensate protected depositors when a bank becomes insolvent or is liquidated. The legislation defines coverage limits, excludes specific high-value and related-party deposits, and outlines the Fund’s governance structure, fee collection mechanisms, and borrowing powers to ensure timely compensation.
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