Bank Respublika is a private commercial bank established on May 22, 1992 based on a license issued by the
Central Bank of Azerbaijan
The Central Bank of Azerbaijan (CBA, ) is the central bank of Azerbaijan, with its headquarters in the capital city Baku.
The National Bank of the Republic of Azerbaijan was established by the Decree of the President of the Republic of Azerbaij ...
. Holding deposits worth over $700 million (
₼1.2 billion) it's the fifth largest
bank in Azerbaijan.
Overview
Bank Respublika was estasblished as a private bank with significant focus on small and medium-sized enterprise (SME) operating in the non-oil and gas sectors in Azerbaijan.
It experienced a sharp crunch of the ability to lend during the
2008 financial crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
years, requesting major recapitalization from the shareholders.
On June 1, 2011, the bank's total capital exceeded 53.7 million
Azerbaijani manat
The manat (ISO 4217, ISO code: AZN; Currency symbol, sign: ₼; abbreviation: m) is the currency of Azerbaijan. It is subdivided into 100 ''gapiks''.
The first iteration of the currency emerged in the Azerbaijan Democratic Republic and its succ ...
(₼) (US$31.6 million) and total assets reached ₼294.2 million (US$173.0 million), with the later accounting for 1.9% of the total assets held by
banks in Azerbaijan, making it the 10th largest in the country at the time.
Shareholders
The bank is majority owned by the members of the Guliyev family, who solidarily own 75% of the bank. In 2018, the primary shareholder Natig Guliyev increased it's stake to 53.72 percent. The other equity investors in the bank are two Germany's financial institutions:
German Investment Corporation
Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is a Development Finance Institution (DFI) and a subsidiary of KfW Group. It was founded in Cologne in September 1962 as a federally owned company by the former Federal President Walter ...
(DEG), a member of
KfW
The KfW, which together with its subsidiaries DEG, KfW IPEX-Bank and FuB forms the KfW Bankengruppe ("banking group"), is a German state-owned investment and development bank, based in Frankfurt. As of 2014, it is the world's largest national ...
banking group, and Sparkassen International Development Trust (SIDT), a member of financial group
Sparkassen-Finanzgruppe
The ''Sparkassen-Finanzgruppe'' ("Savings Banks Financial Group") is a network of public banks that together form the largest financial services group in Germany and Europe by assets. Its name refers to local government-controlled savings banks ...
. The relevant agreements to purchase a "25%+1 share" were signed between the parties on April 28, 2005, in Bank Respublika's head office.
The official web page of Bank Respublika, Shareholders, retrieved on 9 November 2011
/ref>
Structure of Bank Respublika's shareholders (in 2011):
See also
* Banking in Azerbaijan
Banking in Azerbaijan in its present form dates back to 1992, but it originated in the second half of the 19th century and continued through the Soviet period. It consists of the country's central bank, the Central Bank of Azerbaijan, founded on 1 ...
* Economy of Azerbaijan
The economy of Azerbaijan is highly dependent on oil and gas exports, in particular since the completion of the Baku-Tbilisi-Ceyhan pipeline, Baku-Tbilisi-Ceyhan Pipeline. The transition to oil production in the late 1990s led to rapid economic g ...
References
External links
Bank Respublika web site
Government of Azerbaijan
Banks of Azerbaijan
Banks established in 1992
1992 establishments in Azerbaijan
{{Azerbaijan-company-stub