DekaBank was formed as the first private bank in Azerbaijan in 1989. Until the collapse of the USSR, it served as a cooperative bank, whereas the Central Bank of Azerbaijan issued a license in 1992 which authorized the bank to offer all kinds of commercial banking services.[2]
The devaluation in 2015, along with the decline in oil prices on global markets, led to the collapse of Azerbaijan's banking sector.[3] By decision of the Board of Directors of the Financial Markets Supervisory Authority of the Republic of Azerbaijan dated 21 July 2016, DekaBank's banking licence was revoked.[4] A decision was taken to liquidate the bank and appoint the Azerbaijan Deposit Insurance Fund as its liquidator.[5]