History | MuganBank


“Muganbank” OJSC was established in 1992. The main issues of the Bank from its establishing were active participation in the development of the economy of the country, rendering all types of bank services to the broad circle of the population and together with this yearning for to be one of the advanced financial institutions in a bank system. During 27 years, passing from the day of its establishing, the bank held the policy of stable development, and during these years became stronger in the Azerbaijan Bank system, services became better as quantitatively, as well as qualitatively.

“Muganbank” OJSC is the participant of bank system of Azerbaijan, being one of the basis for its stability and reliability.

Bank’s mission

Bank’s mission - in order to meet the requirements of all clients as private, corporative and state clients with bank services with high quality and rehabilitee to establish highly-motivated staff and as a result provide dynamic growth of profitability and the investment value of the Bank.

Bank’s slogan

Bank’s slogan is to be “theirs own” to private depositors, respectable in corporative Client’s eyes, support and assistance for state, to be recognized in international standard.

Bank’s strategy

Bank’s strategy – is to become financial holding with foreign investments carrying out all kinds of banking services to clients together with its financial institutions.

At the present, it can be declared in all responsibilities that at the result of carried out purposeful strategies and plans, “MUGANBANK” OJSC became one of the well- known banks both in Azerbaijan and in all foreign countries.

“Muganbank” OJSC provides the following bank services to legal and neutral persons:

  • Receiving free funds from population as deposit;
  • Submitting the client’s deposits cases;
  • Operations with plastic cards;
  • Rendering all types of currency operations;
  • Funds transferring to all countries of the world;
  • Submitting credits (consumer, import- export operations, auto, extending business and manufacture, construction, education, trade, agriculture, etc.).

The Bank takes an active role in all investment projects carrying out in the Republic, conducts an active policy on developing relations and in the directions of expansion correspondent relationships. The main foreign correspondents of the bank are: Transkapitalbank ( Moscow, Russia), TKB bank (Moscow).

Perceiving the importance of both international relations and active participation in Azerbaijani business environment Muganbank has become a respectable member of various local and international organizations: Azerbaijan Banks Association;  National Confederation of Entrepreneurs (Employers) Organizations of Azerbaijan Republic;  Azerbaijani-Turkish Businessmen Union;  Azerbaijan Risk Professionals Association;  Azerbaijan Micro-Finance Association;  AzeriCard;  SWIFT, AZIPS, XÖHKS;  MasterCard International;  Visa International;  National Fund for Entrepreneurship Support;  State Agency on Agricultural Credits under the Ministry of Agriculture;  Azerbaijan Mortgage Fund; Baku Interbank Currency Exchange;  Baku Stock Exchange;  Azerbaijan Deposit Insurance Fund;  European Bank for Reconstruction and Development (EBRD);  International Finance Corporation (IFC);  World Business Capital Inc. (WBC);  NASDAQ OMX Riga;  World Bank;  Overseas Private Investment Corporation (OPIC);  US Agency for International Development (USAID);  Islamic Corporation for the Development of the Private Sector (ICD).

Staff can solve everything

High professionalism and operation ability of bank employees allow to inform clients correctly, to render high quality services which in its turn supports increasing the number of rendered clients daily.

Bank without borders

As it is known, on 27 august 2002 the decree no. 779 “provision on using special purposes the funds of National Fund for supporting businessmen” of the President of the Republic of Azerbaijan was adopted. And on September 30, 2002 at the meeting of Observant Council consisting of the representatives of the Ministry of Economic Development, Ministry of Finance and National Bank was adopted the decision no. 02 on admission “Muganbank” OJSC as authorized bank on purpose using the funds of the Fund.

Shareholders held discussion, as the result of which the operations of crediting the subjects of enterprises were evaluated positively, as from own funds of the bank and from the funds of National Fund Assistance for Businessmen.

Bank’s activity on investment of the funds in National Fund Assistance for Businessmen line, according to the Regulation of the President of the Republic of Azerbaijan on development of small and middle enterprises was carried out with success and we hope that the activity in this direction will be expanded more.

In the first place it is necessary to state that Commercial Bank “Muganbank” OJSC is greeting and supporting all activities in these directions. It is necessary to consider that giving credits on the line of the bank in the first place creates conditions for development of the regions of the Azerbaijan.

Financial- economic activity of the “Muganbank” OJSC also was audited by international audit. The Bank collaborates with international audit company “Baker Tilly” which carried out audit of financial- economic activity of the bank for 2009- 2014 years.

The Bank continues joint participation with National bank of Azerbaijan and Ministry of Finance in the programs of collaboration with international financial organizations. The development of operations of investing the credits and project financing in “Muganbank” OJSC is carried out in close partnership with European Bank of Reconstruction and Development (EBRD) on the issues of jointly crediting the enterprises. Bank’s positions in the bank card market determine the necessity of developing business partnership with international payment systems VISA, Europay and others.

“Muganbank” OJSC is planning the significant expansion of mutual beneficial partnership collaboration in the trade and project financing spheres with big clients of the Bank.

Significantly mutually beneficial partnership will be increased with Russian banks, big foreign banks, invested and ventured funds in the spheres of joint realization of mutual beneficial projects.

On 27 November 2006 “Muganbank” OJSC entered into agreement with EBRD on a credit line of 3 mln. dollars for crediting small and medium enterprises on amount of two million dollars and also one million dollars for the development of trade financing.

On 27 November 2007 “Muganbank” OJSC entered into agreement with EBRD on a credit line of 3 mln. dollars for crediting small and medium enterprises and one million dollars for the development of micro business.

Nowadays we acquired 90% funds assigned on EBRD line and also planning to apply EBRD for the next credit line for the development of small and medium enterprises and syndicated loan as well.

“Muganbank” OJSC has also been involved to the pilot program of the International Financial Corporation on application of corporate management standards.

 In the middle of 2009 the head office of the bank was moved to a new building/

In 2013 7’000 Muganbank notes with face value of USD 1’000 and total volume of USD 7’000’000 have been recorded by JSC "Latvian Central Depository" (LCD) and placed at NASDAQ OMX Riga,  as stated by Rasim Ismayilov, the Deputy Chairman of the Board of “Muganbank” OJSC to the Public Relations Office of the Bank. 

In 2014 Muganbank was awarded by European Bank for Reconstruction and Development  (EBRD) Trade Facilitation Programme (TFP) “Most Active Issuing Bank in Azerbaijan in 2013”. The award was presented to the Bank as part of the annual Trade Facilitation Programme (TFP) Information Session and Award Ceremony during the EBRD 2014 Annual Meeting and Business Forum (May 14-16, 2014, Warsaw).

Muganbank started up a US$ 50 million Euro-Commercial Paper Programme (ECP programme) with the support of  Baker & McKenzie, BCP Securities (USA) və BNP Paribas (UK) and the first offering of notes under the programme. Muganbank was the first in Azerbaijan to initiate a Euro-Commercial Paper Programme.  

Muganbank commenced work towards receiving a senior loan facility of  up US$ 15,000,000 from Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), a member of KfW-Bankengruppe. On-going process.

The European Bank for Reconstruction and Development (EBRD) lent US$ 3 million to Muganbank to finance energy efficiency and renewable energy projects in the country. The loan is part of the EBRD’s Caucasus Energy Efficiency Programme (CEEP). Muganbank will be the EBRD’s third partner institution in Azerbaijan to secure an energy efficiency facility under CEEP.

The Green for Growth Fund, Southeast Europe (GGF) issued a US$  5 million senior loan to Muganbank to promote energy efficiency (EE) investments in Azerbaijan. The loan enables Muganbank to become one of Azerbaijan’s first institutions to offer dedicated EE loans.  Projected primary energy savings to result from EE investments financed by sub-loans: 8,700 MWh/year.

Islamic Corporation for  the Development of the Private Sector (ICD) extended to Muganbank a US$ 10 million line of financing to be used to finance eligible projects of selected small and medium sized enterprises (SME) in Azerbaijan with substantial developmental impact in the country. 

The European Fund for Southeast Europe (EFSE) provided a US$ 5 million senior loan facility to Muganbank to support the development of micro, small and medium-sized enterprises (MSMEs) in the rural regions of Azerbaijan. The loan enables Muganbank to effectively reach out to rural businesses in Azerbaijan and service country’s more remote areas.

Muganbank significantly expanded its network of services through extending to regions of the country and bringing the number of branches up to 42 and sub-branches up to 9.

The Bank’s Strategic Vision

To strengthen its market position through continuation of activity as retail-oriented universal bank mainly targeting population and SMEs and with branch network located in regional centres of the Republic

Brief Mission Statement

Ensure sustainable increase of the Bank’s profitability and dynamic increase of investment value through individual approach to each business partner and professional team providing high-quality services to customers

The Bank’s shareholders set the following targets for the Management for the strategy period of  2014-2017:

Key Strategic Targets for 2014-2017

  1. Continuing the improvement of corporative governance systems
  2. Continuing the improvement of human resource management systems
  3. Improving the marketing and sales process
  4. Improving the information technologies and information flows
  5. Expanding the Bank’s  branch network in regions
  6. Further developing the Bank’s international relations
  7. Advancing the Bank’s current products, developing new products and increasing the profitability
  8. Working towards attracting foreign investments to the Bank.

Business Philosophy of the Bank

The Bank builds its business philosophy upon the following values:

  • Trustworthiness
  • Safety
  • Integrity
  • Transparency
  • High-quality services
  • Partnership relations with customers
  • Profitability of issued stocks

“Muganbank” OJSC is interested in the economical development of the country as one of the financial institutions.