The Central Bank of Azerbaijan (CBA) has begun a restructuring of the banking sector and implementation of measures to strengthen its financial stability and risk management, CBA Chairman Elman Rustamov stated today during an expanded board meeting dedicated to the results of 2015.
"Using a proactive approach to banking supervision and legislative (prudential) regulation, without allowing the accumulation of additional risks in the sector, regulatory frameworks have been adapted to the new situation, and the countercyclical mode was applied to the requirements for banks," Trend quoted him as saying.
The countercyclical approach used by the CBA and supporting measures made it possible to manage risk at an adequate level, and banks have shown resilience to the shocks caused by the generated capital and institutional buffer, the head of the Central Bank of Azerbaijan noted, stressing that at the end of 2015 the assets of Azerbaijani banks amounted to 35 billion manats, credit investments to the economy amounted to 21 billion manats, 75% of which are business loans.
The head of the CBA noted that one of the important tasks for 2016 is to maintain the stability of the banking sector.
"To ensure the safety of tpopulation's deposits and other deposits in banks, we will continue to strengthen the sustainability of the financial sector, capital position and liquidity, we will continue measures to improve the system of deposit insurance, financial infrastructure development, non-cash payments and electronic payment systems," Rustamov said.
It was also noted at the meeting that in 2015 Azerbaijan's foreign trade position was influenced by conditions on the world's consumer markets and the situation of the country's trading partners.
"The reduction of the current account surplus by 241 million dollars in January-September of 2015, compared to the same period of 2014, is mainly due to the decrease in oil prices. The consumer balance and balance of services in the non-oil sector were influenced by the economic processes that have occurred in partner-countries," the CBA's message says.
The Central Bank of the country, by using the stabilizing capabilities of the monetary policy appropriate to the economic cycle, has directed its policy to ensure macroeconomic and financial stability.
