Details added (first version posted on 18:55)
Baku, Azerbaijan, Dec. 25
By Anvar Mammadov - Trend:
The Central Bank of Azerbaijan has introduced a primary set of requirements to banks in order to regulate their activities in connection with the devaluation of the manat, head of the Azerbaijan Banks Association Zakir Nuriyev told Trend Dec.25.
The Central Bank of Azerbaijan switched to the floating rate of the national currency (manat) from Dec.21, 2015. As a result, the exchange rate of the US dollar and euro to manat rose by 47.6 percent and 47.9 percent and stood at 1.55 manats and 1.685 manats, respectively on the mentioned day.
Nuriyev said that the set of requirements was introduced within the framework of the meeting with the management of commercial banks of the country organized by the Azerbaijani Central Bank and the Azerbaijan Banks Association.
"The set includes requirements for banks on capital adequacy [new requirements are expected to enter into force, in particular the rate is expected to be reduced from 12 percent to 10 percent]," he said. "The rules of banks' action after the second devaluation in the country were also discussed."
"It is important that banks consider the market situation and choose the right methods of dealing with customers during the preparation of strategic plan and credit policy for 2016," Nuriyev said.
The head of the association went on to add that during the meeting the results of the year 2015 were summed up and the activities carried out by the country's central bank to ensure the stability of the banking system discussed.
"I would like to note that today the main issue is to change the system of insurance of bank deposits of population, which was also discussed at the last meeting," said Nuriyev. "It is essential that all deposits of population in banks are fully insured, and solving this issue depends on the government of the country."
Currently, 43 banks operate in Azerbaijan.