BAKU, Azerbaijan, January 13. The Central Bank of Azerbaijan adopted amendments to the "Regulations on norms of required reserves, their calculation and maintenance" and the norms of required reserves by decision of its Board of Directors, Trend reports via the CBA.
According to the bank, this decision is aimed at strengthening the efficiency of the interest corridor at the refinancing rate, and more effective regulation of the money supply by the CBA.
"Besides, we limited the concentration of liquidity in the banking system, and also stimulated the tendency towards dollarization. We don't expect a significant impact from these amendments related to required reserves on the costs of the banking sector," the CBA explained.
"The amendments may affect the increase of the average value of liabilities in manat by 0.16 percent, and for the value of liabilities in foreign currency - by 0.01 percent, but we don’t expect this either," the bank added.
The CBA increased the percentage of the required reserve, which banks must keep in the Central Bank on the deposits they attract, by five percent for deposits of individuals and individual entrepreneurs in manat, and by six percent - for deposits of individuals and individual entrepreneurs in foreign currency.