BAKU, Azerbaijan, October 13. Azerbaijan's Deposit Insurance Fund (ADIF) and the Korean Deposit Insurance Corporation (KDIC) signed a memorandum of understanding, Trend reports.
The agency's data show that the memorandum was signed by the fund's Deputy Executive Director Agshin Jahangirov and the Chairman and President of KDIC Yoo JaeHoon.
The memorandum is intended to promote joint international cooperation in the field of deposit insurance between ADIF and KDIC, as well as to improve the liquidation process of banks that are in the process of liquidating ADIF by using the best practices of the corporation, strengthen the development of the deposit insurance system in Azerbaijan, and improve financial literacy.
The memorandum defines the main directions and objectives of cooperation, a positive contribution to the development of the deposit insurance system, support for improving the practical and theoretical knowledge of potential ADIF human resources in order to optimize the process of bank liquidation, take advantage of ADIF's advanced experience, increase the efficiency of the asset management process, and accelerate the payment of compensation.
In addition, if deemed necessary, a joint research group consisting of ADIF and KDIC human resources will be established in order to conduct multidirectional research on the deposit insurance system and exchange experience.
ADIF was established under the Law of Azerbaijan "On Deposit Insurance" dated December 29, 2006, and began its activity on August 12, 2007.
ADIF was established to prevent the risk of loss of funds deposited by individuals as well as to ensure the stability and development of the financial system in Azerbaijan in case of the loss of solvency of local branches of banks and foreign banks. Over the years of its existence, the fund has made a direct contribution to the activities of credit institutions and played an important role in building trust in the banking system among citizens. In addition, the financial and banking sectors have been further developed and expanded.