Azeri National Bank: Maintaining financial stability is priority for 2009
Azerbaijan, Baku, Jan. 5 / Trend , I. Khalilova/
In 2009, the National Bank of Azerbaijan (NBA) plans to focus on maintaining the financial stability of the banking system on the backdrop of increasing global risks, according to the NBA's recently released key monetary policy priorities. "The NBA's policy will be to maintain the banking sector as a financial intermediary in the national economy, as well as the sustainability of the system, and to increase confidence in this sphere," the bank said in a statement. "Our main priority is to increase the confidence of economic agents in the Azeri banking sector."
The appropriate mechanisms will be introduced on the interbank monetary market to provide for the effective use of liquidity in the banking system. This year, more attention will be paid to bank assets quality management and forming a domestic reservation policy at banks. To do this, banks will be offered institutional support to improve their assets quality management system. Maintaining capital adequacy at a safe level will also be promoted. "Banking supervision will be strengthened to allow these tasks to be successfully implemented," the statement continued. "The necessary arrangements will be made to identify risks in advance - and to appraise and manage them."
The legal framework of the banking system is expected to be improved in 2009. Along with amendments to the Law on the National Bank and the Law on Banks, the Law on Non-Bank Credit Organizations and the Law on Credit Bureaus, which are relevant for infrastructure, will also be passed.
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