Central Bank of Azerbaijan prepares measures for cycling macro-prudential control
Azerbaijan, Baku, May 22 / Trend , I.Khalilova /
Azerbaijan's banking sector adapted to the new situation caused by the global financial crisis and the high growth of banking indicators observed over the past five years has stabilized, said Acting Director General of the Central Bank of Azerbaijan (CBA) Khagani Abdullaev.
"Meanwhile, the support will be enhanced even more for financial stability. Through our preventive and prudential measures, we have ensured that the banking system faces with minimal losses in the crisis, unlike other countries," said Abdullayev.
In the States anti-crisis program, the main priorities defined by the Central Bank are to ensure the liquidity of banks, maintain their lending activity, financial stability through exchange rate policy and macro-prudential measures.
According to Abdullayev, the Central Bank is developing complex measures for cycling macro-prudential control. During the global crisis, it was proved that in many countries, the standards of banking supervision are quite inefficient for a potential crisis situation.
"We will make certain technical innovations in the prudential regulations. The point is that when the economy is improving, it does not mean that the banking sector also should grow, but it needs to maintain a moderate growth path. These measures require a more cautious behavior," CBA Director.
He said that in April a serious reduction in credit investments was not recorded like in the first two months of 2009, today the rate of decline is at the level of approximately 10 percent. However, the deposit base declined 6 percent, but in April 4 percent of the reduction was restored compared with the beginning of the year.
"Analysis of the country's banking sector has shown that deposits may slow, but will grow," said Abdullayev.Do you have feedback? Contact our journalist at: [email protected]