Azerbaijan's banking sector to report on new prudential accountability
Azerbaijan, Baku, June 20 / Trend , I.Khalilova/
The Central Bank of Azerbaijan (CBA) proceeded in a test mode to apply a new prudential reporting, and some banks have already submitted the new and old prudential reporting to the CBA, head of the CBA Supervision Department over Credit Institutions Rashad Orujov said.
"We are currently completing work on a new prudential reporting, which will require from banks greater detail, which will allow the Central Bank to examine in more detail the situation in each bank," Orujov said.
He said the new reporting can be applied by late 2009.
"The introduction of new prudential reporting is not linked to the global financial crisis, we began to think about this six months ago," the CBA official said. "Just this gives more detailed information on each bank."
In addition, the reporting is also provided in the new standards Basel-2, of which transition the Central Bank has a strategy. The Basel-2 envisages all requirements on the new reporting, said Orujov.
"After shifting to Basel-2, this reporting will provide an opportunity to obtain the necessary information," said the representative of the Central Bank.
The Basle-2 Standards is a special method of risk assessment and a more advanced method for calculating the capital. EU and major countries delay a full transition to the Basle-2 each year, as they evaluate macro-prudential indicators and see that jump to these standards could affect the level of financial services (qualitative and quantitative indicators), and this may lead to a reduction of financial services of the real sector, which could slow economic growth.