Azerbaijan, Baku, Aug.28 / Trend I.Khalilova /
The Azerbaijani Central Bank strengthens surveillance over the administrators of branches and is preparing for their certification, the banking circles of the country said on Aug.28.
In connection with the tightening of surveillance in this area, the situation with the opening of bank branches in the country become more difficult, the bankers said.
The main objective of strengthening the Central Bank's control over the activities of banks' branches is to improve financial discipline there. Taking into account that the branches do not have separate balance sheets and daily operating indexes are presented to the bank's head office in the on line mode, where they compile a consolidated balance sheet, an accountant is not required in the branches. Accordingly, the administrator becomes in charge of all financial transactions of the branch. Regarding this, the Central Bank considers it necessary to conduct their certification to make sure of the quality of managers in the branches of the banking system.
Meanwhile, Azerbaijani banks continue expanding branch networks, which led to their expansion by 16.9 percent in 2008, including by 6.98 percent in the second half of 2008 and by 8.1 percent in the first half of 2009.
As for Dec. 31, 2008, about 567 branches of 38 banks operating in the country (their total number is 46 ) were functioning in the country, compared to 553 branches of 41 banks as for Oct. 1, 530 branches of 41 banks as for July 1 and 485 branches of 41 banks as for Jan.1. The total number of branches of 38 banks had been brought up to 613 in the first half of 2009.
One of the 46 operating banks is state-owned. The state bank has 38 subsidiaries and the rest 45 commercial banks possess 575 ones. The commercial banks expanded their branch network by 45 branches through own attempts, but the half-state International Bank of Azerbaijan by one.
According to the totals of 2008, the main center of opening of branches was Absheron economic region, with 332 branch banks, Aran with 76 branches, Ganja-Gazakh with 57 branches. The smallest number of banks, only 10, operates in Nagorno-Shirvan and Nakhchivan regions.
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