Second assessment of financial sector in Azerbaijan within FSAP program can begin no earlier than 2011
Azerbaijan, Baku, September 3 / Trend , N.Ismayilova /
The second phase of the assessment of the financial sector in Azerbaijan within the technical assistance program (FSAP) of the International Monetary Fund (IMF) and World Bank (WB) can begin no earlier than 2011, chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov said.
"Currently under the world financial crisis, all the shortages of the banking system of Azerbaijan were revealed, and therefore, the need for this assessment is absent," said Rustamov.
He said that CBA promptly and effectively reacted to all problems in the banking system and made every effort to resolve them. Thus, this assessment will become relevant only after the post-crisis period.
In 2003, the IMF and World Bank conducted an assessment of the banking, insurance markets and the securities market in Azerbaijan in accordance with international standards. However, the banking legislation has been updated since 2005, and therefore, the results of the assessment have lost their meaning.
Within the program on assessment of Azerbaijan's financial sector, the World Bank and IMF experts conducted stress-tests (simulation and economic modeling of behavior at lower rates), which revealed a high ability of the country's banking system to resist the reduction risks of common indicators. They showed that even with the deterioration of indicators by 50-70 percent (the worst scenario), the banking system will not fall to zero level of capital, and its assets will exceed the liabilities.
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