Azerbaijan, Baku, Sept.25. / Trend N. Ismayilova /
The Azerbaijani Central Bank (CB) will apply a new prudential reporting from January 2010, head of the CB department on the supervision of credit institutions, Rashad Orujov, said on Sept.25.
"Beginning from October, banks will present to the CB the new and the old prudential reporting and we will move to the application of new reports in early 2010," Orujov added.
The new accounts also provide the new "Basel 2" standards on the transition to which the Central Bank has a strategy. "Basel 2" foresees all requirements for the new reporting.
The "Basel-2" standards are a special method of risk assessment and more advanced method of calculating the capital. The EU and major countries each year postpone a full transition to the Basel-2, as they assess macro prudential indicators and see that a sharp transition to these standards can affect the level of financial services (qualitative and quantitative indicators), and this may lead to a reduction in financial services in the real sector, which can slow economic growth.
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