Azerbaijan, Baku, Sept. 30 / Trend I.Khalilova /
Azerbaijan has joined the third stage of economic development, which should be based on domestic investment, manager of the Baku Inter-bank Currency Exchange, Farhad Amirbayov, said on Oct. 1.
"This jump in the economy cannot be done without enlarged highly capitalized banking system and developed financial system, Amirbayov added.
The first stage of the development of the country's economy was realized trough foreign investment and the second phase was based on public investment.
"I believe transformation is inevitable to achieve the third stage of development, but at the same time this process should be strengthened," Amirbayov added. "The concentration of the banking system and stock market industry has already matured."
Presently, it is high time to consolidate banking assets and capital, as there is a need in the capitalization of the banking system, Amirbayov added.
"The minimum requirement under the Central Bank's regulations and the real situation with the capitalization of banks should differ at several times, and perhaps tens of times. Banks with the capital of 100 million manat and above, the country's money markets with a capacity of 2-3 billion manat, the stock market with a capacity of 5 billion manat - this is something that will benefit the economy," Amirbayov said.
The Central Bank's minimum requirement for the bank capital is 10 million manat. Currently aggregated capital of 41 of 46 banks operating in the country exceeds 10 million manat. As for Sept.1, the total capitalization of the banking market is 1.92 billion manat.
As for Sept.1, the assets of the country's banking system are 10.6 billion manat.
On Oct.1, the official exchange rate is 0.8034 manat to $1.
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