Azerbaijani Central Bank prepares actions to improve banks' activity during post-crisis period: deputy chairman
Azerbaijan, Baku, October 8 / Trend I. Khalilova /
Presently, major task of the Azerbaijani Central bank is development of actions to improve activity of bank system in post-crisis period, the first deputy chairman of the Central Bank's board Alim Guliyev said.
"The world financial and economic crisis reached its peak. Stress-tests conducted in bank systems demonstrated that impact on banks' portfolio also reached its peak, Guliyev said. Bank accounting also indicates that hard times in bank system left behind compared to early 2009. So, we think over preparation of measures to improve their activity in post-crisis period.
He said that bank indices point to improve the situation for the second and the third quarters. Increase of banks' assets, restoration of their loan portfolios and growth of population's deposits testify it.
"Azerbaijani banking system also preserved its liquidity during crisis. It is confirmed by the factor that banks returned $1 billion on foreign borrowings in 2009," deputy chairman of the Central Bank.
He said that several banks draw centralized loans of the Central Bank to support their liquidity. Only UniBank and Standard Bank applied to the Centrla Bank for financial aid to fulfill obligations on foreign borrowings.
"These two banks are backbone. So, it is necessary to preserve these financial institutes, Guliyev said. From other side, untimely return of foreign loans can affect the country's image in the world community. So, the Central Bank gave these banks resources to pay off loans. Other banks could fulfill their obligations for foreign investors independently."
Do you have any feedback? Contact our journalist at [email protected]