Azerbaijani banking system to report back to Central Bank only in new way

Business Materials 16 March 2010 17:30 (UTC +04:00)

Azerbaijan, Baku, March 16 / Trend , I. Khalilova /

The Central Bank of Azerbaijan practically completed the transition to the introduction of new prudential accounting, Khagani Abdullayev, CEO of Azerbaijani Central Bank said today.

Since last October, banks provide in parallel the new and the old prudential accounting to the CBA, and it is planned to use the new reporting since the beginning of 2010.

The new accounting is also envisaged in new standards of Basel-2, on the transition to which the Central Bank has a strategy. All requirements on the new accounting are envisaged by Basel-2.

Basel- Standards are special method of risk assessment and a more advanced method of calculating the capital. The EU and major countries each year put aside 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 decrease in financial services of the real sector, which can slow economic growth.