CBA: New model of Azerbaijan banking sector development to rely on private banking system
Azerbaijan, Baku, April 13 / Trend I. Khalilova /
The model of future development of Azerbaijani banking sector should be directed to the qualitative development of the system, the Central Bank of Azerbaijan chairman Elman Rustamov said.
"The global crisis has shown that relying only on the rapid growth of bank indices is wrong approach. It is necessary to increase with quality. I think that banks should grow and develop in terms of human capacity, automation, and many other areas in which we should catch up," Rustamov said.
At present, we must draw the qualitative aspects of banking development.
He said that the new banking model should be a two-tier (now a three-stage banking model is applied in Azerbaijan), because the state banking system is inefficient. At present, Azerbaijan has one semi-state Bank - International Bank of Azerbaijan. Its authorized capital hits 50.2 percent share of governmental participation.
"If Agricultural Bank is formed in the country, terms of its privatization will be immediately announced. I support the private banking sector, which showed the effectiveness and the global crisis," Rustamov said.
Taking into account that all efforts aimed at minimizing the consequences of the crisis and monitoring its development in the global economy, the creation of the Agricultural Bank at this stage has not been discussed yet, the Central Bank head said. Creation of the Agricultural Bank is provided on the basis of non-banking credit organization Agrarcredit.
About 47 banks operate in Azerbaijan.