Azerbaijani bank interested in developing guaranteed money market
Azerbaijan, Baku, Oct.1 / Trend N. Ismayilova /
Azerbaijan's PASHA Bank is interested in developing a guaranteed money market (GMM) on the interbank loan market, PASHA Bank Board Chairman Farid Akhundov said.
"Passivity was observed in summer, but now increase in activity is expected," Akhundov said. "
"Regarding our bank, we are ready to work in large amounts, but it all depends on the credit risk profile of each individual bank and the liquidity needs of banks, which has now decreased, with which some caution and passivity on the market may be related," he said.
According to Akhundov, despite this, in the medium and long-term perspective the market will develop.
In October 2009 the Central Bank of Azerbaijan, BBVB and a number of banks - market makers of the money market (Demirbank, AGBank, SDS "Nikoil", Bank Standard, Pashabank, Unibank and Bank of Baku) - signed a collective agreement, which is the legal basis for a new segment of money market. Turan Bank and AFB Bank later joined the project.
At present, there are 9 banks participating in GMM.
The guaranteed money market is a segment of the interbank loan market where execution of commitments on loan transactions is guaranteed by the Central Bank. Trading limits in trading limits are also considered and adopted by the Central Bank. Each of the banks participating in the agreement may attract credit funds amounting to no more than one million manat per month. The maximum term of the loan is no more than 30 days. Interest rates amount are determined by the banks.