Azerbaijan, Baku, Oct. 6 / Trend N.Ismayilova /
The Central Bank of Azerbaijan (CBA) expects to completely transfer to the application of new prudential accounting from Jan.1, 2011, the head of the CBA Department for Supervision of Credit Institutions, Rashad Orujov, said.
"About 7-8 banks have technical problems that the central bank addresses. The matter is the internal problems of the banks' operating systems that need to be adapted to the new reporting system," Orujov said.
According to him, the CBA's internal system is ready to transition to the new prudential accounting.
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.
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