Azerbaijan, Baku, Oct. 22 / Trend A.Akhundov N.Ismayilova /
The competitiveness, reliability and prospects of the Azerbaijani system banking have increased considerably in recent years, and undeniable progress is observed on the main quantitative and qualitative parameters of its development, CIS Finance and Banking Council First Vice President and International Bank of Azerbaijan (IBA) Chairman Jahangir Hajiyev said at the third International Conference on "Financial Institutions - the basis of structural modernization of the CIS economy" in Baku.
"The Azerbaijani banking system's focusing on the promotion of innovative trend is confirmed by many of its characteristics. I would like to note the consistent improvement of the structure of credit investments among them, since the future structural changes in the economy is laid through it. They are increasingly directed at the tech upgrade, update of products, development of sophisticated high-tech services and industries, both in the large production and small and medium businesses," Hajiyev said.
According to him, the banks increasingly rely on external borrowing to this end..
"Here, we should certainly note the increased role of the Central Bank of Azerbaijan (CBA). Its efforts to optimize the refinancing rate and the bounds of the exchange corridor, ensure the sustainability of the national currency and increase the volume of foreign exchange reserves are evidence to this," he said.
According to Hajiyev, there are still much to be done in the banking sector from the perspective of modernization and innovation development, particularly to strengthen the resource base, increase the capitalization, find new sources of long-term resources, enhance the attraction of investments into the domestic economy and improve the structure of credit investments. A plan of concrete measures to improve the financial and banking system should be developed soon for this end. It should be adequate to the requirements of structural modernization of the economy, and IBA is at the forefront of the modernization process.
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