Azerbaijan, Baku, Dec 21 /Trend N.Ismayilova/
The State Securities Committee (SSC) of Azerbaijan is negotiating with the Central Bank and the banking sector of the country for the possibility of the banks' participation in the creation of investment funds, SSC chairman Rufat Aslanli told Trend.
"The country's banking legislation prohibits banks directly engaging in this activity on one hand, but permits on the other hand, as the law does not prohibit investment in assets. Today, the banks' assets are its securities that they can buy through brokers," Mr Aslanli said.
The position of the SSC is to defer some part of the banks as financial intermediaries and use dealers to prevent the risks growth in the commercial banking sector.
"However, it would be useful to allocate funds to banks and invest in mutual funds through separate subsidiaries, not only for the development of this segment of the securities market, but also to obtain additional income by banks," the head of the State Committee said.
In general, the process occurring in the world today shows that the restriction of direct involvement of commercial banks in the securities market leads to the fact that they come to the market through subsidiaries and it becomes the dominant factor, Mr Aslanli said.